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invest","page_number":22,"box":{"x":102,"y":143,"width":801,"height":11}},{"id":"86ebca45-f9f3-40db-868c-6a267632421b","block_type":"box","text":"in real estate or interests therein.","page_number":22,"box":{"x":102,"y":158,"width":239,"height":9}},{"id":"4404dc32-1271-4e84-b47f-e77c0418b5ac","block_type":"box","text":"(4) Make loans to other persons, except that the acquisition of bonds, debentures or other corporate debt","page_number":22,"box":{"x":134,"y":181,"width":756,"height":11}},{"id":"e9c3de0a-a763-48fd-8cf0-b54246bfca5b","block_type":"box","text":"securities and investment in government obligations, commercial paper, pass-through instruments, certificates","page_number":22,"box":{"x":102,"y":196,"width":790,"height":11}},{"id":"03a236d0-3e12-43a9-baa9-7799320a64e7","block_type":"box","text":"of deposit, bankers’ acceptances, repurchase agreements or any similar instruments shall not be deemed to be","page_number":22,"box":{"x":102,"y":211,"width":800,"height":11}},{"id":"be93c6b1-d2be-46d6-bbb2-7332fc0c640f","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":22,"box":{"x":101,"y":226,"width":805,"height":11}},{"id":"9313b171-9022-47d9-a093-9f254c0898dc","block_type":"box","text":"of portfolio securities may be made only in accordance with applicable law and the guidelines set forth in the","page_number":22,"box":{"x":102,"y":241,"width":777,"height":11}},{"id":"04b36c04-ea72-4ce5-8ab1-41c543cbd1d6","block_type":"box","text":"Fund’s Prospectus and SAI, as they may be amended from time to time.","page_number":22,"box":{"x":102,"y":256,"width":512,"height":11}},{"id":"b4367fda-a6b4-4e9e-a5f8-538eeeb38f16","block_type":"box","text":"(5) Issue senior securities to the extent such issuance would violate applicable law.","page_number":22,"box":{"x":134,"y":279,"width":595,"height":11}},{"id":"28a053bc-8994-41f0-ad2d-0a44f96bb312","block_type":"box","text":"(6) Borrow money, except that (i) the Fund may borrow from banks (as defined in the Investment Company","page_number":22,"box":{"x":134,"y":302,"width":756,"height":11}},{"id":"11325b45-dc7e-4407-bbd3-f81ccc5673da","block_type":"box","text":"Act) in amounts up to 33","page_number":22,"box":{"x":101,"y":317,"width":177,"height":11}},{"id":"84150571-32ca-49dd-a303-9be586e6bf02","block_type":"box","text":"1⁄","page_number":22,"box":{"x":280,"y":317,"width":5,"height":5}},{"id":"5e268875-4890-4306-9c91-620c96b6134b","block_type":"box","text":"1⁄3","page_number":22,"box":{"x":283,"y":317,"width":8,"height":9}},{"id":"0f95d5fc-1c43-46f5-908c-b1670cd5f4c6","block_type":"box","text":"⁄3","page_number":22,"box":{"x":289,"y":320,"width":6,"height":6}},{"id":"a5e90f3f-3348-43ec-bad5-7cb57048a2a0","block_type":"box","text":"% of its total assets (including the amount borrowed), (ii) the Fund may, to the extent","page_number":22,"box":{"x":295,"y":317,"width":605,"height":11}},{"id":"0195f272-7af5-4d56-a075-3d14da425c24","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":22,"box":{"x":102,"y":332,"width":777,"height":11}},{"id":"e600ae63-61d8-4615-a120-73abb2865537","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":22,"box":{"x":102,"y":347,"width":753,"height":11}},{"id":"05b1fb89-ace5-48a5-b4e1-158807c2adf5","block_type":"box","text":"portfolio securities and (iv) the Fund may purchase securities on margin to the extent permitted by applicable","page_number":22,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"88e0d2a2-ad17-45cb-9661-985547f2d76e","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":22,"box":{"x":102,"y":377,"width":797,"height":12}},{"id":"e2a087d4-c845-465d-91df-09ab65263b25","block_type":"box","text":"Fund’s investment policies as set forth in its Prospectus and SAI, as they may be amended from time to time, in","page_number":22,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"840c972e-1f71-4446-8731-399c2dd305e8","block_type":"box","text":"connection with hedging transactions, short sales, when issued and forward commitment transactions and","page_number":22,"box":{"x":101,"y":407,"width":762,"height":12}},{"id":"cc8792d3-1324-4a61-b42b-4a9b30d2a503","block_type":"box","text":"similar investment strategies.","page_number":22,"box":{"x":102,"y":423,"width":209,"height":11}},{"id":"0823fe2d-c3c7-4d88-9a7d-a8bc5754642c","block_type":"box","text":"(7) Underwrite securities of other issuers except insofar as the Fund technically may be deemed an","page_number":22,"box":{"x":134,"y":445,"width":707,"height":11}},{"id":"5b049e51-a446-4363-b9b2-6857132e8f7f","block_type":"box","text":"underwriter under the Securities Act in selling portfolio securities.","page_number":22,"box":{"x":102,"y":460,"width":467,"height":12}},{"id":"751266e5-c1ca-4a71-8b1c-0b3fc842b425","block_type":"box","text":"(8) Purchase or sell commodities or contracts on commodities, except to the extent that the Fund may do so","page_number":22,"box":{"x":134,"y":483,"width":773,"height":11}},{"id":"399c7c1d-dd1c-4633-8806-1113b9a0449a","block_type":"box","text":"in accordance with applicable law and the Fund’s Prospectus and SAI, as they may be amended from time to","page_number":22,"box":{"x":102,"y":498,"width":774,"height":11}},{"id":"e6b25ce7-e949-41b9-a0c2-60f20a408d68","block_type":"box","text":"time, and without registering as a commodity pool operator under the Commodity Exchange Act.","page_number":22,"box":{"x":101,"y":513,"width":681,"height":12}},{"id":"083ddea7-2bee-442e-a0eb-a2a8aee13bc4","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":22,"box":{"x":102,"y":536,"width":768,"height":11}},{"id":"e52ad93d-1dc8-4661-9699-1a7bd6beda0e","block_type":"box","text":"approval, the Fund may not:","page_number":22,"box":{"x":69,"y":551,"width":197,"height":11}},{"id":"3f650572-d4b0-436c-b790-fd831fe57c12","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":22,"box":{"x":134,"y":574,"width":747,"height":11}},{"id":"29e42978-acfa-4d20-93cd-a3cbd54ef1ea","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":22,"box":{"x":102,"y":589,"width":759,"height":11}},{"id":"fdd573de-023c-4b2d-b66a-2ab0b3feeb83","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":22,"box":{"x":102,"y":604,"width":779,"height":11}},{"id":"e492aa55-8a44-4ddc-b0bf-71120ba07948","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":22,"box":{"x":101,"y":619,"width":761,"height":11}},{"id":"e94eac17-208c-4132-a5d9-10d944cf1322","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":22,"box":{"x":102,"y":634,"width":795,"height":12}},{"id":"f63ccdff-8612-4043-a0eb-98adda8b8cba","block_type":"box","text":"12(d)(1).","page_number":22,"box":{"x":102,"y":649,"width":60,"height":11}},{"id":"202f1da4-3aa3-4e0e-b4c9-723cdc89b5a2","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":22,"box":{"x":134,"y":672,"width":770,"height":11}},{"id":"471e85e3-a721-4f98-922c-4093bb63f801","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":22,"box":{"x":102,"y":687,"width":509,"height":11}},{"id":"6d84fdcd-0d1e-4450-b9ba-3762ee93c561","block_type":"box","text":"Except with respect to restriction (6) above or with respect to policies adopted pursuant to Rule 35d-1 under the","page_number":22,"box":{"x":102,"y":710,"width":799,"height":11}},{"id":"7ffb2e63-0d42-45fc-9d5c-ac496e5f9331","block_type":"box","text":"Investment Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions","page_number":22,"box":{"x":70,"y":725,"width":810,"height":11}},{"id":"0ef3e2ac-f03f-4243-bb96-1f304dca028b","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":22,"box":{"x":69,"y":740,"width":824,"height":11}},{"id":"3c1b14ee-95e0-424f-8473-58fa8e3be5c6","block_type":"box","text":"in certain securities or other instruments resulting from market fluctuations or other changes in the Fund’s total","page_number":22,"box":{"x":70,"y":755,"width":797,"height":11}},{"id":"9091dfe7-d8ea-49b9-a27c-425241339735","block_type":"box","text":"assets will not require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell","page_number":22,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"3b8fb39c-419d-407f-9c84-f3c00df5ffa9","block_type":"box","text":"or close out the investment without undue market or tax consequences.","page_number":22,"box":{"x":69,"y":786,"width":511,"height":10}},{"id":"5999ae04-2c19-4f5b-971d-386cf6de3dbb","block_type":"box","text":"For purposes of investment restriction (1) above, with respect to the Fund’s industry classifications, the Fund","page_number":22,"box":{"x":102,"y":808,"width":778,"height":11}},{"id":"9d811713-294e-4d8a-b8f5-41a63496b408","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":22,"box":{"x":69,"y":823,"width":817,"height":12}},{"id":"24b56fe0-95e5-46c6-a6c8-8f54f0ed3459","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":22,"box":{"x":70,"y":838,"width":817,"height":12}},{"id":"5b66aa2a-ece2-4c9d-bd7f-62b77e18e27e","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":22,"box":{"x":69,"y":853,"width":597,"height":12}},{"id":"7a1f9595-191d-4532-80d3-ab111524a121","block_type":"box","text":"I-6","page_number":22,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"6fb41757-49b4-4cd5-a71f-e394eb0ab8e4","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"50490abd-e8b5-4a3e-bb77-cd614ddcc6b8","block_type":"box","text":"III. Information on Directors and Officers","page_number":23,"box":{"x":69,"y":45,"width":294,"height":9}},{"id":"1214e5d6-67dc-49ea-a677-1b6999ea8e39","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Director”), thirteen of whom are not “interested persons” of","page_number":23,"box":{"x":101,"y":67,"width":790,"height":11}},{"id":"c4684dc5-d5ce-4dea-9644-36c7d2d5dde8","block_type":"box","text":"the Fund as defined in the Investment Company Act (the “Independent Directors”). The registered investment","page_number":23,"box":{"x":68,"y":82,"width":780,"height":12}},{"id":"af4ee5de-36a9-4762-b783-02748a9a7571","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":23,"box":{"x":69,"y":98,"width":837,"height":11}},{"id":"0397ce82-de45-450b-9967-c26e57e83a44","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":23,"box":{"x":70,"y":113,"width":793,"height":11}},{"id":"aee70f22-18b1-49d7-9bc8-700e1f19932e","block_type":"box","text":"Complex”). The Fund is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"64b0d6b0-4ea5-4e00-a0d8-edcb529a30af","block_type":"box","text":"The Directors also oversee as board members the operations of the other open-end registered investment companies","page_number":23,"box":{"x":68,"y":143,"width":839,"height":11}},{"id":"e050ff1a-8edc-456d-a7f0-5c03b96b6101","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":70,"y":158,"width":335,"height":11}},{"id":"009ac020-be5e-4534-ae6d-9c93cbd37e34","block_type":"box","text":"The Board has overall responsibility for the oversight of the Fund. The Chair of the Board is an Independent","page_number":23,"box":{"x":101,"y":181,"width":764,"height":11}},{"id":"bbf6b17e-2985-43bd-bf2d-5b8ebd6bfdb6","block_type":"box","text":"Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director. The Board has","page_number":23,"box":{"x":70,"y":196,"width":815,"height":11}},{"id":"1fddd0dc-51aa-43d1-8bd0-9dd340cfa1e1","block_type":"box","text":"five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee,","page_number":23,"box":{"x":68,"y":211,"width":832,"height":11}},{"id":"8e910227-0b10-48d9-b4d1-ab5f527a1431","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":23,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"a01f6701-439a-4b5f-a486-f16404004923","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":23,"box":{"x":70,"y":241,"width":793,"height":11}},{"id":"9d714072-9c1e-4d26-8373-c8e9693bbbb3","block_type":"box","text":"Directors generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":23,"box":{"x":70,"y":256,"width":790,"height":12}},{"id":"d7cbf495-9b14-4500-aacc-7247bbd4393a","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":23,"box":{"x":69,"y":271,"width":810,"height":12}},{"id":"e1b50420-d06f-4d18-94a8-49778aaf19fe","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Directors meet regularly outside the","page_number":23,"box":{"x":69,"y":286,"width":811,"height":12}},{"id":"9e89f0ae-9044-4185-8f0b-7266090ac362","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":23,"box":{"x":70,"y":302,"width":794,"height":11}},{"id":"96210b5a-ec3b-4278-a030-1a26644424cd","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":23,"box":{"x":69,"y":317,"width":816,"height":11}},{"id":"3fb807e5-2a85-4342-8880-a33c2189dc51","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports","page_number":23,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"ae5f6385-6252-40b1-aac6-6b89f4dc0558","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":23,"box":{"x":70,"y":347,"width":811,"height":11}},{"id":"d198412c-f494-48a5-b90f-5bc6e4839f00","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":23,"box":{"x":68,"y":362,"width":809,"height":11}},{"id":"a3eb7297-760f-4662-b032-0ef8a04d97f7","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":23,"box":{"x":69,"y":377,"width":825,"height":12}},{"id":"fe3fa2c9-b9c6-4d55-b087-a59802cde349","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":23,"box":{"x":69,"y":392,"width":441,"height":12}},{"id":"3825617e-6533-48e8-bf00-16f8ee7a6277","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":23,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"68516cfd-5793-49be-8e1c-f691e481e87a","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":23,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"7cd082f6-a7d8-4586-8183-049dcc358f5f","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":23,"box":{"x":68,"y":445,"width":819,"height":11}},{"id":"1270016d-a192-4dd8-80ac-120ebc6607a9","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance, operations","page_number":23,"box":{"x":70,"y":460,"width":812,"height":12}},{"id":"54c3b54f-d323-4cd5-9da9-bfa8a97222f6","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":23,"box":{"x":69,"y":475,"width":819,"height":12}},{"id":"cdfa899f-a456-41e3-a612-3907ca0779fa","block_type":"box","text":"the operations of the Fund.","page_number":23,"box":{"x":68,"y":491,"width":192,"height":11}},{"id":"58227035-a4a0-4d2e-af86-9b6121c031cc","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":23,"box":{"x":102,"y":513,"width":785,"height":12}},{"id":"b8c62c6f-1d20-4a95-8970-d9228898ddb9","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":23,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"1f8d1c94-7f07-44ee-96d8-7efb37f7e15e","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":23,"box":{"x":69,"y":543,"width":832,"height":12}},{"id":"b98634db-05c5-4463-9c67-997caed53bbe","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":23,"box":{"x":68,"y":559,"width":820,"height":11}},{"id":"21d8fc18-413a-4170-9839-f589dc29c1cf","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":23,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"79e4a062-1186-4c64-bb7f-1691bc1b047f","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":23,"box":{"x":70,"y":589,"width":767,"height":11}},{"id":"0821f433-8779-4699-b4e0-60ce947d8fa9","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":23,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"826e8f58-220a-4c25-93ee-f21c1dd67f18","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":23,"box":{"x":70,"y":619,"width":803,"height":11}},{"id":"b1262dc2-9da8-4ab1-ad18-024c4e10be0a","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":23,"box":{"x":69,"y":634,"width":840,"height":12}},{"id":"d09e0859-276f-4d98-a346-77229ed266de","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":23,"box":{"x":69,"y":649,"width":814,"height":12}},{"id":"98f0da3c-b887-4d61-b4b9-45440de42437","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":23,"box":{"x":69,"y":664,"width":817,"height":12}},{"id":"c9f5c2fd-9c5a-4671-9455-45eb333dab9f","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":23,"box":{"x":69,"y":680,"width":812,"height":11}},{"id":"454884c7-74dc-4609-a40b-ebbd9377e668","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":23,"box":{"x":68,"y":695,"width":840,"height":11}},{"id":"79166d7b-0fab-43ee-8071-8286843bb549","block_type":"box","text":"service providers. The Independent Directors have engaged independent legal counsel to assist them in performing","page_number":23,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"29d71eab-cf09-4e14-a600-95072ad3f843","block_type":"box","text":"their oversight responsibilities.","page_number":23,"box":{"x":68,"y":725,"width":218,"height":11}},{"id":"1b87fe6a-71c5-45e9-8a59-d9569f333e3a","block_type":"box","text":"Audit Committee.","page_number":23,"box":{"x":101,"y":748,"width":122,"height":9}},{"id":"d9a7fecc-4269-4d34-87a8-ae49a78a8bac","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":23,"box":{"x":229,"y":748,"width":673,"height":11}},{"id":"2adc55da-af34-4760-b6a5-bb0ff6070751","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Directors.","page_number":23,"box":{"x":68,"y":763,"width":834,"height":11}},{"id":"64728ff9-3dc3-4244-bc34-6dabb0901049","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":23,"box":{"x":68,"y":778,"width":820,"height":11}},{"id":"702b0fac-42c3-4c06-8ce1-83b53bb22baa","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":23,"box":{"x":68,"y":793,"width":823,"height":11}},{"id":"a583df36-8d77-4e50-9baf-6a21554528e3","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":23,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"7abf6750-b562-405e-b120-c630e1c9980e","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":23,"box":{"x":70,"y":823,"width":825,"height":11}},{"id":"0cce24a3-065f-4aeb-b9ce-b53b663c8672","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":23,"box":{"x":70,"y":838,"width":807,"height":12}},{"id":"18b3085c-02de-4c61-b99c-84a5b6c71f14","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":23,"box":{"x":68,"y":853,"width":781,"height":11}},{"id":"c2ba1b08-3bf3-4d39-ad9d-6d79928472f3","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":23,"box":{"x":69,"y":869,"width":834,"height":11}},{"id":"39fb6641-ef9c-47c0-ae4c-4fb036443d04","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":23,"box":{"x":69,"y":884,"width":838,"height":11}},{"id":"b2d4764e-8e74-4c89-8a94-7e8896636433","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":23,"box":{"x":69,"y":899,"width":825,"height":11}},{"id":"f90b2ddf-04c4-4e7f-8570-8aa36250ddcc","block_type":"box","text":"I-7","page_number":23,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"e7ed99ad-09dd-4843-ae88-0fdd45206307","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"98deda6f-721a-4b66-b627-d3cb3126e60a","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":24,"box":{"x":70,"y":45,"width":809,"height":11}},{"id":"bf091b40-9929-4f9a-a179-b897cdf41454","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":24,"box":{"x":70,"y":60,"width":815,"height":11}},{"id":"a176d836-33c6-4f83-821a-13af0dd25583","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":24,"box":{"x":69,"y":75,"width":774,"height":11}},{"id":"5d1fa0f8-ac82-4217-8493-7e120c7afade","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":24,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"35cae5f9-228f-4f31-ab89-be2c0676da55","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":24,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"4d0ea158-d9c1-4007-89db-5a299714d4ff","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee.","page_number":24,"box":{"x":69,"y":120,"width":812,"height":12}},{"id":"8d7b9fa1-e3fe-4eee-b295-5f0f31125d77","block_type":"box","text":"During the fiscal year ended April 30, 2026, the Audit Committee met four times.","page_number":24,"box":{"x":70,"y":135,"width":576,"height":12}},{"id":"8badca84-9fe7-4261-8e4c-e4004a35d932","block_type":"box","text":"Governance and Nominating Committee.","page_number":24,"box":{"x":102,"y":158,"width":286,"height":11}},{"id":"1b6bb97f-9f45-422b-bd13-24d6ed71527e","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":24,"box":{"x":394,"y":158,"width":464,"height":11}},{"id":"682691d9-7f89-4cc4-ac9f-0e88f2a82757","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":24,"box":{"x":70,"y":173,"width":838,"height":11}},{"id":"3b851ea9-3a5e-429a-b325-bd1a7e33b7ea","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Directors. The principal responsibilities of the","page_number":24,"box":{"x":70,"y":188,"width":786,"height":11}},{"id":"fe8b01f2-6f94-43de-a671-5022c3c4efa1","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Fund and","page_number":24,"box":{"x":69,"y":203,"width":804,"height":12}},{"id":"44399cd2-36a5-4f49-a1bc-6b5c298ade77","block_type":"box","text":"recommend Independent Director nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":24,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"ead108a7-4612-46cd-92b5-819426422626","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":24,"box":{"x":70,"y":234,"width":828,"height":11}},{"id":"84a6e06b-7561-4df5-b99e-5326faf07aa3","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":24,"box":{"x":70,"y":249,"width":809,"height":11}},{"id":"59964a0c-c903-4bc7-8e78-89fe73658604","block_type":"box","text":"and make recommendations regarding Independent Director compensation; (5) monitor corporate governance","page_number":24,"box":{"x":69,"y":264,"width":780,"height":11}},{"id":"fecbdeea-da77-426d-bc91-d769813c83d3","block_type":"box","text":"matters and develop appropriate recommendations to the Board; (6) act as the administrative committee with","page_number":24,"box":{"x":69,"y":279,"width":782,"height":11}},{"id":"30d55687-6436-41e5-97b4-ed5d0cdfcb82","block_type":"box","text":"respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee) and","page_number":24,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"750dc8c1-09df-480a-80ee-c92ab8564788","block_type":"box","text":"codes of ethics as they relate to Independent Directors; and (7) undertake such other duties and responsibilities as","page_number":24,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"c69807a7-bfa5-4c8f-8055-e78e04923adf","block_type":"box","text":"may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may","page_number":24,"box":{"x":69,"y":324,"width":809,"height":12}},{"id":"c23cff91-5d6b-4b46-850d-2ce07a24db25","block_type":"box","text":"consider nominations for Directors made by the Fund’s shareholders as it deems appropriate. Under the Fund’s","page_number":24,"box":{"x":69,"y":339,"width":796,"height":12}},{"id":"d760a9f9-21ac-4cc4-8912-87a8c95ce776","block_type":"box","text":"Amended and Restated Bylaws (“Bylaws”), shareholders must follow certain procedures to nominate a person for","page_number":24,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"ba1376a3-5257-4a09-b816-9d6852f48e6e","block_type":"box","text":"election as a Director at a shareholder meeting at which Directors are to be elected. Under these advance notice","page_number":24,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"90ac9f7a-6940-4f3e-904f-4d1c7c0b8242","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Fund must be delivered to or mailed and received","page_number":24,"box":{"x":70,"y":385,"width":839,"height":11}},{"id":"01e4839c-3076-45db-b2a4-5279d45d8c58","block_type":"box","text":"at the principal executive offices of the Fund not later than the close of business on the fifth day following the day on","page_number":24,"box":{"x":69,"y":400,"width":833,"height":11}},{"id":"c915ca0c-8557-48d9-acb5-b98ef6bf2743","block_type":"box","text":"which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was made,","page_number":24,"box":{"x":68,"y":415,"width":781,"height":11}},{"id":"37e884df-0221-48a8-9d70-905f0d8a3fcc","block_type":"box","text":"whichever first occurs. The Fund’s Bylaws provide that notice of a proposed nomination must include certain","page_number":24,"box":{"x":68,"y":430,"width":773,"height":11}},{"id":"7714c24b-f77d-4793-80ad-0d1f6412ef53","block_type":"box","text":"information about the shareholder and the nominee, as well as certain other information, including a written consent","page_number":24,"box":{"x":70,"y":445,"width":832,"height":12}},{"id":"a07ef33d-6512-4462-a1d9-317c07a5bba4","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Fund’s Bylaws for more details. The Board","page_number":24,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"8aac8b18-7b4a-4cf3-bf69-af3a696cbbcc","block_type":"box","text":"has adopted a written charter for the Governance Committee. During the fiscal year ended April 30, 2026, the","page_number":24,"box":{"x":69,"y":475,"width":785,"height":12}},{"id":"891e5600-5e6b-46b7-8576-b3ae2971b216","block_type":"box","text":"Governance Committee met eleven times.","page_number":24,"box":{"x":69,"y":491,"width":297,"height":9}},{"id":"5113c218-c8c1-435f-ad1b-73ad40f68e7e","block_type":"box","text":"Compliance Committee.","page_number":24,"box":{"x":102,"y":513,"width":168,"height":11}},{"id":"ad2427c4-5923-4bc8-84e6-cb5a9f900e78","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":24,"box":{"x":276,"y":513,"width":629,"height":11}},{"id":"a3552151-417d-410a-a690-cecd32876382","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":24,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"d2d390f1-feb0-4e98-9682-575241600f81","block_type":"box","text":"whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":24,"box":{"x":68,"y":543,"width":773,"height":12}},{"id":"36bd359d-9bf8-4640-a981-582f0469b68b","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Fund, the fund-related activities of","page_number":24,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"ae9bd399-c19f-4730-9b43-37fe9aaf4c88","block_type":"box","text":"BlackRock and any sub-adviser and the Fund’s third-party service providers. The Compliance Committee’s","page_number":24,"box":{"x":70,"y":574,"width":753,"height":11}},{"id":"f04578e7-1a31-4e18-a000-9b440683ff5c","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Fund and its","page_number":24,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"b1be5a88-b90c-423a-a9da-652e6479ca1e","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":24,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"e05d6eda-b597-437a-8fd1-f7b3563eb13f","block_type":"box","text":"and, where appropriate, recommend policies concerning the Fund’s compliance with applicable law; (3) review","page_number":24,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"d64bd0d7-0817-4801-b03c-daa7a3add35e","block_type":"box","text":"reports from, oversee the annual performance review of, and make certain recommendations and determinations","page_number":24,"box":{"x":69,"y":634,"width":811,"height":11}},{"id":"739b904b-7537-405b-b81c-5f1575172194","block_type":"box","text":"regarding the Fund’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":24,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"df8b5ca9-7297-4d37-9eea-5d70e2e0c583","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":24,"box":{"x":69,"y":664,"width":812,"height":12}},{"id":"5d78440a-2be3-41c6-a652-979c02d815ad","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":24,"box":{"x":69,"y":680,"width":825,"height":11}},{"id":"f1b2d682-7d56-4f6f-8289-7a0bcb60849a","block_type":"box","text":"Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During the fiscal","page_number":24,"box":{"x":69,"y":695,"width":811,"height":11}},{"id":"3a82d451-4aba-45f2-aeb2-f680e209ae31","block_type":"box","text":"year ended April 30, 2026, the Compliance Committee met four times.","page_number":24,"box":{"x":68,"y":710,"width":504,"height":11}},{"id":"34c2cca7-757a-48c8-b4db-baf0d9153efb","block_type":"box","text":"Per formance Oversight Committee.","page_number":24,"box":{"x":102,"y":732,"width":248,"height":12}},{"id":"96fee02f-250e-40a9-9d7f-558635f3fafc","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":24,"box":{"x":356,"y":732,"width":531,"height":12}},{"id":"fba99edb-efbb-43c2-a0bc-c1f02c9e4eef","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":24,"box":{"x":69,"y":748,"width":829,"height":11}},{"id":"3f271739-dbbe-4695-8fab-f9a17049275c","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Directors. The Performance Oversight Committee’s purpose is","page_number":24,"box":{"x":69,"y":763,"width":832,"height":11}},{"id":"58828021-be01-4510-9f3e-87d1a4089d1b","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":24,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"3fe59bbe-deee-4b48-a900-04569df4c77a","block_type":"box","text":"upon performance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":24,"box":{"x":69,"y":793,"width":818,"height":11}},{"id":"00ac0f2b-b3f6-4d6e-ac26-75ccb7aca47e","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":24,"box":{"x":69,"y":808,"width":782,"height":11}},{"id":"6a0aeaca-ae97-488c-aaeb-00ace9443494","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":24,"box":{"x":70,"y":823,"width":829,"height":11}},{"id":"77eb861d-20db-4dd2-adc4-59b9e6826a9e","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":24,"box":{"x":69,"y":838,"width":816,"height":11}},{"id":"032fd9f8-42bd-4934-8ff7-63083fac2d28","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":24,"box":{"x":69,"y":854,"width":803,"height":10}},{"id":"c7912528-7e11-41b7-a0dc-9e1b94da54a9","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":24,"box":{"x":69,"y":869,"width":827,"height":11}},{"id":"794c3d3b-68d9-4d38-8a94-2be1da599462","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":24,"box":{"x":68,"y":884,"width":811,"height":11}},{"id":"5be70528-7ec8-4b71-b986-07afa1d4355b","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":24,"box":{"x":69,"y":899,"width":757,"height":11}},{"id":"8e2edb22-da0b-4bb6-a4b0-df86f6a6eb15","block_type":"box","text":"I-8","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"36469c38-6fa5-484a-801e-bbd5a4292bce","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31bc0116-05b8-41c9-afc9-e78848484dc5","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":25,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"e0e60363-6b1f-467c-b005-222fcd984fab","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":25,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"9173788c-8103-4146-8efe-48a3271e0782","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":25,"box":{"x":69,"y":75,"width":780,"height":11}},{"id":"ec80cad7-e8e6-49c1-becb-0b1af5bae999","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":25,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"f0cdfde5-9afe-4534-bb26-29dc9797845d","block_type":"box","text":"ended April 30, 2026, the Performance Oversight Committee met five times.","page_number":25,"box":{"x":69,"y":105,"width":546,"height":11}},{"id":"71c409df-2930-4627-9b95-ebcca6bddc34","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":25,"box":{"x":101,"y":128,"width":186,"height":11}},{"id":"c73037e2-7e24-43ba-8aa4-ecbd19c60d86","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":25,"box":{"x":293,"y":128,"width":598,"height":11}},{"id":"86b7004f-166c-43a1-b0b7-6fa141f4922e","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":25,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"d2d0db18-705c-4822-9e53-4db8302065cb","block_type":"box","text":"serves as an interested Director. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":25,"box":{"x":69,"y":158,"width":796,"height":11}},{"id":"b9d6cae6-2b44-4dfd-9faa-a3b137b0b1ed","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":25,"box":{"x":69,"y":173,"width":788,"height":11}},{"id":"7922653d-e8a7-4c90-bb64-f72630906353","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":25,"box":{"x":69,"y":188,"width":813,"height":12}},{"id":"c66634a2-87f3-465a-aab0-c063f7d49d84","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":25,"box":{"x":68,"y":203,"width":816,"height":12}},{"id":"a0980a63-dc64-4707-b860-baca0d41db8b","block_type":"box","text":"the fiscal year ended April 30, 2026, the Ad Hoc Topics Committee did not meet.","page_number":25,"box":{"x":68,"y":218,"width":577,"height":12}},{"id":"84eede30-d421-4d5b-81f9-da37ca3d33cf","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":25,"box":{"x":101,"y":241,"width":771,"height":11}},{"id":"f1a3d41e-4e35-40c9-9c48-4cf91c3a0e5f","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":25,"box":{"x":69,"y":256,"width":830,"height":11}},{"id":"947950b8-a2eb-43bf-95c5-059ddad9f255","block_type":"box","text":"of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected or","page_number":25,"box":{"x":69,"y":271,"width":833,"height":12}},{"id":"5135f08d-3ea7-484c-b563-6489a4d5a883","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":25,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"74ee7723-908e-4928-b2d4-28577b3b20a9","block_type":"box","text":"in determining that a particular Independent Director was and continues to be qualified to serve as a Director, the","page_number":25,"box":{"x":70,"y":302,"width":811,"height":11}},{"id":"7cd113c2-cc93-4fcc-912a-15670717698d","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":25,"box":{"x":70,"y":317,"width":787,"height":11}},{"id":"1dfa9665-4c28-4cf4-8c0a-cc4632cfdb0b","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":25,"box":{"x":69,"y":332,"width":807,"height":11}},{"id":"406c98f9-7361-4f4b-8891-5d60f5ea526b","block_type":"box","text":"which allow the Board to operate effectively in governing the Fund and protecting the interests of shareholders.","page_number":25,"box":{"x":68,"y":347,"width":792,"height":11}},{"id":"93127bba-05ad-4de6-a7b8-34805ea24d6d","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":25,"box":{"x":68,"y":362,"width":832,"height":11}},{"id":"8c653689-b725-46b7-82f3-c37726d2eadb","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":25,"box":{"x":69,"y":377,"width":823,"height":11}},{"id":"bee06100-da9f-4804-8fc7-a273edfc5d99","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":25,"box":{"x":69,"y":392,"width":771,"height":12}},{"id":"74fc4e08-2279-418d-939a-d31b4e052c9b","block_type":"box","text":"business judgment in the performance of their duties as Directors.","page_number":25,"box":{"x":69,"y":407,"width":475,"height":12}},{"id":"e15a11df-b373-4cff-9648-cb8236377119","block_type":"box","text":"Each Director’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":25,"box":{"x":102,"y":430,"width":794,"height":11}},{"id":"cbaa2858-c0d8-4586-86d5-34a4228960a5","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":25,"box":{"x":69,"y":445,"width":807,"height":12}},{"id":"e4c04c7a-085c-4a52-8be7-14bb57292c08","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":25,"box":{"x":69,"y":460,"width":835,"height":12}},{"id":"51644995-c70b-4155-8741-6f28f1b5bd57","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":25,"box":{"x":70,"y":475,"width":759,"height":12}},{"id":"3c920b3c-4135-4142-84d4-6d813195e32b","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":25,"box":{"x":70,"y":491,"width":685,"height":11}},{"id":"1a2fa1ea-53fc-4ed9-a012-ae30bc8419e4","block_type":"box","text":"ad hoc","page_number":25,"box":{"x":762,"y":491,"width":47,"height":9}},{"id":"05f4ae85-7ad3-40a3-ae51-d57e8028b383","block_type":"box","text":"committees","page_number":25,"box":{"x":814,"y":491,"width":82,"height":9}},{"id":"aacec541-ea61-4749-8bc9-37d1b35e682d","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":25,"box":{"x":68,"y":506,"width":395,"height":11}},{"id":"6d4e48c2-3772-42c0-af2b-12b0aaa62342","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":25,"box":{"x":101,"y":528,"width":754,"height":11}},{"id":"2a577ffe-953f-4d38-a49a-e223ec937f86","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":25,"box":{"x":69,"y":544,"width":494,"height":10}},{"id":"0d5cc6d3-575e-472f-a6bc-65a17ca812fb","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":25,"box":{"x":69,"y":572,"width":408,"height":9}},{"id":"24011bd5-625c-4c8c-a801-0fb5ff1dab47","block_type":"box","text":"Independent Directors","page_number":25,"box":{"x":70,"y":588,"width":156,"height":11}},{"id":"18fab0ee-1b04-4e88-acc5-c9ce65a72104","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":25,"box":{"x":69,"y":603,"width":781,"height":12}},{"id":"5d2ba0e2-7fc0-432d-a940-ae5e15f8343b","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":25,"box":{"x":265,"y":618,"width":604,"height":12}},{"id":"7754f65f-9a1d-461c-b221-1cee3b7f1989","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":25,"box":{"x":265,"y":634,"width":623,"height":11}},{"id":"3988c9a6-e426-4184-8aea-ccbe2f942123","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":25,"box":{"x":265,"y":649,"width":637,"height":11}},{"id":"6a4f80c6-5ce0-4eab-b130-890c85f881e8","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":25,"box":{"x":265,"y":664,"width":631,"height":11}},{"id":"4fc83de0-5f83-4aa5-b90f-3b032b9d439d","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":25,"box":{"x":264,"y":679,"width":626,"height":10}},{"id":"bb713b3c-084e-4380-a813-6bb6e3baf803","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":25,"box":{"x":265,"y":694,"width":639,"height":11}},{"id":"fe88caa0-0df3-4639-a2d9-85c19a8d01ad","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":25,"box":{"x":264,"y":709,"width":637,"height":11}},{"id":"18b0a23c-0653-40f4-afbd-231e120ab629","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":25,"box":{"x":265,"y":725,"width":586,"height":11}},{"id":"f5e52adb-fa12-492d-90a3-3a833584b6b5","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":25,"box":{"x":265,"y":739,"width":640,"height":12}},{"id":"007c8d3c-d052-432c-ae3b-ff9fe5057e60","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":25,"box":{"x":265,"y":755,"width":389,"height":11}},{"id":"72a7fe0b-2637-4147-80a3-d61e936027a6","block_type":"box","text":"I-9","page_number":25,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"07747e19-b7c8-4a8b-9276-86dcbe5ae8a4","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77892f8b-47fd-43a9-b1d1-987f816e538a","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":26,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"efc98372-286b-4a4a-9676-ffd2e35ca5d4","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":26,"box":{"x":69,"y":65,"width":806,"height":12}},{"id":"d1e40d93-f70b-4358-8a6b-47ecb561fda6","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":26,"box":{"x":265,"y":81,"width":604,"height":11}},{"id":"b680fee2-8be2-451e-9cd9-c0505e3e2956","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":26,"box":{"x":265,"y":96,"width":632,"height":11}},{"id":"9a39a608-025b-4ffb-83c8-be2cb8b1600b","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":26,"box":{"x":265,"y":111,"width":562,"height":9}},{"id":"11defeae-88a4-49bb-b3e6-6b43e8cee5bd","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":26,"box":{"x":265,"y":126,"width":616,"height":10}},{"id":"2575c3fc-2256-4287-8ca3-6d73108b7681","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":26,"box":{"x":264,"y":141,"width":591,"height":11}},{"id":"e2ecd378-8f49-406d-a7bd-7d21bd890406","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":26,"box":{"x":265,"y":156,"width":641,"height":11}},{"id":"255f2531-0685-4bfa-a04d-4e18973b0260","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":26,"box":{"x":264,"y":171,"width":638,"height":12}},{"id":"34e3c6ea-da44-42e0-9afd-4e3a5964c2ac","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":26,"box":{"x":265,"y":186,"width":584,"height":12}},{"id":"d06f2a61-9dfa-45cc-9b50-d026d67c0e47","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":26,"box":{"x":265,"y":201,"width":630,"height":12}},{"id":"3aeb9421-d64c-46ed-9598-04cf8de9a39f","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":26,"box":{"x":265,"y":217,"width":634,"height":11}},{"id":"c33387a2-0b14-4072-a5d2-caa51a42a250","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":26,"box":{"x":265,"y":232,"width":599,"height":11}},{"id":"53ced871-37d9-4109-b3c3-b2075e2d8e10","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":26,"box":{"x":265,"y":247,"width":407,"height":11}},{"id":"8e52df7a-0904-4af0-9f3f-5af1bdaccbb1","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":26,"box":{"x":69,"y":269,"width":837,"height":12}},{"id":"99ca0570-4f6e-4168-90d5-85090dfc8501","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":26,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"49063a70-2d94-4604-a8f6-27ff31cc4f8f","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":26,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"4a52ac9c-468f-4906-8fbe-c9cb3369ed20","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":26,"box":{"x":265,"y":314,"width":601,"height":12}},{"id":"b497e916-0a6d-4144-8ca0-0074d5443419","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":26,"box":{"x":265,"y":330,"width":595,"height":11}},{"id":"195b25d3-b7ad-4531-bcff-ca5900b6355b","block_type":"box","text":"perspective on the markets and the economy.","page_number":26,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"2d1ae75f-337d-4304-a444-3d8c236b8723","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":26,"box":{"x":70,"y":368,"width":798,"height":11}},{"id":"3e2743fe-b00a-4afd-8afa-c803bc9f1c58","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":26,"box":{"x":265,"y":383,"width":631,"height":11}},{"id":"5bd40e94-78ca-4ff8-9a38-623fa5956629","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":26,"box":{"x":265,"y":398,"width":633,"height":11}},{"id":"1beee6ed-d913-4336-a090-ad17cbac5e29","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":26,"box":{"x":265,"y":413,"width":628,"height":11}},{"id":"40db66a0-e3bb-4f22-831e-36707a02db53","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":26,"box":{"x":265,"y":428,"width":596,"height":12}},{"id":"7c5f4817-6bcf-4165-8212-875a6688cc8f","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":26,"box":{"x":265,"y":443,"width":616,"height":12}},{"id":"deba85a0-9860-4f7d-afbe-c59a736e881f","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":26,"box":{"x":264,"y":458,"width":368,"height":11}},{"id":"fe0c974c-cd3c-4aea-8e38-34f3a02475a9","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":26,"box":{"x":69,"y":481,"width":777,"height":11}},{"id":"340c9e09-aa16-4ac8-9147-79e02b50e19d","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":26,"box":{"x":265,"y":496,"width":613,"height":12}},{"id":"646357ce-b8fb-4a5d-99a2-d4fd7d743d9c","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":26,"box":{"x":265,"y":511,"width":563,"height":12}},{"id":"09f57d06-1561-423b-a5ed-05d4425ea5f2","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":26,"box":{"x":265,"y":527,"width":607,"height":11}},{"id":"02f24afa-7202-4280-8d5a-be96ba148034","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":26,"box":{"x":265,"y":542,"width":638,"height":11}},{"id":"99a83afb-73de-428a-a4e5-57bade210b90","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":26,"box":{"x":265,"y":557,"width":626,"height":11}},{"id":"83b5519d-3997-4bc3-9ab4-f441acf585a2","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":26,"box":{"x":265,"y":572,"width":563,"height":11}},{"id":"c4fb7883-9115-4303-945e-838ec8282f8e","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Directors prior to becoming an","page_number":26,"box":{"x":265,"y":587,"width":627,"height":11}},{"id":"60cef66d-0497-4d74-a7cd-065ba0e28410","block_type":"box","text":"Independent Director.","page_number":26,"box":{"x":265,"y":602,"width":151,"height":11}},{"id":"2536f3fe-5c8d-4f65-b265-26fd82bc33ab","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":26,"box":{"x":70,"y":625,"width":806,"height":11}},{"id":"6d114a99-72a9-4a5a-bb62-8bd18890a65a","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":26,"box":{"x":264,"y":640,"width":584,"height":11}},{"id":"2eddffd1-bec5-42f4-be01-f089abdb320b","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":26,"box":{"x":265,"y":655,"width":622,"height":11}},{"id":"656e56ee-e0e1-4465-948d-3febd38dc78b","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":26,"box":{"x":265,"y":670,"width":638,"height":11}},{"id":"ce60b5c1-91a3-4759-b737-87ce54db680c","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":26,"box":{"x":265,"y":685,"width":570,"height":12}},{"id":"69d86490-bb56-4700-9fea-086e8deb09fc","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":26,"box":{"x":265,"y":700,"width":642,"height":12}},{"id":"c9500cb5-af9f-4e79-80de-88886b0d871a","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":26,"box":{"x":265,"y":716,"width":626,"height":11}},{"id":"4712d4bc-31f7-4433-9d9a-ffe82a3518ef","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":26,"box":{"x":265,"y":731,"width":630,"height":11}},{"id":"0b148558-fe8c-44e6-81f1-c75a5a24a819","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":26,"box":{"x":265,"y":746,"width":602,"height":11}},{"id":"6e290d57-ca24-4e66-be77-1701e9ff12f4","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":26,"box":{"x":264,"y":761,"width":643,"height":11}},{"id":"7b18ece1-131e-4d25-bfbb-3601e5fc37c7","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":26,"box":{"x":264,"y":776,"width":639,"height":11}},{"id":"74a4678b-e3a0-4813-be60-edbcc775bee2","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":26,"box":{"x":264,"y":791,"width":641,"height":11}},{"id":"e272d268-9602-428f-ae42-27eae99d94ef","block_type":"box","text":"applicable Commission rules.","page_number":26,"box":{"x":265,"y":806,"width":208,"height":11}},{"id":"5771166f-2c54-4f32-9435-519a74b9dcb8","block_type":"box","text":"I-10","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"aa21b874-7df5-4238-9cad-e23ceb902fa9","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94035883-7549-48e9-8511-9705618f61bf","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":27,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"b3aa2553-5ae7-4a03-aeb7-a0190dec409e","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":27,"box":{"x":69,"y":65,"width":769,"height":12}},{"id":"b1599678-a8d2-4af4-8368-dc653eca64a5","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":27,"box":{"x":265,"y":81,"width":621,"height":11}},{"id":"2a45f09d-471e-4581-b681-107c385c2531","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":27,"box":{"x":265,"y":96,"width":599,"height":11}},{"id":"3d3cbcdb-3135-4ebb-99bd-e37b75bf442f","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":27,"box":{"x":265,"y":111,"width":641,"height":11}},{"id":"bb3e0eab-f84b-4dc5-bf76-6e77ec0d5ccc","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":27,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"3244975c-0b19-41ce-b5b4-718ff51997f0","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":27,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"5cd8aac8-a5ba-4c1f-a629-446b0b746385","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":27,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"01bca64e-fb38-41df-a487-362148ea3e01","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":27,"box":{"x":264,"y":171,"width":628,"height":11}},{"id":"ba1c1f4a-2483-4ae6-988d-12b9a0f1f386","block_type":"box","text":"articles and books on these topics.","page_number":27,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"1b081a56-63bb-4772-950f-45144397ffea","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":27,"box":{"x":70,"y":209,"width":764,"height":11}},{"id":"d8b51380-d460-4d0d-8a44-a406360df10f","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":27,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"6b18aad9-15de-425c-b41c-23203d24a004","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":27,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"5c5e87b1-6399-42ee-9189-952d9e0586f7","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":27,"box":{"x":265,"y":254,"width":603,"height":12}},{"id":"917b0d3d-f6a6-4048-9a71-ce23c6270197","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":27,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"8dd8eacf-571b-46e6-8e77-544cd2206646","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":27,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"45d3dd91-702f-4f70-b78b-75ecfaf2655a","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":27,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"433f7d6b-6c85-4cc2-a5ba-449881d8e015","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":27,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"b1be134f-c70b-4557-a451-6cb81476e665","block_type":"box","text":"2009. 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More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":27,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"25b25847-7926-451e-af8d-1c6704c62ce0","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":27,"box":{"x":264,"y":428,"width":608,"height":12}},{"id":"72da1d71-1c8a-43ab-bf51-08c6fea0cb1a","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":27,"box":{"x":265,"y":443,"width":575,"height":12}},{"id":"6d992820-45d9-4242-b613-5be8afffccf6","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":27,"box":{"x":264,"y":459,"width":591,"height":11}},{"id":"98bd9f4c-e72e-4731-b477-b8de095ad223","block_type":"box","text":"maintained relationships with regulators. 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The","page_number":27,"box":{"x":265,"y":678,"width":608,"height":9}},{"id":"b666fe7c-76a7-451c-9c20-3f44d617bef5","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":27,"box":{"x":265,"y":693,"width":626,"height":11}},{"id":"f9c14d6c-73e6-456d-b790-9b669555d17a","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":27,"box":{"x":265,"y":708,"width":591,"height":11}},{"id":"d88b57fb-9310-434f-b76c-f4975df945e8","block_type":"box","text":"various private and non-profit boards.","page_number":27,"box":{"x":264,"y":723,"width":265,"height":11}},{"id":"754feee0-8b5d-4185-b20d-a89ac24057ec","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":27,"box":{"x":70,"y":746,"width":833,"height":11}},{"id":"fbf4d8d0-3e1c-4896-b5c1-de82a0f0201b","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":27,"box":{"x":265,"y":761,"width":638,"height":11}},{"id":"2d907d0e-2fd6-44f2-9d76-7d89c45bf620","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":27,"box":{"x":265,"y":776,"width":608,"height":11}},{"id":"ddd9ea9f-dc54-467e-9379-947bd8e3b4b5","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":27,"box":{"x":264,"y":791,"width":645,"height":11}},{"id":"2919bd69-f819-41a8-97c0-0a1b806707f7","block_type":"box","text":"firm’s executive committee. 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Mr. Stern also served as consultant to the Independent","page_number":27,"box":{"x":265,"y":882,"width":583,"height":11}},{"id":"d77609e1-e439-4fd5-8e61-afbdc379339a","block_type":"box","text":"Directors prior to becoming an Independent Director.","page_number":27,"box":{"x":265,"y":897,"width":372,"height":11}},{"id":"9bead5c8-c1ab-40e4-b66d-e2ffb50994ae","block_type":"box","text":"I-11","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"3d685ed2-5052-403b-9a97-5cfa69377065","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6920041-3e41-46b8-a5b3-e56779ecbf46","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":28,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"fc1c681e-521b-4728-b4d7-fb1ab5b9d231","block_type":"box","text":"Kenneth L. Urish Kenneth L. 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Mr. Perlowski’s prior position as","page_number":28,"box":{"x":265,"y":587,"width":620,"height":11}},{"id":"0a98d733-7d05-4d86-beeb-2de61e2f2a7a","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":28,"box":{"x":265,"y":602,"width":616,"height":11}},{"id":"fa5015a9-a69b-4faf-8d8b-ec6b0280c483","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":28,"box":{"x":265,"y":617,"width":639,"height":12}},{"id":"90f8056b-bf6a-43ff-a3a1-1d43fe394dfa","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":28,"box":{"x":265,"y":632,"width":603,"height":9}},{"id":"bd3e9f0e-c114-478b-a428-b2228999130a","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":28,"box":{"x":265,"y":647,"width":582,"height":12}},{"id":"6340f57b-d654-4fe9-8d2b-36e9615dc40a","block_type":"box","text":"practices of other financial companies. 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Mr. Perlowski is a member of","page_number":28,"box":{"x":264,"y":678,"width":572,"height":11}},{"id":"a5c039df-a7f7-42c2-a986-09a093ceb2d8","block_type":"box","text":"BlackRock’s Global Executive Committee.","page_number":28,"box":{"x":265,"y":693,"width":294,"height":9}},{"id":"aa3e9bea-cd69-4cb5-9ff2-897254c4a86c","block_type":"box","text":"Biographical Information","page_number":28,"box":{"x":69,"y":724,"width":178,"height":11}},{"id":"2c276369-7e3c-49c3-9adb-19b25e1afda4","block_type":"box","text":"Certain biographical and other information relating to the Directors of the Fund is set forth below, including their","page_number":28,"box":{"x":102,"y":747,"width":799,"height":11}},{"id":"eb50c6c1-4c0e-439e-8017-172e7c114da2","block_type":"box","text":"address and year of birth, principal occupations for at least the last five years, length of time served, total number 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Walton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":79,"y":112,"width":499,"height":9}},{"id":"f3d7bd86-18fa-4b88-a59b-47245707c263","block_type":"box","text":"None Over $100,000","page_number":33,"box":{"x":637,"y":111,"width":237,"height":12}},{"id":"0b293c5f-5977-4b59-8adb-9ec0a8e6e454","block_type":"box","text":"Interested Directors","page_number":33,"box":{"x":70,"y":127,"width":140,"height":9}},{"id":"da19ca2b-3535-4d11-ae95-fee557dde99f","block_type":"box","text":"Robert Fairbairn","page_number":33,"box":{"x":79,"y":143,"width":113,"height":8}},{"id":"065dc834-f28a-4085-916e-96d886234ac0","block_type":"box","text":"...............................................","page_number":33,"box":{"x":201,"y":150,"width":377,"height":1}},{"id":"f355f219-50be-4bd2-b5de-8c910ff464ae","block_type":"box","text":"None Over $100,000","page_number":33,"box":{"x":637,"y":142,"width":237,"height":11}},{"id":"a31b1dbc-f4aa-4c76-8e53-09fd7783f843","block_type":"box","text":"John M. Perlowski. . .","page_number":33,"box":{"x":78,"y":158,"width":149,"height":8}},{"id":"c1dd28c5-35bb-4865-9872-b0f475a42a9f","block_type":"box","text":"...........................................","page_number":33,"box":{"x":234,"y":165,"width":344,"height":1}},{"id":"bb42d704-48e4-41da-bce1-c6924db879b8","block_type":"box","text":"None Over $100,000","page_number":33,"box":{"x":637,"y":157,"width":237,"height":11}},{"id":"6edef31f-fff9-4b2d-b8d9-04e1387e6cc9","block_type":"box","text":"* Information is provided as of April 1, 2026, the date Mr. Jarczyk and Mr. Stern first served as consultants to the Independent Directors.","page_number":33,"box":{"x":70,"y":182,"width":784,"height":9}},{"id":"7e82befc-7cb1-48e3-87fe-c9ae3a1801f1","block_type":"box","text":"As of August 5, 2026, the Directors and officers of the Fund as a group directly or indirectly beneficially owned","page_number":33,"box":{"x":101,"y":203,"width":788,"height":11}},{"id":"8e200935-ec8b-4497-973e-d5962af9c785","block_type":"box","text":"an aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025, (and,","page_number":33,"box":{"x":69,"y":218,"width":813,"height":11}},{"id":"516fef59-75f9-4c5f-8f9c-02d658c39a8e","block_type":"box","text":"with respect to Mr. Jarczyck and Mr. Stern, as of July 1, 2026) none of the Independent Directors of the Fund or their","page_number":33,"box":{"x":68,"y":233,"width":835,"height":11}},{"id":"f7055469-d94d-4b85-85ea-3d25e4670cce","block_type":"box","text":"immediate family members owned beneficially or of record any securities of the Fund’s investment adviser, sub","page_number":33,"box":{"x":70,"y":248,"width":795,"height":11}},{"id":"408c03e3-5085-47e5-867d-e189489bccf1","block_type":"box","text":"advisers, principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control","page_number":33,"box":{"x":69,"y":263,"width":829,"height":12}},{"id":"3bc83598-26c0-4020-8267-a9b212333cdb","block_type":"box","text":"with such entities.","page_number":33,"box":{"x":68,"y":279,"width":129,"height":8}},{"id":"e05692ad-0e63-457c-bbbc-61cfe82103f4","block_type":"box","text":"Compensation of Directors","page_number":33,"box":{"x":69,"y":309,"width":194,"height":11}},{"id":"6a84d166-6ac7-477e-8bac-93fa306d6dde","block_type":"box","text":"Each Director who is an Independent Director is paid as compensation an annual retainer of $375,000 per year","page_number":33,"box":{"x":102,"y":331,"width":796,"height":11}},{"id":"0e5e9728-33ec-4c38-8a78-9b20dac2eb20","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":33,"box":{"x":68,"y":346,"width":810,"height":11}},{"id":"4b19faca-27ac-45a9-bbb8-ab6c67fb7db4","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":33,"box":{"x":70,"y":361,"width":837,"height":12}},{"id":"97ce299c-5029-4982-8c14-c952ed292958","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":33,"box":{"x":69,"y":377,"width":807,"height":11}},{"id":"e3043c4e-fcd0-4035-942a-16fa37fc32a6","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":33,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"aab3ac44-4afc-4029-ae9d-ccef95912f82","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":33,"box":{"x":68,"y":407,"width":786,"height":11}},{"id":"97a3770c-1762-4610-9714-216475c9a3d1","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":33,"box":{"x":69,"y":422,"width":769,"height":11}},{"id":"549eb804-5643-4072-a290-95f37f9cd485","block_type":"box","text":"Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of","page_number":33,"box":{"x":69,"y":437,"width":778,"height":11}},{"id":"e269e7cb-b9ad-431e-9a03-e57298df62df","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":33,"box":{"x":69,"y":452,"width":689,"height":11}},{"id":"5aed862e-4e4e-49cb-9a6e-69dfbaa2a506","block_type":"box","text":"The following table sets forth the compensation the Fund paid to the Directors for the fiscal year ended","page_number":33,"box":{"x":101,"y":475,"width":736,"height":11}},{"id":"07019dc7-200e-46b5-9171-d7c243ae3b0d","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":33,"box":{"x":68,"y":490,"width":818,"height":11}},{"id":"9c014009-2fed-4fc1-b500-0c1b2963e91e","block_type":"box","text":"ended December 31, 2025.","page_number":33,"box":{"x":69,"y":505,"width":197,"height":11}},{"id":"7f802a26-430c-4f8e-9148-04ed63f2406b","block_type":"box","text":"Name","page_number":33,"box":{"x":69,"y":574,"width":32,"height":7}},{"id":"08358650-2068-455c-9308-036454da307d","block_type":"box","text":"Compensation","page_number":33,"box":{"x":560,"y":564,"width":83,"height":8}},{"id":"50e4b304-8d26-48c8-ab0b-53eaff79b596","block_type":"box","text":"from the Fund","page_number":33,"box":{"x":561,"y":574,"width":80,"height":7}},{"id":"163fb6cf-5ab3-48a5-ac13-fa4292954fbd","block_type":"box","text":"Estimated","page_number":33,"box":{"x":676,"y":533,"width":58,"height":8}},{"id":"81c91e3b-e499-45c9-a0c4-cd8185607c18","block_type":"box","text":"Annual","page_number":33,"box":{"x":685,"y":544,"width":39,"height":7}},{"id":"3739f88d-ad66-4395-be5e-b8d10fbbd931","block_type":"box","text":"Benefits","page_number":33,"box":{"x":682,"y":554,"width":47,"height":7}},{"id":"3f67909e-b8bc-4a1e-899d-5233fe131989","block_type":"box","text":"upon","page_number":33,"box":{"x":692,"y":565,"width":27,"height":7}},{"id":"5609e620-9438-4122-ad46-bd1823a31a2b","block_type":"box","text":"Retirement","page_number":33,"box":{"x":673,"y":574,"width":65,"height":7}},{"id":"66bcce60-78a5-49b8-b7ba-e5a76325ab32","block_type":"box","text":"Aggregate","page_number":33,"box":{"x":808,"y":534,"width":61,"height":8}},{"id":"cbf09d78-a241-4bc9-b34d-b3b0aba57359","block_type":"box","text":"Compensation","page_number":33,"box":{"x":797,"y":544,"width":82,"height":8}},{"id":"a108a0a4-9172-43a9-98d6-490e966be5ee","block_type":"box","text":"from the Fund and Other","page_number":33,"box":{"x":767,"y":554,"width":142,"height":7}},{"id":"05ed0d09-ae75-4313-adf1-d37b3a4df9b6","block_type":"box","text":"BlackRock-Advised","page_number":33,"box":{"x":783,"y":564,"width":111,"height":7}},{"id":"059db2b4-bc64-46ba-bda2-bf633c317e22","block_type":"box","text":"Funds","page_number":33,"box":{"x":820,"y":574,"width":33,"height":7}},{"id":"1b9da1bc-42fd-43fa-968b-ebfecc3afbe2","block_type":"box","text":"1","page_number":33,"box":{"x":854,"y":574,"width":4,"height":3}},{"id":"7e039bc3-dc12-4133-a277-7661ac770079","block_type":"box","text":"Independent Directors","page_number":33,"box":{"x":70,"y":592,"width":156,"height":10}},{"id":"2c7e7178-8dbd-4f56-8fc3-b936aaa125cf","block_type":"box","text":"Christopher J. 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Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,048","page_number":33,"box":{"x":79,"y":651,"width":549,"height":12}},{"id":"fe425b99-0252-42fc-b937-1721ec030c26","block_type":"box","text":"None $467,500","page_number":33,"box":{"x":688,"y":651,"width":186,"height":11}},{"id":"e1f83d76-defb-4777-a2be-a3a615c71135","block_type":"box","text":"Jeffrey Jarczyk","page_number":33,"box":{"x":78,"y":667,"width":103,"height":11}},{"id":"bce14bfb-b25e-418a-8ff1-f08f1373c1be","block_type":"box","text":"2","page_number":33,"box":{"x":181,"y":667,"width":4,"height":5}},{"id":"0d7627c1-daa9-4ca2-af7e-762ef293b7e2","block_type":"box","text":"..........................................","page_number":33,"box":{"x":193,"y":674,"width":336,"height":2}},{"id":"cb43118f-78e9-4ed3-89c3-084964b9a401","block_type":"box","text":"$258 None None","page_number":33,"box":{"x":583,"y":666,"width":273,"height":11}},{"id":"e3d08b81-6316-4f2a-9730-eba205e30ee4","block_type":"box","text":"Henry R. Keizer","page_number":33,"box":{"x":79,"y":682,"width":109,"height":11}},{"id":"5a11df74-95d1-4b91-90d3-aa6307c89e18","block_type":"box","text":"3","page_number":33,"box":{"x":189,"y":683,"width":4,"height":4}},{"id":"74498bfa-f1dd-4c72-a56b-a986c5ddab5b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,203","page_number":33,"box":{"x":201,"y":681,"width":427,"height":12}},{"id":"ae4d8949-9a48-4701-ba53-c5eac5594fd3","block_type":"box","text":"None $490,000","page_number":33,"box":{"x":688,"y":681,"width":186,"height":12}},{"id":"705d6c70-1dac-49f5-b5cf-9f14ef2e2c67","block_type":"box","text":"Cynthia A. Montgomery","page_number":33,"box":{"x":79,"y":697,"width":164,"height":12}},{"id":"d148ac19-a754-49c7-90ed-aae2845b7a86","block_type":"box","text":"4","page_number":33,"box":{"x":244,"y":698,"width":4,"height":4}},{"id":"21a795c7-f297-4dee-bbcd-fafe364e0a56","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,160 None $490,000","page_number":33,"box":{"x":250,"y":697,"width":624,"height":11}},{"id":"7d500e2e-3c85-4c03-b4e4-a266c0848b9c","block_type":"box","text":"Donald C. 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Perlowski. . .","page_number":33,"box":{"x":78,"y":834,"width":149,"height":8}},{"id":"6ab5de4e-2c5a-4a31-ba99-8e6277beac4c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None None None","page_number":33,"box":{"x":234,"y":834,"width":622,"height":8}},{"id":"95681d40-db51-40bd-a24b-3cfc74f7f38a","block_type":"box","text":"1","page_number":33,"box":{"x":69,"y":858,"width":3,"height":3}},{"id":"be8b7fd9-62f3-43b1-8267-3544287d828c","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation, see “Biographical Information” beginning on","page_number":33,"box":{"x":94,"y":858,"width":788,"height":9}},{"id":"a2a5ed54-c553-4d65-a281-195e102b8b1b","block_type":"box","text":"page I-12.","page_number":33,"box":{"x":94,"y":868,"width":55,"height":9}},{"id":"49ad6d45-92bb-4ce7-a9a4-fc157d8c5157","block_type":"box","text":"2","page_number":33,"box":{"x":69,"y":881,"width":3,"height":3}},{"id":"b485302f-890a-46cd-8b22-70d659884369","block_type":"box","text":"Compensation includes $258 earned as a consultant to the Independent Directors for the period April 1, 2026 to July 1, 2026.","page_number":33,"box":{"x":93,"y":880,"width":726,"height":9}},{"id":"8fd74686-3d13-4ae7-aa98-25c8893c72d7","block_type":"box","text":"3","page_number":33,"box":{"x":69,"y":893,"width":3,"height":4}},{"id":"a5c4c39b-c7e0-45f0-935b-0a7356bc6c91","block_type":"box","text":"Chair of the Audit Committee.","page_number":33,"box":{"x":93,"y":893,"width":168,"height":7}},{"id":"e96a2618-0cee-4abd-a8b4-36ecd13a461e","block_type":"box","text":"4","page_number":33,"box":{"x":68,"y":906,"width":4,"height":3}},{"id":"452c8d4c-864c-4aaa-b8ec-f202c989b3c9","block_type":"box","text":"Chair of the Governance Committee.","page_number":33,"box":{"x":93,"y":906,"width":206,"height":7}},{"id":"20b641df-6f67-447a-80f1-eed7148df788","block_type":"box","text":"I-17","page_number":33,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"217a6fe2-89ab-42d0-b9d7-e7622cbf57a4","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"548f9c05-5340-4569-b520-2621b83da1da","block_type":"box","text":"5","page_number":34,"box":{"x":69,"y":45,"width":3,"height":4}},{"id":"7f6ea3e7-b3d2-4dcc-8794-039ec5f4a732","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":34,"box":{"x":93,"y":45,"width":269,"height":9}},{"id":"7fb02146-5272-4746-83b7-8d0c359efa2e","block_type":"box","text":"6","page_number":34,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"befc392d-ee2a-4bbc-a895-795e50297973","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee","page_number":34,"box":{"x":93,"y":58,"width":348,"height":9}},{"id":"b458591b-7cff-4eb1-abbb-95264072e43c","block_type":"box","text":"7","page_number":34,"box":{"x":69,"y":71,"width":3,"height":3}},{"id":"b14ba143-7ff8-4ba2-aa64-c50519e75335","block_type":"box","text":"Chair of the Compliance Committee.","page_number":34,"box":{"x":93,"y":70,"width":205,"height":9}},{"id":"995ab097-26a8-40b4-b98e-d8ba04b8cb55","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":34,"box":{"x":69,"y":99,"width":432,"height":11}},{"id":"b6cfe4ce-fcc6-40b4-9c77-ff2de66094f3","block_type":"box","text":"The Fund has entered into a management agreement with the Manager (the “Management Agreement”),","page_number":34,"box":{"x":101,"y":122,"width":743,"height":11}},{"id":"9fa5f691-9301-436e-9567-621629fd1db0","block_type":"box","text":"pursuant to which BlackRock receives for its services to the Fund annual management fees as a percentage of","page_number":34,"box":{"x":70,"y":137,"width":791,"height":11}},{"id":"d61609be-036c-4289-943b-b7fc13d2b54c","block_type":"box","text":"average daily net assets.","page_number":34,"box":{"x":69,"y":152,"width":176,"height":11}},{"id":"2a2f7668-3ca5-42ea-abf2-051258645503","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":34,"box":{"x":102,"y":174,"width":762,"height":12}},{"id":"4a9965e4-91ae-49ce-8643-7b4bd200740e","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":34,"box":{"x":69,"y":189,"width":799,"height":12}},{"id":"6e5182d9-914b-4963-a429-bfd9f1242a7a","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":34,"box":{"x":68,"y":205,"width":726,"height":11}},{"id":"c0b1cc85-6ad6-4b49-aa4f-7dc586ed89e1","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":34,"box":{"x":69,"y":220,"width":797,"height":11}},{"id":"660f2c63-a7ac-4242-9831-431a8910bbb6","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":34,"box":{"x":69,"y":235,"width":789,"height":11}},{"id":"7adb8f78-0ece-4b29-b1c7-a6f0dadac3ca","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":34,"box":{"x":70,"y":250,"width":810,"height":11}},{"id":"484229f6-8b88-4ba6-986f-51326b8812d0","block_type":"box","text":"notice by a majority of the Independent Directors or by a vote of a majority of the outstanding voting securities of the","page_number":34,"box":{"x":69,"y":265,"width":830,"height":11}},{"id":"825550bd-116b-4048-8994-1d6b47d0da16","block_type":"box","text":"Fund.","page_number":34,"box":{"x":70,"y":280,"width":36,"height":9}},{"id":"141a5dc7-447d-4d39-89c1-2586558d42d9","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":34,"box":{"x":102,"y":303,"width":773,"height":11}},{"id":"1f362fbf-b0bf-46f4-b719-75577f2bfa4d","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":34,"box":{"x":68,"y":318,"width":787,"height":11}},{"id":"f6fd5ba3-e375-430a-a79a-cfdd042c4bc7","block_type":"box","text":"Expense/Stock Loan Fees, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses (as","page_number":34,"box":{"x":70,"y":333,"width":835,"height":11}},{"id":"1ecca484-8dc0-49fa-8522-4e1367bee0c7","block_type":"box","text":"defined in the Fund’s Prospectuses)) as a percentage of average daily net assets to 1.11% for Investor A Shares,","page_number":34,"box":{"x":69,"y":348,"width":807,"height":12}},{"id":"5b6fe1e6-5018-4e2d-b226-b8cdc7cb6147","block_type":"box","text":"1.86% for Investor C Shares, 0.86% for Institutional Shares and 0.81% for Class K Shares through June 30, 2028.","page_number":34,"box":{"x":70,"y":363,"width":817,"height":12}},{"id":"1a84611e-d5e5-4094-839a-6452b9cba0c5","block_type":"box","text":"The contractual agreements may be terminated upon 90 days’ notice by a majority of the Independent Directors or by","page_number":34,"box":{"x":68,"y":378,"width":838,"height":12}},{"id":"3b6340d3-c921-49b7-a653-8f128fd65b90","block_type":"box","text":"a vote of a majority of the outstanding voting securities of the Fund.","page_number":34,"box":{"x":69,"y":394,"width":481,"height":11}},{"id":"96701283-328b-4853-9df0-796e54a9715a","block_type":"box","text":"Pursuant to the Management Agreements, the Manager may from time to time, in its sole discretion to the","page_number":34,"box":{"x":102,"y":416,"width":759,"height":12}},{"id":"0fe19641-dcae-448e-bc2d-41af8a2e943a","block_type":"box","text":"extent permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the","page_number":34,"box":{"x":69,"y":431,"width":814,"height":12}},{"id":"00503f5d-995d-409e-8bcb-1266b3d1dc91","block_type":"box","text":"Manager, to perform management services with respect to the Fund. In addition, the Manager may delegate certain","page_number":34,"box":{"x":70,"y":446,"width":824,"height":12}},{"id":"f4aedf57-c83f-47e7-ba5e-f0a2cbfdd0d3","block_type":"box","text":"of its investment advisory functions under the Management Agreements to one or more of its affiliates to the extent","page_number":34,"box":{"x":69,"y":462,"width":829,"height":11}},{"id":"a662b373-b043-4a91-b29b-adbf6cb4c094","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":34,"box":{"x":70,"y":477,"width":823,"height":11}},{"id":"e9ecd011-b368-4d93-a3f0-80d069502cd5","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":34,"box":{"x":70,"y":492,"width":508,"height":11}},{"id":"5d6c2cf3-3eae-4fc2-a9a2-cfbd2c966efb","block_type":"box","text":"BlackRock entered into separate sub-advisory agreements with BlackRock Asset Management North Asia Limited","page_number":34,"box":{"x":102,"y":515,"width":807,"height":11}},{"id":"55fe1915-89ba-4cb2-b240-728e176118d7","block_type":"box","text":"(“BAMNAL”) and BlackRock International Limited (“BIL” and together with BAMNAL, the “Sub-Advisers”), pursuant to","page_number":34,"box":{"x":69,"y":530,"width":827,"height":11}},{"id":"a43d0e9c-2817-42a4-bd36-f60330eb7437","block_type":"box","text":"which BlackRock pays each Sub-Adviser for providing services to BlackRock with respect to that portion of the Fund","page_number":34,"box":{"x":68,"y":545,"width":823,"height":11}},{"id":"78ad2835-c661-4509-8cf5-79e6864a3871","block_type":"box","text":"for which it acts as sub-adviser a monthly fee at an annual rate equal to a percentage of the management fee paid to","page_number":34,"box":{"x":68,"y":560,"width":836,"height":11}},{"id":"9731b7c1-e230-421f-aee4-608e76e31394","block_type":"box","text":"BlackRock under the Fund’s Management Agreement.","page_number":34,"box":{"x":70,"y":575,"width":380,"height":11}},{"id":"fc40c8f8-2fa5-4340-8b26-b726c0c7b64b","block_type":"box","text":"The table below sets forth information about the total management fees paid by the Fund to the Manager (which","page_number":34,"box":{"x":101,"y":598,"width":802,"height":11}},{"id":"fbe768b0-443e-4d22-8942-5df54fea8c6c","block_type":"box","text":"includes amounts paid by the Manager to BAMNAL) and any amounts waived for the periods shown:","page_number":34,"box":{"x":70,"y":613,"width":709,"height":11}},{"id":"3ca1cafc-f532-4b3d-a426-efd95fafb301","block_type":"box","text":"Fees Paid to the","page_number":34,"box":{"x":500,"y":641,"width":95,"height":7}},{"id":"3c9ee6e1-420e-4f12-995b-fd1a36466375","block_type":"box","text":"Manager","page_number":34,"box":{"x":523,"y":651,"width":50,"height":9}},{"id":"897e2563-9435-4803-b2c3-137d1fa2a3b0","block_type":"box","text":"Fees Waived by the","page_number":34,"box":{"x":627,"y":641,"width":112,"height":9}},{"id":"585a4fe5-587a-412b-bdda-2bfe0987d076","block_type":"box","text":"Manager","page_number":34,"box":{"x":658,"y":651,"width":50,"height":9}},{"id":"6c921aeb-c17f-44d5-8d7d-7269578726fb","block_type":"box","text":"Fees Reimbursed by 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$4,924,637","page_number":34,"box":{"x":70,"y":698,"width":812,"height":12}},{"id":"ab9d9f10-e123-40a1-b538-6a2db1ff6be8","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":34,"box":{"x":69,"y":731,"width":335,"height":11}},{"id":"658f7979-51ad-4fea-a201-31cc48e6bcd4","block_type":"box","text":"Egon Vavrek and Kevin Jia are the portfolio managers and are jointly and primarily responsible for the day-to-day","page_number":34,"box":{"x":102,"y":753,"width":796,"height":12}},{"id":"fd50b494-5f83-420f-93a6-33e526ed2c15","block_type":"box","text":"management of the Fund’s portfolio.","page_number":34,"box":{"x":69,"y":768,"width":259,"height":12}},{"id":"5794fe0c-2e94-4e4d-b4a2-cae48573f810","block_type":"box","text":"Other Funds and Accounts Managed","page_number":34,"box":{"x":70,"y":799,"width":257,"height":11}},{"id":"0e3ad372-fc18-45d2-9bf4-54b557508408","block_type":"box","text":"The following table sets forth information about the funds and accounts other than the Fund for which the Fund’s","page_number":34,"box":{"x":101,"y":821,"width":806,"height":12}},{"id":"27c6a2c4-88fb-4f77-b3a5-1f0322082456","block_type":"box","text":"portfolio managers are primarily responsible for the day-to-day portfolio management as of April 30, 2026.","page_number":34,"box":{"x":70,"y":836,"width":757,"height":12}},{"id":"a873c1e3-e890-4110-bc94-a1cf6070518d","block_type":"box","text":"I-18","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"8519fa9d-56d7-4e44-a473-b550c93e73a6","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8203af1f-5b89-4071-bd78-b4fff3058327","block_type":"box","text":"Number of Other Accounts Managed","page_number":35,"box":{"x":382,"y":49,"width":211,"height":9}},{"id":"a5d94eb3-efc7-4811-965c-ac61b339f55e","block_type":"box","text":"and Assets by Account 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Pooled","page_number":35,"box":{"x":735,"y":82,"width":74,"height":7}},{"id":"d8c39635-34f4-4c97-9fba-b8084153312e","block_type":"box","text":"Investment","page_number":35,"box":{"x":740,"y":92,"width":64,"height":7}},{"id":"3a9ddbe0-3e4b-4283-8da9-050d0f7ec372","block_type":"box","text":"Vehicles","page_number":35,"box":{"x":748,"y":102,"width":48,"height":7}},{"id":"588e4114-0814-493a-9294-7aa3a17d4d23","block_type":"box","text":"Other","page_number":35,"box":{"x":852,"y":92,"width":31,"height":7}},{"id":"0869f05a-29c3-4bce-8225-2d5b33505601","block_type":"box","text":"Accounts","page_number":35,"box":{"x":840,"y":102,"width":54,"height":7}},{"id":"21a8997a-4aef-4637-9dc4-a4dd31fa1c38","block_type":"box","text":"Kevin Jia 1 5 0 0 0 0","page_number":35,"box":{"x":74,"y":116,"width":797,"height":7}},{"id":"818ea6c2-2256-41f4-9648-50592dff4608","block_type":"box","text":"$16.27 Million $2.02 Billion $0 $0 $0 $0","page_number":35,"box":{"x":361,"y":128,"width":513,"height":8}},{"id":"97dff023-c86b-463b-af01-2db2628811d1","block_type":"box","text":"Egon Vavrek 1 5 0 0 0 0","page_number":35,"box":{"x":74,"y":141,"width":797,"height":9}},{"id":"915d9abe-d927-4ff6-9ee8-474cbbc02254","block_type":"box","text":"$16.27 Million $2.02 Billion $0 $0 $0 $0","page_number":35,"box":{"x":361,"y":153,"width":513,"height":8}},{"id":"83c18832-40d8-40ca-9592-51d9d855ad42","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":35,"box":{"x":69,"y":188,"width":304,"height":11}},{"id":"aa5f4073-c320-42d9-b5f9-ba78fd81b33c","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of April 30, 2026.","page_number":35,"box":{"x":101,"y":210,"width":658,"height":12}},{"id":"b70e8b2d-7944-4938-a550-4bedcd1e5646","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":35,"box":{"x":102,"y":233,"width":774,"height":11}},{"id":"126bfb31-8ccd-4ec6-81b1-17573c0d46db","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":35,"box":{"x":70,"y":248,"width":837,"height":11}},{"id":"7d4d2799-450b-40e1-90e5-792790037d57","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":35,"box":{"x":69,"y":263,"width":823,"height":11}},{"id":"9c8a5920-c389-4393-9a6f-6ff2a74e26e2","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":35,"box":{"x":69,"y":278,"width":799,"height":11}},{"id":"2c51889b-ef36-49d5-874c-da9f5fb7d89e","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":35,"box":{"x":70,"y":293,"width":670,"height":12}},{"id":"e1ab9a66-2e95-463d-823f-7ebfb817e3f1","block_type":"box","text":"Base Compensation.","page_number":35,"box":{"x":102,"y":316,"width":148,"height":11}},{"id":"a0005032-8093-4cbc-ba6c-369e0c893a09","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":35,"box":{"x":257,"y":316,"width":640,"height":11}},{"id":"1df60587-d643-4aaf-bf2d-fe48e37dff39","block_type":"box","text":"firm.","page_number":35,"box":{"x":68,"y":331,"width":32,"height":9}},{"id":"50dad54d-93f9-4f9a-b721-981b36f7c19b","block_type":"box","text":"Discretionary Incentive Compensation","page_number":35,"box":{"x":102,"y":354,"width":277,"height":11}},{"id":"160343df-d8c9-41fa-a747-ff270af4a5d2","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities portfolio managers is based on a","page_number":35,"box":{"x":102,"y":377,"width":763,"height":11}},{"id":"7d8d25ab-7388-4350-b4a5-268ae81acc80","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic portfolio manager compensation program is based on team","page_number":35,"box":{"x":68,"y":392,"width":832,"height":11}},{"id":"d8af3fee-624a-4907-9f18-1026ab690e37","block_type":"box","text":"revenue and pre-tax investment performance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":35,"box":{"x":69,"y":407,"width":815,"height":11}},{"id":"bc773642-490b-44e2-bb5c-a59a015dfd72","block_type":"box","text":"performance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":35,"box":{"x":70,"y":422,"width":757,"height":11}},{"id":"a0d92335-2c79-4761-870a-57a7033f483c","block_type":"box","text":"benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are","page_number":35,"box":{"x":69,"y":437,"width":814,"height":11}},{"id":"88250045-e1f4-4454-a40e-127e105add24","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":35,"box":{"x":69,"y":452,"width":780,"height":11}},{"id":"f5153d49-17e1-48e4-970a-5a273d5bc1c2","block_type":"box","text":"performance of the Fund and other accounts managed by each portfolio management team is compared and the","page_number":35,"box":{"x":70,"y":467,"width":802,"height":12}},{"id":"69bcbaf7-85ee-4027-aac7-284065ac17e2","block_type":"box","text":"period of time over which performance is evaluated. With respect to these portfolio managers, such benchmarks for","page_number":35,"box":{"x":70,"y":482,"width":828,"height":12}},{"id":"8df1568e-4884-493b-8c13-5cf48bde6130","block_type":"box","text":"the Fund and other accounts are:","page_number":35,"box":{"x":68,"y":498,"width":236,"height":9}},{"id":"f928c095-0dc8-4756-a9b5-d7c4777741c8","block_type":"box","text":"Portfolio Manager(s) Applicable Benchmarks","page_number":35,"box":{"x":69,"y":526,"width":332,"height":9}},{"id":"e42d97f2-71f7-441d-b1cd-a61ee17e91e1","block_type":"box","text":"Egon Vavrek MSCI Emerging Markets Index; MSCI EM ex China 10-40 Index; MSCI Emerging Markets","page_number":35,"box":{"x":70,"y":542,"width":821,"height":12}},{"id":"f0c4d75a-f558-4f0c-a9cd-98325ee9f379","block_type":"box","text":"ex China; MSCI EM (Emerging Markets) Selected Securities B Index - EUR; MSCI EM ex","page_number":35,"box":{"x":265,"y":558,"width":619,"height":11}},{"id":"26ada196-418a-43a7-aa4b-3bb759083316","block_type":"box","text":"Selected Securities i2.0 Country Capped Index (Gross)","page_number":35,"box":{"x":265,"y":573,"width":388,"height":11}},{"id":"2b28c83c-c7bc-4f0c-8ea5-b8834744ab9b","block_type":"box","text":"Kevin Jia MSCI Emerging Markets ex Korea, ex Taiwan in GBP; MSCI Emerging Markets Index (Net);","page_number":35,"box":{"x":70,"y":595,"width":832,"height":11}},{"id":"c068b004-0e01-4b29-b12b-687bf8bc7c85","block_type":"box","text":"MSCI Emerging Markets, Net Returns, in GBP; 50% MSCI EM/50% $ Libor+4%; SOFR 3","page_number":35,"box":{"x":265,"y":610,"width":622,"height":12}},{"id":"ffef7e03-60d3-49d2-aa21-a2e13ca5ecaa","block_type":"box","text":"Month Index; MSCI EM Europe 10/40 Net Index in EUR; MSCI Emerging ex Selected","page_number":35,"box":{"x":265,"y":626,"width":599,"height":11}},{"id":"7a28b66c-9a24-4776-8d2c-8f9fcca6765d","block_type":"box","text":"Countries + Frontier + Saudi Arabia NET Index","page_number":35,"box":{"x":265,"y":641,"width":326,"height":9}},{"id":"1408f67c-c335-4696-8ae6-52c92201bada","block_type":"box","text":"A smaller element of portfolio manager discretionary compensation may include consideration of: financial","page_number":35,"box":{"x":101,"y":664,"width":759,"height":12}},{"id":"3e91b60a-73fc-4ba3-b372-54e5a599c8b2","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":35,"box":{"x":69,"y":680,"width":798,"height":11}},{"id":"5932ba77-387a-4d84-87f7-2a00f4a9daa6","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":35,"box":{"x":69,"y":695,"width":814,"height":11}},{"id":"31f07888-1d6d-4433-ac12-064e952ce820","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":35,"box":{"x":68,"y":710,"width":798,"height":11}},{"id":"7dac9069-1c24-4f3c-a380-a64807031e30","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":35,"box":{"x":102,"y":733,"width":389,"height":11}},{"id":"19e9aab5-8946-4f2e-b832-563562944a32","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":35,"box":{"x":499,"y":733,"width":383,"height":11}},{"id":"87cff11c-ded4-46c2-8e64-3c6a745aa4fa","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":35,"box":{"x":70,"y":748,"width":815,"height":11}},{"id":"8c7edb6f-4b4a-48a7-9eab-2f6f0178d1a5","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":35,"box":{"x":68,"y":763,"width":522,"height":11}},{"id":"b8d65b49-8977-4e30-b315-dd8d3db5ebdb","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":35,"box":{"x":102,"y":785,"width":760,"height":12}},{"id":"3a40a00a-362c-4118-af87-fffbd4adca14","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":35,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"44963419-4ecf-44da-8677-c3851aec360f","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":35,"box":{"x":69,"y":816,"width":805,"height":11}},{"id":"50b261f2-37ce-4185-b1ad-6fcfe4e84ee9","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":35,"box":{"x":69,"y":831,"width":822,"height":11}},{"id":"aebf8cb2-a376-4996-901d-76ab21fcf5a0","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":35,"box":{"x":68,"y":846,"width":839,"height":11}},{"id":"9ec347f8-3706-447b-8038-dd219e9c9b1c","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":35,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"f3a1436f-5046-452c-8b89-3dda6037fa11","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":35,"box":{"x":70,"y":876,"width":820,"height":11}},{"id":"cc38b595-6b37-4c4c-aab8-1e3f3e74b895","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":35,"box":{"x":70,"y":891,"width":801,"height":12}},{"id":"dae51ce0-be29-4009-abf2-36ab3918f35d","block_type":"box","text":"I-19","page_number":35,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"14984e7e-91fe-4673-96c9-1c14a0523519","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc59e111-721f-407e-a1ec-631b435aed3b","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. Mr. Jia has","page_number":36,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"b6c54ae1-f2ad-4c13-a584-a6b411ea72c6","block_type":"box","text":"deferred BlackRock, Inc. stock awards.","page_number":36,"box":{"x":69,"y":60,"width":276,"height":10}},{"id":"e0d03035-0ac1-43d2-bcab-b9ba5037cfd9","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":36,"box":{"x":102,"y":82,"width":785,"height":12}},{"id":"4ffb77f2-54f5-4bb7-874f-89bd2bc01b00","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":36,"box":{"x":68,"y":98,"width":836,"height":11}},{"id":"4ff4e112-4471-487c-a897-14e401a096c6","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":36,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"a4fd66a6-0dbe-4b8a-a2a1-6eade289c17b","block_type":"box","text":"results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only","page_number":36,"box":{"x":69,"y":128,"width":829,"height":11}},{"id":"c4cffc62-1346-4e9e-8d10-dc1b06868d73","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":36,"box":{"x":70,"y":143,"width":835,"height":11}},{"id":"97fd2ed4-a2a0-4378-b3e8-47580dfc153b","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":36,"box":{"x":69,"y":158,"width":414,"height":11}},{"id":"b371b03b-93be-461b-945f-49a8971d3b0e","block_type":"box","text":"Other Compensation Benefits.","page_number":36,"box":{"x":101,"y":181,"width":218,"height":11}},{"id":"10501c1d-57ef-498b-a7f6-2cbc40443031","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":36,"box":{"x":327,"y":181,"width":552,"height":11}},{"id":"ad7b958e-aed9-40e4-a494-8a9e4509bca5","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":36,"box":{"x":69,"y":196,"width":582,"height":11}},{"id":"adef9e7a-8055-40c7-9962-72ba9696965d","block_type":"box","text":"Incentive Savings Plans —","page_number":36,"box":{"x":102,"y":219,"width":189,"height":11}},{"id":"fecf27d4-5afe-4627-91e9-23abbb9dbb52","block_type":"box","text":"Hong Kong-based portfolio managers are also eligible to participate in broad-based","page_number":36,"box":{"x":296,"y":218,"width":591,"height":12}},{"id":"9d6290b7-961e-4c0b-b844-77d96d26967e","block_type":"box","text":"plans offered generally to BlackRock employees, including broad-based retirement, health and other employee benefit","page_number":36,"box":{"x":70,"y":234,"width":839,"height":11}},{"id":"64cc6102-8c21-42f3-b6c8-f009996166f6","block_type":"box","text":"plans. For example, BlackRock Inc. has created a variety of incentive savings plans in which employees are eligible to","page_number":36,"box":{"x":70,"y":249,"width":836,"height":11}},{"id":"013614c2-6ffa-4a61-9289-368967ca208f","block_type":"box","text":"participate, including the Hong Kong Employee Retirement Plan (ERP) that includes the Mandatory Provident Fund","page_number":36,"box":{"x":70,"y":264,"width":808,"height":11}},{"id":"31f7489e-7a35-4b1b-be65-bcdca97a5c4a","block_type":"box","text":"(MPF) plan and BlackRock ORSO Retirement Plan (ORSO), and the BlackRock Employee Stock Purchase Plan (ESPP).","page_number":36,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"6c8b9712-9f42-47c2-a5c6-8fb7cc2b1e53","block_type":"box","text":"BlackRock contributes 5% to the ERP and will match 2~5% of an employee’s monthly voluntary contribution. The","page_number":36,"box":{"x":70,"y":294,"width":798,"height":11}},{"id":"1be7288e-957c-4570-b7d5-724b3e3c1dfa","block_type":"box","text":"ORSO offers a range of investment options and the funds are managed by the firm. BlackRock contributions follow","page_number":36,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"2a487ea6-917f-4938-b3a6-90aefc3f082e","block_type":"box","text":"the investment direction set by participants for their own contributions. The ESPP allows for investment in BlackRock","page_number":36,"box":{"x":68,"y":324,"width":833,"height":11}},{"id":"a4f12f49-7ae6-4753-87b9-93c113626a20","block_type":"box","text":"common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in","page_number":36,"box":{"x":69,"y":339,"width":819,"height":11}},{"id":"74557083-2f53-42fd-aa06-123fdfa5b5f0","block_type":"box","text":"the ESPP is limited to the purchase of 1,000 shares of common stock or a U.S. dollar value of $25,000 based on its","page_number":36,"box":{"x":68,"y":354,"width":836,"height":12}},{"id":"46820c1a-a94d-4c26-b89d-31603789ef41","block_type":"box","text":"fair market value on the purchase date. Messrs. Jia and Vavrek are eligible to participate in these plans.","page_number":36,"box":{"x":68,"y":370,"width":745,"height":11}},{"id":"01caa498-389c-483b-a139-56bbf3d2d834","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":36,"box":{"x":69,"y":400,"width":268,"height":11}},{"id":"5f1c75e0-9c41-43de-b38d-e5bb9be2f5b9","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":36,"box":{"x":101,"y":423,"width":733,"height":11}},{"id":"582593ae-7c39-4b5b-a856-171e73fd7571","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":36,"box":{"x":69,"y":438,"width":519,"height":11}},{"id":"c3ea2f6d-2ffe-44c2-bada-3764d48ee51e","block_type":"box","text":"Portfolio Manager","page_number":36,"box":{"x":69,"y":476,"width":105,"height":9}},{"id":"8fb2c7ec-adca-4134-b2ab-02372ddd2c82","block_type":"box","text":"Dollar Range of Equity","page_number":36,"box":{"x":759,"y":466,"width":129,"height":9}},{"id":"b2b5bd9d-9807-44c9-9edc-b4eafc334c6f","block_type":"box","text":"Securities Beneficially Owned","page_number":36,"box":{"x":736,"y":476,"width":173,"height":9}},{"id":"ffc65626-8914-4919-a44c-6d81302fd656","block_type":"box","text":"Egon Vavrek","page_number":36,"box":{"x":70,"y":494,"width":84,"height":11}},{"id":"559e0600-5ef0-416e-bb8e-39c341ea4177","block_type":"box","text":"....................................................................","page_number":36,"box":{"x":157,"y":501,"width":548,"height":2}},{"id":"914b16cc-94a2-49d8-94a4-e900bd66e4f3","block_type":"box","text":"$10,001 - $50,000","page_number":36,"box":{"x":754,"y":493,"width":138,"height":11}},{"id":"47a0b1ea-d67e-44bb-b2d9-05a05d7f6afb","block_type":"box","text":"Kevin Jia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":36,"box":{"x":70,"y":509,"width":635,"height":9}},{"id":"0340380c-6080-47b8-9e43-9e3210c90167","block_type":"box","text":"$10,001 - $50,000","page_number":36,"box":{"x":754,"y":508,"width":138,"height":11}},{"id":"d74752bb-0ad0-414c-a99e-f73739624f9e","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":36,"box":{"x":69,"y":540,"width":403,"height":12}},{"id":"c6f2beed-4cfa-404e-8586-20d5f3c50b34","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":36,"box":{"x":102,"y":563,"width":727,"height":11}},{"id":"7d92c9a3-7a28-4498-b5d6-a1807eb9b38c","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":36,"box":{"x":70,"y":578,"width":814,"height":11}},{"id":"cf9aaf1b-80db-4e1d-aef2-a3f5c004be60","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":36,"box":{"x":70,"y":593,"width":837,"height":11}},{"id":"c8e9bbed-ba4c-493e-8ab5-6282b377d655","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":36,"box":{"x":70,"y":608,"width":810,"height":12}},{"id":"9f0a2995-99e5-4d70-8ad4-76b3fcdd1916","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":36,"box":{"x":69,"y":623,"width":782,"height":12}},{"id":"a1d6adf9-012c-49d2-90dc-3244f4338923","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":36,"box":{"x":69,"y":639,"width":830,"height":11}},{"id":"acc76fe8-ccc3-4cc9-a152-2680b7537be2","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":36,"box":{"x":69,"y":654,"width":828,"height":11}},{"id":"54f93ef6-8cf1-4c34-92cb-4a678d175ec8","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":36,"box":{"x":68,"y":669,"width":834,"height":11}},{"id":"ec0119e5-7464-4756-8245-2a4acce0808c","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":36,"box":{"x":70,"y":684,"width":777,"height":11}},{"id":"51705722-69d3-4fa7-ae2a-472e8d307c38","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":36,"box":{"x":70,"y":699,"width":821,"height":11}},{"id":"dd463d53-9792-43a7-b080-98f8f860a445","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":36,"box":{"x":69,"y":714,"width":819,"height":11}},{"id":"51847cb2-ff59-4335-9e5e-29668ba12ad3","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":36,"box":{"x":69,"y":729,"width":832,"height":12}},{"id":"5162f5ef-d06f-4c88-a639-7b2677b111ad","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":36,"box":{"x":68,"y":744,"width":804,"height":12}},{"id":"b6ce7a44-12f0-4a77-befe-7909a3139264","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":36,"box":{"x":69,"y":760,"width":760,"height":11}},{"id":"d810c323-07f5-4c27-b898-d2fdd67a4a78","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":36,"box":{"x":69,"y":775,"width":834,"height":11}},{"id":"8da00db0-7ef4-4c9d-a784-600561f02a87","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":36,"box":{"x":69,"y":790,"width":836,"height":11}},{"id":"b131bc39-0566-4eca-8a48-801ac5dc86a7","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":36,"box":{"x":69,"y":805,"width":822,"height":11}},{"id":"3a192b68-33f6-4fec-b141-31ca6c0011ee","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":36,"box":{"x":70,"y":820,"width":835,"height":11}},{"id":"149b4fb8-c9f7-4a48-b460-cfd7cb65d65f","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Vavrek and Jia may be","page_number":36,"box":{"x":69,"y":835,"width":769,"height":11}},{"id":"a302b729-01d5-4fc3-a73c-9166ac99381a","block_type":"box","text":"managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only","page_number":36,"box":{"x":69,"y":850,"width":811,"height":12}},{"id":"1f8e2d2c-02e1-476b-ba6b-08ff5283010a","block_type":"box","text":"accounts, subject to incentive fees. Messrs. Vavrek and Jia may therefore be entitled to receive a portion of any","page_number":36,"box":{"x":69,"y":865,"width":799,"height":12}},{"id":"780fbff6-ae5f-434e-8b8a-7860ee048e29","block_type":"box","text":"incentive fees earned on such accounts.","page_number":36,"box":{"x":70,"y":881,"width":286,"height":9}},{"id":"35eb9b96-14b5-4b8d-861d-cbd1e1663426","block_type":"box","text":"I-20","page_number":36,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"cb22747e-5b06-40fa-97d1-32b44dca206e","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d363a879-9923-4d1a-a9a9-ac5f64e88ee2","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":37,"box":{"x":101,"y":45,"width":788,"height":11}},{"id":"8ee31c81-c6f5-4bc0-8fc7-b37f44ce980d","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":37,"box":{"x":70,"y":60,"width":839,"height":11}},{"id":"2ce022d7-9314-4592-8a8c-e438963aa781","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":37,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"7a564a4c-a18d-4bc1-8352-251193706164","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":37,"box":{"x":68,"y":90,"width":812,"height":11}},{"id":"d09e3a82-8058-4dab-ae4a-af061ca33c00","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":37,"box":{"x":69,"y":105,"width":777,"height":11}},{"id":"968c1fa0-ec46-4305-a5f2-bb235f17f180","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":37,"box":{"x":70,"y":120,"width":826,"height":11}},{"id":"a49ce7da-4a24-4dd7-8055-a4c0277c7730","block_type":"box","text":"Accounting Services","page_number":37,"box":{"x":68,"y":151,"width":150,"height":11}},{"id":"2ec545b1-2a96-47c4-b5a2-2330fbbb9cf0","block_type":"box","text":"Effective June 16, 2025, JPMorgan Chase Bank, N.A. (“JPM”) serves as the accounting services provider for the","page_number":37,"box":{"x":102,"y":173,"width":803,"height":11}},{"id":"852340c3-0505-4581-8c4a-198d38e9aa9e","block_type":"box","text":"Fund. Among other services, JPM maintains records of purchases and sales of securities, receipts and","page_number":37,"box":{"x":70,"y":188,"width":732,"height":12}},{"id":"fa9ba502-2e3d-4124-9590-50b444212bc8","block_type":"box","text":"disbursements of cash and other debits and credits; keeps accounting journals and ledgers; records capital share","page_number":37,"box":{"x":69,"y":203,"width":814,"height":12}},{"id":"6a63bac2-9e0d-4800-84c4-e358bee155eb","block_type":"box","text":"transactions; calculates expense caps, waivers and recoupments (if any); computes the Fund’s net income and","page_number":37,"box":{"x":68,"y":218,"width":794,"height":12}},{"id":"6a9e5af8-dae8-4269-a2f9-ebde4fbecedd","block_type":"box","text":"capital gains and dividends payable; calculates and reports net asset value; works with independent pricing sources;","page_number":37,"box":{"x":69,"y":234,"width":833,"height":11}},{"id":"5694bc79-ba7a-46be-96b8-5922401e7b66","block_type":"box","text":"reconciles securities and cash positions with the Fund’s custodian; prepares certain financial statements, notices","page_number":37,"box":{"x":69,"y":249,"width":814,"height":11}},{"id":"ebd3c5e8-9842-473c-901b-91c40ffd311c","block_type":"box","text":"and reports; and prepares certain tax reports. In connection with its accounting services, JPM also provides certain","page_number":37,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"cbcfd62f-06a7-4ae6-bb88-f576a673c91f","block_type":"box","text":"administrative services. Prior to June 16, 2025, State Street Bank and Trust Company served as the accounting","page_number":37,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"7a4565ea-97d4-4308-a96f-db5a63bbcb2f","block_type":"box","text":"services provider for the Fund.","page_number":37,"box":{"x":69,"y":294,"width":215,"height":11}},{"id":"c6460b2b-272d-4407-8b42-dd9d6330c714","block_type":"box","text":"The table below shows the amount paid by the Fund to JPM, State Street and the Manager for accounting","page_number":37,"box":{"x":101,"y":317,"width":752,"height":11}},{"id":"a8655805-ba35-486a-a33a-c93fecb0ca41","block_type":"box","text":"services for the periods shown.","page_number":37,"box":{"x":69,"y":332,"width":223,"height":11}},{"id":"5114e7f3-7069-44d8-87fc-1d44669e92da","block_type":"box","text":"Fees Paid to","page_number":37,"box":{"x":609,"y":360,"width":72,"height":7}},{"id":"ac4c0b33-a86e-402a-85e3-d1b7b970d886","block_type":"box","text":"JPM","page_number":37,"box":{"x":633,"y":370,"width":23,"height":7}},{"id":"e17f7f67-36c0-436e-9d0f-370957f46485","block_type":"box","text":"Fees Paid to","page_number":37,"box":{"x":712,"y":360,"width":72,"height":7}},{"id":"433a0976-027e-4552-a649-56f15d825247","block_type":"box","text":"State Street","page_number":37,"box":{"x":712,"y":370,"width":71,"height":7}},{"id":"92eb7ab6-39bf-4a17-afcb-36412e5f1737","block_type":"box","text":"Fees Paid to the","page_number":37,"box":{"x":814,"y":360,"width":95,"height":7}},{"id":"375be10f-39c1-40e5-9d85-888d421d380f","block_type":"box","text":"Manager","page_number":37,"box":{"x":837,"y":370,"width":50,"height":9}},{"id":"6bbbe119-856a-453a-bdf5-77f469d8e123","block_type":"box","text":"Fiscal Year Ended April 30, 2026. . . . . . . .","page_number":37,"box":{"x":70,"y":388,"width":295,"height":11}},{"id":"21a8b068-6fad-455c-bccd-6821dcca7e19","block_type":"box","text":"..........................","page_number":37,"box":{"x":372,"y":395,"width":205,"height":2}},{"id":"4808b6a3-efad-4ccf-b5e0-2a037ebb9c0e","block_type":"box","text":"$135,819 $ 57,420 $0","page_number":37,"box":{"x":609,"y":387,"width":262,"height":11}},{"id":"39dbad58-7458-4db3-aad8-1eb069cc3a35","block_type":"box","text":"Fiscal Year Ended April 30, 2025. . . . . . . .","page_number":37,"box":{"x":70,"y":403,"width":295,"height":11}},{"id":"14822857-9a51-4369-9d89-b7700802dffd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . N/A","page_number":37,"box":{"x":372,"y":403,"width":287,"height":11}},{"id":"774946f9-1009-4605-acd8-1b1da6e64f96","block_type":"box","text":"$469,564 $0","page_number":37,"box":{"x":712,"y":402,"width":159,"height":12}},{"id":"4e90f03e-4f4c-4433-9942-ed1ee1ba566a","block_type":"box","text":"Fiscal Year Ended April 30, 2024. . . . . . . .","page_number":37,"box":{"x":70,"y":418,"width":295,"height":11}},{"id":"58c14963-4efd-40d5-b665-7c5ffc52980f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . N/A","page_number":37,"box":{"x":372,"y":418,"width":287,"height":11}},{"id":"e548a649-4b42-4eef-885c-0a8f22e3657e","block_type":"box","text":"$494,843 $0","page_number":37,"box":{"x":712,"y":418,"width":159,"height":11}},{"id":"f73c7577-c8ba-44cc-89e5-084b870caf71","block_type":"box","text":"Custodian","page_number":37,"box":{"x":69,"y":450,"width":72,"height":9}},{"id":"a3001710-8bbc-4088-b79e-5648d114c92d","block_type":"box","text":"JPMorgan Chase Bank, N.A., which has its principal offices at 270 Park Avenue, New York, New York 10017,","page_number":37,"box":{"x":101,"y":472,"width":773,"height":12}},{"id":"a2092432-87c9-463e-a43e-7b77e320e007","block_type":"box","text":"serves as the custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a","page_number":37,"box":{"x":69,"y":487,"width":810,"height":12}},{"id":"5955e9ef-c4c5-433c-82f4-3497579bbdc9","block_type":"box","text":"custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase","page_number":37,"box":{"x":69,"y":503,"width":815,"height":11}},{"id":"c720f462-a73c-4e14-a6e3-3cc2919dd374","block_type":"box","text":"and upon sale or maturity, and collects and receives all income and other payments and distributions on account of","page_number":37,"box":{"x":69,"y":518,"width":824,"height":11}},{"id":"c52890f6-a74d-422e-9e4e-b9df3b2aea4c","block_type":"box","text":"the assets of the Fund.","page_number":37,"box":{"x":68,"y":533,"width":165,"height":9}},{"id":"9136dd69-a9c4-43e4-91af-964aed9b6a2a","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":37,"box":{"x":68,"y":563,"width":432,"height":11}},{"id":"d28765b4-2585-42f2-a746-43560f07f4b6","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":37,"box":{"x":102,"y":586,"width":764,"height":11}},{"id":"84b5f8d8-5c25-41bc-bc96-9016bc444dd8","block_type":"box","text":"Westborough, Massachusetts 01581, serves as the transfer agent and dividend disbursing agent for the Fund.","page_number":37,"box":{"x":68,"y":601,"width":792,"height":11}},{"id":"9842345e-958b-493f-9389-c038278e8018","block_type":"box","text":"Pursuant to a shareholders’ administrative services agreement, BlackRock provides certain shareholder liaison","page_number":37,"box":{"x":102,"y":624,"width":793,"height":11}},{"id":"6712b46c-4c59-418a-a8f5-cf7da19ebae2","block_type":"box","text":"services in connection with the Fund’s investor service center. The Fund reimburses BlackRock for its costs in","page_number":37,"box":{"x":69,"y":639,"width":785,"height":9}},{"id":"042f616c-1427-4177-88fc-7e5cf8eb1646","block_type":"box","text":"maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses and","page_number":37,"box":{"x":69,"y":654,"width":833,"height":11}},{"id":"1585f78d-0049-46c9-b63d-d56814f4052f","block_type":"box","text":"other out-of-pocket expenses. For the periods shown, the Fund reimbursed BlackRock for shareholder liaison services","page_number":37,"box":{"x":69,"y":669,"width":838,"height":11}},{"id":"539feafa-0d13-4633-9eef-cd907717301e","block_type":"box","text":"pursuant to such agreement in the amounts set forth below:","page_number":37,"box":{"x":70,"y":684,"width":429,"height":11}},{"id":"cbe8a3a4-2eb2-4129-815b-86ca00a08e3b","block_type":"box","text":"Fees Paid to BlackRock Fees Waived by BlackRock","page_number":37,"box":{"x":583,"y":712,"width":327,"height":9}},{"id":"f8fd063a-607b-4bc4-b394-1874e37c7d56","block_type":"box","text":"Fiscal Year Ended April 30, 2026. . . . . . . . .","page_number":37,"box":{"x":70,"y":730,"width":302,"height":11}},{"id":"2b875901-3854-49a4-8b37-07241eece45c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . $14,588 $13,811","page_number":37,"box":{"x":378,"y":729,"width":484,"height":11}},{"id":"47ff48af-68ae-4af3-83be-3b1cd2ff1301","block_type":"box","text":"Fiscal Year Ended April 30, 2025. . . . . . . . .","page_number":37,"box":{"x":70,"y":745,"width":302,"height":11}},{"id":"07cd1152-40a8-4637-ab55-4a4a7a46b458","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . $33,382 $33,382","page_number":37,"box":{"x":378,"y":744,"width":483,"height":12}},{"id":"782f14cb-1c4b-4c35-b356-d07e14508322","block_type":"box","text":"Fiscal Year Ended April 30, 2024. . . . . . . . .","page_number":37,"box":{"x":70,"y":760,"width":302,"height":11}},{"id":"7b071562-2db3-473d-a5a3-845355594ff3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . $30,087 $30,079","page_number":37,"box":{"x":378,"y":760,"width":484,"height":11}},{"id":"6de981e0-5a1a-4d4d-b2c8-60c1b2f9cd3a","block_type":"box","text":"Credit Agreement.","page_number":37,"box":{"x":101,"y":784,"width":133,"height":11}},{"id":"e8a78d4a-6cb6-4e23-8b35-ceb1f75e2bfd","block_type":"box","text":"The Fund, along with certain other funds managed by the Manager and its affiliates","page_number":37,"box":{"x":241,"y":784,"width":594,"height":11}},{"id":"cd1a44b3-44e9-42eb-81c6-a4976eb1b76d","block_type":"box","text":"(“Participating Funds”), is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":37,"box":{"x":69,"y":799,"width":817,"height":12}},{"id":"2e497c69-2b30-44d7-9351-57f11e1347b2","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":37,"box":{"x":68,"y":815,"width":743,"height":11}},{"id":"30ba3b10-3b40-4581-a406-3aa1d2935aeb","block_type":"box","text":"commitments designated for a certain Participating Fund, the Participating Funds, including the Fund, can borrow up","page_number":37,"box":{"x":69,"y":829,"width":830,"height":12}},{"id":"bdf15676-c3c6-4b9d-a541-f5fd0b5883cc","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":37,"box":{"x":68,"y":844,"width":818,"height":12}},{"id":"a7fa83d1-9f7c-4ce9-a3fd-391d575f1c12","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":37,"box":{"x":70,"y":860,"width":761,"height":11}},{"id":"4706337c-aa0c-42ba-b975-086a23e41c35","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":37,"box":{"x":69,"y":875,"width":768,"height":11}},{"id":"6f856364-7165-4d90-a37d-968c4c9327a3","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under the current Prospectus","page_number":37,"box":{"x":68,"y":890,"width":812,"height":11}},{"id":"339485af-e787-47be-9898-8e6d87786a76","block_type":"box","text":"and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and","page_number":37,"box":{"x":69,"y":905,"width":805,"height":11}},{"id":"e0dd2164-04a1-41ca-8700-96417c6c3127","block_type":"box","text":"I-21","page_number":37,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"76c15438-75b5-4f69-9b4e-a62f4703fd19","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"14a469e1-1c50-4de0-a0a6-0a9a8eb6791d","block_type":"box","text":"other fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce","page_number":38,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"3c10e3dd-ff3f-4175-bf75-aeb944048530","block_type":"box","text":"the Fund’s returns. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":38,"box":{"x":68,"y":60,"width":810,"height":11}},{"id":"eb4956b8-d79f-4dba-b924-a30a043a98b6","block_type":"box","text":"commitment amount based on their net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will","page_number":38,"box":{"x":69,"y":75,"width":824,"height":11}},{"id":"d2f6b4c2-c2e6-43b9-8791-a91eb4fc0162","block_type":"box","text":"be charged interest at a variable rate.","page_number":38,"box":{"x":69,"y":90,"width":268,"height":11}},{"id":"d69d619a-a562-4fcb-90a4-07d5f3195e61","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":38,"box":{"x":68,"y":120,"width":491,"height":11}},{"id":"4d1bddd1-efac-4f01-9006-979c89658677","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":38,"box":{"x":102,"y":143,"width":773,"height":11}},{"id":"bdfb1dab-ff7e-4bb8-97af-19e972386d49","block_type":"box","text":"received by Fund, including the amounts paid to affiliates of BlackRock (“affiliates”) for Fund for the periods shown.","page_number":38,"box":{"x":69,"y":158,"width":824,"height":11}},{"id":"893bd5a3-199b-4aff-aa9f-eedd6e08fcfc","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of BlackRock, acts as Fund’s sole distributor.","page_number":38,"box":{"x":70,"y":173,"width":817,"height":11}},{"id":"b134fd5e-3e22-46ed-af5a-f5862028dc9c","block_type":"box","text":"Investor A Shares","page_number":38,"box":{"x":647,"y":201,"width":103,"height":8}},{"id":"d94788a5-30e7-44b4-a2ae-10e984173c24","block_type":"box","text":"Gross Sales","page_number":38,"box":{"x":487,"y":227,"width":69,"height":7}},{"id":"b3dc578f-7b14-4fd8-9108-8667cdcc98a4","block_type":"box","text":"Charges","page_number":38,"box":{"x":498,"y":237,"width":47,"height":9}},{"id":"6175d851-7996-467b-bcd5-9ab1c11c1f0d","block_type":"box","text":"Collected","page_number":38,"box":{"x":494,"y":247,"width":55,"height":8}},{"id":"9d79a253-88bf-48c5-ab60-73a3f2063004","block_type":"box","text":"Sales Charges","page_number":38,"box":{"x":585,"y":227,"width":84,"height":9}},{"id":"174fab3b-abab-4e68-bb45-1035a70f8626","block_type":"box","text":"Retained","page_number":38,"box":{"x":602,"y":237,"width":51,"height":7}},{"id":"721ee534-7275-4910-989c-4513a8dd1aa0","block_type":"box","text":"by BRIL","page_number":38,"box":{"x":606,"y":248,"width":44,"height":8}},{"id":"308c481e-dfb5-4c70-a131-a1cf94ba8165","block_type":"box","text":"Sales Charges","page_number":38,"box":{"x":699,"y":227,"width":83,"height":9}},{"id":"cc3490ea-11b5-4608-8c83-f32062b86224","block_type":"box","text":"Paid to","page_number":38,"box":{"x":721,"y":237,"width":40,"height":7}},{"id":"26f3b8bd-6a5b-4f3d-bbe7-7bba2c3400d1","block_type":"box","text":"Affiliates","page_number":38,"box":{"x":715,"y":247,"width":51,"height":8}},{"id":"99516fbd-1a78-4f6d-a1b4-ccfed1586c64","block_type":"box","text":"CDSCs Received","page_number":38,"box":{"x":812,"y":217,"width":97,"height":7}},{"id":"69ed183a-4ffb-4909-bfe5-53a0af9a486c","block_type":"box","text":"on Redemption","page_number":38,"box":{"x":817,"y":227,"width":87,"height":9}},{"id":"f1e8f0f2-579c-4cef-8fd0-47e44d041279","block_type":"box","text":"of Load-Waived","page_number":38,"box":{"x":817,"y":237,"width":87,"height":7}},{"id":"744e9f90-3221-485c-bb2f-3f32ee748ecb","block_type":"box","text":"Shares","page_number":38,"box":{"x":841,"y":247,"width":39,"height":8}},{"id":"b6da8f36-8366-428f-a98a-d43d0cd40e9f","block_type":"box","text":"Fiscal Year Ended April 30, 2026 . . .","page_number":38,"box":{"x":70,"y":265,"width":256,"height":11}},{"id":"2e7b9c35-eef1-4e16-adfd-8c40bc900187","block_type":"box","text":"................","page_number":38,"box":{"x":332,"y":273,"width":124,"height":1}},{"id":"3d691124-73d0-401f-9526-1f6a7cec740c","block_type":"box","text":"$51,275 $3,586 $3,586 $ 468","page_number":38,"box":{"x":491,"y":264,"width":396,"height":12}},{"id":"55f0cfc2-a8a1-4c02-aad3-f4f655cbe10a","block_type":"box","text":"Fiscal Year Ended April 30, 2025 . . .","page_number":38,"box":{"x":70,"y":280,"width":256,"height":11}},{"id":"b2f1614f-610c-493b-b028-bc09e79fe115","block_type":"box","text":"................","page_number":38,"box":{"x":332,"y":288,"width":124,"height":1}},{"id":"0fa31494-0cb5-4064-9d1b-2b1e2bdc6e6c","block_type":"box","text":"$39,836 $3,005 $3,005 $ 675","page_number":38,"box":{"x":491,"y":280,"width":396,"height":11}},{"id":"501a91cc-ad71-4412-bc0c-04d7d6b1b64a","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . .","page_number":38,"box":{"x":70,"y":295,"width":256,"height":11}},{"id":"622e48c6-bf20-4225-8f5f-a7a508f3defd","block_type":"box","text":"................","page_number":38,"box":{"x":332,"y":303,"width":124,"height":1}},{"id":"8d842e56-2eff-45b8-b62e-4d1197de5624","block_type":"box","text":"$53,269 $3,782 $3,782 $1,387","page_number":38,"box":{"x":491,"y":295,"width":396,"height":11}},{"id":"a1b30cc8-b00d-4a70-a03b-35efbfc6da71","block_type":"box","text":"Investor C Shares","page_number":38,"box":{"x":790,"y":325,"width":103,"height":7}},{"id":"28b97bbb-e96a-41be-98d7-04e463e54afb","block_type":"box","text":"CDSCs","page_number":38,"box":{"x":780,"y":341,"width":39,"height":7}},{"id":"a158ac07-395d-417a-a8eb-bfc889f7fe36","block_type":"box","text":"Received","page_number":38,"box":{"x":774,"y":351,"width":52,"height":7}},{"id":"85c52649-a295-4f42-8755-1e7f1ab0439e","block_type":"box","text":"by BRIL","page_number":38,"box":{"x":778,"y":361,"width":44,"height":9}},{"id":"b8cb8afe-7583-40db-8eb1-a16ee1fbbe8d","block_type":"box","text":"CDSCs","page_number":38,"box":{"x":863,"y":341,"width":39,"height":7}},{"id":"5ba51b47-55fa-4af9-9358-6fe8a65dcdeb","block_type":"box","text":"Paid to","page_number":38,"box":{"x":863,"y":351,"width":40,"height":7}},{"id":"6a1a4161-1f1e-4782-842e-e3d67713d946","block_type":"box","text":"Affiliates","page_number":38,"box":{"x":856,"y":361,"width":52,"height":7}},{"id":"c7ea6c15-247d-44ee-8811-a9c915b9b0e4","block_type":"box","text":"Fiscal Year Ended April 30, 2026","page_number":38,"box":{"x":70,"y":379,"width":232,"height":10}},{"id":"96932d8b-8a0b-43ad-bd6a-bccc3f650c72","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,543 $2,543","page_number":38,"box":{"x":308,"y":378,"width":601,"height":11}},{"id":"f6779d5b-76cc-4475-9e86-bd64db448678","block_type":"box","text":"Fiscal Year Ended April 30, 2025","page_number":38,"box":{"x":70,"y":394,"width":232,"height":11}},{"id":"ea8fc780-b8fb-4d2f-8b3e-34b1d403016a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 533 $ 533","page_number":38,"box":{"x":308,"y":393,"width":601,"height":10}},{"id":"d3460eed-b131-4dc0-b605-82bcbf1bbb7c","block_type":"box","text":"Fiscal Year Ended April 30, 2024","page_number":38,"box":{"x":70,"y":409,"width":232,"height":11}},{"id":"715fded5-cd62-4c27-9a06-280bf0c0fd7b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 531 $ 531","page_number":38,"box":{"x":308,"y":408,"width":601,"height":11}},{"id":"1d04362b-8805-4a24-a43d-d53670a35b7d","block_type":"box","text":"The table below sets forth information for the fiscal year ended April 30, 2026 about the 12b-1 fees the Fund","page_number":38,"box":{"x":101,"y":433,"width":781,"height":11}},{"id":"23b1fa71-5262-4144-b884-456350b852c4","block_type":"box","text":"paid to BRIL under the Fund’s 12b-1 plan. A portion of the fees collected by BRIL was paid to affiliates for providing","page_number":38,"box":{"x":70,"y":448,"width":823,"height":11}},{"id":"1304b2b5-01e1-41e4-8429-0abe54ca756b","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution related","page_number":38,"box":{"x":69,"y":463,"width":827,"height":11}},{"id":"d9202980-ecec-4975-82ff-f3bcf9b3e63c","block_type":"box","text":"activities and services for Investor C Shares.","page_number":38,"box":{"x":69,"y":478,"width":318,"height":9}},{"id":"6361420c-c13a-40cf-a9a6-1c76ccc06dc6","block_type":"box","text":"Class Name","page_number":38,"box":{"x":69,"y":506,"width":68,"height":7}},{"id":"96df6bba-e9ab-482c-a457-e48d5bd0da5c","block_type":"box","text":"Fees Paid to BRIL","page_number":38,"box":{"x":806,"y":506,"width":103,"height":7}},{"id":"08002b0c-421f-4b12-a0d4-9bcca927e302","block_type":"box","text":"Investor A Shares .","page_number":38,"box":{"x":70,"y":524,"width":134,"height":9}},{"id":"3e46394a-7d79-40d9-b214-2319ca3a3257","block_type":"box","text":"......................................................................","page_number":38,"box":{"x":210,"y":531,"width":564,"height":2}},{"id":"18359055-6236-4f5c-9f3b-bf9095e5ca07","block_type":"box","text":"$689,623","page_number":38,"box":{"x":822,"y":523,"width":71,"height":11}},{"id":"ef8013ef-e1b9-4446-8795-72f51b7b7906","block_type":"box","text":"Investor C Shares . . .","page_number":38,"box":{"x":70,"y":539,"width":150,"height":9}},{"id":"446bcbb5-51c5-4e6f-9b1f-a3b06d44e8cc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 61,701","page_number":38,"box":{"x":226,"y":538,"width":667,"height":12}},{"id":"6604f10a-629c-400f-8f61-9a5b6eb72657","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":38,"box":{"x":68,"y":571,"width":318,"height":11}},{"id":"d4fec229-3db8-4692-af72-3b0f9fb86235","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":38,"box":{"x":101,"y":593,"width":790,"height":12}},{"id":"4f5a3597-5619-4e52-a70b-92cd641ee4c8","block_type":"box","text":"value of the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on","page_number":38,"box":{"x":68,"y":608,"width":731,"height":12}},{"id":"62c24806-292c-4a9d-8c2a-e3cabbb02041","block_type":"box","text":"April 30, 2026, is set forth below.","page_number":38,"box":{"x":68,"y":623,"width":242,"height":11}},{"id":"feb699db-1172-459c-afcb-359fe0d5d4f3","block_type":"box","text":"Investor A Shares","page_number":38,"box":{"x":805,"y":652,"width":102,"height":7}},{"id":"755167be-31df-4851-a9a3-4dc9143cc6fb","block_type":"box","text":"Net Assets","page_number":38,"box":{"x":70,"y":670,"width":76,"height":9}},{"id":"13050659-8e49-4b62-a785-c4cd9d164749","block_type":"box","text":".............................................................................","page_number":38,"box":{"x":150,"y":677,"width":621,"height":1}},{"id":"4300d6f3-8abd-442d-a05c-c818e644e8aa","block_type":"box","text":"$304,293,262","page_number":38,"box":{"x":803,"y":669,"width":106,"height":11}},{"id":"6e316acc-3b15-4a90-a68d-ba1711ea174b","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":38,"box":{"x":70,"y":685,"width":245,"height":11}},{"id":"1f4bc802-94df-43f0-b7e5-212b97710aca","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,","page_number":38,"box":{"x":321,"y":685,"width":524,"height":10}},{"id":"90a0a505-721d-4461-a6d2-8848bd98ab80","block_type":"box","text":"989,836","page_number":38,"box":{"x":847,"y":685,"width":62,"height":10}},{"id":"b45cb5a6-30e8-482c-8cda-1477a3dfc8fc","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":38,"box":{"x":70,"y":700,"width":571,"height":11}},{"id":"14bdad16-f55a-4c95-8b00-96669041b003","block_type":"box","text":"................","page_number":38,"box":{"x":647,"y":707,"width":124,"height":2}},{"id":"0d01fff0-0c7d-4f4a-93ae-a1f60bd70b44","block_type":"box","text":"$33.85","page_number":38,"box":{"x":857,"y":699,"width":52,"height":11}},{"id":"ba6267d3-7c4b-4200-95e5-b00dd1edc63a","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":38,"box":{"x":69,"y":715,"width":534,"height":11}},{"id":"b0dbad57-03c0-482d-8a2a-1eae9a181885","block_type":"box","text":"1","page_number":38,"box":{"x":604,"y":715,"width":4,"height":5}},{"id":"bbcb89cd-997d-448e-846f-640c79e21155","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $1.88","page_number":38,"box":{"x":615,"y":714,"width":294,"height":11}},{"id":"640e435a-70d9-494e-8162-6c4dcba90ab0","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":38,"box":{"x":69,"y":734,"width":702,"height":12}},{"id":"2a77b7c6-59a0-433a-ab0b-eba61e407ab0","block_type":"box","text":"$35.73","page_number":38,"box":{"x":857,"y":734,"width":52,"height":10}},{"id":"71c3287d-da3b-4008-a17a-ca3533a7d6f9","block_type":"box","text":"1","page_number":38,"box":{"x":69,"y":767,"width":3,"height":3}},{"id":"376f2ca8-aaf9-4e5f-aac0-9552e1f6d9e6","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":38,"box":{"x":94,"y":767,"width":541,"height":8}},{"id":"bb51fd7c-24f2-4fbb-9894-f264fb4567f6","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":38,"box":{"x":101,"y":787,"width":796,"height":12}},{"id":"1b651e83-841b-4a55-81bc-dd0ec87dad8a","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":38,"box":{"x":69,"y":802,"width":833,"height":12}},{"id":"7241e9e7-b6a6-4ca7-998f-dcc4a9365d31","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":38,"box":{"x":69,"y":818,"width":813,"height":11}},{"id":"1eff66ed-bbf5-4460-b0c9-dd286bd056b7","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":38,"box":{"x":69,"y":833,"width":377,"height":11}},{"id":"6e6d0a30-c084-4fc9-a5fb-e555ce8aec48","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":38,"box":{"x":68,"y":863,"width":302,"height":11}},{"id":"672474cc-efa0-40ca-9c75-45c5d1a41a25","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":38,"box":{"x":102,"y":886,"width":609,"height":11}},{"id":"6ee192a4-f1b7-4ccc-84c4-daa4363b840f","block_type":"box","text":"I-22","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"46066ba2-311d-4c87-9efa-81eb83086aa6","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dbaa6f04-dbc9-4906-98a2-4bd6d8987ac9","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, during","page_number":39,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"2dd93246-8ac9-41c1-98b1-11b6582fb809","block_type":"box","text":"the past three fiscal years is set forth in the following table:","page_number":39,"box":{"x":68,"y":60,"width":427,"height":11}},{"id":"8ca19e36-8c3d-4ccf-b10f-0aabee900f99","block_type":"box","text":"Aggregate Brokerage","page_number":39,"box":{"x":613,"y":88,"width":125,"height":9}},{"id":"ff2c2713-1593-4ed5-92bb-64eb24c6f531","block_type":"box","text":"Commissions Paid","page_number":39,"box":{"x":623,"y":98,"width":106,"height":7}},{"id":"e7c50266-c139-4e6a-8910-4df0168442df","block_type":"box","text":"Brokerage Commissions","page_number":39,"box":{"x":769,"y":88,"width":140,"height":9}},{"id":"47caae13-9222-4270-96ac-b681734f3231","block_type":"box","text":"Paid to Affiliates","page_number":39,"box":{"x":791,"y":98,"width":96,"height":7}},{"id":"cf14fbbb-ebf8-430d-9502-7bec5b2480d9","block_type":"box","text":"Fiscal Year Ended April 30, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,121,301 $0","page_number":39,"box":{"x":70,"y":115,"width":778,"height":12}},{"id":"f593ef18-516f-4213-afa3-bf99e305734d","block_type":"box","text":"Fiscal Year Ended April 30, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,334,102 $0","page_number":39,"box":{"x":70,"y":130,"width":778,"height":12}},{"id":"9d2af601-660b-42e7-a17e-f0b298be85ad","block_type":"box","text":"Fiscal Year Ended April 30, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,425,124 $0","page_number":39,"box":{"x":70,"y":145,"width":778,"height":12}},{"id":"889eaac8-ba0f-4084-9dce-e0e3d2034432","block_type":"box","text":"Set forth below is information about the dollar amount of brokerage commissions paid by the Fund to brokers for","page_number":39,"box":{"x":102,"y":170,"width":805,"height":11}},{"id":"dcf48dc6-7f04-4d8a-bfc5-f454f2d5fce7","block_type":"box","text":"providing Section 28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as","page_number":39,"box":{"x":70,"y":185,"width":833,"height":11}},{"id":"96d6c390-a74e-4a21-b99b-97ac697503c8","block_type":"box","text":"amended, and the approximate dollar amount of the transactions involved for the fiscal year ended April 30, 2026.","page_number":39,"box":{"x":69,"y":200,"width":817,"height":11}},{"id":"26bc47dc-a69f-48fe-803d-bc3f485af61c","block_type":"box","text":"The provision of Section 28(e) research/brokerage services was not necessarily a factor in the placement of all","page_number":39,"box":{"x":68,"y":215,"width":795,"height":12}},{"id":"3a392c3c-ef3a-4711-9c1a-78cd6187a8dc","block_type":"box","text":"brokerage business with such brokers.","page_number":39,"box":{"x":69,"y":231,"width":274,"height":11}},{"id":"8c86cc5c-dfb0-495f-8835-6639efa502d8","block_type":"box","text":"Amount of Commissions","page_number":39,"box":{"x":355,"y":259,"width":141,"height":7}},{"id":"facbe1bf-b85e-4fe8-8490-43419803612c","block_type":"box","text":"Paid to Brokers for","page_number":39,"box":{"x":371,"y":269,"width":110,"height":7}},{"id":"9a3bb89a-c113-4fd1-89f4-b8e37ade1192","block_type":"box","text":"Providing 28(e) Eligible","page_number":39,"box":{"x":358,"y":279,"width":136,"height":9}},{"id":"40aad14d-8f9c-4d86-802d-437571e89395","block_type":"box","text":"Research Services","page_number":39,"box":{"x":372,"y":289,"width":108,"height":7}},{"id":"9bfc5df2-85d6-46a3-bfb0-65c187742f41","block_type":"box","text":"Amount of Brokerage","page_number":39,"box":{"x":588,"y":279,"width":124,"height":9}},{"id":"3416fe56-701a-48d1-b90f-69d52460147a","block_type":"box","text":"Transactions Involved","page_number":39,"box":{"x":587,"y":289,"width":126,"height":7}},{"id":"cfeff3c2-c1da-4cdc-af1c-2dd4fd7cd519","block_type":"box","text":"$2,418,641 $2,630,835,191","page_number":39,"box":{"x":382,"y":306,"width":329,"height":11}},{"id":"c089ecfa-bfbe-4a76-bc09-a7511352d8a2","block_type":"box","text":"The Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1 under the Investment","page_number":39,"box":{"x":101,"y":331,"width":769,"height":11}},{"id":"ef701d45-afe3-4e69-8222-1d9c45c7b19b","block_type":"box","text":"Company Act) or their parents as of April 30, 2026, whose shares were purchased during the fiscal year ended","page_number":39,"box":{"x":69,"y":346,"width":791,"height":11}},{"id":"2eb22df9-39c1-4e7b-8cf1-7b2782fd428a","block_type":"box","text":"April 30, 2026.","page_number":39,"box":{"x":68,"y":361,"width":108,"height":11}},{"id":"719ca367-4fa7-45f0-89c7-c1be5df0e984","block_type":"box","text":"Securities Lending","page_number":39,"box":{"x":68,"y":391,"width":135,"height":11}},{"id":"4c2da0d4-2cf6-48a3-b989-f51fb9bd0441","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":39,"box":{"x":101,"y":414,"width":807,"height":11}},{"id":"4dddd0e2-2f8f-4b83-a9f5-825757c660cf","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":39,"box":{"x":69,"y":429,"width":817,"height":11}},{"id":"25176841-2dfd-4002-af82-ec63128410d4","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":39,"box":{"x":69,"y":444,"width":813,"height":11}},{"id":"21a2b6cd-40ee-48b7-934d-8263932b1a50","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":39,"box":{"x":70,"y":459,"width":838,"height":11}},{"id":"823923e8-d342-47cf-8e77-ab4da59b230b","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":39,"box":{"x":69,"y":474,"width":813,"height":12}},{"id":"130db2fd-ee6b-46b8-9c3c-4fa64b334a44","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":39,"box":{"x":70,"y":490,"width":646,"height":11}},{"id":"11162b84-b987-4885-ac4a-b9f886077067","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":39,"box":{"x":101,"y":512,"width":735,"height":11}},{"id":"807b5055-e784-493e-aa83-e0306277385e","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":39,"box":{"x":69,"y":527,"width":834,"height":11}},{"id":"ff7d0ab4-591d-4a7c-aabf-5ec6efa2c823","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":39,"box":{"x":70,"y":542,"width":822,"height":11}},{"id":"6a39470b-6fce-44ea-a2c1-229f7bb888d0","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":39,"box":{"x":69,"y":557,"width":787,"height":12}},{"id":"397e6334-7ead-4abe-a448-66ece6e2c258","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":39,"box":{"x":69,"y":572,"width":783,"height":12}},{"id":"67e81552-d607-4506-a81c-2ebcc6321496","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":39,"box":{"x":70,"y":588,"width":800,"height":11}},{"id":"e278c68c-e05c-466c-9fd1-332781d95a9f","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":39,"box":{"x":70,"y":603,"width":813,"height":11}},{"id":"a150a6ce-f1bd-45a5-8e95-f95d4a9d8629","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate","page_number":39,"box":{"x":70,"y":618,"width":830,"height":11}},{"id":"f17c890b-ccea-46f5-95b6-66f6ed769aea","block_type":"box","text":"of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":39,"box":{"x":69,"y":633,"width":773,"height":11}},{"id":"6cf5c705-0726-4086-a3a9-457825dcd967","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":39,"box":{"x":101,"y":656,"width":776,"height":11}},{"id":"4fb17cc8-2a1f-434b-b056-2c918499f781","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":39,"box":{"x":69,"y":671,"width":831,"height":11}},{"id":"86b2cbef-180a-4c9f-b3be-d3a5fefc520d","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":39,"box":{"x":68,"y":686,"width":812,"height":11}},{"id":"be243b71-1236-4e8d-b5a2-9f9a227f27f4","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":39,"box":{"x":69,"y":701,"width":799,"height":11}},{"id":"d26dbed3-a16a-4088-8f2a-1385b9fc5655","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":39,"box":{"x":68,"y":716,"width":835,"height":11}},{"id":"6ef792a9-e25b-466f-90eb-0383deaa087b","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":39,"box":{"x":69,"y":731,"width":818,"height":12}},{"id":"5c43ef49-f6d0-444d-819e-61f69509ce95","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":39,"box":{"x":68,"y":746,"width":789,"height":12}},{"id":"cbdb29d7-4915-4f82-a900-412ed2b6a95a","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":39,"box":{"x":69,"y":761,"width":829,"height":12}},{"id":"9dbba96e-c096-46ec-9b8f-0ee455b4f899","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":39,"box":{"x":69,"y":777,"width":839,"height":11}},{"id":"1463fb50-cfc6-486f-a346-85bfdebd4615","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":39,"box":{"x":69,"y":792,"width":802,"height":11}},{"id":"722631f9-73d0-44af-8849-0087cd6a5176","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":39,"box":{"x":70,"y":807,"width":830,"height":11}},{"id":"c0ce3ddd-7746-4bbe-baae-9261f57b8457","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":39,"box":{"x":69,"y":822,"width":838,"height":11}},{"id":"b7bf16d4-e5a9-467d-9d86-77bd1760866b","block_type":"box","text":"Fund’s returns on securities lending.","page_number":39,"box":{"x":70,"y":837,"width":258,"height":11}},{"id":"c5eae8e7-f191-47ab-9e48-6621b3c6ad7a","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":39,"box":{"x":102,"y":860,"width":774,"height":11}},{"id":"8a45a5cd-d0a0-432d-a87e-f34d5df5c57d","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":39,"box":{"x":69,"y":875,"width":790,"height":11}},{"id":"da21c680-b1f1-44d8-86e2-5997667646b3","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":39,"box":{"x":68,"y":890,"width":809,"height":11}},{"id":"322095a0-2507-464c-89a3-fac068896778","block_type":"box","text":"Fund and BIM.","page_number":39,"box":{"x":70,"y":905,"width":100,"height":9}},{"id":"71e4f344-3753-462e-8ecc-cabc8e0c458f","block_type":"box","text":"I-23","page_number":39,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"3cc7955e-fda9-42c9-b0d6-1d35d832b24d","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3745299-6039-4222-8d5e-6f8686df9ce9","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 82% of securities","page_number":40,"box":{"x":102,"y":45,"width":783,"height":11}},{"id":"afabee11-668f-41cd-9deb-2464c39d5458","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":40,"box":{"x":70,"y":60,"width":815,"height":11}},{"id":"286d1bc7-ba25-490a-a606-d299e0f046be","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":40,"box":{"x":69,"y":75,"width":463,"height":11}},{"id":"e9c28299-e99b-476a-b1b0-2e69252c8172","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":40,"box":{"x":102,"y":98,"width":753,"height":11}},{"id":"29f4671e-37f8-469e-85b8-227e6da315b3","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":40,"box":{"x":69,"y":113,"width":778,"height":11}},{"id":"5ea0bace-093f-4336-92d7-ac83fc0604bc","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":40,"box":{"x":70,"y":128,"width":817,"height":11}},{"id":"ccd809e5-cd1b-499e-a66f-9ee551dc078f","block_type":"box","text":"lending income as follows: (i) 85% of securities lending income (which excludes collateral investment fees); and","page_number":40,"box":{"x":70,"y":143,"width":794,"height":11}},{"id":"e16b959c-553d-4a84-9f09-b228cb00baac","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":40,"box":{"x":69,"y":158,"width":825,"height":11}},{"id":"aa34719d-925e-4c7e-a3c5-f1dd7113b526","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":40,"box":{"x":102,"y":181,"width":683,"height":11}},{"id":"9f391870-5dde-4119-b982-16dc837bf9ca","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":40,"box":{"x":101,"y":203,"width":804,"height":12}},{"id":"beb34752-c803-4e94-8dab-8ac506e834ee","block_type":"box","text":"the following:","page_number":40,"box":{"x":68,"y":218,"width":93,"height":12}},{"id":"4a502d7c-cce0-4505-923d-4901e2dfadc4","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":40,"box":{"x":69,"y":239,"width":818,"height":11}},{"id":"cbd4fe56-28db-49af-ba24-c21ce220fb00","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":40,"box":{"x":102,"y":254,"width":333,"height":10}},{"id":"9c8af9b6-dc4d-4df4-a18b-1aa4fa2bee0b","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":40,"box":{"x":69,"y":274,"width":538,"height":11}},{"id":"853d22ee-dc10-414b-ae09-33f22047c483","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":40,"box":{"x":69,"y":294,"width":330,"height":11}},{"id":"e5c12210-e73a-4219-be79-ca9aba44c316","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":40,"box":{"x":69,"y":314,"width":834,"height":12}},{"id":"3f61154e-1836-4f62-9a83-2706362366a5","block_type":"box","text":"of excess collateral, as necessary;","page_number":40,"box":{"x":102,"y":329,"width":246,"height":12}},{"id":"71768a4b-8e7e-429f-955e-8672f2313b7e","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":40,"box":{"x":69,"y":350,"width":562,"height":11}},{"id":"e13dc042-62ff-46b6-bd6d-b792e36e2a01","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":40,"box":{"x":69,"y":370,"width":665,"height":11}},{"id":"66816d8e-0ade-42df-a5eb-69faf3a5cfc2","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 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lending","page_number":40,"box":{"x":101,"y":463,"width":805,"height":11}},{"id":"e79fc2e1-4473-4103-a9ef-6ca4b7cfca82","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended April 30, 2026.","page_number":40,"box":{"x":69,"y":478,"width":548,"height":11}},{"id":"a388a778-0a4f-4c03-bda6-57e66cf93c47","block_type":"box","text":"Gross income from securities lending activities","page_number":40,"box":{"x":69,"y":506,"width":343,"height":11}},{"id":"3d744df8-97e6-44c5-9d4d-2339a8dd003c","block_type":"box","text":"................................................","page_number":40,"box":{"x":416,"y":513,"width":385,"height":2}},{"id":"8d0f3840-258d-4c62-abc9-621588dd3a0e","block_type":"box","text":"$1,393,633","page_number":40,"box":{"x":822,"y":505,"width":87,"height":12}},{"id":"92f12c2c-1bfa-4e1a-bb9f-4a7c259d00c5","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":40,"box":{"x":70,"y":525,"width":565,"height":12}},{"id":"0ffd4779-2e8b-48ea-ba6b-ec54a02b91d6","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":40,"box":{"x":79,"y":540,"width":599,"height":12}},{"id":"0688c00d-d09b-453e-aa93-64d9ff8a937a","block_type":"box","text":"............... $","page_number":40,"box":{"x":685,"y":540,"width":145,"height":10}},{"id":"fa4e5763-aabe-4ea3-a483-52f3384dd4c9","block_type":"box","text":"135,687","page_number":40,"box":{"x":847,"y":540,"width":61,"height":11}},{"id":"e81ab4bb-3541-437e-902c-ebfa10089ef3","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM. .","page_number":40,"box":{"x":79,"y":556,"width":673,"height":11}},{"id":"ef9568a2-a81e-4deb-a467-92176456ae6c","block_type":"box","text":". . . . . . $ 8,620","page_number":40,"box":{"x":758,"y":555,"width":151,"height":11}},{"id":"5d88c29b-f2ee-4b4c-8ce5-0d2099bbb010","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":40,"box":{"x":78,"y":571,"width":551,"height":11}},{"id":"9a359653-a493-4882-a793-b1d1ffaa03f2","block_type":"box","text":"..................... $ 0","page_number":40,"box":{"x":636,"y":570,"width":273,"height":10}},{"id":"989ff5f6-ca92-452a-94ce-fa8f68001c00","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":40,"box":{"x":79,"y":586,"width":567,"height":11}},{"id":"ed782d2f-d179-4a10-8cd0-dc162be5d873","block_type":"box","text":"................... $ 0","page_number":40,"box":{"x":652,"y":585,"width":257,"height":11}},{"id":"18479fd4-cd10-4083-939b-0741e7f2a16e","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":40,"box":{"x":79,"y":601,"width":289,"height":11}},{"id":"7ea30fef-34cb-411e-b655-842908d1e126","block_type":"box","text":"..................................................... $","page_number":40,"box":{"x":375,"y":600,"width":455,"height":11}},{"id":"22fafd7e-130c-40f7-b111-9c905fc0901c","block_type":"box","text":"605,996","page_number":40,"box":{"x":847,"y":601,"width":62,"height":10}},{"id":"e6641665-46f5-4382-8524-c97483daeb8d","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":40,"box":{"x":79,"y":616,"width":542,"height":11}},{"id":"87beab73-2fdb-4e73-8f50-975ca3cac98d","block_type":"box","text":"...................... $ 0","page_number":40,"box":{"x":628,"y":615,"width":281,"height":11}},{"id":"0246155a-83db-4c54-aec8-a60b0200c2dd","block_type":"box","text":"Aggregate fees/compensation for securities lending 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Additional Information","page_number":40,"box":{"x":68,"y":687,"width":195,"height":9}},{"id":"fe7e971a-66f6-4bcf-af75-c6e78c44bcd0","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":40,"box":{"x":102,"y":709,"width":352,"height":11}},{"id":"83a5e8a2-75f8-454f-9993-8539d68a1b40","block_type":"box","text":"Deloitte & Touche LLP, with offices at 115 Federal Street,","page_number":40,"box":{"x":461,"y":709,"width":408,"height":11}},{"id":"041087f1-ca30-4e8c-aec4-c8ec3e6972bb","block_type":"box","text":"Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":40,"box":{"x":70,"y":724,"width":717,"height":12}},{"id":"cb25ded8-09f2-4ef6-9fa2-bd6f6b019ec5","block_type":"box","text":"Counsel.","page_number":40,"box":{"x":101,"y":747,"width":62,"height":9}},{"id":"f9102b7a-93b0-4da3-b09f-0a97c9afb895","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":40,"box":{"x":170,"y":747,"width":736,"height":11}},{"id":"211f0a6e-03ce-4161-90d1-b87df1d6e5ea","block_type":"box","text":"the Fund’s counsel.","page_number":40,"box":{"x":68,"y":762,"width":139,"height":9}},{"id":"50fd82ec-95ec-4dda-b962-8d8d17e7ceea","block_type":"box","text":"Description of Shares","page_number":40,"box":{"x":69,"y":792,"width":156,"height":11}},{"id":"e48217a2-f2bb-48ad-8583-c21186b9761b","block_type":"box","text":"The Fund was incorporated under Maryland law on April 14, 1989. Effective September 29, 2006, the Fund","page_number":40,"box":{"x":101,"y":815,"width":766,"height":11}},{"id":"4349b996-d1af-49a1-9ad8-548af78655c7","block_type":"box","text":"changed its name from Merrill Lynch Developing Capital Markets Fund, Inc. to BlackRock Developing Capital Markets","page_number":40,"box":{"x":69,"y":830,"width":831,"height":11}},{"id":"efc0c3a0-0445-40d2-be54-28e310a0b0e9","block_type":"box","text":"Fund, Inc., effective March 14, 2008, changed its name to BlackRock Global Emerging Markets Fund, Inc. and","page_number":40,"box":{"x":70,"y":845,"width":785,"height":12}},{"id":"ef0581cd-7703-4af7-b031-3b6acfbed865","block_type":"box","text":"effective February 28, 2012, changed its name to BlackRock Emerging Markets Fund, Inc. The Fund is classified as a","page_number":40,"box":{"x":69,"y":860,"width":839,"height":12}},{"id":"b4e1e141-c54f-432c-a7a9-e5398cc89dfc","block_type":"box","text":"diversified open-end investment company under the Investment Company Act. The Fund has authorized capital of","page_number":40,"box":{"x":69,"y":875,"width":804,"height":12}},{"id":"ec4e3f50-6be5-489e-b91f-9ceddcdb33fc","block_type":"box","text":"2,400,000,000 shares of Common Stock, par value of $0.10 per share, divided into four classes, designated","page_number":40,"box":{"x":69,"y":890,"width":784,"height":12}},{"id":"bdc233fe-402c-4a52-90c0-470338438a76","block_type":"box","text":"Investor A, Investor C, Institutional and Class K Common Stock. Each of the Investor A and Investor C classes of","page_number":40,"box":{"x":70,"y":906,"width":801,"height":10}},{"id":"0cb687af-e867-49a9-9467-1ea83809b371","block_type":"box","text":"I-24","page_number":40,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"69c3239f-e1d6-4c5a-9391-994f030e407b","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"833b0eab-c132-4c95-a90e-a2c7c8b5ee9f","block_type":"box","text":"Common Stock consists of 100,000,000 shares, the Institutional class of Common Stock consists of","page_number":41,"box":{"x":69,"y":45,"width":727,"height":10}},{"id":"4731a4d1-be9d-46e7-af77-d66f34d1c57d","block_type":"box","text":"1,100,000,000 shares and the Class K class of Common Stock consists of 1,000,000,000 shares. Prior to","page_number":41,"box":{"x":70,"y":60,"width":772,"height":10}},{"id":"b8ca7462-b0ed-4769-b8f6-04aef07551f0","block_type":"box","text":"October 2, 2006, Investor A and C Shares were designated Class A and C Shares and Institutional Shares were","page_number":41,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"1c686e40-e4e0-496e-91f7-1c7f084dd7bd","block_type":"box","text":"designated Class I Shares. 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In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":43,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"f5930975-1fef-4b97-8b71-92372b6a3db0","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":43,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"85930650-4ced-4ee0-91c4-7603246ec4b4","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":43,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"886ffbde-5c43-4709-8091-3ffea698b2dd","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":43,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"58f88b99-dcb5-4636-85e2-b9f3fecdeb06","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":43,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"7e851900-9087-4ae4-acfb-7b6c28a4a236","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":43,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"07de8ed2-f7fa-4445-beed-b9c466493ae2","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":43,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"5feb198f-412f-4801-8c23-036aaa48c55c","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":43,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"47c1e6fc-e7ec-4e21-85d4-45b547487056","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":43,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"74a91257-49e1-45b4-a0d0-f5f52fb59a70","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":43,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"bc9de5fc-f779-4278-a53f-80e75ac4846d","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":43,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"20e17b00-01a2-42e5-a68c-83cfcf00d737","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":43,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"565dddae-d8f3-4321-bc12-d12bf9667ef0","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":43,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"0d58ca9e-a604-4f15-bf59-c6c0f0a04622","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":43,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"ab0e3c72-c97c-4025-b8dc-bfdd6eec4b13","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":43,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"3414f0be-6d48-4d2d-9823-8ebcfeb62ce0","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":43,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"c64b8bcd-8ee6-4b83-8eba-0996cf81d0df","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":43,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"0e41ae3d-8291-41e7-bbc0-9fd48982cc80","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":43,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"352bb453-8166-4d30-871a-356f78cd8d31","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":43,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"883ed931-b4ab-4c8e-bbde-2ddf5e07adcf","block_type":"box","text":"particular Fund.","page_number":43,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"4cb45538-39f7-4c0a-88db-c2cd67d8ca05","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":43,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"1dcecebc-b295-4468-861d-c61656abe244","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":43,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"8a80111e-e04c-4ba9-9113-88928c3c561c","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":43,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"aacfc96a-fbf3-4e65-8e93-14024e0d8a40","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":43,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"80c756e0-af3d-4e90-82f8-5f2d2505ebfa","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":43,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"3e89592c-77f9-4bde-b047-5a205595abb4","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":43,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"980c3393-6f68-48cf-95c1-361f5e23bbb1","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":43,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"bcdb59cc-aace-4145-bb98-4deaad7b1655","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":43,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"848563fd-6dac-4e8e-b1ca-72866961b287","block_type":"box","text":"each investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does not form","page_number":43,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"8da241ec-98fb-4957-8d0a-880eebb51fbc","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":43,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"4983caa4-4439-48a3-9fd9-4b8a2ab7dc8a","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":43,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"d03efa57-61e8-4dd3-8467-532abee5acf6","block_type":"box","text":"Asset-Backed Securities.","page_number":43,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"b58dfb28-eb56-4de4-8ef1-87cb05dfa69c","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":43,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"f9b3eb85-a750-4ee8-9e2b-7e01758e13c8","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":43,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"1a1c6fa4-6c01-4d12-b129-2c947685a0a5","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":43,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"1827d53b-9d30-4abf-8929-98ac5563867b","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":43,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"d853720a-52f0-433e-8231-54c752a8dcdf","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":43,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"87dd37cf-9d39-4025-978c-8ba58fb9e871","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":43,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"7ad4b4fa-6c22-41a9-bf61-d8a7d2777bc0","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":43,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"81e2422d-546e-4737-8267-e2943546e767","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":43,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"5739c095-0954-45b0-9f13-cd0e9ffd416f","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":43,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"af72e3e8-c7d1-4335-971d-6412230537f1","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":43,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"57b24a59-c280-4564-b5c9-b6492785fd89","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":43,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"4a0c71d3-9577-4259-a09b-ba4808700042","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":43,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"d9192abf-312e-4673-8ea5-72f4fa069ca3","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":43,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"998a2e7f-6697-491c-9cdd-c7e919491253","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":43,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"46a599b3-5db1-4213-b5ba-e3e04c4e30a9","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":43,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"6deaef26-0c5e-4916-89dc-a8ee5e51bd06","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":43,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"83d437fa-abce-4da6-82a8-486d75a1870d","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":43,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"50ac8c5f-4382-42bb-93ea-e4b1b8cb2a0a","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":43,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"04f52c4d-b340-46f9-97b1-18936a914d02","block_type":"box","text":"II-1","page_number":43,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"cbfa7d86-00a8-4c1b-bfe4-6c0318070121","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5607be61-f9fa-4b22-b599-6b2439f3cd4d","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":44,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"65e28169-12e2-420c-8ab4-e7d626565159","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":44,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"1093bc0f-8f79-4fe2-9f83-9d8b424ffa26","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":44,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"31d5ea73-3ad8-4c09-8cd7-d243753e43e5","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":44,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"9eedf37a-26fa-4a1b-9fd1-c4e3fee9c496","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":44,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"1ea52ba1-2948-4b26-ac12-5f0390cc218a","block_type":"box","text":"Asset-Based Securities.","page_number":44,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"7e3e3e58-a0c6-42eb-b856-4d0e96952bc6","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":44,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"4b9b2ee1-f2b3-4162-a6e9-aba21ce1ce6b","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":44,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"df790117-733c-4248-bf87-6219929d918c","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":44,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"96461134-deda-413b-8437-53be98b73814","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":44,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"aea5d2e2-c2ae-4f4c-9f6e-fc156ab8f8d6","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":44,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"b1999b35-fc21-4710-882b-d4804db75d60","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":44,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"556380f0-0e32-40ce-8b28-2717e272956d","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":44,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"71c79909-57a6-46ec-8a17-527646fabbf2","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":44,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"20b46832-ce6f-49b3-90e6-83e19c697989","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":44,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"01f4c797-2d39-4621-8065-68a2e1e2b19a","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":44,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"6d4876de-c49e-4625-b6cb-66e474176955","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":44,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"81846f67-83cd-425b-9f11-ff9901386504","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":44,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"ba242d02-5fef-4f08-8129-2010ed3dadb2","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":44,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"71e4b3ef-a3a5-4d8d-b927-d41c0f5fdaf3","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":44,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"94be86c4-b529-41bb-b89a-acb33e33812c","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":44,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"ef91dbc2-0179-4964-bf3f-cccbc7a54d80","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":44,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"61033c85-d413-4990-8957-8290d32e1ca9","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":44,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"64778b5a-2f80-47aa-a909-b3b3be3f9253","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":44,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"b4635354-e8f3-4762-8376-d79fd6c5f42d","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":44,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"c3fba883-5230-457b-91e9-3e6494fc7a0c","block_type":"box","text":"appreciation in the underlying asset.","page_number":44,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"26d74d86-e863-4e7f-b887-a937af5b3aa1","block_type":"box","text":"Precious Metal-Related Securities.","page_number":44,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"a8004fc1-ea5d-49b3-a320-926a9f571aa8","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":44,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"4625a640-1275-497c-92ef-ff3fb38ec0b2","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":44,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"d8e05efb-0660-424a-badb-c6e8b39a9c14","block_type":"box","text":"e.g.","page_number":44,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"8bc1a30a-846a-4dc0-aad3-b4195250c588","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":44,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"62070b1f-e875-4d10-b5d9-af94cc514b82","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":44,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"1969ff6a-7944-43c6-a859-c374a9ab5bf6","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":44,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"65250993-f399-47c1-b76f-c018a74fe111","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":44,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"838cab6e-3985-45ec-9b07-c7090130036c","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":44,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"feda1fd9-fdd9-402d-b577-b29d2ab7cc42","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":44,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"18cdf9c7-6a13-4175-865c-a4bbcd98a1ef","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":44,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"24dd3855-10ed-4724-8cd0-9e15fdfccdaa","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":44,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"df5f17ab-e04d-4452-846e-43f57f749d64","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":44,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"a993fe8b-28fa-405a-b7ff-b45d630a305e","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":44,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"0891b0ed-fdab-4077-a174-76262666cdbb","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":44,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"92ccd067-a490-4d97-9fe5-529bcd198a68","block_type":"box","text":"South African gold production.","page_number":44,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"c35d6d22-064f-4872-bcfe-c3ef537a870e","block_type":"box","text":"Borrowing and Leverage.","page_number":44,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"2ed43d9d-ee3d-4730-8607-2aa1d37ceadb","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":44,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"70d0763c-9462-4ed7-90ca-4d3c837857d6","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":44,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"d0c52f3e-6fe3-42e7-9c1d-2b35d9999d31","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":44,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"3df1de1d-b5bb-4716-a54b-edfb9d3d4f4d","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":44,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"11b457dc-62a2-4a08-9457-af5692f476ea","block_type":"box","text":"other securities transactions.","page_number":44,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"56ab2dee-b425-4e70-8e2b-ba615306b102","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":44,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"99b1dae7-8213-4eb6-860c-9003aae0b3e4","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":44,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"a53dc250-4cec-448f-9f40-33e11903a6d4","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":44,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"9433ab09-7cf8-49c2-a17e-0a6508d2f4a2","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":44,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"e502112e-16fa-442a-89ea-39e8514091ae","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":44,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"ddd903e2-d1a6-49c9-a203-839208309836","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":44,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"7437c7e5-b992-4877-a105-608df2d19f2c","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":44,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"6bd7d053-d4c8-46ee-8446-570bef4fc5d3","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":44,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"a049e6a5-a171-49a7-87fa-7b16f9554ebe","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":44,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"3ed6dc39-c8ac-46b5-8971-0cea372d1468","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":44,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"b68879d1-7f60-4ba1-9fa8-f1bb2fb24065","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":44,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"290de556-f22e-4fb9-a89b-38589dfd8c9b","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":44,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"fb1cbd3c-fe92-40ed-995a-cd854daf57e3","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":44,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"0ab9cadf-1698-4b5e-8d02-839e4938a4f6","block_type":"box","text":"II-2","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"17af9e79-72cb-4a58-82bd-f076fd361c1d","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7768c2ad-fff8-46db-9d1d-7ddfea2717f3","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":45,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"25b8678d-5e9e-41af-ab79-741240f6229b","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":45,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"2d3e1447-f07b-40a1-920b-41432b511cee","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":45,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"4ac7271e-939b-4102-a834-8695c2d63116","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":45,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"29b98965-cacc-4434-9d4a-d0eb9e4f97e1","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":45,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"b46558f3-4c51-43e9-b8ff-001bfc11cf94","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":45,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"352ba2c0-809a-4c75-9fcb-032b3e07e1b2","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":45,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"9df3c0ff-d11c-4f9a-ac5a-a8709f440492","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":45,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"4bf00fc8-fe65-4a92-b1d4-86abb538285a","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":45,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"e7b1b1bb-ee73-484b-941b-e1afa41b3818","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":45,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"f780a182-7ad5-4a02-82a3-4592bbef5a07","block_type":"box","text":"Cash Management.","page_number":45,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"5ca81ed5-0bbd-4655-8595-175659fa244a","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":45,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"faaef7c7-d1fc-4754-9e7a-dc733d450ee3","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":45,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"aebff355-3c0b-415c-86de-b358b38f5578","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":45,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"b96f06f0-ba8f-4a71-a2ed-be7b0f5e1fb1","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":45,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"f592705d-dc78-4ef1-aa80-ea62a76fa5e0","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":45,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"a8466ef9-7d92-4084-8388-b45c768175bd","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":45,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"3f1ceeca-0559-407c-b3a4-f78fed53965e","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":45,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"053977e5-3e3c-427f-893a-2dc046a8b816","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":45,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"2280833f-0c78-4925-8c0f-1714ad2e071e","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":45,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"d105b7ff-bc36-4f9c-812b-456bba12ecb1","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":45,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"7b416d2b-f1af-4861-84ae-bd6bb237089e","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":45,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"a3011de6-62b1-4f79-a64c-e8137ffae552","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":45,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"299bbe98-8398-4d3e-aeaa-e4505500cbba","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":45,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"78e69cef-38f1-4fef-b196-4030877387ae","block_type":"box","text":"Collateralized Debt Obligations.","page_number":45,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"19393614-16aa-458c-833c-1d3324d5e0c1","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":45,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"d133bc8c-3c1e-4f8f-b33d-0ed51095ea7a","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":45,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"e2d34cce-1f54-4260-b6ed-cc179371c901","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":45,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"d6f4695f-c9ee-4807-928e-e768d90a9b49","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":45,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"4a61b52b-9602-4a73-ba69-e0cbcb8670c3","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":45,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"fbc99a9c-2b50-4b5e-aa8f-a3fad62050cb","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":45,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"67c75917-81b5-40b9-9cd4-c2f72c2aef1d","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":45,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"964239a9-297d-429d-80c4-019a45df688a","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":45,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"5e9e8bbc-23bd-421a-9b31-ade508cf5682","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":45,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"cc72bc4b-1313-4c37-891f-073049f5e3d6","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":45,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"72289129-d227-44b9-a889-57422b509a6e","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":45,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"13e5ca37-0005-4124-aa31-220fa28ebb2c","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":45,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"784f755d-6626-4f8f-b5d9-d66269318379","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":45,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"6120d6c7-e786-4742-8484-dd945d4d87d0","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":45,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"f1d93523-ed2f-4efb-b15b-bb334f961dc8","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":45,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"d4418f99-ea4c-4f5f-9252-3689711d5b51","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":45,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"239a780c-dd24-416c-84f3-ac1ebace6676","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":45,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"7b4c9b2d-9c8d-4b0a-aea4-dbca024f7961","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":45,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"e193525d-0e3a-4ae3-8a4a-bbbe9c0fb5bd","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":45,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"03b086ee-7096-4169-8106-2ec4b4e7eedb","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":45,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"ea647b10-a29b-46a7-8166-3a664830bc0a","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":45,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"852e7410-758c-4de3-ae73-15aab3e672b0","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":45,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"2ddab472-b02a-466b-99ce-c6cc4e56708d","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":45,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"c73892a2-c134-49ba-8217-95ca8710c76a","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":45,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"a5c22a8d-f4cc-499c-97bf-7127183fe52f","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":45,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"cd60dda7-7b19-4077-b539-5b86e1e3bdd5","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":45,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"d45cce37-1598-4fe1-a858-715f93bf3cfd","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":45,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"93cb0d93-5b3f-4f2a-9864-02ec3cf4356c","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":45,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"998a63e2-302b-44a6-a8dd-3ced48409836","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":45,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"b49d1c62-80cc-4382-8814-8da76420b735","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":45,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"c0267519-ab7e-463b-afef-fd49113bd49a","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":45,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"10e58624-1b45-4d93-b5a7-61fcae39b999","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":45,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"c0086091-b8a8-4f00-b605-567481729d05","block_type":"box","text":"II-3","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"53e9a965-b2c6-47b8-991b-4a8459c85e73","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e80a374-eafd-4fe0-a856-d100b1f36d5a","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":46,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"df985af9-c55a-4742-8b10-f070c4ad8e5d","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":46,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"d6d176fc-a3cb-42c8-9b29-52c29fd5dff3","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":46,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"403d4f46-5ffb-46d1-a746-4f214df9d94e","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":46,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"01e9f057-3fa5-45fc-8295-5a3814b3bd56","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":46,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"77e582f5-8a46-426e-9bdc-fa11bb5146d4","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":46,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"3c51c2d7-e3d9-41a0-a3d0-b179b9655018","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":46,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"a329bd44-8bae-4945-8826-c233ece60957","block_type":"box","text":"Commercial Paper.","page_number":46,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"3a5d81fd-ebd9-4af0-8725-93d03c42b600","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":46,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"c56f024a-e917-4b7b-8ea9-1d8db30b2e0a","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":46,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"4a6a70b9-d919-4929-9225-58ca3d47c0e2","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":46,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"3e2cdda1-94cc-4ef5-b4f2-747862255c7a","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":46,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"7d076de1-ecc5-43a4-8a97-6c58ed423adb","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":46,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"9af0d534-49b5-425a-9950-6f4cfe88bc98","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":46,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"f3f234a0-acc2-409b-b2fe-f606a1fd590a","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":46,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"46b8892c-0aee-499a-8add-b8d0abee2555","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":46,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"40ee1a0a-ae3d-41c9-b513-4492ec9bb661","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":46,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"7d8e21bd-f2ab-48a5-8380-3fa95299a594","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":46,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"079eb679-21e1-4416-9abf-845f49c52df4","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":46,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"74b3a08d-a78b-4545-8c8c-d44acc95adcd","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":46,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"ac7d0027-4524-4807-83c7-164e684607df","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":46,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"04a6d08c-5a3d-42e4-8399-fe43fdf0720b","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":46,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"16f29dea-eb18-43c0-8f9b-22c7d1bb972d","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":46,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"6ffe6e41-0acc-4d9b-91b6-75e8c951cd97","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":46,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"9289a224-b58e-4928-a3a3-96123d16a895","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":46,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"2898e1b3-418b-4762-9dbf-0e93ab32a2d3","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":46,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"1397ed96-2009-464f-88d7-1977ed6f04b6","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":46,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"431d99ad-50fa-4bee-87b6-7463a4be201a","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":46,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"c9f78637-fe02-4217-af43-70fa3fd69f52","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":46,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"662c9a01-0d3e-4e7d-836f-686fed36d776","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":46,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"d8ae3b99-cd64-4db9-b7ea-9bd1e18f50d7","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":46,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"9eb9ba19-a58f-4dd4-b71c-574c53b3df18","block_type":"box","text":"variable.","page_number":46,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"5036be22-c38f-42a9-8262-d0d9f191deaa","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":46,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"34051d00-8f57-4b30-a254-b179168bab14","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":46,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"2033719a-9975-4885-974d-a84e00fc0c8d","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":46,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"44a77255-6074-4852-b9a6-dc3f42b05c44","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":46,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"5398c175-c34e-41a4-b871-5eea4157723e","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":46,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"e06e4785-4170-4910-a550-d409cc58f7c6","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":46,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"e10c7261-de4c-446c-b937-16a9895e6cc0","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":46,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"eb481356-0f0e-44a2-a10c-b3bf7afc625e","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":46,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"f3b40016-62fa-4b9c-8f64-b3e35abdd8ff","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":46,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"457e800f-93d6-45e0-ad73-f1f9da6a4665","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":46,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"4c7a9320-8199-43b0-bb7d-2870a5c1f486","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":46,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"03078cb0-dd21-4d7e-b1a2-3921c3394bb8","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":46,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"c17b9793-37eb-4249-a94d-434463ba27ee","block_type":"box","text":"correlation with stocks and bonds.","page_number":46,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"9fd8cf01-c2af-4d9e-ae9b-0e6bd0512a9d","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":46,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"e7f25a47-61bf-438a-acdd-267acf20ab53","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":46,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"c2d47e4a-1a2d-498b-a22d-6ba19a006bc6","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":46,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"b4ba4e02-104e-46e0-bcc1-d3530759a76e","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":46,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"a5f8c851-1617-47da-928c-626eeaed83d2","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":46,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"9e3fecfe-8cae-4836-9542-e1952710aaf1","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":46,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"826628a8-c8ed-41d8-ad5e-8e432ac8fa69","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":46,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"433a6c3d-af9b-45f4-bc26-1eb319c26f53","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":46,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"4093e1d5-67d0-497c-aecd-cfbc1864ab70","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":46,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"23bf8805-5572-4f57-a3e4-732377d4f0da","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":46,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"35ab87bf-d2fc-4430-afa1-fab96973e147","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":46,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"9c3a8f57-1b75-49df-b6b4-ef1a5fe28773","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":46,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"54dc0ed8-2703-4e7e-a6e4-044ec80737e5","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":46,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"a6dc3c3d-900e-4eec-8ad2-94c1c91adc49","block_type":"box","text":"II-4","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d3d5213e-39f6-4244-b0d6-88d67d946039","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3cd534ba-7bf2-4fa8-a01c-7696a4881831","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":47,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"d9db2423-8865-4643-959b-bcaef05de4c8","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":47,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"3980822c-b9fb-4afc-b2ed-1bb1d2d74a62","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":47,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"2320eb92-a542-4637-9cbe-e7ecb2cb4ccd","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":47,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"7888d42b-dbc0-4276-a2d4-3c5c415b274a","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":47,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"9ec2b8cc-4732-4157-9f95-250ea0cd26c6","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":47,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"d70400a8-7c0f-4ff2-ac5f-571418ddd525","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":47,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"aa935668-f9e9-43ad-8083-5994194af156","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":47,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"595f19d9-c3b3-4c80-aebd-6dc15ce329e0","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":47,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"16fa176a-e475-4bf8-b367-5cd09bea75c8","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":47,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"a71724c8-d774-4efa-b3a7-810db8a2e74c","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":47,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"3be7cb99-2d8d-4026-8a28-d3d087788de7","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":47,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"409e8794-37bd-4421-8f33-3224d2f11a9b","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":47,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"4dd1195c-7735-4447-b909-0985fe44466c","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":47,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"79707478-ccaa-4c81-9b59-1283cac17c74","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":47,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"919cd4de-2d04-488e-b1b4-5264f2bfbb8b","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":47,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"8ab4ab16-d01a-47c5-a43e-de999aa44514","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":47,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"ba8a6473-fd25-4c17-a354-a7cf77ccfb56","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":47,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"90ff4fd6-f0ce-48f4-9ea8-831598e34603","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":47,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"8a0b9433-06ac-4b4d-8a48-9a66de5d1b6b","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":47,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"2d40efe3-6096-46b5-8b08-066963c1c6ac","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":47,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"20b23757-cb29-421d-9123-bbcf14074b72","block_type":"box","text":"the Manager believes are relevant.","page_number":47,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"b841cf29-7b2e-42bd-9f2a-cd604ab3c062","block_type":"box","text":"Limitations on Leverage.","page_number":47,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"63f9ee96-41b5-4913-b064-615d3eab2201","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":47,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"3d32ff2d-32f9-489e-bf2f-3c9150bb7c8f","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":47,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"38285fda-3432-4433-8016-a4bd01403d0a","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":47,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"d88b98b6-25fc-40a0-803c-caca683c77c3","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":47,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"0a09430d-53b4-4712-b28c-dda64e9ea785","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":47,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"4a93eff0-442a-4c8b-8b96-25386a2e7b45","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":47,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"5c61e5d1-e487-4368-8541-87a9e32a6579","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":47,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"077b8407-f8f1-41af-a0cf-f55a0ac7b0e0","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":47,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"96f2fec6-4f2c-4338-b512-996000c85c01","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":47,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"1d869f75-ef17-40f5-ac86-7e7b435cefb2","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":47,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"c4361359-02fe-4d62-bb0c-f480d587ea37","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":47,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"23215707-30d2-4116-8c2c-fafaa91783ab","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":47,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"1813d4e7-19c5-4ac5-a906-3ad5b7c6ce60","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":47,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"aeb9d128-293a-4014-a114-47a9660664c3","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":47,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"372b3325-a30c-4333-b015-dbede614a912","block_type":"box","text":"Counterpar ty Risk.","page_number":47,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"815b94e3-7161-4b01-9033-0157d34d2a77","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":47,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"d8f83bd0-49eb-415d-8acd-f8c5466bbf92","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":47,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"0bdec878-e6a0-4d53-b3b9-e985bbae26d0","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":47,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"e2becc58-9b57-4c8a-bbea-9508e778985c","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":47,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"295914f1-26db-432c-a2fc-5b05ab6ede43","block_type":"box","text":"e.g.","page_number":47,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"dcf2af6d-1e30-4c3e-af9b-c4cc02b24c97","block_type":"box","text":",","page_number":47,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"4f5f0516-75bc-4713-b09a-018776518e18","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":47,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"7dae0572-e016-4703-922d-183ffafff805","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":47,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"16506f7e-b8a2-43c3-a4fc-e9d05017c6d7","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":47,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"9d92b2d9-0811-48a3-8093-2243fed5a62f","block_type":"box","text":"obligations under the structured note.","page_number":47,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"98dd9af6-8c0a-451e-873d-18aefb9c93d4","block_type":"box","text":"Convertible Securities.","page_number":47,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"7d4a4d17-1f60-4ebf-a750-9894cf24c4db","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":47,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"215bfb90-5c2e-459c-b4b0-ba26f977e482","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":47,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"af9f6442-9bee-4367-948b-5a941a826e62","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":47,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"5e2bf948-85ce-477e-b8a7-3e708322c7bc","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":47,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"1dbb4b59-ecf9-42e4-95cb-9d4f43d7cb03","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":47,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"0a271daf-14da-45ab-b8dd-2af20cc811e6","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":47,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"17c187cd-21bc-4788-bc20-501c7a9b93e8","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":47,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"3b78655f-9a63-4e28-bdf8-f10ed96b8c70","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":47,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"7d2105b9-84d6-46d5-996c-7f6b12b4f647","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":47,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"eb60f82f-b026-4b4e-bfc9-285f068fc061","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":47,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"d2ba3e94-a6ee-462e-9145-1c87611ea9a2","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":47,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"4c9dd7f2-60d4-4e33-812f-abdcc2a912b8","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":47,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"da3eb4b9-abef-4bcf-971c-68932922d34d","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":47,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"68263fea-5810-4750-b9f3-cc724a2ec876","block_type":"box","text":"II-5","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ccbe82c9-bb75-4367-8c29-dfcddac1e906","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"29688e4d-662f-402b-b702-408509567902","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":48,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"9a0d779d-08c1-4b89-a7ef-b1e01b601e50","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":48,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"9e7a8d5c-16b0-4a36-a750-e9b6bc4abbb9","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":48,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"9de48d40-b3e0-4644-8ad5-991fc86f93de","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":48,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"a6890dcb-270b-4d65-8391-4fc77a6bf6d8","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":48,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"ebb0e292-dbfe-40e0-9720-bc938569c61e","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":48,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"e419ca7c-a16a-479b-a694-9dca9a8b2999","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":48,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"cebb2b94-e0af-47ba-922d-5a902f865351","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":48,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"ff4a8057-8d5c-44c0-be99-cb0ad144f44c","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":48,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"6cdaf106-d0a5-4090-865d-b623db4c4c41","block_type":"box","text":"things.","page_number":48,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"7808938b-4257-4880-b08b-ec02d884c422","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":48,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"bfabc7cc-a8b1-42f3-8637-7e4de29a995b","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":48,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"dfebcdba-6bbe-488e-93c2-b65e2dbeefe1","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":48,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"104ce8d2-9edf-41ec-962e-897c03d14da0","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":48,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"63b93fd2-bfee-4f57-96ef-d7f7a59c04d3","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":48,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"a4dcdbac-9557-4c34-aa24-234a3fbafdee","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":48,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"c984ff56-680c-4aea-aed3-0e691cb3d651","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":48,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"eccfbc7c-25b2-40b2-9c33-2fd8fd991df4","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":48,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"68a9706b-a81b-4754-863a-8f030d845fd6","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":48,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"add48962-7cd0-4003-bfe0-2fa6e451eae6","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":48,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"6b4566b1-cc63-44c9-a187-23dc00f754df","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":48,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"01c72ecf-6bc5-44ff-bf0d-360018adcf6f","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":48,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"36b33e26-71f8-4ca4-a6d2-fbafcb6226d2","block_type":"box","text":"i.e.","page_number":48,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"89e04084-c83a-4516-8162-4bc17b1944d2","block_type":"box","text":", strictly on the basis of its yield) is","page_number":48,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"a1f02c73-3c38-4db9-ba56-55375d2f4d6f","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":48,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"18c303a1-c23a-41a9-a669-ff7edb7c4c12","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":48,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"f7be977b-992a-4ccb-963c-6a6a1f2b3c6d","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":48,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"fb83e49b-797e-4d49-8156-01f878693277","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":48,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"98e35a0d-0e94-40ae-888b-66276c328931","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":48,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"056b8055-c15c-4d48-9935-a484f321a0ff","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":48,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"a257fa35-3ff7-4dab-9af2-a1519a1a54d3","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":48,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"67b94334-4a81-46b8-992a-63690a115310","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":48,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"95d2d208-e53d-4ab6-a382-8844ad10fafe","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":48,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"04df46cd-8415-449d-88e7-0963762690da","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":48,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"7f51e6d0-e3f4-4950-b9ca-02e033706a56","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":48,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"a2efc2e9-5dac-4091-a02a-1978eb67064d","block_type":"box","text":"than the securities’ investment value.","page_number":48,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"9c692cba-0f58-451d-932b-6ffaf8600a3b","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":48,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"e40e057b-a2e8-491f-a258-7c7dcc1f0f43","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":48,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"2b46f678-1226-450f-8ba3-340c012fa101","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":48,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"c3b8afb3-6293-4ddb-a01b-dafd5d0766e4","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":48,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"cea1899c-3c36-4b70-8025-a60f2ff2cc47","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":48,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"a9ad8eee-cf4d-44a5-9712-f8a5732ceed3","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":48,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"8ee32424-a24a-4f80-9abf-99208be93ec6","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":48,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"ee7ab1b0-7daf-4e46-8168-a2b5e9d70890","block_type":"box","text":"security under certain circumstances.","page_number":48,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"c0755f84-2f18-4acc-8f83-d571ed0feac6","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":48,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"6628709b-a6d4-404b-9df3-c30e40cc0d92","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":48,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"e98874c0-3548-49c6-8307-e2536ca4411d","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":48,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"855e3518-257e-4f0e-ae37-5373773127a3","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":48,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"6cf8646c-adaf-47dc-b457-b171a5150df2","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":48,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"947faf06-dbc6-4cc7-bb4a-2c88063cf517","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":48,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"713045e7-078c-476d-a162-fc15e9926e2f","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":48,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"1fc3fff2-fe2f-4540-8233-0d49749a70c7","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":48,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"3f2dd646-aa5f-40d2-95eb-99d6ad10c90b","block_type":"box","text":"i.e.","page_number":48,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"e6a4b9b6-c18c-4d4c-bacf-df8c8128d26b","block_type":"box","text":", fixed-income (“fixed","page_number":48,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"a6b8ea95-7823-47b5-ae9d-593fdf2e795c","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":48,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"ded58295-b9bc-4c58-ad37-cd4786c9f922","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":48,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"4de529a4-4a2b-4f09-934b-e8e41c9d8f90","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":48,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"15e8e263-5fd8-447b-9739-7b328d45053a","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":48,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"6d4d30dc-2403-463c-a14f-792d992d8cce","block_type":"box","text":"II-6","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"0c743a08-a2b2-4fe8-8bc0-060a3137a6d2","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a1ab0ca9-f575-4369-8fcd-e4d6062ca543","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":49,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"2bda028f-80f7-4646-9ca1-8ceaeeaff1ce","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":49,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"9ec2ce5e-5646-49db-b53c-1d7bad2a4bd2","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":49,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"d5de1341-7422-4e8a-be21-e26e299294d7","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":49,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"cdfa710c-7687-4d40-ba23-b5ac9cd0134c","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":49,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"ff2829c7-ee58-4aa1-ae07-01194e422884","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":49,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"995ad56a-781c-4482-8469-36b39e882c50","block_type":"box","text":"component.","page_number":49,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"10aed835-abb1-4593-ae10-a273b9a14c9e","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":49,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"7117ddaa-f570-487f-aa0c-5c66f6353f69","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":49,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"8468c422-8635-46cb-b53f-cc6c1e2a9256","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":49,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"eda5980f-ae8c-45ee-81f0-4e2e2ff6e87c","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":49,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"844a3403-a42e-4385-84e0-3b4601cf2911","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":49,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"4714622e-873e-4aa9-a247-a879143bf650","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":49,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"2e876c13-e48b-4533-b8ca-dbf1c495bb21","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":49,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"cfda72e4-5720-4a00-ac93-91d288e10ec5","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":49,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"cc577395-71b5-4ed5-98f5-989447c3ce65","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":49,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"fcf14268-09c5-4984-828b-13276b0bf20b","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":49,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"2f1144f2-96c3-42c5-94f1-583a6eb443b7","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":49,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"9c742b76-72d8-4b36-b004-f8bbd3717ba5","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":49,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"324ceebb-8101-4bb9-ac94-674ac236e1b7","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":49,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"4bde7f98-3af4-49d1-bfec-714eb4217d4d","block_type":"box","text":"favorable market conditions.","page_number":49,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"0c23ef2d-4e92-4638-a309-bc66f8fb01de","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":49,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"d62d6a22-3859-464a-a5ab-a9050ba6801d","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":49,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"0574468c-6dd0-4180-a3df-a733f5e93326","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":49,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"fd3a1062-1644-4f06-aca5-f0ab88aa2637","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":49,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"21516b8d-ee98-4975-a4ac-f5261f4a10aa","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":49,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"cfb90991-8dd6-486e-b11f-f95f738cf10c","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":49,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"eccbd0fd-e607-461e-aad2-75a96d00dbf3","block_type":"box","text":"Corporate Loans.","page_number":49,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"7e5a8f9f-109d-43dc-8b7b-6c13064e0b5c","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":49,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"09a63725-7c5e-4db0-8ac5-616fd10dd785","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":49,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"834dcfd5-bb1b-43db-943a-0c59d35bc019","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":49,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"cd2e2535-5665-4a8b-b983-424750feabc7","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":49,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"913bfa60-f974-445a-be57-0578134ac0dd","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":49,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"2d10f191-115a-4226-8780-7a9d6e758bfb","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":49,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"0370a678-d5db-4405-8570-b66f9c2366b7","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":49,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"4b138173-b067-4aa9-926c-795e86ce5e21","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":49,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"2707646a-a4b9-4a7f-9ae8-b00052a2985c","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":49,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"8c158642-7bf2-445b-af44-c8534e5dd62b","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":49,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"3f22811e-6938-4625-a0c8-e49a853e07ae","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":49,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"c8bc7c5a-9ff4-446e-b824-376f284a9662","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":49,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"63db87b9-7d4f-4044-a407-58b034756a66","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":49,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"cb408117-9502-4126-8649-a13eff63699b","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":49,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"2e49c633-7145-4615-9dcf-c147b48971f1","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":49,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"963b9cd7-1571-4c4f-9a07-9e83afc2cc63","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":49,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"b6492425-7bba-49f0-bac7-13d74d6d50b4","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":49,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"f9af2a69-f97c-4912-9098-0fb2cca496c5","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":49,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"eed00eb2-445f-4fd4-b344-2712bbb88f86","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":49,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"2540098b-22be-4b6e-8eaa-83394cb0c7a7","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":49,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"c078dbe9-6f43-45b6-b6fb-b19b7f1fdcad","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":49,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"fcf6c8b1-e8f4-4dbe-a4b6-b6a22de4f217","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":49,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"c09742fa-f040-49b3-84fb-6bb33fe09682","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":49,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"508adaa1-4d1d-40f9-adbe-dd33014000b6","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":49,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"1c9e3e3e-f011-4972-b65e-333395a86299","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":49,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"c42d7b3f-51a2-4ec7-926b-e4924fe3746a","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":49,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"8e478b10-c977-49b6-b432-8e68b7a44a87","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":49,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"a5cbc78d-c2ea-4575-9079-25844d585d70","block_type":"box","text":"of the borrower.","page_number":49,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"d29a2d7a-85f0-4ab6-bbb6-e2707190fedd","block_type":"box","text":"II-7","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"cec516bd-614f-4ca8-a0ce-0e130650740a","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b95de39c-b405-4797-ab4f-66a906fc73e4","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":50,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"97d31d0c-eb44-4535-b1f1-508f608dd064","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":50,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"a727038f-9d74-4231-85c0-9edb8c9a558c","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":50,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"447873ec-5bdf-4208-b4eb-1b64c8925b4c","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":50,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"8c36ef76-bb14-42b7-9395-e44741a76c31","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":50,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"fe8cc1af-4c77-4df9-a2ce-3c4ccb63c29a","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":50,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"b1b8fe51-51cb-4174-8a7d-c87d68b29670","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":50,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"a8a9dd98-5570-4482-b4d5-8726ca975275","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":50,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"5b61c4c9-9f55-44a5-90e9-30f6a2dd5fe6","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":50,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"2c117b8c-630d-4aa4-800e-a766af196d20","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":50,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"3a26e0f5-973f-483a-b048-964e19b53d5e","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":50,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"efe74455-2572-46a2-bab7-77430b37733d","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":50,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"b33fec14-bf4d-41ca-868d-63f5d1aee381","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":50,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"cc71a2f9-e79f-44c7-8ca4-bce56198d73a","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":50,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"22a1c4db-f9dd-415c-817c-7964eb46777b","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":50,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"bfcfed64-c151-4956-b832-75d6def8964f","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":50,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"9c5cab50-4d5a-4d72-bb17-7faca85a8026","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":50,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"e28a7d80-0fe0-4156-85f3-4f7fcc8b0321","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":50,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"f1bc9e95-5bef-4370-ac6d-5b53a189c2da","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":50,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"79378d99-095c-421b-9e35-9f634a26474f","block_type":"box","text":"state law.","page_number":50,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"61e628f7-0c3a-4cf9-8202-b672e0053f46","block_type":"box","text":"Direct Lending.","page_number":50,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"4295d00c-e492-401f-a554-71e59e193010","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":50,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"fe35ec4d-c0ee-4e9d-87bf-d92e2f38ac31","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":50,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"365e0e93-ce8d-4796-bed6-6ede465a3445","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":50,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"ab5a3832-b366-479b-a8db-d3e341bdc868","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":50,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"a64f2e9a-cce4-4edb-a31c-88530a52d49e","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":50,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"ab30f61b-0727-442c-92aa-c7fe255f846a","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":50,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"a53886e0-b758-4534-a885-924a9e9d9659","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":50,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"4b930545-555e-479c-8533-6438eb1de4b6","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":50,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"facd72d8-8644-44e8-9ee7-f2a5c6b476d6","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":50,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"f53a114d-6aa2-493d-89fc-e8055509d1ed","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":50,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"d9e4d86e-8e40-4456-a7b3-3451de4b1dfd","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":50,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"c82806c1-ba85-4d9e-a002-5122bd041af5","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":50,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"c6425a80-b56d-4a02-ba5d-397e7bd70507","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":50,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"a0877ffe-109b-4050-b3de-0df799f314c2","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":50,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"c52859ea-9d27-4fe7-926d-80a5c33b62b4","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":50,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"a309fc78-103a-412c-9bf5-fcbc4bc8ab33","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":50,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"e7041799-8364-4ebc-9848-e7e8a439c54f","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":50,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"9ff0159b-90b6-42da-aecd-ac3aba74cfc8","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":50,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"1357d7fd-1931-4519-b184-ac16eb38f932","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":50,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"9630495e-7d74-4dea-af98-a79fbb74a9b9","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":50,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"392ac4d6-3860-4064-905d-438810469609","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":50,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"ae8db9f7-e859-43cb-babb-db78e1aaa0f7","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":50,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"6275c7a7-83e3-4860-badf-e272cf1680eb","block_type":"box","text":"Credit Linked Securities.","page_number":50,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"7f8077ba-b1d8-4e63-84d1-ce8f35cab8d5","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":50,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"526f7f06-8cee-45a1-bb4a-b9a0b4c2f53c","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":50,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"3ad8ab6b-7bb2-464f-92bb-ee26e28f2afc","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":50,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"e1fa5d62-5b11-4d38-b228-b3939363497a","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":50,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"662484b9-30ed-4a94-8ca3-25bf52544a32","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":50,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"64ea864d-acb0-42ee-9c14-f18a0f11ce6d","block_type":"box","text":"traditional income producing securities are not available.","page_number":50,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"1627220a-9ba9-43a6-a8d6-1c7331acb6c9","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":50,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"b126d13f-0a1a-4139-b6e9-bb9270bcf932","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":50,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"7540d2ba-946f-410a-8169-a3487a7b0998","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":50,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"0ef03036-673d-4ea9-98ce-01af702e7a77","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":50,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"0e3be185-e1c5-41e1-b622-c5a15b6105c9","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":50,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"2b52f249-3b2b-42f1-b4a9-6d921582312d","block_type":"box","text":"II-8","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"8e065b55-e7bf-4ba2-a4b6-a8b5799609a8","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ad36478-e56c-4131-9e44-a013cc1e822f","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":51,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"4a8fe45c-aa20-4d6b-bdc3-88b586e6db29","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":51,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"1b9a1d80-c9ca-4be4-9272-07d0da3a2f0e","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":51,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"0cdd32df-33c7-4412-88ea-46d04df858e8","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":51,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"5a6018d7-10f1-41be-b455-f83c298d3a62","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":51,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"46e8b36b-feef-433e-af27-61f55bfd4ac2","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":51,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"0312db5c-7bb5-401a-86cc-8a97dffe9289","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":51,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"0b74e56b-e9ea-4a09-b06e-b96d2e66c989","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":51,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"8ecc0c32-3519-4a3d-b597-a49fde402b37","block_type":"box","text":"investments.","page_number":51,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"44aabac7-d5d6-4833-bb56-74aaa26e626e","block_type":"box","text":"Debt Securities.","page_number":51,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"28a4e6aa-af77-4417-b30e-dc3a50ca6cf9","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":51,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"47ea698a-f937-43d7-8994-b5e333702d58","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":51,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"21f71cea-9812-4e54-94ef-29d5d799c411","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":51,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"57eff188-5470-4245-affe-a0d415c5af69","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":51,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"b6cdee8c-cb66-4d69-bbdd-0e4dd20ca852","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":51,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"f086c15c-fe58-4062-8c47-0c97422efe62","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":51,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"1606e971-fdcf-4057-af82-a6cc2a841647","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":51,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"e6b606eb-6f11-4c16-b587-0082c5bf42ce","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":51,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"56647b6c-5103-4a6b-a0d1-3e00272c316b","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":51,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"e25d602d-e3e9-4468-a615-e1c0b3a1ad75","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":51,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"28e3e32b-4dc7-431c-a397-82f406ad2c88","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":51,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"7b9edc3e-a710-42af-a994-5ccb54410849","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":51,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"6a399983-19f3-4f4a-9aee-5470b734731d","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":51,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"f1a52234-8290-44a5-9ed8-bc0f7e14c6bf","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":51,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"bdbbb2dd-5d12-4215-8e41-a639b31f07a2","block_type":"box","text":"lose value. This is known as extension risk.","page_number":51,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"76717a46-c057-48bf-9f23-bdf0e54e23a7","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":51,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"4b89ef4b-4259-4f66-bf34-6e0b09ac8632","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":51,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"e6a837e1-8ee9-4834-ade8-726da9b98515","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":51,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"a10c8850-d16f-4bfd-95a0-f9104af81a6a","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":51,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"2a591846-6846-4c7f-a145-a9d50ebf80dd","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":51,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"3c47755a-2ee7-4c05-aa34-c5ed8d40ef3c","block_type":"box","text":"Floating and Variable Rate Securities","page_number":51,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"6fc6dacf-02b4-4cf1-aacf-1494001834d6","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":51,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"e7c6508a-4ba6-451a-996c-a5e14a346fa2","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":51,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"4bb2fab5-c492-41a1-b36a-6dec399209ed","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":51,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"0a21285f-1f0b-4159-bbe0-2a5265be522a","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":51,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"c5d87d9f-65ce-4ccb-9536-0f471c3bfa80","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":51,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"7802077d-0d51-4078-b400-7127f0b29adf","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":51,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"8a2b3e66-4631-4e4f-abc7-2ce05353d9a6","block_type":"box","text":"market interest rates.","page_number":51,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"f37255b9-9b7d-4fc4-a4dd-0c217e6e8571","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":51,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"81b72ffc-0173-4208-ac23-ae66becb0269","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":51,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"c046c903-620c-4f14-8ddd-a58662fba8ac","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":51,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"c2ae822f-94fd-4fb4-84ba-9e4773c03643","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":51,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"13e3ad21-c030-4367-978b-f763348c4311","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":51,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"f0ea1c00-e0d4-4601-9afc-7624c8d47755","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":51,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"f77fa50d-1eac-4577-aa9d-ee220ec37445","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":51,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"69d92a91-f0de-47db-a698-a2d075273228","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":51,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"b7f22920-ca3f-4ffd-ac7f-9be28527e847","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":51,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"a8b97128-1b63-4c53-98fc-fee86ac374ba","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":51,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"f9381be5-66e6-46a4-b2bc-01dd90804f96","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":51,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"6576ea26-c13b-497c-a2b6-e0d82b44a5ec","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":51,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"33877dfd-689e-4bc7-ad07-8131cf262503","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":51,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"ea31b2bc-4d26-482d-b77e-24fe703f132c","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":51,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"6c3a0ff8-8f74-4057-8b34-3752c8c0fc0d","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":51,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"f7268039-15b9-44f9-ade7-f37d8909de57","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":51,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"1d5d9e37-4df6-4e5b-8e21-6b56eea70e63","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":51,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"10cdcc90-fa86-468f-b12b-3ed54a981c73","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":51,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"1c9862fc-f447-46fa-baaf-ea83fff189c0","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":51,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"628b9400-e117-43bf-be61-14e560307f3a","block_type":"box","text":"II-9","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"5578310a-2a86-45e4-a748-6f2bc88cec37","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5c99033d-282c-4244-ad27-67fd013b0c27","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":52,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"80981ef1-7576-4463-9ac2-9f72399079cc","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":52,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"f9c0b729-16de-454d-b911-97260197a7bd","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":52,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"b9360359-d846-40d1-be3f-b1e1c7d79ffd","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":52,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"e66f71cc-c040-4c78-88b6-748ec0467b2e","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":52,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"3aa30b5e-2be7-4d97-8551-33f8be0307cf","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":52,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"af0c5019-4945-4353-93b1-24ca5d43112c","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":52,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"f824db51-3e2a-4157-aca9-fc9b4904b3e3","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":52,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"f73ac92d-257d-41cc-b1b1-7675ce383aaa","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":52,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"6ae654ef-4948-475d-984d-e3ae1549a3c6","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":52,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"7fd8d6c1-3ec3-4f28-ae60-0b37ed3cd8f4","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":52,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"16f4010a-cb83-4dc2-9013-2dee741b2fb7","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":52,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"b0213553-5c1d-42cc-a880-37c7a08e4793","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":52,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"ab822305-a9fb-416b-91de-fb0f1708ffad","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":52,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"ab284d79-207e-4447-8ede-105bb75be3a0","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":52,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"be9b409d-aef0-42c1-8254-5e7c2eb5770d","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":52,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"a51ea089-02ce-4e78-bd84-49380f454382","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":52,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"a098e03b-a6fa-4e32-8222-017880380f52","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":52,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"c53a4fc0-645f-4ee2-9d7c-235642438baa","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":52,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"fe9d1e5f-3d84-4733-a39e-063a27c41b1c","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":52,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"13cc3a3b-b44b-495d-bde8-10060a445e7c","block_type":"box","text":"United States.","page_number":52,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"7a0aaa39-15b1-4af2-a5e3-38abf2650442","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":52,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"01d74bb9-86ab-4d8a-842c-e55883887144","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":52,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"8dfae8f4-59bd-46b5-8700-f669e05effe2","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":52,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"9290124e-ed4a-40b2-aca2-4b78bae211bb","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":52,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"927beea9-9aa7-475b-ad35-3913a8988d22","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":52,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"f9e4e678-d467-4e7a-91cb-c89cf47266a2","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":52,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"aa1b359e-971a-4d14-9bee-62063132add2","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":52,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"106debf8-12c9-4f7f-9bf7-21fd2ef654a9","block_type":"box","text":"i.e.","page_number":52,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"151fe33b-b541-4aa8-929f-967e111da391","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":52,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"fea9d949-68f4-4eff-8ca7-6cddff59c184","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":52,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"904264f5-2774-4f85-908e-0401c7ead889","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":52,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"48df3a53-79f0-4026-a9c0-7f21a8b3bf0c","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":52,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"6c183906-a9d7-45b7-97e5-b1008df961b2","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":52,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"67608ac9-2a6b-4ac5-ba72-331e1add7654","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":52,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"3a1a7199-b94a-48ad-9e8a-48a02f92ac6c","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":52,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"ca0b3a34-6abf-4328-9d8b-ee73b5ea1930","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":52,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"72a9c078-9689-4297-a458-ee39b2c21f53","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":52,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"a96af96f-d946-4aac-83c3-91b586a501ae","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":52,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"998ac451-dd96-4e87-831c-28c67b44b6d3","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":52,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"6fe0c36a-ee5f-4eca-9b7e-67790ddf8386","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":52,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"71ae8dcb-2b22-45b8-ac36-a7b727a390e3","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":52,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"4df6f6ee-a4c2-4289-a3c1-cd59ac3cce84","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":52,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"90096494-507d-4c7c-bad8-105c53d65d79","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":52,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"03b6370e-5b57-467b-937a-33a1dee391eb","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":52,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"2bbc8f44-7bb4-4453-a2a7-bd5a5d57ff9a","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":52,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"9d1a37b2-58ea-4e2a-a25e-243e2e225486","block_type":"box","text":"risk than higher rated securities.","page_number":52,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"734d8927-1cc4-4bce-8c15-0ce287287513","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":52,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"c99fc6e5-0088-4a09-8774-36268226727b","block_type":"box","text":"•","page_number":52,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"415d7e59-81cf-494d-893a-2db10d0c2d74","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":52,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"d6f01e31-f07d-4351-95b2-ff204954fb94","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":52,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"b3ab0133-13c4-4b6f-8aae-055b75a29b11","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":52,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"c9f70781-871e-4e6e-9e3f-8c0c6dcfae41","block_type":"box","text":"unavailability of additional financing.","page_number":52,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"a1c00da8-3bdb-4bce-9238-a8e3e0c77261","block_type":"box","text":"•","page_number":52,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"e84571aa-3193-4f55-826a-0fb5bef3cbd8","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":52,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"a450d9c2-3be2-424a-a032-2c2ba451a533","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":52,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"62c9c47f-1aae-4952-bbd5-7e5b0b044b1a","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":52,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"9899eadd-1513-413f-ae4d-41fa00a743cc","block_type":"box","text":"II-10","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4ac72622-ced7-4dfb-a763-8bd5dd4a84bb","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c6415a7d-9f02-4c00-94d3-b8519b0af608","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":53,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"cda347fb-404c-427a-a41e-84080a857846","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":53,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"b3753c0d-32b1-4031-be40-49a8d98f7d0f","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"712e7a50-1e70-4a9e-aa6e-c59caf6f1fd7","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":53,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"6c677290-aba1-47fb-94e9-5eb78a066fb7","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":53,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"2ea37a4e-b363-4297-a82b-a673875061f0","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":53,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"cc25ef0f-6aa8-4fce-93c1-096f8569a712","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":53,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"303103ca-b8c2-4dfb-a139-0e84eb9cb7f9","block_type":"box","text":"investors in higher rated securities.","page_number":53,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"667cbe03-f7fe-4ce5-b1f2-ef16e1f059ce","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"d6e45c86-59c1-4039-998d-673b7bc5c761","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":53,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"385bf712-1306-4ca4-9e0a-0f708c24db17","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":53,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"a0fd334d-4c35-4f50-bfe2-fd5aa3d5073f","block_type":"box","text":"lower yields and may lose income.","page_number":53,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"8e3091bd-d7ae-4a0f-a40c-34d7ed25df36","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"6e143669-a3ca-43c4-8e6e-01b5f157bdcd","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":53,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"c87cdd21-c125-4d5f-bdd9-5647b83117e7","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":53,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"3fac9dde-b3f7-4cdd-9049-53805ba0f8d5","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"2742b038-f709-4218-b59d-eefd81666f84","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":53,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"5ba2e902-f406-43f3-b6c4-cf7de50cbdac","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":53,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"b336a36c-1308-486c-bdba-d6971a2518bb","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":53,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"8bb5ee30-9001-49fb-b219-bd8bdc2fcaf2","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":53,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"64f031cf-d77a-4dfe-b523-cf8cd7344619","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":53,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"6bdcb166-4000-4cb0-9f84-fd20fed12d2b","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":53,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"f50ce6b5-757a-4d32-af93-ced9d58ed996","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":53,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"d7ce4bd0-330e-4963-8cc4-56fc5bdfe685","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"f7be8074-46fb-4742-9212-6bb4f6272126","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":53,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"964ab61a-01b2-4158-8f4e-8eba7b185af1","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":53,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"0496332b-f29c-44da-befb-6f6684786ec0","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":53,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"f94a3ed1-e135-4dd2-88fd-1be5fdc0e1f2","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":53,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"d9e3d22c-56c8-44fa-8729-2b761f37b2c1","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":53,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"2801e0fc-246f-4b5a-8dc2-a4d02b45b4a7","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":53,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"0f85ee7d-51ea-4650-b5bb-483ddd42e7a4","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":53,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"55a74342-7760-4fa2-9b00-e3be0c7d4541","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":53,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"23e30462-5fa4-4d5d-a86e-df4afca6548f","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":53,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"4dc820ef-e9fa-4ba9-bf5c-2b962c5e13f3","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":53,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"6140c18d-886b-4745-9293-e63abd25cc3f","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":53,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"f439eebb-7f6c-48ae-89ee-5b7012723a06","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":53,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"ff0a5967-d175-42ac-a434-67a87caf5b77","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":53,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"a7c3ca3e-522b-4bcd-a580-4aa56c7202f3","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":53,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"f1d6d0e7-e38e-4d84-ac46-0cfdba6da4f5","block_type":"box","text":"role in determining such valuations.","page_number":53,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"6364f839-e4d0-4d1a-8606-bbcb14e5494e","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"4ba0bba4-9802-447d-ba73-cae8fa8bb555","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":53,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"7af2416b-9f96-4bb2-9d3a-502b697f4b95","block_type":"box","text":"a defaulting issuer.","page_number":53,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"915dacc0-1f43-4728-968e-8ca83e01afb6","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"2de481ad-3ebd-4094-a899-9f67bb1b3b97","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":53,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"f0311143-9c83-49aa-8d9b-9dcc0d0e5f55","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":53,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"a877ab39-dbb0-4a31-8e72-8d68a14cf098","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":53,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"3cd49acb-bce5-45a0-8df6-43825ecc376c","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":53,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"3a073f96-8b08-4164-851f-605c6fa2feea","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":53,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"ff8f7230-6f41-4e77-9d7c-186975011561","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":53,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"3b2593d7-9b42-4f13-ab4b-ec43dc069676","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":53,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"8b8d3c9c-d54f-47c6-b04e-2f7b5517088f","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":53,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"8b3537be-ab54-496e-ba7f-d9d890f5a15c","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"d39c7d8e-c003-4b8b-92bf-1d985a48823a","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":53,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"f2222e4f-e932-4b94-ac17-b14379ac3c70","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":53,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"35d49565-884a-4f82-9d28-e5f6b64a3f2d","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":53,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"03299fb4-0416-4ffd-a7f5-70cd1fd6b0dc","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":53,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"fe658c4d-fe6d-44ab-82ec-ac24876ae375","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":53,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"0cd007ad-3ef0-4a37-ba0b-0bea850909ea","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":53,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"0e1211dd-24b8-493b-8343-113713e2b076","block_type":"box","text":"higher-rated securities.","page_number":53,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"d2d7f884-3a2d-4990-95c3-cb1e6f01a506","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":53,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"c25bc54e-64ac-4d79-907d-1bff513229d0","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":53,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"bef59b36-7bc3-4786-9f2b-d2ef00757021","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":53,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"a4283d12-1728-41ab-9fb4-c7bb671fec92","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":53,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"6f6a2938-c8df-45ea-9eb5-f721972cb1e1","block_type":"box","text":"II-11","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7e520ff1-e355-47b2-a916-14af5a00151c","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9112c1c6-2c19-48ce-b2a4-acd979d0413e","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":54,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"0e93647b-455c-4d38-a341-a96642f2e60a","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":54,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"5b31e43b-f4a7-4237-aa24-661b0c27bea3","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":54,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"256dd5bf-f261-4119-94e5-83f2e03812c9","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":54,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"631e89e0-bbcd-4d0b-8b2d-9dd1be29055c","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":54,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"718d8e1f-b17a-4314-8ba1-016b66db96fd","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":54,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"ef089e7d-2c09-4604-b3e3-0865201e50b1","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":54,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"de6a6fd1-a457-4853-80cf-48fe51aaec72","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":54,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"8eacf45a-00a7-427d-adf1-0a9f0ea6d233","block_type":"box","text":"Mezzanine Investments.","page_number":54,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"40755331-38bc-4565-97b3-38410f877264","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":54,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"d5b6f273-162e-4b03-8fd3-fdb5c162f35c","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":54,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"a82548b9-334e-4197-8c1a-a335bb5ff48f","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":54,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"a5531049-affe-4517-81b2-1650eed59e76","block_type":"box","text":"e.g.","page_number":54,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"6306143c-f6e4-4a52-bca0-7804476b8bd3","block_type":"box","text":", with","page_number":54,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"cea55ed1-26f6-4cfe-b5e4-a49cc0d8b1d9","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":54,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"07498ec0-66e8-4de6-b082-e81001a94971","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":54,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"8ac5be8b-586c-45b5-89ee-5b92bcbe9614","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":54,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"27d6f70b-d670-41b6-9cea-20a9412134f6","block_type":"box","text":"other obligations of the issuer.","page_number":54,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"0f348cbd-14bf-48e8-947c-c273e9964646","block_type":"box","text":"Pay-in-kind Bonds.","page_number":54,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"c7e9200e-dcec-4c80-9eda-5cf66c7cd6c2","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":54,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"2496209a-f365-4f35-8da5-9ec5debb1f4b","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":54,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"1b9fca26-acba-40d9-89b8-abb4b6e28924","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":54,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"0a85db96-24f0-4ed5-b5ea-bfd00600ee1a","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":54,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"92ffbfaa-89b3-4e97-8195-c17d04a28c96","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":54,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"9a1761a7-2ae3-4244-adb5-e9fb7ff43e69","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":54,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"f3c96acd-95a9-4671-adb5-14afa5579456","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":54,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"a6d6349c-25b4-4b2b-9f8d-91a843bdfff1","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":54,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"5ec9aabc-17df-49d4-ab9f-983ae05ae8e8","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":54,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"558dfb2a-1291-441e-8673-895cc20c7c5a","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":54,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"91ec4207-933d-4564-ae56-a865476830f6","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":54,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"25d673a6-4fec-490c-a3a0-4aecb495b9b6","block_type":"box","text":"Supranational Entities.","page_number":54,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"97fd7161-1e2b-45fe-aed2-2bf4c861e3ee","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":54,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"b8c8fb67-e2ef-433a-b6e9-49c8252c3648","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":54,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"e1c6aaf7-81eb-4ce2-a2f3-6ed5805985b8","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":54,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"f1803f29-34ed-40e1-87b3-95dee22826ed","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":54,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"1c7e1c47-b1a1-41f7-8074-9c2041a38312","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":54,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"5862223e-c113-4479-8a9d-8a7b08483d15","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":54,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"7d927dd4-6ec7-4519-9428-e760dc68909b","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":54,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"486d72b2-dd6b-4d09-9683-fac591546028","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":54,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"4af7d269-2e2c-4e23-be41-b303c667a27d","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":54,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"55238a9c-daea-47ad-b2f8-260205d031ea","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":54,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"96031923-aa43-4c39-9de0-e5593dbef85e","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":54,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"ebd92ac6-dbd4-423c-ab36-58a0875d6c2f","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":54,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"787a220e-6610-4a33-a0c8-3779b8741461","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":54,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"74309f58-0d90-4b7e-ab01-102da1a87c6c","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":54,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"ce88b9ca-a8e2-4138-b451-d8c26c68a0e0","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":54,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"6c844d33-15c3-4f46-b321-db2412e800f1","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":54,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"6faddc8d-5257-44ee-a359-97aab3a36f7d","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":54,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"0f402c53-549b-4d3a-a124-5523afa456a3","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":54,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"2741fa9f-4648-4be3-a5ca-d0032de11d0c","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":54,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"7443a44e-b609-45be-8e2d-8ef1dc49fc60","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":54,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"f8672475-7d53-4b03-baab-e616b35b7af6","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":54,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"6972ba2d-bf52-4265-ae2d-1d90f27c0af7","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":54,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"74b0b916-a477-4943-8a55-7d23b94c0066","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":54,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"a30fb33d-4269-4c32-8201-2359269e2229","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":54,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"ed0a6042-16ac-4eec-b599-aefb6e6cf1d8","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":54,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"3a91d020-14e9-4318-8574-4c45905e2b2c","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":54,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"53a9bad9-912c-4187-b552-52caddedca12","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":54,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"811ea953-7f4e-402f-b8b7-496cef6701ef","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":54,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"bc20e9cb-f677-4238-a7aa-99c660c96bfb","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":54,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"9d5bbe2d-7ff0-459e-9f13-db23b26b74b1","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":54,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"6c64a978-35a2-41c4-8ecf-01e2dc0433da","block_type":"box","text":"II-12","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"866a8113-18a2-4848-98e7-ce0d43f38024","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f846375-be1a-4c57-a9b2-2ac744e2bcff","block_type":"box","text":"Derivatives.","page_number":55,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"95cdd1e6-c931-4bf5-b42c-5ee53ba94918","block_type":"box","text":"General.","page_number":55,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"09b537c9-1c1e-48d3-ae91-3d973523aec1","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":55,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"320b06fa-9dd8-410d-a3fe-fbc9d01cb6c2","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":55,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"8593bc77-3a05-4554-a3b8-4862a905ce45","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":55,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"da8be446-3dfa-4144-bf6e-209a260c9c6f","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":55,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"ada87971-9446-45f6-bee0-ca9fba332cfe","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":55,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"6ccc03e4-ddd5-4730-8edd-794195669cc5","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":55,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"cfff2f61-a582-4314-8787-aed45eb5a9ba","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":55,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"25289850-eae4-4c9d-8161-df6b8474dbac","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":55,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"bc416a9b-4ed7-4358-bd51-eb307d577e60","block_type":"box","text":"i.e.","page_number":55,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"8eb8ccaf-410a-40c1-8c20-4c5a20cc2168","block_type":"box","text":", the payment","page_number":55,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"f09a94a6-d342-4821-944c-29719968f160","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":55,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"ac642503-b887-432c-884e-b8b98ffb6f4e","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":55,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"7d4b5404-2a5a-462e-a0a7-3d96cd461e62","block_type":"box","text":"Hedging.","page_number":55,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"a3e168d9-036f-482d-a922-03800bc15656","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":55,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"31cabbf6-a060-4ca4-a85b-521659ccdd9e","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":55,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"25460240-ab94-4239-bba0-5a03d6580416","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":55,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"2128cba3-c1ba-4cf9-98ed-c8a6fd8a329c","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":55,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"1f8db533-2b0d-42d7-a43b-b4f7ea312847","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":55,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"5521cf7d-de62-4caa-ba50-1f564392188f","block_type":"box","text":"correlation risk,","page_number":55,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"7f56d9f2-c61a-4e44-852b-7f656999e69c","block_type":"box","text":"i.e.","page_number":55,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"7a3cd01e-0ec8-4dcf-a2f5-bbbdde1e2da7","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":55,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"69f5feeb-cb33-4428-93aa-c2b5f55922b1","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":55,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"c26beb63-3f4c-4c0c-b8fb-d951d4c51359","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":55,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"ac9c4354-590d-431a-b8d4-624ef807739b","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":55,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"9be203af-1207-45fc-b4f7-84a3505fea6b","block_type":"box","text":"Speculation.","page_number":55,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"4bb8cad6-507c-4cb0-b60b-cb568bbc4221","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":55,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"5a536540-8e89-47d4-a61c-a546ff51d38b","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":55,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"a9b7a081-15e9-480d-9fa3-41fcf6402b1f","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":55,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"0087677a-a49a-4006-adb1-339ce3dab361","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":55,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"791bf2e8-140b-47e4-8d37-9a5a549254f2","block_type":"box","text":"in certain cases may be unlimited.","page_number":55,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"3ef3f4f6-ff50-4826-a01a-8f9a55481e03","block_type":"box","text":"Regulation of Derivatives.","page_number":55,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"b9b20afb-4c81-41cc-b722-e0d15b2a4b37","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":55,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"36cc0f95-759a-483f-9465-822f5005612e","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":55,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"d438a1cd-2405-4d26-a902-2ca4d987d83b","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":55,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"3e72426f-f5d9-4511-8ff4-b6fa005dee4d","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":55,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"b1d1d17b-9d04-4ff2-9b8d-2823f30f82ba","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":55,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"4b2edd69-597a-455f-a588-557262ff0687","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":55,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"d0931949-e72a-4b77-9464-b76b49632d75","block_type":"box","text":"coverage”).","page_number":55,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"d3c478b1-a136-474c-8459-07c9dcb5c634","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":55,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"bae69f90-73fa-4c12-a701-a4971f225a62","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":55,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"8110d807-9192-49fe-bf2a-5abaada77f5e","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":55,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"32fdb25d-ad6d-41a8-aee1-05cbdb09e339","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":55,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"fd5ea05c-b09c-4fd4-b881-05d0cd3338b3","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":55,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"be33ecd0-b0f3-4744-a774-64238d31b16b","block_type":"box","text":"financing transactions (","page_number":55,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"08dda5a7-14ab-4e61-8c8c-f8faf4198af4","block_type":"box","text":"e.g.","page_number":55,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"60d1589c-c1db-48ee-acc6-58037259c7b2","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":55,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"918b3092-e4e9-4361-a201-d7529cf20cb6","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":55,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"cea834c8-9dcc-42dc-bc71-924ae1ab5f9d","block_type":"box","text":"securities (","page_number":55,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"5fbc7144-beea-4935-b4e6-8c506dd6e3e3","block_type":"box","text":"e.g.","page_number":55,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"4d99df74-ce41-40a7-831b-6c38f8120acc","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":55,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"fd97fa50-c63a-44fd-9847-a89cf6bb5d69","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":55,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"9d19feb2-7ba2-47a7-84c3-7a06ada56959","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":55,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"d7d7546c-2faa-4f84-a282-7a1b0dc53225","block_type":"box","text":"Commitments”).","page_number":55,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"5ee46a83-bb0a-40f3-a2a0-0648912e5d30","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":55,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"ab4c6d2f-2c41-4914-9246-3a5af39d615c","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":55,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"1ef9f326-dbfa-4365-930b-c351739e8d78","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":55,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"07f4467d-aebf-4ede-8ea4-9aa38a54c53a","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":55,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"0aedb443-a3b3-419e-ba2a-c2e4ce6ab1f9","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":55,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"7911b848-c76e-46e1-a5c1-b76d158042ab","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":55,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"975ba655-a314-4e8b-a7a4-900cc7b51e69","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":55,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"88562bf6-bbbb-4b2d-8165-03d28336be9c","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":55,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"a54cc042-90d2-4d0d-817e-996d4bbbf519","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":55,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"25ba91ef-70ed-4ba3-a83c-bfd40c7c530d","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":55,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"e62a7eee-a7a5-4a02-98b4-e914059c00fd","block_type":"box","text":"II-13","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"04c2ac96-ba6d-4781-9dbe-2349ed9b1ccf","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1bde1231-0c3f-4b81-ab26-d7124500240a","block_type":"box","text":"Dodd-Frank Regulations.","page_number":56,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"4c2ca333-6210-4fb4-ba17-02492a1c227e","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":56,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"9fbbae99-eb44-45e5-877e-f2b7c6bdbdf4","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":56,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"eab9b56c-0cd0-490d-94dc-9c99252c93c2","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":56,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"e560915d-b1ec-4477-abb6-9a894b073445","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":56,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"835d1503-3790-447b-94b4-0dee971747a2","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":56,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"64d89d82-0b90-46ba-9865-98514cce2a73","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":56,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"19516be1-3542-46a9-bbf4-9545e80eb9f7","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":56,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"3a53b1d6-ae87-4281-a12f-17655432679a","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":56,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"a1ed9582-58aa-4739-ac8d-d5bbd85dd6c8","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":56,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"eb8a51ea-2e9c-4664-a930-3fb9b6db371d","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":56,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"d95837b2-490a-4209-9c08-4e20c743388f","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":56,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"32135013-1707-45e6-8c3a-0a596c7eb1d4","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":56,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"c9960c38-379e-4102-af4a-f759b9278861","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":56,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"b9e30e49-69d1-46b0-ad73-d538429c9c1f","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":56,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"e4491b00-1156-44a3-99cb-c81a97ddb52b","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":56,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"6698ff0a-bc18-4c6b-8964-f10bcc568e26","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":56,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"a965d165-fbc0-4a29-8f58-47e03abd4aee","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":56,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"790bdf0a-e198-4641-a869-9f4b5e7db362","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":56,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"703c4598-c567-4105-96fa-1da0d8c52b9e","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":56,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"fd0fc206-4ebf-47a9-84a4-cbdc88b6cf33","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":56,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"b743969d-c087-4d89-8f7d-c013a5af17b2","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":56,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"46be1fe7-73fa-468a-b50e-a23af0fc0b5b","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":56,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"1b62f2af-5190-405e-9f74-0298c9ae9ad6","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":56,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"bac83470-3017-40e2-a066-32807e505ac8","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":56,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"0e607b6f-4bb3-4990-ac62-c6d3823535e8","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":56,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"93e96628-b157-4d45-98f0-e19418f04ce6","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":56,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"9d9bae46-384d-492d-8b84-7b826decc9f8","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":56,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"951ecbb0-f925-4756-85ec-770d326eed3d","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":56,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"301eecf1-ef7e-4b95-846e-4c3098382c27","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":56,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"fdc377e2-2bbb-4a85-ae99-1b473e1fa926","block_type":"box","text":"member.","page_number":56,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"05744416-53bd-4e45-870e-0fb2c366c56d","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":56,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"8b6f9eee-0e58-40b6-9452-8a86b1274d2c","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":56,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"5347f0eb-9aa3-4b68-b42c-76d7b993e4fd","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":56,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"20a6c4da-a8ce-41be-9be1-807a146a2fde","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":56,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"9b4da756-3b9c-46d2-9ac9-f0a9609f15fe","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":56,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"144d7221-c410-4587-b8a8-3c6c50dc448d","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":56,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"a2f4eab1-ac23-45f9-9481-5a2d8c3c3ea7","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":56,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"7176c2b9-6938-4bc9-88bf-33e1439349c9","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":56,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"da56d701-8100-4594-9810-7bd5dd1c4c90","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":56,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"fe572a95-e8fa-4223-94c0-156222fb5e17","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":56,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"f0140a97-14ea-4a4f-be78-1e17d6b4cf09","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":56,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"22104afb-f02d-4e3a-9535-4032383564f0","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":56,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"5ff5f16b-8117-419e-b05c-b57cb146fe78","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":56,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"ab34b217-4d76-4c6b-ae90-86157825f9c6","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":56,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"fd0801ca-b33e-4893-9c30-c197a1301b14","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":56,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"36a581f7-0a03-46dc-8e34-d402a2c2c2eb","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":56,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"f0cee695-a907-4aa8-8bfe-3d5ceae82b48","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":56,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"8c2a085e-c162-40a4-9e21-b1cc065def01","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":56,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"ac2cb35d-9b3f-493f-9e35-575b0e5d905a","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":56,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"059cb482-9991-4b5e-91d4-0a361f7a93ae","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":56,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"e9105dd5-96f2-4f36-bef5-3a6e9a55d696","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":56,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"504bad5a-fc98-459b-a193-f5bd696ac11e","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":56,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"bf617d9b-6e82-4bfe-ab99-afd106031e2f","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":56,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"098d265f-baa8-4a64-9b24-667f052f422c","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":56,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"a10e1874-cd82-4012-80dc-f055de58995e","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":56,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"a47b9abe-6086-4f54-9759-76db95f9bd89","block_type":"box","text":"II-14","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"87d4c5a7-f157-4ee4-85f7-f0f242dcd97d","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b436bf93-78e8-47af-b372-ac10b53f4dfd","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":57,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"f27fe221-7268-4eef-8c72-44390b56f52e","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":57,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"0223053b-ba4f-45a4-ae0e-e2f57ac67901","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":57,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"69047b5e-ad04-4c83-b67f-ce1733da69c0","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":57,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"9c135846-08f5-4041-8379-82b712e38198","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":57,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"1960c3be-d21d-443d-99fe-67918513db2f","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":57,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"6c36ca13-d3ca-4ce8-9054-9c5b31eaf0cd","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":57,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"5c0bb9de-6cd9-402f-8570-9a7a9d411756","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":57,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"4dbc3640-944b-43de-987e-c7957c5f66d7","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":57,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"5598784b-1c6f-4fde-8040-e9470a10057a","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":57,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"d2761162-3907-403c-a8bc-d2d683d844a2","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":57,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"5e7d8e82-e056-4d09-b68b-d61b12d8fb80","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":57,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"6f2d0510-cf84-40d2-863f-96b72f0aad79","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":57,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"46d06b03-6157-45ac-b00f-602d1c9c7935","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":57,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"6bbace68-08ed-494b-ae06-32586564a46a","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":57,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"46b09b1b-e386-452a-8835-e478abd25fe6","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":57,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"41752431-d62e-49c0-9aa5-d13d4bf25fe7","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":57,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"632708e3-9df7-4425-9aaa-68c7939b3ad9","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":57,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"43f02ca4-ec30-4b33-8635-997793601f87","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":57,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"1fdce05d-4836-43a0-8030-5aa02bacae7b","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":57,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"c4c96996-04b7-44e7-8fe4-cc7714e08fc0","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":57,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"995493ad-e898-4f9e-9a12-11539126e78a","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":57,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"63e923ca-1eee-44a5-8850-68875efb50e6","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":57,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"3f4a0d9f-48d1-42bf-ba64-48ff857e0315","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":57,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"2947626b-72b7-4190-9e08-00c4f404589d","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":57,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"6c43d08c-e103-4e23-a07a-601a53188e4f","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":57,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"4ba145a6-e47e-4a6c-8197-78458a3727b9","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":57,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"fc53ee5d-2368-40a3-9d32-780fe3796da3","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":57,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"be3fe3c9-5040-4409-9728-ea338961c6c1","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":57,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"0626e341-5658-4b54-a4a8-d84e44bcea34","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":57,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"cea8246a-ee79-4da4-8d2f-af00a82fc0be","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":57,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"f942c1b2-01f9-41c8-b42c-473dc5381116","block_type":"box","text":"collateral received under such contracts.","page_number":57,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"dd99a37c-6d26-40b7-82cb-0b1dd9b2a487","block_type":"box","text":"Risk Factors in Derivatives.","page_number":57,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"47bbb9ed-9f50-43db-a62d-fd141d012721","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":57,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"8623e55b-af9a-4182-a1f4-352278e87a3c","block_type":"box","text":"Correlation Risk","page_number":57,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"7d1026d2-0312-49a4-a130-b3867b4d99d4","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":57,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"475c7b9f-e5cc-4300-9444-b2a80344f9d4","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":57,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"7230168c-f581-4f4c-ab56-d4aba33a4fbf","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":57,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"63e841b7-568f-400e-bcc9-554a2bb11ece","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":57,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"f9b3d522-658e-40ee-afab-ad7c14151b3f","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":57,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"7026d609-6a2b-4c73-9084-3932567a98c0","block_type":"box","text":"Counterpar ty Risk","page_number":57,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"7497e840-036f-4bc1-87ce-5faf99302a28","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":57,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"059e6e45-e3c2-4a89-8b82-09ec6ba3ba28","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":57,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"740d664f-aaa2-4a87-894a-ff1735644d10","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":57,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"2ddf4061-9590-4dc6-8391-7ed9aa40acde","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":57,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"6a287d3e-1c12-4305-baeb-757b17e62ce3","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":57,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"30fc9729-80b7-40ce-8d85-aa6240736568","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":57,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"290db792-f19f-4f59-b5af-79c74479fcf7","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":57,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"75e7a16e-86bd-451e-b3e2-38f198d54edc","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":57,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"6c78fce4-5409-4217-b1c4-0e07864c0864","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":57,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"657ba8fc-123d-47ee-b10e-17c9dca17445","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":57,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"14d32a04-0713-465a-b5c7-c9b64abfe186","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":57,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"dd3cf45d-5d28-4404-869c-b86c55e6a7cf","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":57,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"e1c1f4f3-3e21-4d8c-bae4-0c1a2642b5b3","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":57,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"7f405443-1556-4780-a1ca-f20b6f2ae9a2","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":57,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"8e69f21f-59bc-44d0-b77a-5ad9462d5d1c","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":57,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"d1a596b5-50f1-48a7-ab0b-7405a2cc156a","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":57,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"19a4d183-1391-4016-b980-0080fdcd6ea6","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":57,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"f2648b3f-2dc1-47ad-824e-c8c83ea467bf","block_type":"box","text":"II-15","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7f4d54f8-55ad-4790-9818-5febd9281e53","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"08db229e-e903-4dbb-bf9b-b341a4300b2f","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":58,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"eea39923-b8c7-4e4b-9845-6e75f4dc3946","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":58,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"5f50e4d2-8853-43d6-9c1b-6c57a2fbcaf8","block_type":"box","text":"by the clearing member.","page_number":58,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"67271e11-1ff1-41c6-9c04-ff7428ba3523","block_type":"box","text":"Credit Risk","page_number":58,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"55c9ece4-1166-466a-bca2-8cb05f246023","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":58,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"e361ffa8-565c-44b5-b758-fac7111041c4","block_type":"box","text":"honor its financial obligations.","page_number":58,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"60ca8641-73ee-4afd-87c4-9b838f22f09c","block_type":"box","text":"Currency Risk","page_number":58,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"e843ba19-d205-45bd-a23c-661acdc0d5d1","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":58,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"d5e3a73a-5f7c-4513-9951-13d2494e0abd","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":58,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"83079d8b-12e1-4f23-b9b6-0f3e46febecb","block_type":"box","text":"Illiquidity Risk","page_number":58,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"b87c089c-66e6-4b12-a15d-42bc5add36ce","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":58,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"b6621a26-ed56-43c2-9b89-d40f3573d8cc","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":58,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"8d2210a5-6531-4fe5-8cdc-a160befbfc64","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":58,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"ddd9fac1-a3ce-47fc-8ccc-34be600a9f68","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":58,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"7c9be391-7540-4a5a-83a4-65aaf64b0126","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":58,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"fc0818b4-a8e8-4edb-a66b-4cb0bf5b29ca","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":58,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"786e6479-7618-4f79-bbe3-e2193dd8a17d","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":58,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"21fa3b39-520f-41ec-95c3-e85f69b32606","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":58,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"2cc2042a-1997-44e8-8a4b-73651a0cde02","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":58,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"e3e84261-ec61-49c3-bc85-8b0a113d3917","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":58,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"d85d1672-79a3-4e41-84b6-305000a00140","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":58,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"2abc116d-b6a5-4aa4-9766-b1424464867f","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":58,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"e6a48cde-7428-42f1-a76d-32febddea872","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":58,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"976eeb0c-2ff8-4451-bdfc-96eb6e85d372","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":58,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"f31f0ff5-9124-4ae5-a439-e89f094bf87d","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":58,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"a9b5540e-f856-40f3-98d1-199098cd076c","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":58,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"1aef4d6c-673c-4cb6-9914-fde01a270d0e","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":58,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"40ef82d3-55cf-487e-b052-952aa4e25d94","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":58,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"96f8ccdd-994a-444d-abfa-2aeb77a8e789","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":58,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"d6efbbd2-a7b7-4d5a-9160-8442770b82f6","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":58,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"4be48376-4659-4e6f-98f1-c77634a0a845","block_type":"box","text":"may be disadvantageous to do so.","page_number":58,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"bb6b88c9-8b15-4e37-b714-ee51451937b4","block_type":"box","text":"Index Risk","page_number":58,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"7d6309c1-c1b8-4114-bcde-42bc624fc096","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":58,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"61f3be34-1532-463a-b6b6-b4c182520720","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":58,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"d9e66208-e5df-48cf-93c2-dfc56e7cf87d","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":58,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"d1273e20-1ba5-4bd5-86bd-287d342f1bae","block_type":"box","text":"Legal Risk","page_number":58,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"03d42583-a873-485c-9373-7c3a5c12f604","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":58,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"61ebc428-3851-4a44-a43f-eee6c494110c","block_type":"box","text":"or enforceability of a contract.","page_number":58,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"204ffeb2-e9a9-46f2-88b4-03c955a0cd1c","block_type":"box","text":"Leverage Risk","page_number":58,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"c1107926-a810-4930-bf7d-c56977f85091","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":58,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"f5c23b80-79d8-427e-b4f7-e91948bcd567","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":58,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"fa54e1eb-9113-4369-811a-89d31014a76b","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":58,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"8ba26f95-e257-4286-a02a-e2b9f0482d6c","block_type":"box","text":"Market Risk","page_number":58,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"ec12db58-b432-448c-aa43-eee9bd139bce","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":58,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"bf74fc91-8bcc-4cc9-8345-8582f605de5f","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":58,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"104673f5-43e9-4c2a-8ae0-127fb78a677b","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":58,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"fc335294-62c6-48fe-bc52-e6b7d895dfbd","block_type":"box","text":"affected.","page_number":58,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"ac972d82-6e6a-4a39-a70e-581b46f92670","block_type":"box","text":"Operational Risk","page_number":58,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"0634c4a5-888d-4b2d-ae3e-d1b8578b215d","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":58,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"13c96d6e-a927-4f34-8073-de7c26f0b64e","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":58,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"0338570c-7169-46c9-b6ad-6bf895d38d9d","block_type":"box","text":"Valuation Risk","page_number":58,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"81e2e2cb-97aa-430b-a1ad-3bdf01b5c09e","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":58,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"536b37cf-416e-4fea-9c1a-9ab2b28b36a2","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":58,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"73098f04-c2b0-4207-96a5-493e05c65620","block_type":"box","text":"complex instruments or quote prices for them.","page_number":58,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"5f9d89c1-37b6-44e5-a523-2400b1ec6d19","block_type":"box","text":"Volatility Risk","page_number":58,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"e11b61a9-95af-42f1-9a22-06fe1d51dc62","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":58,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"e077a75f-02b1-4a36-bb8b-47b42f3de02f","block_type":"box","text":"Types of Derivatives Transactions.","page_number":58,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"b59bc4f1-9611-4b6d-91fb-fc33b25c6d01","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":58,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"e1c3eea0-f04a-4538-8dc1-02574cc5498c","block_type":"box","text":"including the following:","page_number":58,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"f2173e3d-ac71-464f-a6a8-08810489c21f","block_type":"box","text":"Futures.","page_number":58,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"eb64bc5e-3978-43d3-90ad-83ddc85607ad","block_type":"box","text":"II-16","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"495d30a3-8d45-416c-9e55-5fdc8e40b132","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7b61220e-9f62-464b-a9c2-70772a234d5b","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":59,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"f769eb51-d1dc-4aa5-a697-1197c3148deb","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":59,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"b58ab866-00be-49f1-9b94-332e731c51f9","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":59,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"6887eb7e-ebcc-4b3c-99f0-d222b4f124ba","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":59,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"0bfceeb1-1d36-4146-b5e6-6b6d28d4f52e","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":59,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"8b368169-d852-4348-9dbf-ccc98ca97b49","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":59,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"77ed2ed7-7fe8-4fe3-8073-f7d0de295125","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":59,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"b6ee5478-a8f6-41e6-94b7-1c771d44a805","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":59,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"a8ff8742-4f1c-4ef5-964d-6439aadd0dfc","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":59,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"72b353ef-da4d-48ff-b4b6-3eb77a9b74a0","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":59,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"93dac88d-eb05-462c-b89a-b01d08b2f8da","block_type":"box","text":"of the futures contract.","page_number":59,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"20026bce-14b5-4a6f-b2dd-e8a61e7639ba","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":59,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"48ac0ed2-8b06-486c-a574-e60409f18377","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":59,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"fd221ef9-b054-4217-abf1-30e481b19959","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":59,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"ef8f721b-632b-46b6-b962-a660d7c47f24","block_type":"box","text":"relating to the futures position.","page_number":59,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"8555b2fe-8178-4d04-b0bb-453f2894df73","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":59,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"767efcf2-91d9-4555-9482-4a8277970403","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":59,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"62e53efd-a98e-49ca-ae2e-463a67c99b17","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":59,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"40b68da1-d08b-437e-8fc9-edb92c155405","block_type":"box","text":"Regulations” above.","page_number":59,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"55003ed9-ecde-4cc7-8b52-0014b79f63f6","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":59,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"a4ab467a-e848-4fa3-8de3-b1aa920c9eb9","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":59,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"4b652c1a-bf13-4695-b505-20402d4d78f6","block_type":"box","text":"(","page_number":59,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"a65763b1-e746-4939-9cf5-e09299762322","block_type":"box","text":"i.e.","page_number":59,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"983d4ca5-b1e7-483c-9d2e-b884729513f1","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":59,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"5e590746-aaeb-4c05-85b6-03261da975ed","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":59,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"ae42610c-b5bc-48db-b8b7-3c43d9f3c3bc","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":59,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"ee5613ad-082a-4a86-a8d9-e628e519f870","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":59,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"ac1d2512-893e-42ae-a94c-3dd3664a7e14","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":59,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"8db96c7c-75cf-4e65-a31a-4400e0521305","block_type":"box","text":"Fund intends to purchase.","page_number":59,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"e518299a-33ad-4eee-a683-085d2d7346f4","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":59,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"63879497-8219-4049-b2b5-313e57048cd6","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":59,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"dc88a1c5-603d-4e9a-981a-53ff9c5447ce","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":59,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"819a9bba-9518-40b6-ad39-1d470c635580","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":59,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"a0a131e1-8dd8-485b-a1dd-5553d9de3e1a","block_type":"box","text":"illiquidity.","page_number":59,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"b07a3680-46fa-4312-b284-4f71a16238e2","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":59,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"bcd776fb-bf3a-4d99-85eb-acf80ae0e7e3","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":59,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"0e81856d-9fb9-4357-b0b6-f42840d25970","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":59,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"a1cc0cb0-5a23-4e91-a6b2-1d6b0298dc3c","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":59,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"98ac41cf-a786-43e8-8f8c-9cc09c2eb831","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":59,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"f046089d-6f6d-47a2-a418-94fa3e09535f","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":59,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"61d9e3ec-bd71-4977-ae5c-035357ceb71a","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":59,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"0c98737e-1c7f-4bcb-aac5-e4dc4ecb7ca4","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":59,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"ecb37d92-06d3-4745-9109-889ce389af6a","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":59,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"519044b7-b9e5-4312-8024-d5f1b75425d2","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":59,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"75740bad-f5d3-49d7-b489-bb4270ca29df","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":59,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"55174938-7302-44a3-897f-5cce2ce74ea6","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":59,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"3c76e840-f6b5-45e7-8f0f-d8e94fd40311","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":59,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"de684c28-b2bd-4ab3-b01d-9318de488005","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":59,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"31b54a08-e3d5-4441-8634-12c22aad1413","block_type":"box","text":"Swap Agreements.","page_number":59,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"39a37b67-7125-47f9-8a3a-c189a7272f6c","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":59,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"f2b062ed-d872-4c60-b5cb-480f1a5c26d1","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":59,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"8e7e5469-f9a8-4b80-87cf-fe4fb72c70d0","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":59,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"2a5fa246-21da-4218-a215-4748d6ed2796","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":59,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"529697c5-de09-4e5d-934e-a9da9943fe62","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":59,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"81b3a465-2059-4678-b123-c36b521e90e0","block_type":"box","text":"a “notional amount,”","page_number":59,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"dcde4572-cd92-4a84-8143-b9f50fc466f5","block_type":"box","text":"e.g.","page_number":59,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"9652e00c-ffd9-428f-b38e-48a4b92a54e9","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":59,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"39348148-8395-497d-bd21-28649ccecba5","block_type":"box","text":"II-17","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"95672a54-6a5e-4731-8f2a-3a44b798c76e","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"87065760-b632-45fe-87dd-64aee8ba7077","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":60,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"2045d40b-3b1c-4465-b036-18123a2a97f9","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":60,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"081b9cb9-c0dc-468e-8f40-afca5582d52c","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":60,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"11bd8784-9c8a-46f6-accc-aec6cc45e6d2","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":60,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"949c325f-7d95-4707-966b-7c8bd8dafe8e","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":60,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"a78e4a75-615d-4f1c-8582-3e3cf351d3cc","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":60,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"d192ff33-8863-4944-8664-6c9cc4128cb2","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":60,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"e62b3960-013b-43be-b8d5-eabeafed304e","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":60,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"d15f5932-a700-4c1d-b911-a7fb84f9efa3","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":60,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"dea79181-51b2-4cc2-8258-edaa36a7e8cb","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":60,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"f43f28c7-a7fc-45e6-9dbb-2d35ccde59d8","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":60,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"db778f0f-7bf5-4534-8ece-6cc419ab44f2","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":60,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"6676c01b-56ce-4377-b03f-d453b86ee0ea","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":60,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"0b44221c-bfd3-4e6c-971c-08e1ca3a0e39","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":60,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"a1c0dabe-6aa1-4cb6-8042-86634e5e1c25","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":60,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"4c6b7225-c7b9-4cce-8353-aeca432a7c21","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":60,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"efd78c68-467d-454c-81c1-32ad10b98c91","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":60,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"99b789b4-f6a1-4142-8bee-b6e42d8d07c0","block_type":"box","text":"index CDS.","page_number":60,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"5cfb7d42-0ee7-4286-a356-50ec35fe09d2","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":60,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"adaefc8a-b143-4354-9517-4b6ff0368f1d","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":60,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"8ae2b9bc-5547-4755-8bb3-82dd3b28410c","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":60,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"8d11e4d6-f639-40f7-a1b7-6c96ff90362f","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":60,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"b5579dc2-1945-426a-9538-062097a82f40","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":60,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"4220fdf8-5700-4314-9718-aeaed35ae2f6","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":60,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"72db1017-af83-4666-bec8-c36e3bc54f1c","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":60,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"7a732afa-638f-492b-9586-62d5271e365d","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":60,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"414f7c59-edde-44f8-bd6a-5c4c73d3b0ff","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":60,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"b057e0d7-b636-416f-a484-17b7ec8099fe","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":60,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"2d63f072-a8c4-4eb9-9f26-39b39e11acc3","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":60,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"a855a79a-08d4-453a-a22e-7931f0f668ce","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":60,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"891a8ed6-fe19-423e-b42d-c550b7672cf9","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":60,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"bdc281e2-9369-45d0-a010-bbc6c5b1cd25","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":60,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"4afe1413-cf35-406a-bb29-043b830b44c9","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":60,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"4f6f18b5-3cb2-4a3c-bbad-d6a3a6fa314f","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":60,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"2af15763-7465-433d-a223-365f21768fb3","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":60,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"57325b8a-26f8-46e7-a01c-b5b665e02f3c","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":60,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"533e844b-fcbd-4050-b35d-3f4abdb5cd44","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":60,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"740179b2-33a2-43f7-8957-662752eb9729","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":60,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"f28aa80e-40e1-4fb5-8449-29a2ce6db3d9","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":60,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"89ed6c95-b1dc-4e55-9269-8111cffaa5ab","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":60,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"97869002-328e-4f97-bbf2-639f92fd5212","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":60,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"2dcf2431-ba47-4b23-87e8-15c2e65a087c","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":60,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"beac6b9f-b4bc-40c1-9e85-9a9b15018ebe","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":60,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"c148b7ed-da2f-4e61-bb5f-aa75196192df","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":60,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"ff5521c4-44e6-47dd-a805-94d3b6733045","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":60,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"b9b658db-01e2-4e4e-a0b8-fda864cddaeb","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":60,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"6f0971d1-feb9-4455-9a6e-8bc19fde7800","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":60,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"1364767d-f2f8-4779-a201-7e3476b3583a","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":60,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"e56e8289-44b6-48fb-a859-0917c92353ee","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":60,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"982da741-8076-494e-92c9-f4ef8716bed4","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":60,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"55e8a231-a653-4035-9f48-f48970f744d6","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":60,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"74881304-6823-452a-9026-3b101d3871e5","block_type":"box","text":"conditions.","page_number":60,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"96c8fcf8-b7bc-4e5f-bde3-27e3f9bc9bc3","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":60,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"4e6e0736-dea7-4ae3-9746-22a928ca56a6","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":60,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"5d70f9c0-89c7-43e0-9be1-efd531560bfc","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":60,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"9229e5ca-9361-4f9c-8693-05bf8174b3b1","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":60,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"85189c7f-b664-47be-96ec-2182236affd0","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":60,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"f3bfbff7-c9df-41d4-af0f-2206dcc9fd60","block_type":"box","text":"II-18","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b9c76111-d7d2-4242-9e8d-ad5011181a14","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5301b6b4-68c7-4780-959d-22d3f1fddaa8","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":61,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"ebfc42ef-8f4f-4d72-9cdd-4bbe0d9348c6","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":61,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"d57164df-8c9e-404f-b1f5-98d120067649","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":61,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"ae1d1e4b-dbe1-41cc-bab6-132a9f0ab3d9","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":61,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"96853658-7923-44e5-beb7-e776f455cafa","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":61,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"f9096e8a-b75c-45e1-bf4b-8fee7c98e82a","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":61,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"4083c9a5-7fff-455a-8479-3c6664cd063f","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":61,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"0b740ea0-d95d-4c9f-869c-6f98a7c69b78","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":61,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"dbfa70ef-7e98-4063-9eee-44679da19cb1","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":61,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"db5f23b0-d22d-4eb2-845e-0482b8da269a","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":61,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"ab20af65-3cff-4ea3-a619-0a53a653d769","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":61,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"6016ab6a-ffea-407e-bde5-4877c1413bec","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":61,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"eb3fd4f7-21b9-4af9-9b97-e022444de133","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":61,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"7225e329-faff-4a7e-9ff1-1304ebfb6d62","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":61,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"4d1b4924-7023-4838-9d8e-278079bd6c6f","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":61,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"60a7b891-82ae-4ec0-bfc4-ca751a3e3a4b","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":61,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"5e744354-ccbd-4bfd-9ca9-6e2916c1fb53","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":61,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"c2383f05-07ae-4d0a-b8be-d0fb8b69d012","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":61,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"07fc60bc-ea95-4101-ae5a-2ed012d9a2e2","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":61,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"4bf70e90-9559-4d5f-8c9b-b6796f0702ab","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":61,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"ac461792-332e-4aaf-a752-08a433abf34c","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":61,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"f056a93a-7dc1-45c8-875c-4a0942fb7172","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":61,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"4ccb2cf5-615c-4ee8-9a9b-279158867037","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":61,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"18e8dff5-037c-4c40-911d-df728c7280d5","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":61,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"48a567d0-428e-40fa-9f85-7388f0632f1b","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":61,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"6d3a2a3b-4101-40f2-9db2-41d0132a21ef","block_type":"box","text":"cleared interest rate swaps.","page_number":61,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"4438ee8b-5f14-4dbc-8509-1811e098882e","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":61,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"839e6f5b-d7c2-4f73-8fcd-fb0d7a8537dd","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":61,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"39737094-aab4-488c-86e6-0082db1a5a2d","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":61,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"a5136dc7-74ec-4dea-a18e-4ad2165e9104","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":61,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"146f36b2-a456-43fa-82b4-c50675fc8f3f","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":61,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"8d382e7e-3704-4e5a-8f7f-644336ca47b3","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":61,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"8b845a49-0d09-46f1-a968-23d1a1bbee79","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":61,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"6c838e6b-8c39-4e6c-afda-71533abdae52","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":61,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"a64035b9-554a-427d-97b7-c7e1a782d1ae","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":61,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"f7383a4c-e667-46ef-a34c-be96b6fed11c","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":61,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"e1b35fb7-a4ed-4fb8-908f-eafe5e52bbbd","block_type":"box","text":"or variable interest rate, index or asset.","page_number":61,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"e82fb29a-19f4-4160-beed-a2f5e7064286","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":61,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"4d0266f8-3bab-42c7-a93b-cf8876ad95bf","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":61,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"5f972c5c-2e40-4ed7-948c-313e39e8df8b","block_type":"box","text":"such interest rate floor.","page_number":61,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"4c9be6b1-9fb2-4b6b-9b27-f5052fbac4b4","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":61,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"262febfd-b2ba-41a0-9dfd-6d8db1433949","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":61,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"e1c7f17e-29c3-45ef-932d-fba9557f7acd","block_type":"box","text":"such interest rate cap.","page_number":61,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"5b3266e0-ed79-4741-8b11-c9687372d256","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":61,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"85dac1b4-df76-43ae-a16a-a761faf143a2","block_type":"box","text":"commitments to pay or receive interest,","page_number":61,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"ad5a3fcc-07bc-4361-9580-8978aaab5a8f","block_type":"box","text":"e.g.","page_number":61,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"1ad76dfd-b1fa-4459-b620-8054c6e3b2c3","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":61,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"b4ae40c2-7c36-436a-a07a-7d9c2a356dc6","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":61,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"5ce2edf3-e4c4-4686-b663-d4b5f8ca0bf3","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":61,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"051a1de8-1e8f-4259-a85d-6e7a14439688","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":61,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"bd3b102d-d267-409a-b46c-11e95669aadc","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":61,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"bef02741-b068-4e50-b1b0-1cdb371e2978","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":61,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"ed2223e7-86c7-4f0a-9938-84c253b10d8e","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":61,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"1bb908ae-c6b1-4993-af69-8f8cc59244a3","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":61,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"38ccf931-495e-4f96-8764-7c218dee6a75","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":61,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"81215054-e7ea-4b6a-a086-cc89fa0cf4bb","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":61,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"66b8dc27-c311-42c4-b031-b057814c76bb","block_type":"box","text":"II-19","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"93090281-3530-474e-98c4-d39c2b02bd17","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34228ed6-efc3-418d-9fc0-801cee74e6f6","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":62,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"ba91f176-df80-4d83-ac96-2b8f7cfdc6e5","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":62,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"344f3128-8c64-438e-a2b5-9c3092207f62","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":62,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"dee94902-9e2b-420d-aedb-df90ed6d1ca0","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":62,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"8c93ccc1-9535-49be-a155-e0ec250e887b","block_type":"box","text":"Total Return Swaps.","page_number":62,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"db5ef07f-1983-4e88-b848-8018d04dbd86","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":62,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"aeec3cc8-94ae-40da-96c4-a60faa978365","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":62,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"1c2aaea3-7aa0-4583-9585-47d8f28efb8e","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":62,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"b372e1bf-997f-40c6-bab0-e29d746a72b2","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":62,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"99b7b4ad-d9f5-4b0d-9538-b4f3c6b92e0b","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":62,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"f3c91773-516b-4a25-9ccc-3e024d057045","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":62,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"07e2e212-9bba-43c9-9ca6-a075c6417b28","block_type":"box","text":"“contracts for difference.”","page_number":62,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"987b4678-853b-46fb-be70-4a4c75f2f90f","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":62,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"f10bb658-1707-4084-adbb-f60c147b77d2","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":62,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"c71a409e-cbd7-4791-9ed1-60f9ef12a535","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":62,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"8344bcfd-08f4-4fe2-8bb1-2714f08d26c6","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":62,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"7e68da78-e00a-4ec1-a40d-b76070d0a020","block_type":"box","text":"the notional amount of the swap.","page_number":62,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"5e4eabfd-2e15-435b-bb0f-654d4b303cbc","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":62,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"62e28530-f737-47f3-881a-654b78b682c0","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":62,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"684a8f45-1cc0-4de3-95b9-a1b39801b472","block_type":"box","text":"Options.","page_number":62,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"5ee198b8-9ced-4c55-b4bf-8de72c602681","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":62,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"9e260c00-418e-42b0-a337-61013ad6a2e8","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":62,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"c2899953-befd-4aba-ae39-7802bd912d23","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":62,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"94eed3fe-17df-49d8-b14a-0d3a88870540","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":62,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"cf709291-ba3c-4ca2-9fbc-4d5290f30595","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":62,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"ecebd3bf-e01a-41a1-a778-fb61cdd7cbe2","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":62,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"43e6bb64-6958-4472-af20-bfe13bbfa5d9","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":62,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"72738743-f94e-4c3e-a9b5-4e994ff75d7c","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":62,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"67a2a743-5801-4108-bc77-d5155d771806","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":62,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"49078977-dce9-43f0-8be1-00cf650fc822","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":62,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"50b6c9de-e73c-40da-802a-425e93ccdc86","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":62,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"63d1afb3-f901-468f-bd1f-304d59ae1d9a","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":62,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"7244fc41-864d-40f0-b913-03faf53c14c6","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":62,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"2045dadd-47ef-4ec9-b72e-fe2c9ad69d08","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":62,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"e6da7c21-0422-4f94-82b0-fef4d8dce769","block_type":"box","text":"OTC markets.","page_number":62,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"ae815a8f-b5bd-4648-ad0f-4ea4fe74f290","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":62,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"e7a1ccd4-6002-4acd-a99f-df3654ce439e","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":62,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"e8eb2fe9-3496-4340-bfa5-c3056496ed86","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":62,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"8dbcf023-a4e1-4d48-a923-462e887346b5","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":62,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"f4e1ea5d-01dc-4dfd-aecf-0b0208bde791","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":62,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"a300818b-f7bb-4d4e-95b0-8b6b6b67d192","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":62,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"8493b0ab-2688-4fb5-aabf-7e1aadad6a7c","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":62,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"4247c0d7-72cb-41a4-b18e-3378953b9514","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":62,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"3c3189bd-8dea-4f30-bf9c-9df3e220095a","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":62,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"911e7a53-03de-48d9-923c-53fba1506cdd","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":62,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"b60a3072-f4ef-477e-8292-1a5d97ef0fc7","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":62,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"5cbbc8a5-184d-4617-ae27-11acdc1256f6","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":62,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"cf8644f2-d240-406d-aa33-3fd435dac761","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":62,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"2a0d89eb-e168-4123-b221-5bae0638f4d2","block_type":"box","text":"terms.","page_number":62,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"c0051d17-67c6-48ce-8351-88f4ab12fb4b","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":62,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"ba10a404-83e6-4cef-8920-08b253f8c144","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":62,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"28ae387f-96d1-4ee7-955c-9172f5293aea","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":62,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"7f619b0b-902b-4d57-98c3-1c3ed8c77478","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":62,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"50237d8b-24f8-43fe-bc7f-3778d990906f","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":62,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"d5896e1c-b50d-47e4-8cb5-fd355f31ba83","block_type":"box","text":"II-20","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cae4362c-4c63-474c-935f-96cfce0a068a","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"93cef97e-6319-42f5-a1f8-61d9d431bd9b","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":63,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"2f6acec1-4c48-4fa3-8d2d-38b000770798","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":63,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"9b9e8897-2fa4-406c-8168-4dd7ee9aed93","block_type":"box","text":"Call Options.","page_number":63,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"62ace841-4e54-4475-8566-d52ed7608387","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":63,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"dc15de88-5ec0-4288-ac7d-c33859ee22bf","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":63,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"27902489-8c83-4f74-8d6a-77f31be4ba48","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":63,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"604be7a2-5228-4890-baef-6a8a45be296b","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":63,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"fd40037b-cbca-48fc-ac18-81f3fdbb34d9","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":63,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"a8b2c345-7bfa-425b-9927-2d1c47898b61","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":63,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"8d8c7896-b3c1-4e02-9af8-6a2003093f03","block_type":"box","text":"of the option.","page_number":63,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"a037c55d-61fb-4a37-8eab-be55471f89f3","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":63,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"63765897-6e08-4adc-b110-c2f6cc6bb5b7","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":63,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"612530c5-df67-4e0c-a0d5-349420dfdedc","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":63,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"9ab650a9-cd61-40d6-8110-61bd4e5aebce","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":63,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"8854d632-f464-4aa4-a647-2225cd0dcf25","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":63,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"b7089ea0-3b68-40dd-bcd2-66e9be2c0404","block_type":"box","text":"A Fund may write (","page_number":63,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"798de7ef-420a-4d4d-90a5-60c3ba02b5f8","block_type":"box","text":"i.e.","page_number":63,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"42f6552a-2ecd-4f17-8c97-63908653cd78","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":63,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"3ec2730c-47c8-4bae-aec2-fc13f9285285","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":63,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"4eca6228-6408-4d3e-a2b3-b0a0234ba497","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":63,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"ae65f5ae-c5be-4397-adbf-6679a38568b7","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":63,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"8306bbc5-0d7c-4c85-b9f2-8dab2e13aeef","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":63,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"1a6fc764-5599-401d-8c90-3fa59c0f36a9","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":63,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"6eaeec73-9471-493a-86a3-986f99f19749","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":63,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"5abe6bda-6d31-460f-9a6b-d33adde3947e","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":63,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"92d6441f-f06c-436a-a4de-6d6f834632b7","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":63,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"078f94d1-a175-49ed-ab26-e739055efa90","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":63,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"b33200b1-11bc-44aa-afe7-1a8b7c2025af","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":63,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"5d5bf43d-1d18-4e21-a19d-00136c250dbf","block_type":"box","text":"A Fund may write","page_number":63,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"f9c82c09-188f-421f-823a-26931db01900","block_type":"box","text":"(i.e.","page_number":63,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"d36decae-e50e-4010-b7f4-2d542039358c","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":63,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"cde8126f-8739-4ab0-b541-4fc3fb0148be","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":63,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"9373e022-1f37-477c-8aa7-a08de9c55bb0","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":63,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"fe89f625-42e7-48e2-afa5-784bf2dfc835","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":63,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"bd1c1d93-e6f1-410f-9ae5-f917821269af","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":63,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"93a31196-23bb-4d09-b879-f86af471d3cd","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":63,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"38652427-d9db-4bc0-8309-eb8449062442","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":63,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"ea45d063-3f06-4c53-8a65-5ee8c455de8e","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":63,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"8e7b8bf2-2a24-42d4-a535-5a8dbc147c9c","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":63,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"0694b10c-05b4-475d-a96f-2c76b8611153","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":63,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"f47e475e-2764-473e-accc-b9fc94ec5cda","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":63,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"32707509-b265-41b6-a9df-c798881d4ec0","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":63,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"cc3649b5-fec9-4251-aa49-b00d7763c24d","block_type":"box","text":"Put Options.","page_number":63,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"b9647989-0c90-40ec-99f5-035e3946c5e2","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":63,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"512f9423-ada8-4df6-9319-7309292801ea","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":63,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"ada8a5fc-90a1-41e0-90b4-e2002fb748c1","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":63,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"8212541c-007f-42da-92f7-f56ba9663989","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":63,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"caf2bc8d-7e18-47eb-9d2d-090acdd3304a","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":63,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"7619929c-8e8d-4d2b-8506-c4be0918cefe","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":63,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"aefa7dd5-f781-4ff1-aaac-ba29b12609a9","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":63,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"20924cfd-137c-4b83-9c1f-e677f0e8e2ef","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":63,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"a434929c-c340-4d87-aab1-5a4973749233","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":63,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"58e3e024-ef0c-4e12-825f-c17b1f6f0ef9","block_type":"box","text":"purchase uncovered put options.","page_number":63,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"5de66850-0987-4daf-9169-1cd037564468","block_type":"box","text":"A Fund also may write (","page_number":63,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"7d332c36-3106-4c3b-b2a0-e0aeddbce497","block_type":"box","text":"i.e.","page_number":63,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"050700b4-f7ba-4614-8a5a-05b3de84a45d","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":63,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"e83acafe-9f85-4aae-949c-fa602c4ecceb","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":63,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"140ca845-c2c6-4bb8-8564-438e6901002f","block_type":"box","text":"A Fund also may write (","page_number":63,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"c33dd840-70c4-4501-ac4d-5b97726e1083","block_type":"box","text":"i.e.","page_number":63,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"02a5bc4e-22e8-4896-b55c-337e75e92970","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":63,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"e849fa83-9120-4c7a-915f-38c3934a9439","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":63,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"b1ae9fd6-3fbd-4c5f-830e-4199819207c1","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":63,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"a9eb808f-f31a-41d1-a0ce-d50139f9928b","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":63,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"041f0fdd-3447-4b70-ba68-c31270afe1ce","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":63,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"c4147595-0f13-41ac-bfdc-2ebcd0c5e5bd","block_type":"box","text":"II-21","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7376b9af-ea78-4d79-b359-e46b4db8a687","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ebfa2be7-14b9-400b-b7b0-41469cb776ca","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":64,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"994f4cf8-74cd-4421-8b83-ffa4e8d66de4","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":64,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"380ab00a-4993-4c95-8d06-a3ade63f86f6","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":64,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"f2858570-756e-46f9-9f8e-3709e0bead38","block_type":"box","text":"the exercise price.","page_number":64,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"65f1e4db-84d5-47c4-b230-4b9309edce27","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":64,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"00fbe84d-db55-42d1-b340-ea5fd5eca825","block_type":"box","text":"The following information relates","page_number":64,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"b5331913-3f26-4d17-8f73-a0f72e3855db","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":64,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"0374bb85-0173-49cf-bb37-48349c7d246e","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":64,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"25575daa-f973-4bcc-a7d8-00c810879ed9","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":64,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"68ee5f6d-d183-411c-bdc7-97d3d38afc75","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":64,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"277e8692-6344-424c-a001-7ab5a12162d3","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":64,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"bf0304ae-3152-4b9b-a2c3-59879153b17c","block_type":"box","text":"market in order to maintain its “cover.”","page_number":64,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"c8dce030-fc90-42f0-ae0e-8bf4c37fae5a","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":64,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"6ff48b30-3e70-46da-83f4-204e980fcd34","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":64,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"cc10053b-d15e-41fb-a0e5-a024c685c22d","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":64,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"6b7db481-b7e0-4fa1-93f5-882834efdea2","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":64,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"b3efd9d8-6471-48c6-a795-a9bc5ea6cab8","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":64,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"997b5fb7-12bf-45cc-b865-7e81161d2ceb","block_type":"box","text":"and incur transaction costs.","page_number":64,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"5995e515-6aeb-4d81-8c48-b4dc5d4b855e","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":64,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"db65b5ed-eab2-4532-98c1-9db3f063dc98","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":64,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"abce9f7d-7733-4e9e-ba52-065afefc7757","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":64,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"caab209d-441c-4c74-9ecb-c17b321d1d48","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":64,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"fcbb4047-b11b-4b60-91ad-bb8e8b6be0ad","block_type":"box","text":"i.e.","page_number":64,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"74125270-4f6d-4faf-baa4-7403d746ac66","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":64,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"2282462d-2a87-4c21-b91a-6219732163fe","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":64,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"38875675-752b-4b33-8e66-ed53c9a72327","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":64,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"22b5fed9-f7fe-4a67-9872-e649066ee6c7","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":64,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"22f8a061-aa15-4f3d-b2e8-eecf205db63b","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":64,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"39b3089b-78f2-4de3-bd64-e7343bc5e6b1","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":64,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"a54218ae-f8f2-4fed-908d-e1e86b1883ef","block_type":"box","text":"required, to be cleared.","page_number":64,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"53ba8859-c05b-4f13-b64b-ce5b086bbf09","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":64,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"482d00fe-ddef-445a-897d-e9ec4af6d4f3","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":64,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"29d382b8-731d-4190-80f4-f3efbfb9bf6b","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":64,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"faec5bbb-64a2-4f1e-8a27-1e37329c4507","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":64,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"b799ef3f-db15-481c-bd1e-db2aca98fd24","block_type":"box","text":"Derivatives” above.","page_number":64,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"3c787637-8ea7-4826-8377-fe8def1b6927","block_type":"box","text":"FLEX Options.","page_number":64,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"f0f2d6d0-b897-45f5-b9b5-0f1e2c00ab12","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":64,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"0311af93-06d6-423e-b6c1-38c577295ba1","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":64,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"62bce3ff-f8a6-40d3-82d5-0a93c3a6ed03","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":64,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"f7eae2f6-3297-4169-ac26-438f1616dc38","block_type":"box","text":"exercise prices, exercise styles (","page_number":64,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"e5b558dd-1c4e-439c-af91-75d704163d8a","block_type":"box","text":"i.e.","page_number":64,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"34950555-bba1-4317-97ee-ba04a39724a8","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":64,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"2f3d2345-f8b6-4108-8157-5f3659f6aa81","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":64,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"83582454-f523-4354-b7f0-7ef109573fa4","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":64,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"b87a9a0c-3760-4c0f-8889-4102f8113b08","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":64,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"edd44f75-8a4d-4e9d-a19c-5bd65301bf8f","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":64,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"82edff75-da9f-4567-a8ac-e990a424c561","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":64,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"3295f5c7-f945-4a0a-9bfd-ba033ec7be28","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":64,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"6603ba74-ea18-43cc-839e-7795e62ce649","block_type":"box","text":"FLEX Option’s expiration date.","page_number":64,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"fcf1cde0-e7a8-4743-af85-c19b0f920d48","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":64,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"5f263c80-9b22-4c03-95a5-bd54d330795d","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":64,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"855c9d73-4d8e-4930-813b-1665439c4f76","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":64,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"e6995ab6-5232-4433-b0a3-bf2a01fb8079","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":64,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"fcfe35c7-4d75-4224-b2a1-9dd23f7f97f5","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":64,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"7688b800-3bce-493a-acab-dc8d24c433a4","block_type":"box","text":"FLEX Options contracts.","page_number":64,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"ca06f634-b5c5-41ae-a5d0-98a43138ea7b","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":64,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"dda535ff-8599-49b3-a828-def8acbfc549","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":64,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"20baa61a-7206-4e72-88e2-5f8449cb1a53","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":64,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"f34913fc-2ae9-4a5b-8926-0c8d6642329f","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":64,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"1c69c0f7-c314-47a1-bcaf-e944cb5b9447","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":64,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"99f112c3-1dab-4dd0-bcf7-71590844937e","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":64,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"6a8c74c9-fd31-4a5e-a299-fe0851cb2c6d","block_type":"box","text":"II-22","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c58cba80-a959-4cc9-91ca-2e20dd5480ce","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f0325ee-bca5-43ba-874d-b80da2cba67f","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":65,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"5a1c52b7-6f05-4278-aa7d-ff901ff307ba","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":65,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"e2e20480-1ef4-4441-858a-a615735921f5","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":65,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"43e6b1ae-d3d8-4204-bd5b-6e765b924b5a","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":65,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"e55178f1-28d3-4c33-a96d-9ec916236aae","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":65,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"b754de7c-5f02-47f3-856c-e3292e2c3b63","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":65,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"3d2441ed-6622-47fe-b811-531acd7bb07e","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":65,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"330f6c2b-452c-4339-a05f-d2c6f24c86f6","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":65,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"d6435715-372c-46f8-af60-bb1b230ffc47","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":65,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"617a0733-1759-4b27-bade-c0d99ef40ef5","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":65,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"ad47b884-3523-4ce7-9f8c-566e3a6d87d2","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":65,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"5addd061-bc07-4f5c-9736-a2d80e5e6a20","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":65,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"ce8125ff-3638-40e3-857f-1928c01e31c2","block_type":"box","text":"expire unexercised have no value.","page_number":65,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"b203569d-8f02-4925-86a8-4f5bc4b477f4","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":65,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"9bfc4b11-9dbd-4063-9882-df37d6b7f924","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":65,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"948eca0e-77f4-46ab-b859-7cf2017337dc","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":65,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"3c741f5e-461a-448b-965a-301a8f393190","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":65,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"b574c2b0-c3f3-4369-a806-711b62674b94","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":65,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"451fabb7-dc4b-465b-8582-a801ae4a5f39","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":65,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"842f9847-7416-4afc-b802-a66668bf3a6c","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":65,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"60870a4e-9949-4385-9969-fc34b4477169","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":65,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"a139ba2f-b8df-4822-b85c-c770dec5ea75","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":65,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"218b9358-2972-474c-96e1-14e71691b42e","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":65,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"4a055224-ecf3-41af-b377-00f3a86a340c","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":65,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"8703017d-ae2e-4452-8516-188150780a66","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":65,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"91477555-b7ba-46ab-89da-2545591af120","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":65,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"0655f65d-a00b-45cc-b44a-f0325c6fcd68","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":65,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"e21d71ba-12dc-4d57-856b-6392ebb1e677","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":65,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"0b08ff22-bdfa-4e50-aa97-eb5be136de67","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":65,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"abdd4066-50e0-4c7f-8d8d-a6e701477cd6","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":65,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"1cf5f13d-7a80-4e57-893d-aa27a0b7060b","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":65,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"02d0401d-2f64-4f6b-9a42-e833465ad93a","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":65,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"5044a922-2cd7-4e1b-95c8-8b901d509f6c","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":65,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"47c43a0e-a9d6-479e-9fed-10210cc5efa7","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":65,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"d31ea7e3-f6a8-4d4b-8545-ac1dd081bd56","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":65,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"75e09611-7388-470d-bee0-1c07a2af5ef6","block_type":"box","text":"Foreign Exchange Transactions.","page_number":65,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"6bfd2123-ff0e-4547-bfc0-f27a224b8e65","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":65,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"79feb75a-f28b-4a07-9404-9ebb48c889dc","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":65,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"c839032a-f929-424f-a7bc-c153ec32f1a4","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":65,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"db3429d6-2bd4-4b46-963b-17b943c29295","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":65,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"90536e7b-d80e-4b7c-b525-c751ddd087de","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":65,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"1ca44b07-ce89-46b0-822b-e25291873884","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":65,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"88fb6868-3d98-42c4-b427-f51e95215f43","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":65,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"b22ed2b3-0045-4f89-aa4b-f2670e2e9ae2","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":65,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"51b37b15-40d1-49f9-9b5a-d4e484bebb6a","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":65,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"67b75c27-c94a-40c8-9893-5f538094d29b","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":65,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"005dd0f3-90f3-4d17-9f7b-00b0e2f77f33","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":65,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"fad06114-88a6-4734-9b57-0a523fff0536","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":65,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"8cb39fe7-9162-45f8-880f-a3ec30fbb0ba","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":65,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"a9af07bb-1153-413d-ba2d-2e2989c9a745","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":65,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"84a72424-0d25-4677-82fe-533b9f839288","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":65,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"ea3095b9-8ff1-491b-aec5-a4d822fd97df","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":65,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"153652f2-d3a6-4151-94a7-18a471f08261","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":65,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"83b2c5d9-2ef8-420f-8669-68036356c1d5","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":65,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"4acc12e8-9ed0-42fe-9cee-c212b3a099e5","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":65,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"2c00274b-8511-4b7e-b1fd-80a0b9dcc4f8","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":65,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"4ef1bd18-b979-40da-8bbf-696071090ed1","block_type":"box","text":"II-23","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a88a5a5c-2d49-460e-a594-0d8331a7df98","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"115c391a-7f48-4aab-833a-cdae19300ec3","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":66,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"b0b61841-5059-418b-91bf-400dd1d6c423","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":66,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"66b3bd01-b242-449d-9866-5f84273f11bb","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":66,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"bb658f78-b00e-4ed0-b8f6-b56de3d4e130","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":66,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"11a78a74-0c4b-448f-8cab-978891d58046","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":66,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"427030bd-aa2c-458a-a567-90d90c8bc3ff","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":66,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"6663b8d2-c79e-41ef-9307-7bad9f3ea13b","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":66,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"2d8af094-aed0-49ac-843f-cbdd24b5ee0c","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":66,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"d9cd76fe-633f-48be-ade9-1fa5af7e7232","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":66,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"895c51e5-5ee5-4685-868c-8806d61c182e","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":66,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"6be99462-7490-4159-afd7-9b2cea071ae8","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":66,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"f64e842a-6493-4e6b-bbce-a498ac727fa9","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":66,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"4e8675d4-75c2-4203-a9be-d80d9b413bea","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":66,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"4402dc5d-c932-43a7-9550-98ac3ab832ba","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":66,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"fbe72ee7-5d70-4f77-a9db-17ea17991572","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":66,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"21958eb2-cce6-4ae5-8770-a2c4e45560a1","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":66,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"6b118ff6-5f95-43cb-8920-d81618b0a4fa","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":66,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"7598cdba-64ab-40e3-8f2f-8f1b533052b0","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":66,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"d65e2e61-37f6-40ee-ac22-0f9e4b249049","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":66,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"62c59e2c-97ca-41ad-a6a6-12b4e1c3a8ea","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":66,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"d2bcb904-cd18-420d-a611-06311e29d0c7","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":66,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"ea45c9f9-02a4-4eea-b6c8-47a1506be352","block_type":"box","text":"involved.","page_number":66,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"c5b3e4d0-d22f-4d10-82c1-5fc5c2405053","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":66,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"0bf9c9b4-73da-4337-bf15-62d9a61aa0a1","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":66,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"54b82b1a-a78a-43c1-be4e-d983ee640f2b","block_type":"box","text":"denominated in such currency.","page_number":66,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"23d181e5-bf07-4d73-ba9e-55daffb7a767","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":66,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"a677998d-c107-4d2d-ae8f-12471a31fdff","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":66,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"4a8c9828-797d-4329-ab11-c4f619186b1f","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":66,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"9437889d-c199-4b52-b873-8d2e3f126f2b","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":66,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"766005f3-1955-4ad5-bef1-fb7714737db2","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":66,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"e0482f45-7457-4e57-91e3-1d42c61c239c","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":66,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"d2d1e45a-5e84-4970-aa59-91b470e07e71","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":66,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"d5e07626-3041-449c-becc-bf70b448d25d","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":66,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"877cd05d-f4e4-4a26-a55a-8baea275724d","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":66,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"64e6305c-68c6-4389-aee7-768bb853c80d","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":66,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"b69c7924-3b2e-4d73-8262-6e95409e285d","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":66,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"4c0a6bec-c79d-4977-9379-4dbc7e162a83","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":66,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"72939199-4d10-4657-b1cb-64491f143563","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":66,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"c1a16d78-0ed8-44d8-8935-4d314c65d52a","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":66,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"fd5ba85b-10e1-43f8-b093-1148476034ac","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":66,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"e27b83ca-40b9-47dc-96d3-2a9721bbe25f","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":66,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"4e8f2827-02c2-412c-bdca-aa7613eb29fa","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":66,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"c1c63c05-ce8d-4f6f-98fe-a68b469bcd0c","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":66,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"b7fd2fe6-fa7b-4299-a29b-c7dd6168226e","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":66,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"0f6b0cbd-af68-407f-832f-4115b387c33a","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":66,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"25622106-685b-41ec-beaa-b3b6dc220214","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":66,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"ec173b13-0291-45b4-be14-0bcc57454a7a","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":66,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"2575e83c-fc19-466e-9863-0a5b6e70f439","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":66,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"90b0747b-c8ba-4694-9b69-b0227c612923","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":66,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"e509b864-05d6-4cbd-bbf1-f1510a4bfe73","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":66,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"7fee4599-5ad2-46f0-96d8-21d1a715488c","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":66,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"5d8f2ea0-bf35-41ee-b184-6fe206b46393","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":66,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"0afbb6f7-fd7d-4125-90c5-45a8556b1373","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":66,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"9be2bd1d-02a4-4cb9-af99-94400e4066b6","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":66,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"b6372443-9d09-4348-be3e-e415a53e8f18","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":66,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"2f411599-e539-4f0a-9c16-8b7c631379b8","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":66,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"67c80e24-2166-4d25-9f42-d5975c103560","block_type":"box","text":"II-24","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"745355e5-b604-479c-a963-990b0ab5235d","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b8625af7-e577-4a40-8ad6-40cbb4f44f4e","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":67,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"77551d2f-800c-47bd-aca5-73430d6a0ca7","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":67,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"c4499d1b-051e-4625-857a-e4be9830fc34","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":67,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"7d6926e7-911e-41f5-99b7-4e6e9c5d229d","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":67,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"0cd9036d-f75e-4e4a-aef9-fd8a6ae21c40","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":67,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"796f885f-65ea-490b-875d-e7323d8cb263","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":67,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"67c6878d-c39e-4539-90a9-72c9a1d9b507","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":67,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"10be712d-2a38-4f32-9e53-2f0ef428f09b","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":67,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"2da0573b-8ca2-4518-88f7-b602599b6125","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":67,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"44f038f3-449c-4b54-a10a-1e61a580ce5e","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":67,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"837d7871-198e-4c7e-af71-39b4d31a1e31","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":67,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"6a222dff-243b-46b4-a1ef-985f1a3657f8","block_type":"box","text":"traded.","page_number":67,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"17f44d8e-ea16-45cb-85c3-5d2ec91c9418","block_type":"box","text":"Currency Futures.","page_number":67,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"02acc195-d703-428b-b1b4-6ff2624cd41a","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":67,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"a6c8e6f8-237e-43d6-82b9-734b6bc2c278","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":67,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"212f77d7-feb3-419f-8852-172684d6be1d","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":67,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"19286549-3057-48fe-af58-629a928c81ce","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":67,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"c626cb80-148f-4304-b088-d3db2a761631","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":67,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"16e7a1f6-c9f3-4124-a1cb-63f488e723c4","block_type":"box","text":"Currency Options.","page_number":67,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"d12337cf-df02-4f8b-9930-baf8573e2320","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":67,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"7d9648f1-c39f-45f1-9421-0d66a7ba2997","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":67,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"26c47a05-4c38-4a2e-9366-ed9108bd2f69","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":67,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"b2d3c829-b9c1-41d1-a591-f670dd688699","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":67,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"a75624f8-c8f2-4dd9-84c1-813166d35c3b","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":67,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"5394b991-2f11-4070-83d2-612a7aa1d3d3","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":67,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"5d0d8465-bc82-428f-bf7d-b1df5c17d3a4","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":67,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"eff026b2-c902-4061-8168-f5d8b25dff00","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":67,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"791b922c-5a03-4136-9b43-7626f455f281","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":67,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"b2b4cf02-c99d-4d75-afe2-73c0312d888e","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":67,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"46b15dbe-6499-4e1e-ad5d-64c310ea92c7","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":67,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"12f87032-48e8-4274-8da9-c172e5351378","block_type":"box","text":"Currency Swaps.","page_number":67,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"5bb3b00f-23b8-4ecd-ba0b-304b2bee4cfd","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":67,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"262042b9-c49d-4efa-b8fb-b5d4231f04cd","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":67,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"d9df2cef-fa57-48ca-a61c-09ddb30b7e23","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":67,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"223d8ac2-3054-4b45-a787-b6aefeb466ad","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":67,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"f156a360-4e92-49dd-801a-9cff195b6c7f","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":67,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"140bb555-d6be-44dd-95ac-144926d958a2","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":67,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"673fe5c1-85e7-4f6d-8acf-c72294f566bc","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":67,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"600cdc07-1477-48dc-ba36-3243e1efd25c","block_type":"box","text":"Distressed Securities.","page_number":67,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"e5a68643-320a-4335-8574-f2f0af9718b2","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":67,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"a766f80d-2eb6-4d55-8af4-1dd6c51fa911","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":67,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"841beb3f-d403-4a1f-96cc-63d121e3f3e9","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":67,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"17ba18f9-9796-4a90-b8c7-6044c50a2827","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":67,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"d6f00edb-4ece-41b4-a2ea-b44a88d7b57d","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":67,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"7d2db761-ca36-4a5e-a0e9-dac6abab0848","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":67,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"fd932976-5e00-4c88-94ee-79cd591e2fc3","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":67,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"ad5848b7-fb2c-4137-a428-1007dad823ea","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":67,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"4983eb52-afe4-413c-8277-6a68e9934d31","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":67,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"7f26449f-ea72-4901-a3fb-040612c892fd","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":67,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"51f5e410-b017-4712-8b7e-5ccd9bb61ef3","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":67,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"9f356fbc-77e2-4650-8647-96534925d20a","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":67,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"ff363c63-0be3-4c24-af0c-9b999bc4adcd","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":67,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"190babed-04f4-4118-b0bc-e077ddeb6a6d","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":67,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"8671e4b7-0172-416a-bb24-df3e8890495f","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":67,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"6ade2864-7d1a-4b5e-9071-233ddd13e471","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":67,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"f0150eb7-af35-4dcf-a5cd-b5dfa4cbdbd8","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":67,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"2511a9ec-d37b-443c-a5ca-cd6e8512a080","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":67,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"24a3dadc-28cf-4231-a221-09a234b07274","block_type":"box","text":"satisfied (","page_number":67,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"f151eae5-0693-48a2-a847-3f24f523ba58","block_type":"box","text":"e.g.","page_number":67,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"9ae453e5-84bc-4fa7-bd3f-9a6d5353928f","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":67,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"925c0245-d09e-482d-9b5e-4adc7f7dac97","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":67,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"7bda7956-7e50-49a8-88b0-4a9121b12e62","block_type":"box","text":"II-25","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8bd35523-2d33-4b52-ba88-20370d4af9a4","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1901618e-53ae-4dfa-84e7-1e3d97049a3b","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":68,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"42b59984-2760-440a-9586-aeb3c204084c","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":68,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"35018f3c-c075-4871-856d-8d43a131f768","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":68,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"66eeba88-28ce-4659-8854-55fec2078c44","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":68,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"6549dfc6-2c7e-43d4-8e0f-3ef373ccc836","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":68,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"ab2cbb9f-07b9-4168-974d-ddbcd1bec2e0","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":68,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"49a81889-99e5-4b5f-a516-d8387673d651","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":68,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"7ba9f5e2-6eb0-488f-a1a3-442897d44302","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":68,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"d3746c8a-5078-48b7-beb5-f551bc14ded9","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":68,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"08c8078c-8f57-4bc6-9aab-a2002ff66c8e","block_type":"box","text":"affairs.","page_number":68,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"3dd50957-43c8-4aba-a844-9aa16031e1db","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":68,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"41a26281-05b4-45da-8ce6-74420cf9341d","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":68,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"74f33762-6032-4f89-a81c-4824c200c828","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":68,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"c247d890-cc18-438a-aaff-7a69ffbd9323","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":68,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"61ae6c78-f2cd-48a2-94de-2396964405c5","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":68,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"3936b9a6-3a68-48da-9f81-c4fe667de5e5","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":68,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"24f21991-a57d-4710-a271-bc7697a194b6","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":68,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"9ee324d3-edbc-4654-bfae-dcec863044f3","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":68,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"23fd9943-3894-4d2c-92f8-be40121c26e1","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":68,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"0a232b76-3972-4c4f-88f1-87bebb37db1b","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":68,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"37ceae59-d344-4463-b596-ac1ae8fb9ea7","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":68,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"5488ccb1-7563-4307-b006-28a7a1343fd2","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":68,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"ba0ce7c8-082e-4ea8-95ca-ed14cf4ed0ee","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":68,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"b0f895dd-a8c1-48a1-aebd-6eb2cb94ac66","block_type":"box","text":"Equity Securities.","page_number":68,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"21c98a9e-1cc7-488c-a3fa-37933af8a06a","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":68,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"978351cc-48a7-4a9a-89c0-b88ed712c1c9","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":68,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"ec8d9a38-a4f3-454a-a3e5-c44374d4c493","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":68,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"7d3fa806-3e5b-4ed3-a930-0c66c68e483d","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":68,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"82bce276-503b-4f7b-97a3-ee638289df16","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":68,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"adef72b5-12fc-4dfc-868a-3e050a90c358","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":68,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"c25ef357-6395-4447-b9f2-797e6f1d732d","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":68,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"a22b14f3-c8e5-4e24-b7ea-8a4b79918555","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":68,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"79d109bb-461b-4f06-bccc-faad6bebaa9a","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":68,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"a90e217d-aadc-476c-bdad-e9bc0800431e","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":68,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"aea92685-dc6a-4739-beb4-af8931e1a471","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":68,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"18367890-2d12-44ee-abba-8400faa3b577","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":68,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"f1348a9f-fa9c-4403-b1fe-857f16fc0560","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":68,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"1a196e13-9b58-4457-96c8-ef881c563522","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":68,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"7b9484f8-67fc-43ee-ac41-048a6b10873d","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":68,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"054fa0f2-cca4-4055-9a25-92060a9da9e9","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":68,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"7f8ecc01-aeb0-4aef-96dc-b59fcd781ee7","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":68,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"1886de16-5476-4de9-beeb-7b52b2b4d0e6","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":68,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"1f49d104-8a9b-447f-bfc0-bbcb1311dd7b","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":68,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"9716a17f-2617-4496-bda3-dfa215fdcd47","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":68,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"e942fe3d-8f9b-40eb-8dfd-2a840f9eb202","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":68,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"9f312c62-b1a2-4fbd-9235-1024bd7d7062","block_type":"box","text":"initial public offering.","page_number":68,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"93062b99-8dc8-4d48-8870-cc72067e974b","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":68,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"200e5366-b0ef-4b99-9889-44615e903880","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":68,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"f243bb72-cc53-4033-a553-3c7ad9328da2","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":68,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"f4825c49-d0df-4299-90da-195da4296d67","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":68,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"880888f0-e2bc-4599-ad80-928d01deb4b5","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":68,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"e09b1568-6f7f-47a0-a84f-ab82bc7cbab1","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":68,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"c3f00338-e851-471b-8d14-941d4fac5063","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":68,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"5a55c00b-7a16-4945-a943-1265b45f3d32","block_type":"box","text":"more established companies.","page_number":68,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"e04aa3c5-2b5d-4c94-b12c-46cbaf90766e","block_type":"box","text":"II-26","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"48f4e6bc-a501-4fc6-ab86-c50dc9114443","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c642c9a1-b712-469a-a11f-99e2b89b5f7e","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":69,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"0bcef1ba-be63-4ddf-b22a-81414d72bd5f","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":69,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"a90120b1-f3c0-438f-8744-1ad2c30fe75d","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":69,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"afd45b29-2848-45c4-bc6c-c78b90cdda6d","block_type":"box","text":"below.","page_number":69,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"5eb0dc59-013e-437b-a5f6-0eb96e01f946","block_type":"box","text":"Real Estate-Related Securities.","page_number":69,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"eca147a8-0ede-4995-b507-c1b630a4f7c2","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":69,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"216538a0-406f-4c9d-9d7b-36df36cf396e","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":69,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"94b17a70-f06a-4dda-b2ff-0cf475a32063","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":69,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"46b9bc8b-e662-49e7-ae79-3b35b76f19ab","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":69,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"b7d8c4fc-da4b-473b-87b9-93de79b9c0a4","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":69,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"cce6d62b-5b22-4898-b9d5-e72261552d44","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":69,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"23862d73-d9cf-4beb-898b-426678fbbd0e","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":69,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"a5d3fb8e-c269-4fe7-b02c-13d26b8ec047","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":69,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"a3ca97e5-57b1-479e-a215-094f603a8731","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":69,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"ad01bd60-eef3-47c3-8662-dfa0208d4508","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":69,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"fb874ae1-1e6b-4d27-8f55-bca1075ec3e7","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":69,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"e0b1c2b3-c192-43f8-bca5-881d5032415e","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":69,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"04aa9da0-6208-4f76-86b4-825aedfcbb97","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":69,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"020f5e90-0673-4d59-b152-0db2e0acd754","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":69,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"f089e048-b56f-42bb-9f91-d2e9d213c661","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":69,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"17203c21-4d7b-4ed7-ae7c-d2591bd0d3c7","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":69,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"769f8497-4b16-4997-860f-19acde1d7feb","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":69,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"69915e93-ef84-4700-ab92-5722327a9bd4","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":69,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"e4f04f03-364e-43bd-89c5-38e2dadcc8f5","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":69,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"4743bbae-82cf-498d-94e7-2abbbe50a51c","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":69,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"7b3c96f9-cbb2-4ba5-8e9f-6bf17d3c3ddd","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":69,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"804c546e-e8d4-4f99-ae86-72c4ab993bb7","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":69,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"17d78932-3eeb-4d6c-9814-cb9ec9773d3b","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":69,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"d9492b25-602c-4f02-a15b-748b04b3935b","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":69,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"6c07fea6-2404-484d-a9d7-7eb23d7b5293","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":69,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"fdaf56e9-5283-4b24-8dad-d098175a04d7","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":69,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"7d3a7837-3f8a-4469-a5c9-1a78593521a6","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":69,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"a78606ec-e41f-4792-ae88-8832c524dad6","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":69,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"be118bb1-44ce-48df-8394-dd92514c20b0","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":69,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"4657f3b7-0eee-4435-8251-4d3a6f51e066","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":69,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"a8f08dbc-f037-43fd-aa88-649bb441aa52","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":69,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"70c0ca7f-64cd-4a15-b128-256fa32d7c27","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":69,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"7abfd472-1be2-43e3-921b-f4b523579b4c","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":69,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"9eaa0208-49bc-42e6-8c36-5b71ba37fe55","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":69,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"570168e5-0987-473b-aa47-12670c272a27","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":69,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"501a3fa1-d3bd-45f5-ac1f-4675fc40f10a","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":69,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"c0bbdafa-61b1-4add-82e5-c5da916f3cdd","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":69,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"814a2ca9-be2c-4350-b144-0738d82db062","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":69,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"dbac44ab-d4ae-4545-bab7-60499ddae19a","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":69,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"dfed3310-6dff-47f6-aba2-3df02802196f","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":69,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"f639abb1-ed13-4ff7-a38c-599327658862","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":69,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"fc6a4ba3-17a3-4b78-9ca7-f0f5ab7d199e","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":69,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"8a7bf90b-70e1-46ff-8a08-da5f1fe00300","block_type":"box","text":"cycles.","page_number":69,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"71cb0698-62a3-43a2-a78e-74f62c3a77b4","block_type":"box","text":"Tracking Stocks","page_number":69,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"637e587e-af61-48fd-8216-96c2f60fc39b","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":69,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"1e306d25-349d-4679-861c-94f7328cb4b3","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":69,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"d4751ee6-4f27-45e8-ac14-e61754bf74a1","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":69,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"d64133f9-9434-4d21-a4bd-d61552aa81b7","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":69,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"6e1173bf-704b-4125-a817-7eacb0b5dce4","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":69,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"e580b25b-ccfa-40b2-b03e-c21e7069aa0a","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":69,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"7ce1dac5-a68d-4aa3-a34c-36d031972b80","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":69,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"77f56a6a-02cb-4af7-860a-21fd2e2c1ae0","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":69,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"cece2a66-f4a7-40a5-9c28-33be38b81e8a","block_type":"box","text":"II-27","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"403c5218-3ba9-4491-9cb3-d4a404b58db0","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"37fbbed5-97c6-4236-9cbe-b5ecaa2af502","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":70,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"8f9a5174-8038-4d3c-9cbc-7da3352a1246","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":70,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"823645af-fc2b-46d2-9455-b1c67fe93e14","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":70,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"5648a6af-bbbe-4a9a-bfb2-79d9b735e7ce","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":70,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"95ab179c-e7b2-47ea-a364-49ac28973cfd","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":70,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"b6115984-e407-403f-9732-46ced0854fd5","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":70,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"489ec814-f9fe-4450-a982-bec6501c2cfe","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":70,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"d451acb9-0189-473d-acd6-aba9cd1a60bd","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":70,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"30069319-eecc-48fe-ad7f-13604554e0a1","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":70,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"5794813d-c6f9-461c-af52-2800800c0989","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":70,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"b365beff-601e-4f1b-98bc-b81dcd30b328","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":70,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"45154d76-b6b7-4322-9290-9c2d1ac3f3cc","block_type":"box","text":"ETN.","page_number":70,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"a6199da0-2d0d-4110-a74b-206afe220dfd","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":70,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"cf3740bf-5652-464f-8106-4d3741cdb304","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":70,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"23ca1250-24e4-401d-afe8-971e1dfbbae2","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":70,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"32b72b53-59d8-4025-b828-e81244798e9a","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":70,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"c8014c76-9fd1-4b3c-94b7-9687a4d5221d","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":70,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"85bd0f4f-8820-4b05-8d7a-ce0483d3f505","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":70,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"b3f371b5-7e6f-4c31-99ee-a65e8fafefcc","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":70,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"e3f13b24-dd3c-4a3a-a1c7-0c219c682c35","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":70,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"2502ef07-6328-4fe6-b488-5dc45fde9bed","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":70,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"27f7996b-8897-4cc5-8a70-fb30d54f068c","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":70,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"90effbd2-ac34-4dd5-9250-21cdf1bc153d","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":70,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"7ae36727-2e04-4002-bb42-bc2f67e89a8d","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":70,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"42200b26-de18-439b-8c4b-d678dca1a687","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":70,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"87e958ca-6d10-4e6e-8f7c-13fe3cd780e9","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":70,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"da804e4e-a319-4a0d-bf48-bf8af91b2220","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":70,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"bc19b097-8e66-4bff-84bf-795d2b878c7a","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":70,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"b6dcce97-99d9-498c-b994-a3940b4b1e82","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":70,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"67a96109-7db5-48cc-97dd-cb9cc25e4fca","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":70,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"0aeb441c-e2ff-483b-a34a-9d2f225434b2","block_type":"box","text":"Foreign Investments.","page_number":70,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"27260881-f348-461a-99f9-eb5ce2bf667c","block_type":"box","text":"Foreign Investment Risks.","page_number":70,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"2652db89-cd8c-4fd9-9e50-8804f418c20f","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":70,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"6e4b0d53-629f-448b-9152-e89e2db1a92e","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":70,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"1b43e50e-3090-4b31-9dfa-6064faa83b9f","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":70,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"f3a5f6cb-269c-43f8-940e-7e09f30511bc","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":70,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"76f122b4-ef65-4004-ae2e-005305400958","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":70,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"dfe8158e-8525-4c64-bc24-f134e31ab159","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":70,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"472bce2a-4241-4b67-bb0e-d370468e6eb3","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":70,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"e01c38dc-a1a6-4127-be69-5dcd55dc6282","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":70,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"f71685d7-9dbf-472f-b9a9-0691bc0fcaf4","block_type":"box","text":"benchmark index.","page_number":70,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"377eb1f2-059a-443b-8220-83c4ec233d9a","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":70,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"307a0f9e-5bb8-4d3f-9ca6-6857f1838c77","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":70,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"b7e6186e-13e7-4c2b-a82e-619db9530760","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":70,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"79f9fedf-22bb-46b8-a1cd-24956536474c","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":70,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"92d99ed6-6501-4720-8bb4-d5b6076edc18","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":70,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"0c527134-a4c6-471c-98c8-412235a1176c","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":70,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"3008eb18-b84c-465e-a9cb-7242c748d02f","block_type":"box","text":"securities and zero-coupon securities.","page_number":70,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"12eece1a-a0d6-408a-88a8-3105c7cca784","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":70,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"37954298-8adf-4d6b-ba58-c9fb2e16e283","block_type":"box","text":"taxes.","page_number":70,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"1718b468-0a13-4c05-a578-2b7bf4fcaf05","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":70,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"548f9efa-d1b5-4a75-a34c-c8c0a6494c37","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":70,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"b4dfa79b-62ea-48be-8d0b-ca0186d36009","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":70,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"3de2569f-a147-4ae0-b7f9-3423ceb663c5","block_type":"box","text":"II-28","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"24530693-63cd-445e-a5d9-d2176a4fd192","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca4da89d-8391-435b-832f-4054fc5d25cf","block_type":"box","text":"underlying security (","page_number":71,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"1f5b9f92-1a05-47a0-b09b-23e03a230a45","block_type":"box","text":"i.e.","page_number":71,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"3228e409-c214-49c0-8d75-5d186a37cfd1","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":71,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"8707ce76-0750-4a89-8dce-c50efd0a5201","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":71,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"c95a4317-7266-4b9e-b2e5-597fa46c1b82","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":71,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"a30652c9-452d-4fb5-8f2d-edc7f22a1f8c","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":71,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"dfea2aec-001a-48ff-844d-e816e61f7901","block_type":"box","text":"Foreign Market Risk.","page_number":71,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"4435a66d-5054-4c2a-8450-f5d8f8c4ac27","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":71,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"e7be3206-a00b-4b9c-87f3-9d9c2d587782","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":71,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"a04f2507-41a3-49c8-9968-df8b53d02c79","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":71,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"4badd222-1da5-492b-856d-81bba34d3a08","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":71,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"4a566c6b-58e2-466d-9de6-51d5a08fdeac","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":71,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"56d98f31-5e79-4813-bc90-321a2ac24246","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":71,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"27aaf0af-0a40-4894-b791-5369a943f660","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":71,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"5d18548c-ab8a-4f6f-8599-7d0e956a3621","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":71,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"33eb9ecd-8817-4021-b499-ad0eca466a96","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":71,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"06347f6c-52f7-41ff-95c8-cb9e0dd01366","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":71,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"8c077305-3625-4d1b-bd68-df0265cb2b49","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":71,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"dadca60a-c4b7-4c8f-af24-322690f6eacf","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":71,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"17c0b586-d376-464c-89b2-8bc92bf91c96","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":71,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"69479257-bbc0-44fb-8f94-4d78049997c9","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":71,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"f7ccfe85-6990-4294-991b-29706c65fe9d","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":71,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"ecb8ea7d-c253-4b14-af40-c8a99b938eaa","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":71,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"efe07ef4-576d-41db-986a-6d2abbb12f13","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":71,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"39544428-5d2f-4168-b477-23c05cd7ced7","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":71,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"876be35e-9930-408e-90fb-14ee06838aa9","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":71,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"a9708217-80a8-41d9-9564-36b954bac0b5","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":71,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"db929fc8-bffe-4a3c-a278-dbad96f9070c","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":71,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"a263092f-f458-41b1-a416-f3129916941a","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":71,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"79f67191-105d-4384-91d4-d027c0450876","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":71,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"e4799aac-d4d6-4067-be29-4b8d3e90cce9","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":71,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"c0e51727-0336-45c5-b8dd-f66612bf2796","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":71,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"129d8658-04a8-4b0e-8e0d-ae0f7e830e99","block_type":"box","text":"Fund’s operations.","page_number":71,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"02a97fd2-895c-4b85-9e18-ae00baa41357","block_type":"box","text":"Foreign Economy Risk.","page_number":71,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"588e63c5-faf4-44c4-8ac2-e061e4937847","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":71,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"1982c1e5-a40b-4e9c-a6f5-fb7b9d714ac8","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":71,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"7ee56394-ccf4-47ec-807c-0288b2603c7f","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":71,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"307d3b27-f913-4f74-9a79-b2adcacf9f99","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":71,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"6deb7343-22e1-42e4-9f40-65cfcb88e236","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":71,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"4fc0cdd7-dbb7-4097-98b6-4982ac7a0700","block_type":"box","text":"measures.","page_number":71,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"ecfb8263-9af0-4c48-9f55-7f8fba7475bb","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":71,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"574add8e-c42e-40c6-a9ac-0f3d397a0dcf","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":71,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"aed53ef8-0dce-48d8-a14c-267532bdd914","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":71,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"45c26d6e-402d-44ac-bcce-b5427f56cc95","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":71,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"d7bfb81f-4ccf-4c5f-8147-471bf7ed1353","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":71,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"881ba4ac-be61-4af7-9c23-a739192950b6","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":71,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"9ac68529-9f40-4e7b-bfd4-f46112e6365e","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":71,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"712dd663-51db-48e7-9dce-032662f79a48","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":71,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"74312173-c623-4171-9bf5-6b21fb2853f4","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":71,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"aa2ed0ba-eef1-4d37-8da9-31ca83068b0c","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":71,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"a4dd7223-d285-4ae5-ad39-41e669a2fe1e","block_type":"box","text":"United States or abroad.","page_number":71,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"ca7cb41d-e379-48ac-b5d0-9112b8f0c9a0","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":71,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"d7d16277-1c0e-4430-9b66-cdb7c83f7e5f","block_type":"box","text":"Many foreign governments supervise and","page_number":71,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"54ae9863-6f17-494e-a741-bf5b05e7cdc8","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":71,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"919452b5-4a1e-49b5-b173-ac619bc93070","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":71,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"2df70e3e-108c-4458-8427-096a6b12abad","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":71,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"38b7fc97-3ac5-4ac6-b8ca-3a22aea7de1c","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":71,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"a6d74b47-334c-4549-b00c-42ce03ce43f8","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":71,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"b1d9d12c-b9ef-4c1c-acd6-94db7128675d","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":71,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"2c2fe9ee-b5f7-4844-8a19-5f8bf00d57db","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":71,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"8863da25-a453-469a-8eeb-70fb35c398f2","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":71,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"27c18a58-3777-4d65-8194-4ec2ac377dac","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":71,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"361528b3-2560-42aa-a2be-36347f125253","block_type":"box","text":"II-29","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"676b379c-9442-4cb6-9d06-95d6dd59ffce","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aa4162ec-3483-4b3b-ac38-844da42c477a","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":72,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"44a4fe1b-f563-48f0-8b32-b83faf78fc50","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":72,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"4f5b8b83-0854-4444-b946-a0af69e09621","block_type":"box","text":"investments.","page_number":72,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"fcddf22c-ed8b-4de4-a415-b630ab4d80f0","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":72,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"c938ff23-5192-4302-b440-a8e3867c3e02","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":72,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"189bd7d7-c39f-4b1d-81c8-3a3a6c4590f1","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":72,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"cb9802dc-8858-4b03-ab21-f2424ac6a48a","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":72,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"b27fb754-d8cf-4a8d-b074-9f54f576626f","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":72,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"fe21d0fe-f71a-44dc-b247-d219b55eb9df","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":72,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"8b271892-a82e-418c-b02e-dd7896d59a9c","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":72,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"561e8b54-9e52-4753-8097-58aae1db0eda","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":72,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"05729b86-9ac3-40c8-9fe9-f3626aacce34","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":72,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"91f66009-6b24-4680-a9c7-f0f895d4f469","block_type":"box","text":"States.","page_number":72,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"5bb8408c-cf19-48f1-966e-d222de828989","block_type":"box","text":"Publicly Available Information.","page_number":72,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"5d7c058a-ff8f-424f-8152-a4150fc5e961","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":72,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"479f9855-6f39-427d-aa4b-11f18c5b138a","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":72,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"68ac0b9c-6cbc-490c-a09e-9babeaa347b7","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":72,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"fd4c5150-055f-40a8-9f43-f58e2322a2ef","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":72,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"24a6fa53-e58b-42cb-9b77-bda6339736d3","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":72,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"2b70eeb2-ef7c-4c2b-aaca-4ad56dad1397","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":72,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"5626092e-e6ec-4243-9b88-6a369e3d11a6","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":72,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"62182704-1d58-4ed8-993a-e45559a163c6","block_type":"box","text":"United States.","page_number":72,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"38a7707e-86d5-4ddc-83ce-86c0d5fe783b","block_type":"box","text":"Settlement Risk.","page_number":72,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"4aae614e-78ae-4274-9538-86f39a12904b","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":72,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"2e2240f9-3aee-423e-8a65-fd3c88fe699d","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":72,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"a6828260-09c8-4aae-81b6-a17678923e5f","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":72,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"28d939fe-509d-4676-9c4d-aa49a9e400ff","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":72,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"66b48115-3b3d-4c27-bc4c-9831b570e3f2","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":72,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"d62ea4c8-095d-4031-92ff-aa1c2f6c674f","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":72,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"5ebafa0f-944e-44fe-87a7-06e095ae39c2","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":72,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"20704c5b-39cd-4b02-b246-e57f035a6430","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":72,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"950de3a2-265a-4375-b1b5-fc82af3bed9c","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":72,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"a13680b4-6f6b-450e-a309-5275672f07be","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":72,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"0249743d-0c18-4264-b5e8-3ee2fe8cbfbc","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":72,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"f9436e2f-4e10-4fb1-8a1a-dd08991d50af","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":72,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"fecdbdb1-4902-4ad9-a3a0-676acde15937","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":72,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"0aea56f8-fbdd-4d7a-8edb-305bc6b0e228","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":72,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"d2e1d3fd-956a-459e-9034-785af70d050b","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":72,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"e8983e0f-3dc9-4546-a0a6-3bcbfb68a6d2","block_type":"box","text":"Sovereign Debt.","page_number":72,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"20116074-dccd-4b37-8140-9c950a4cbbff","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":72,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"5893ccb7-809f-4326-806a-b7f2958f31cc","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":72,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"96396533-8f84-4f24-828f-df1f9d4a2ca3","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":72,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"3b990603-8a84-49fd-ab13-e87921ec00c9","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":72,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"f0913022-7c4b-4d1e-b770-08cab5167fa4","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":72,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"9ddaeec5-49db-4b3b-bbdc-e8e2273655ba","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":72,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"57224023-50d4-40a3-8a57-666e16a10d5e","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":72,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"968c7ae5-96b9-4050-8954-2bf1975f04bb","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":72,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"7f811139-f15b-46d1-a8d3-eecae225094f","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":72,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"c2698045-6496-4a32-9055-094e28451941","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":72,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"e26a867d-1402-4870-93ad-41865813ec2d","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":72,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"3f475bbc-eaeb-49dc-be3c-2cb2fa1db22c","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":72,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"93004557-c5ca-47e7-8b6b-32bcd2a7c435","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":72,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"c6793a31-bead-4d0e-b6ef-bb599985fc2d","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":72,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"44e390dc-ac4e-45e3-b15d-96a97fd05ea7","block_type":"box","text":"debt.","page_number":72,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"9e3e7b0c-2f9e-4fc5-a2e9-d040d559514c","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":72,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"5c7060b5-17a3-4cf9-852b-b69a301cd40e","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":72,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"8ebefdf8-eec7-486b-815e-9b9dad694f21","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":72,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"7dbd90f4-cb9c-4f01-aa8f-a2df7be30184","block_type":"box","text":"II-30","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d09804e6-68ec-43ff-88a1-243f7564bf50","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"57d0e733-a78f-42fe-988a-c5f4651f7b38","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":73,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"8ad4e918-caac-4768-b6b1-e9d47eeb8718","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":73,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"c5ae73f2-e11f-4bfd-82f2-633604db038c","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":73,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"e8b2e540-8531-4bb0-8d27-6184e9ba893b","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":73,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"29c86325-5d81-41ee-a961-2f8214c5f766","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":73,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"f623be2d-4bc1-4ce7-9ee4-01c395bde26d","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":73,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"e1c98fc8-8243-4903-9ac9-7e08d237b6f2","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":73,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"b0e71579-1659-4ccf-8da4-12a3d0289405","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":73,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"888a6fa8-5abd-4a01-b477-07a748cfdc4e","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":73,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"ea0cb648-9af3-4356-ab57-0ab8bbd32761","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":73,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"fc82e224-af13-418c-86de-60e0b8075063","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":73,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"94b7813f-1791-457a-b1e0-8f1a078f9372","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":73,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"05884ddf-c7bf-44db-9540-22f03bffc036","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":73,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"42e1d98e-ef0f-42fb-a91c-b2f29ccdfe2e","block_type":"box","text":"in the Fund’s net asset value.","page_number":73,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"48810b35-51d2-4b4e-9a9c-2b895ff78cd2","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":73,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"bc57ef59-6dfe-4913-a69b-545e643bb789","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":73,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"8d647ffc-b17e-43d7-bdbf-de51eb4ac464","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":73,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"42cd991a-d65d-4864-bf37-82171af70c98","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":73,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"05aa5629-5883-472e-920e-09e521d7faeb","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":73,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"530ca06f-ac2e-4a1d-bedc-1f22cdb68224","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":73,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"ee57b085-e3ea-4aeb-bf32-d5cca21be7ff","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":73,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"bcb207a1-faa2-4b7f-94e7-0aa3909671f3","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":73,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"2afdde10-ec0f-4f38-9a4e-1db0ef76cd8b","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":73,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"70960da9-63b4-4a4b-941f-0d2fd7cf4cd9","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":73,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"9efd3468-5ecb-44fd-80a2-1ee5e3c87900","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":73,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"d17867a4-4bc3-4fef-bcea-31edd3c3dc5e","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":73,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"3cdb53db-b782-49a0-a53c-ff8a18966f0e","block_type":"box","text":"United States for trade. 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If these","page_number":73,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"87529132-fc6f-4569-a907-a8b254f1fde0","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":73,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"cc7e17d8-b04a-4588-a2e2-af37b286b8a1","block_type":"box","text":"Fund may invest.","page_number":73,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"c4da5c2d-2d88-4efb-910b-4db4511d53dd","block_type":"box","text":"Funding Agreements.","page_number":73,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"92293d60-ac28-4424-b031-cd82f6686af8","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":73,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"b45c8a86-de52-4642-98fb-b9a4ca8ac027","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":73,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"dc204c02-86a7-440f-a778-7c41a8637f50","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":73,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"9c297d8b-fe74-499f-8803-de3294583216","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":73,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"fefee842-b902-4526-914a-864663d36e4c","block_type":"box","text":"not be less than a certain minimum rate. 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Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":73,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"b755433e-f934-4c96-9998-14111d0f127f","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":73,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"1fc2d7f0-c749-4b04-abd8-73c728632251","block_type":"box","text":"Illiquid Investments.","page_number":73,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"6f9a517f-f67e-4914-9883-f0c90bf89c39","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":73,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"d912a2e8-4572-4f2e-a790-2346ec5e2987","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":73,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"627d21d5-e05b-46ee-a416-745d995def34","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":73,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"534e71ab-3c1e-46c6-bdf1-4171f192deee","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":73,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"dab972e7-6a51-4956-bf69-4eec7a9fa0b5","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":73,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"ee4577b8-0830-4095-a3b8-c9217a94c4e4","block_type":"box","text":"no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for","page_number":73,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"72a85168-84f6-416a-8574-82f3742dbf27","block_type":"box","text":"as long as it is held by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":73,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"db8c697e-0da8-48eb-8233-9f7d00f3e4c4","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":73,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"9cfd671c-0a48-4f20-b088-c479fbcd9feb","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":73,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"d2db0361-b36c-44ca-b480-7ab5e6793936","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":73,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"81d3b1a2-35e7-4071-b233-3c6f1e540416","block_type":"box","text":"selling their shares, or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to","page_number":73,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"682afd62-2fa0-41d7-a1b2-ce3350afdf71","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger portion of the Fund’s holdings. If illiquid","page_number":73,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"1ea4b443-a23d-4f04-b67f-e1bd9599597c","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":73,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"1c705d5f-4946-4c61-b678-7b9a17170ad1","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":73,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"f58f4929-91ac-49e4-9b29-07cdab982fa8","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":73,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"9dd88496-98f8-43a6-88b6-f64e35971725","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":73,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"f7a5ce6d-fc6a-4591-8ee1-6aff77c1ae21","block_type":"box","text":"market opportunities. The risks associated with illiquidity will be particularly acute where a Fund’s operations require","page_number":73,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"c868fd3d-8489-4760-9a33-0d10a5ee3539","block_type":"box","text":"II-31","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fa9cfd21-5a8b-449c-9f52-b7d5231e1f56","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5da585b8-021a-46c2-9e62-7a854e351301","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":74,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"0657e209-c766-43b6-bca0-643c63742a3f","block_type":"box","text":"short-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":74,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"07659a28-063a-4328-b860-26c3a0b9b930","block_type":"box","text":"Index Funds.","page_number":74,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"7c57a7f9-70c9-4a2b-b8a6-06bd0b6cc5e3","block_type":"box","text":"Cash Flows; Expenses.","page_number":74,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"99e53f29-f1fd-4e8a-ba06-080779780391","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":74,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"91962eb4-7120-4504-8c85-2914b9a8274a","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":74,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"2b6fcdf3-6f47-4b92-8eb3-252376a0f345","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":74,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"6fcc5eb4-c0b2-4086-9842-6a534ff56ccc","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":74,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"359e02a7-af5d-47ee-9608-adf829576b58","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":74,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"5d22c9c9-c93b-4eb4-8bef-6f48c95b4e20","block_type":"box","text":"particular security as an investment.","page_number":74,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"98c42488-20cc-4e24-80f2-fa9f12fd9696","block_type":"box","text":"Tracking Error Risk","page_number":74,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"da0833fd-5f7f-416a-aa4c-4058801d6475","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":74,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"1560b1e4-212f-48ce-894a-2823f33504a6","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":74,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"ca57afb9-2bc8-42ba-a024-020737f6579c","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":74,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"34147c39-4185-42ea-8589-4098e52ef617","block_type":"box","text":"applicable, differences between a security’s price at the local market close and the Fund’s valuation of a security at","page_number":74,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"1050a0ce-08f7-410d-ab0f-527ddeba7920","block_type":"box","text":"the time of calculation of the Fund’s net asset value), differences in transaction costs incurred by the Fund, the","page_number":74,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"f73ce5d8-2b98-478c-a77f-d2ae00110b48","block_type":"box","text":"Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or other","page_number":74,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"a53f7c06-09a9-4853-acd0-df5462210481","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":74,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"2b6416cf-4e6e-4c43-b0c2-99892f1132b9","block_type":"box","text":"minimize the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the Fund of","page_number":74,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"253bde14-028c-49de-b521-42d4b829a76e","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":74,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"3b648f23-9658-4992-bb08-649791a40290","block_type":"box","text":"increased market volatility or other unusual market conditions. 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If it","page_number":74,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"edabe356-6be1-48f7-9166-3dda774e7711","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, alert the index provider as to the alleged issue. The","page_number":74,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"e8d7270f-3d52-4bfa-8201-e0751b70f99c","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":74,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"230d130b-6a01-4e20-96c2-bbd580586e90","block_type":"box","text":"the rebalancing of its index. If the securities continue to be included in the index, the Manager may underweight or","page_number":74,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"f68d84a7-e670-48ea-9ed4-0796fb357e1e","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":74,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"ff98203a-217a-4487-b3af-26f06d9ba5e7","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. 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BofA is","page_number":76,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"2f2d791f-2b7d-4981-b7dd-a990b9520ba8","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":76,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"cf565e67-2085-4134-9718-44121afbff22","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":76,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"03d11549-ce70-4729-83a6-92e5e9ea3841","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":76,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"bb1adbed-15f3-4478-ab33-3faa3f5150b1","block_type":"box","text":"completeness, or otherwise.","page_number":76,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"39e01105-c8ad-4aef-a92d-3f932224556f","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":76,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"745b0838-e2e4-4ba8-bc1e-349844a0b81e","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":76,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"819e3381-5259-4ada-9b74-1d469cf0d587","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":76,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"fb518ee8-1d87-4262-ba1a-2390103f8c37","block_type":"box","text":"Indexed and Inverse Securities.","page_number":76,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"5f9a2690-95df-40ef-950b-969a43e9da09","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":76,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"4d4e7814-a357-43b3-8266-1f8f6aa633d6","block_type":"box","text":"particular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":76,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"4a400109-485e-4104-abc3-97aac142ccf0","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of certain securities also may be based on the","page_number":76,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"8669de6d-02f4-4993-898e-6ff4a4773628","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":76,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"c0baaeac-ab7c-4687-9a8d-c335f92d31e2","block_type":"box","text":"be subject to risk with respect to the value of the particular index: that is, if the value of the index falls, the value of","page_number":76,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"9c87e525-1dd0-4b21-b34d-22fc6201d55a","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on certain securities may also be","page_number":76,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"799e8777-5e91-40c3-a148-2dfb233fbcfa","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":76,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"b682b952-4ae4-4064-8247-58a74c6a94f0","block_type":"box","text":"or “residual interest bonds” on which the interest rates vary inversely with a floating rate (which may be reset","page_number":76,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"02e06451-6199-4978-8910-8359f0218aba","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). A","page_number":76,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"18487c1a-9393-4552-a114-6a50b742c295","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":76,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"1e293fc7-8907-41d0-b1c7-c45974a4f372","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":76,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"05d97d21-61c0-4b03-8731-694da8196870","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":76,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"969f99d7-66d9-488e-b624-d8a8bb2bab0e","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":76,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"8f48fcc8-bc65-44af-ad56-e09e82aa44dc","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":76,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"8beda1a4-57ea-4172-9286-c2d2813d330d","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":76,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"3ac57439-b136-4345-aac9-367a8759a52b","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":76,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"7996d1d8-a962-49e8-8277-4e911b554eb1","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":76,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"ceb617c0-1862-48a4-8b5e-9621d85c2908","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":76,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"87be95a2-50ef-474e-82b7-73d57aa643ec","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":76,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"509748a8-e5b7-4098-b83b-b26022fc2749","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":76,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"8e07b93a-279a-4a67-92e7-a0e13c7f88cd","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":76,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"91d4139d-387e-48a2-b0fe-774fc7aa8b54","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":76,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"a540b5d6-4ec5-4775-b66f-514ff68cb9bd","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":76,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"6bb09673-2e74-4bb5-a0ac-b1a94540655a","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":76,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"60a440dc-07c7-4ebf-9efa-747103a16f58","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":76,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"e3df83fd-ea5f-43aa-a9ae-c7d7f4554486","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":76,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"2b798d80-1a7e-4c1b-b108-ae368ca9f965","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":76,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"4d288d0c-df3b-49d6-9b75-bcd2e2473ba1","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":76,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"e0ef2f97-5a97-4987-87d7-1e38e0621184","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":76,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"dc08b499-7061-4488-81e5-bb7e6aa33e3f","block_type":"box","text":"Inflation Risk.","page_number":76,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"e97ba590-0c9c-4c9b-a120-18afae060bda","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":76,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"eabe90ae-370f-44d5-aeb6-2986f4907f2e","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":76,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"eff0dc7f-b6c8-4266-bec5-474d12b5818a","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":76,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"eee001a8-dff9-4e2c-8968-24f0bbf87de9","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":76,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"56d832a3-f683-41ab-b7bd-cc3f7ce7ebc5","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":76,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"287292f4-5e75-4c5e-bf05-0ff209670ee6","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":76,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"ba537eb2-2829-4f7f-b46b-dc9dd161f55b","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":76,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"78d22333-888b-4012-b44b-306bf1706b0f","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":76,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"225c1165-e88b-488d-b4cf-f994785b230c","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":76,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"7bef2fd3-b184-499f-97be-76138f6dd5fc","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":76,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"7eb2cbd7-8b61-42cc-8393-7efd047c9d8f","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":76,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"bcc8d1b5-db88-4845-8913-3873b3164e7e","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":76,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"2d30dbe0-7b00-4b5e-9d1e-cc6ade3ea849","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":76,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"2267474a-a467-4fcb-914f-e90b96386ba5","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":76,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"7f767928-8216-4254-bd50-f422ded333e6","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":76,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"8cad9b9e-3e5c-4efd-9a44-2e957da78b8d","block_type":"box","text":"II-34","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"52dde9b8-1342-4a7e-b3ed-70c8bc51fdea","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aa0a53d1-e52d-41f3-bc23-ccae0dac7a18","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":77,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"a4e36af9-27bd-4508-892b-58ea2471ff91","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":77,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"24bbead6-459e-4649-b853-ccd8ae1d5852","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":77,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"7dcedb3a-d916-470b-a609-3a9e87584c62","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":77,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"ae766bce-822f-40ad-be5d-3ef4c53ad132","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":77,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"4bc8b869-946e-4891-8628-d65ca14f2dd0","block_type":"box","text":"be available for very limited periods.","page_number":77,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"b369fff6-7985-41c8-8b3c-5966c56a22d7","block_type":"box","text":"Investment in Emerging Markets.","page_number":77,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"9021fb38-5fda-4cf5-b49c-b297bca1e9a7","block_type":"box","text":"General.","page_number":77,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"d3cbb08d-ca99-4672-8fec-4e6c8e5c7a59","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":77,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"90b8004c-69bb-4d20-a808-b55fd866ce9c","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":77,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"fab2d9f9-bc2e-490f-8188-731080443069","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":77,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"e31e2b99-6f6a-4d95-a403-4b0150ec3391","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":77,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"380de893-c27d-40c6-8df9-9414457928dd","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":77,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"0580c1bf-507b-4b6f-bc8c-566f27498273","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":77,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"d2603103-97b7-4c7a-89fc-ab2df880b2ba","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":77,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"b9fe7566-0b2f-4d2d-91b8-b71bf76727fc","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":77,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"65062cfa-8ff8-408d-86a7-b125d55c1455","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":77,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"47269b1f-680c-40c8-a296-d87715845640","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":77,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"fdc7cdcf-9650-4e35-95ac-8aefeda25a18","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":77,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"5339e7f9-01ae-4aa8-a838-37f68a0d6c42","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":77,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"30826968-89db-4a31-ad0e-077c3f318480","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":77,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"aab0e137-af93-470e-8aa8-544c356d1e63","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":77,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"33a632a9-b8e8-42ff-9eb1-c792580edff5","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":77,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"ea4f5390-6274-4f21-a9e7-104e9ce52a95","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":77,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"fc143221-7031-49ca-b703-ca0045ede941","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":77,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"cd281e85-c570-44ab-bf38-ade032312e26","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":77,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"1b3d4a92-8526-495d-bc0a-980945f09a6d","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":77,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"bb1a9e6a-5a1e-4dc6-8b06-57202b2d8fc1","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":77,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"ebda2567-ca11-460d-9ab3-bf1de922b369","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":77,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"9e2db1a1-ed16-4800-9d9c-bf3580ed2a77","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":77,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"3f228166-7842-43da-af41-85b80d1d6591","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":77,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"b1f6c425-f76a-49bf-9084-005ef00b6ef7","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":77,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"0466d1f0-e31a-430b-a485-7ef08e1e824b","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":77,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"92b33b58-b940-4d6c-84b9-e464e4b66e6e","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":77,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"7bc8f0a5-ddeb-4c7d-b3d7-9d7adcedb835","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":77,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"b5021175-f3d0-41fa-a479-1fd844a58a7b","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":77,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"afbcc265-1edb-4c8c-94b2-c58ba0364109","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":77,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"516531c0-9dac-4f79-80ae-6991b707ea02","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":77,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"832551a0-49e0-4823-9afa-cd92c7e12aa4","block_type":"box","text":"volatile than investments in more established markets.","page_number":77,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"a5cbe878-d432-4549-b01d-fe0a023b365f","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":77,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"d555a455-55d5-4184-91b8-1aa1cd8508b0","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":77,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"4c6f5919-5b98-4d2c-99be-c837d681c1c3","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":77,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"f024d15f-d945-4f98-a353-e23dfd105d6f","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":77,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"3a2f84f8-8213-4deb-b334-55da4ac78845","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":77,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"06a93429-93e9-46f8-9b33-1528a5c3acd7","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":77,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"e12ae197-2d52-4050-98bd-040b25cac5be","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":77,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"829599a6-4460-46e8-896b-9d24f9cd61d1","block_type":"box","text":"acquisition or disposal of securities.","page_number":77,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"0d96efba-5eec-4677-8dde-6f42763543cf","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":77,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"3922333c-3df5-4301-a672-b1f0ed4175b6","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":77,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"ea0458d2-d5a8-4ed8-8583-09011f685ffc","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":77,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"a4831fd1-80fd-43f0-b76e-5272991abe3f","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":77,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"bb13a7d9-3b06-44ba-8eb3-6f62e25782b8","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":77,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"1dee103b-8c5c-44ab-90d9-e03604fabb26","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":77,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"15fe9097-0ca6-4727-b5cc-8ddbeac528a4","block_type":"box","text":"II-35","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"05b0e927-d064-4170-8122-fd398ea38622","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"457787c7-85f8-4816-ad24-da34fd713af9","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":78,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"f0b6eac7-44ca-4186-9fec-c4b76dce05c6","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":78,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"af9a325f-8674-4462-b288-52b27fd06320","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":78,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"34427679-41e8-4724-8685-2f3cfb9cb3fa","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":78,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"9983b45a-c865-4a91-b679-719f51fd085f","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":78,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"10205a4e-b0ba-40f6-8424-2c9e80cdddde","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":78,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"70982c22-a6a4-47d0-b006-1abd1244c551","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":78,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"a0aa152a-bcaa-4800-a6e1-a0cd562c9d45","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":78,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"b41c1aaa-4a91-427e-9be1-4ef913a26cbf","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":78,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"e1e204d9-df69-4445-a687-78f8944f98df","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":78,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"c8f1314a-7c5d-43f3-9b31-48857f97ca19","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":78,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"a63aa690-c033-4071-9764-76dc0c480512","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":78,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"ef5a7fe9-7233-4df7-8fc3-ec3fb2c4c0e2","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":78,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"8e51cb06-21f6-4d4e-951e-8a493f666725","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":78,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"17dcf9f0-0ebd-4737-8996-ad7e2f78e284","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":78,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"28a5c432-d170-41a7-a5cb-467b9dc07b0c","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":78,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"43b8b28a-b929-4e5f-bf3d-407e509ce408","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":78,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"ad02aa4d-aa45-46b2-bd88-64a3874e7f93","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":78,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"179a883c-d2c4-4493-9980-01b3e74a61c8","block_type":"box","text":"performance of the Fund.","page_number":78,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"5186fd0a-6d49-4c30-82d8-3b827c18f5a9","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":78,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"4b8f4ce2-5925-4c8b-8600-badcb04019ee","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":78,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"1a465fff-ef6e-4a83-9c02-3fa675b8f2e7","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":78,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"98173a56-c9d8-4ec1-9cc3-ffb0f0b1831e","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":78,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"840c83ca-9177-4911-8521-3434dc5a1f30","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":78,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"fe8a5096-99c4-4581-aa79-8f7d8fd72b78","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":78,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"95b05115-3b91-46f5-97a3-3f6d61d5de52","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":78,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"8842c1e8-9cef-4409-a9c9-14c1780c25ca","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":78,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"22d6e762-3e02-44d1-b9f3-0e84fc27ead1","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":78,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"bf9a7f87-3118-4eea-bfe2-69ad44944c57","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":78,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"e46925ae-c4c2-463d-b968-a6d33ae2448b","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":78,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"fc782535-9a8c-44be-b627-1c785c8cf017","block_type":"box","text":"affected by a variety of factors.","page_number":78,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"3fd6d5fb-45ca-4ca8-949f-1b568bb7bc0c","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":78,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"a2752574-6acc-4371-beb1-22fea29de362","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":78,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"6a53f2de-0eb6-4fd2-9a87-d988dcae8121","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":78,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"465ad259-5252-49fd-bd21-06f0130c6e60","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":78,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"e7489be9-ef5b-4b3b-8eae-5da8267d6f3f","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":78,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"fdefa2ba-05d7-496a-9d21-ce8d44547b63","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":78,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"138cdc1f-700a-48cd-ad21-b1182782cda0","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":78,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"b2d10fbc-5faa-440e-9edf-a53fba4623eb","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":78,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"cca6c02b-73d7-44d6-b1fc-5081e6f0c87a","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":78,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"6b1904e2-6e7b-4948-ab84-4aed0e064884","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":78,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"5ad2cd9e-2c66-40c3-a045-480084f4d96b","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":78,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"a9e310fb-5209-4167-aa98-f3ac7c838ce3","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":78,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"5bc64f70-7978-4f22-b5c7-d284fc5dd3d5","block_type":"box","text":"nations.","page_number":78,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"87968cfa-50aa-47dc-b067-b6347208b461","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":78,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"083cd77d-7d7c-4ee4-a1b7-f50f49f79e41","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":78,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"ce3d7241-6c08-43c1-a81b-20ea28894985","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":78,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"039849d4-e102-45c3-aade-b546b934af57","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":78,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"72d77a4d-805b-49f6-9fdb-aa8f787dee0c","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":78,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"f2792457-2c17-4f07-b9eb-be0a07b87588","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":78,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"936033f3-79f2-4d16-9a7e-37749dc02d49","block_type":"box","text":"market Asia-Pacific companies.","page_number":78,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"806ffcc1-f74b-4c54-8175-f12f4d19d2a5","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":78,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"05700032-7b8c-4e24-b5d5-8e10421e95ef","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":78,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"e53a64c2-5d5b-43fc-ae10-998662e53d28","block_type":"box","text":"services for such securities outside such countries.","page_number":78,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"76bc8d21-4c22-4be4-aad9-9d4cf3ed36c5","block_type":"box","text":"II-36","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ca6ab5d4-765f-411e-b37e-4c7191bd38eb","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8ae52bfa-e6b6-48b7-9f77-8575358fb4c3","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":79,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"91112b55-ae45-41d7-a790-56a78d183318","block_type":"box","text":"to commercial banks and foreign governments.","page_number":79,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"dd62c588-8afb-440c-a59a-e9fca4f6e352","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":79,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"95285b82-ea7a-4a1c-90b0-7b3675e2e7d7","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":79,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"4464f260-8997-477d-afb2-fd01f466b97c","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":79,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"da005e58-6f45-4eb8-871e-2bf96366c042","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":79,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"7b2f9384-dbef-4746-84f5-179771c3c599","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":79,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"22dd85c7-2d9e-4719-ac9d-4cf281390152","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":79,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"066a332d-4746-4b6d-a343-15b9e2634f3f","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":79,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"fa89aab5-e069-4e30-915c-9df0266c8af8","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":79,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"ed356726-4b7c-4f66-9ed7-aece144da943","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":79,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"a7c465d1-85b3-492a-9e88-de0d8023f183","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":79,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"4da1c1d7-d9c1-419a-8603-38370e24c5ac","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":79,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"439b1ff6-d5ac-4c3f-ae6a-0337d3803ac4","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":79,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"bf7f7d1e-aaad-4d24-9ffe-566f329fc229","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":79,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"b7b6eb76-825c-4773-af64-a5cd1aea3197","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":79,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"b37a6bce-fbd7-4363-bbb4-59886c1589f0","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":79,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"d6820ded-d783-406a-ac78-9c75efe29383","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":79,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"9ebc1d97-4f87-4b9c-9671-1175cb0edeee","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":79,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"1cfd3538-f429-4782-a08d-2b31707172b4","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":79,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"a8e7f28e-b46b-468a-b63e-3963837a1da1","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":79,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"fad3356c-a837-4d30-acf7-0105958f2470","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":79,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"d3bbbc67-695b-45af-93bf-efa6b1d3522c","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":79,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"9c27a2d5-cfa2-47fd-a0ce-d12118b5406c","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":79,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"79852247-855a-4983-8eb0-843b282ec147","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":79,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"d42f5b2f-0f46-4b77-8015-616a337bcebd","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":79,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"4646ebe8-f5c8-4fdc-8e01-40dccfed60d4","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":79,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"c6e7501a-b00c-43e4-85ed-7004b0c9b561","block_type":"box","text":"investment at that time.","page_number":79,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"30c9c118-c5a6-4752-8ede-1d23e936fa17","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":79,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"2c10157d-0603-4031-85cc-0e4457821a87","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":79,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"27e173a9-23ee-41a8-98c1-dd694af46fb5","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":79,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"9dac2043-a9f7-4156-9d98-bbc220f1f019","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":79,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"4e3f60e1-9e3a-41af-9c39-c248514f92f6","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":79,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"688134ca-58f6-4e26-886c-4e00e5753006","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":79,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"6be80d8c-9adf-41cc-a942-3fb3cf5630ff","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":79,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"abb71db9-42db-491b-ae74-c903b566f10e","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":79,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"83773464-53fa-4192-b770-f646552761b7","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":79,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"6e6dc94c-2fc4-4245-a449-486da5041ba1","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":79,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"ac23af44-cea3-4145-a760-231feaf5aca8","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":79,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"a21e55ea-9545-483b-ac85-9339514b5d39","block_type":"box","text":"government).","page_number":79,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"004610a1-3521-40d2-b9bf-adc0c30b07cb","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":79,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"046d22bd-366d-444c-8731-0bfb2c240c2c","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":79,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"9828c337-882f-4d02-872a-58e3bbbb6e46","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":79,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"fe2aaf5d-c998-4291-a09c-1f097e0e6c4b","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":79,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"da4ca536-d529-4430-9a55-0e868b116d10","block_type":"box","text":"foreign banks and other financial institutions.","page_number":79,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"9e3a5337-d966-4c7d-8064-3561ce7a177b","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":79,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"fe68cf03-0406-4255-9354-f53dbaaba10a","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":79,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"41a5bb9c-535a-4442-9b2b-7631bf545299","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":79,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"a8904022-971a-4611-9aa1-46b33e2aba97","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":79,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"8d3384bd-2ebb-4ce7-856f-5259dfd79fde","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":79,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"cc930a7e-0cb8-42b1-9b4f-aadc3976be32","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":79,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"1a445237-6740-445f-a2df-4901ca3a73b5","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":79,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"9ec16711-5425-4a54-b221-10ab016cb586","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":79,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"3b9ca45c-b662-4283-8194-0147fd354804","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":79,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"679af937-7f67-4733-bef9-6e889e9b44c8","block_type":"box","text":"II-37","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"952cca22-bc2e-4e90-ba81-cdb07791798e","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fd2da549-c4b4-4725-8a84-fcda9cba7154","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":80,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"bb452620-2073-4993-bdc6-235c5ff01c74","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":80,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"ff8862ef-d0cc-4625-b347-b20b6cfad82d","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":80,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"64f9c4f4-0fa9-4cbb-add3-4c1be484e981","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":80,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"2e1c316a-49e9-4608-9b3b-31e171bbebef","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":80,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"1539a5aa-03e9-4c56-90d0-156b907b60bf","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":80,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"a5d33a7a-2222-48c9-9460-4d72d6fc8525","block_type":"box","text":"foreign securities.","page_number":80,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"0551cf5b-54ae-4ac7-9ee5-f31e097d7153","block_type":"box","text":"Risks of Investments in Russia.","page_number":80,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"38d5fbd2-08ed-4006-9181-5922ee42e085","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":80,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"25a19d1a-a4f3-4a1b-b556-72cd2d7a2e7f","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":80,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"879eb7d8-10f8-4c1f-ab1a-c836999fcf85","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":80,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"e9b35a58-6d06-4ded-be0d-bd61da35eb88","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":80,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"f6c8a691-fed7-4b8c-b9f5-05a33a58fcb3","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":80,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"03ea3af7-7163-4191-85f5-00f68b5907d0","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":80,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"bac0b14a-5c5e-43d4-ab75-d1880bad185b","block_type":"box","text":"developed markets.","page_number":80,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"c71a2ebf-b97e-4be8-8013-88ea6c92848f","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":80,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"830a45f0-9c14-42a2-a9f8-817ac84cf506","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":80,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"1215f33a-8579-45d7-9f53-7576f3ccedae","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":80,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"a9141a67-610e-46cf-9969-f47c56c48821","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":80,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"9f67adb5-cc98-41cc-b1a0-cd43261fc863","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":80,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"31937047-c5dc-4d32-bfb0-d0b1af825407","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":80,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"b2487501-4782-4df4-85de-53675a8e31f2","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":80,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"685d855c-b86b-4841-92d5-b9c3c4b3dc54","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":80,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"7888120a-f1b3-41ad-9e41-76dba638ef0c","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":80,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"fed2a6a9-6cb8-44b8-a4f9-48e14f08dcf9","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":80,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"e04e5da3-c5c6-41c4-ada1-12fbb6836d37","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":80,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"e7a83ee4-db10-4f4a-af18-f8aadb77aa36","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":80,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"14e54d2f-d03c-4db5-a79a-099185ea7d49","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":80,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"5ce20f58-459f-4c1d-8d87-047239e8655b","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":80,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"55ac7ef0-9d6d-4607-a88b-2feaa81248d0","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":80,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"9ba0b687-c35d-499f-9ec1-90c9821520c0","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":80,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"e79e632b-19e0-4fca-b7fc-d940c53938be","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":80,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"c4056b78-50f6-4b3b-8da1-8f7ac66dc17a","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":80,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"726a7dc3-0be3-4bc4-9f60-cdcf4b6ea12b","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":80,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"eaf3fa3a-3ee2-4803-993e-b30836326168","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":80,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"11c13f0c-c7f0-491c-95a6-d705be240014","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":80,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"0fa5500a-bc96-46f2-bffb-af32ab1eee56","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":80,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"4f181324-6318-4b0f-b48d-545a75e49059","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":80,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"2f60d1e3-ae75-4757-bfe4-c6fcf8f039b3","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":80,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"dc536f63-7019-452f-b4c2-d792c55caf5f","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":80,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"102db13c-3971-4358-a639-822616cfced5","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":80,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"283aa810-c075-4da8-a58b-6790f04ce249","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":80,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"cd6b5c08-2442-402e-ba70-4e6f818bade7","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":80,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"5f606e3a-99e9-4bd6-8366-5f9c12ee5276","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":80,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"367692e3-afc8-45ad-a0a9-273ac70b3a71","block_type":"box","text":"sectors globally.","page_number":80,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"6f096e89-cabe-400b-bc4a-905afb422e53","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":80,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"edd969f6-77e1-4bd6-84d3-a4bbaaaf6a5b","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":80,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"deb0a35d-7171-4acb-9073-afd4de1dd517","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":80,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"278d414c-4d0f-44df-9224-c298c47e48be","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":80,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"b320bcde-d4c3-4870-b7b6-ea7d7abb0322","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":80,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"dd019063-268e-476a-9cbd-3031f50da85e","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":80,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"197298bc-1436-4421-8c8d-e40d49ce85a1","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":80,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"d505c825-6938-4325-93e0-d6a4e7c506f0","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":80,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"79f7a826-669b-4939-a39f-f7f0f6a97fad","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":80,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"414eb6d8-b903-4564-bb26-d21d4f720afe","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":80,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"bd310c4f-c57d-445b-8cda-2ca475397063","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":80,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"f193c867-26e5-4d76-a536-6b4699994e19","block_type":"box","text":"II-38","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"69ad3564-ff47-48e8-a4f3-f314436742ed","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"78894156-23e7-4d87-b376-e10efadb1d5e","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":81,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"f1b44ea3-e29e-4370-9fbf-331c5cca03c7","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":81,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"84923061-7afb-4a51-ae5b-f4f820ab1695","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":81,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"ecb5e711-4319-40b8-ab31-47bb8d669fa1","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":81,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"f840982c-e8cd-449f-a9fc-454acd5a91a0","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":81,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"7bb70194-c4f8-4bf6-8e9a-f056b7e1fccd","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":81,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"ab5c03f2-a197-487a-9e7e-dcdd476ed111","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":81,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"f695ee3e-2f4e-48a9-81b4-8ef8c585cb9c","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":81,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"755bc9a3-c69f-4959-83be-03fb39e2b635","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":81,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"cb5fe00b-99b1-4b14-a4b6-41a6ef3316ed","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":81,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"40263201-da38-4051-ad9c-eb8a5d3349fb","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":81,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"68c9733e-9f6d-4dcf-9480-81fbac2137b9","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":81,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"8302e3d0-5424-4020-9c15-b2ac5e3b9a00","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":81,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"3851f1d3-d7c4-4345-bfdf-de790104e010","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":81,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"2547099d-5d79-42ee-8781-1d1b95b5e9df","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":81,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"2d2c100e-de1b-4c26-869e-02c0328c6f74","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":81,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"eca6bc24-c0b7-449d-b2b9-2163244c3122","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":81,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"08658c43-5701-4d05-aff1-421937e71768","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":81,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"d36ea4f7-f2df-4554-bd26-af5e99a7d0db","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":81,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"023460e6-71cf-4773-919d-07c23bffdd62","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":81,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"3a61cbf7-14a6-4c23-9a06-5a91ec546ae0","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":81,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"192d8d15-1254-490a-a90f-75b98188c2bc","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":81,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"844c3913-40e7-453d-8f68-8dab2a4a511a","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":81,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"3a7b3bb3-f07d-44a5-8d0f-3ff78f5a90ee","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":81,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"1bc3ed98-1091-4de9-ba00-1f2aceed9455","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":81,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"16daca10-fc09-443e-971a-df9d6cf6dbcc","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":81,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"14a8fda7-772c-4f2d-82f0-fd36f3e6e0c5","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":81,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"a2db18c4-9323-43bc-bb70-4a0dc84de2d9","block_type":"box","text":"impacted.","page_number":81,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"31ee0287-c3f5-4e5a-84d5-042ffade9605","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":81,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"2ee8ba52-66b4-4286-888d-ac29a50b98ab","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":81,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"222162f9-5fdd-404e-b214-34fa55e52eaa","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":81,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"8952b2a5-9db2-4df2-a62f-9689f7542475","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":81,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"98d6ec3f-8f61-46de-abcf-e3194c7ce7c0","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":81,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"d6b6f086-b215-4e99-a8db-f1f5d90aa1a7","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":81,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"3f288835-8e38-476d-997a-2d77b1b0a83e","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":81,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"7303b684-f9ac-459b-85ec-8244ad0d8dcb","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":81,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"5894afd3-b211-4b09-8646-071c11220137","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":81,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"566a8165-d2a5-4083-b458-81771b54f98b","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":81,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"a15af22b-664f-4690-8925-10c6b8576472","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":81,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"264eff1c-bc6d-45aa-ba75-2b01370b5ba2","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":81,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"0a7e464c-0d41-46f9-99f7-1b19d27424c8","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":81,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"03a98d2f-9eda-4172-85d0-c55f8a68db14","block_type":"box","text":"economy.","page_number":81,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"dee74ad8-c09d-4fbd-b559-b3b382b55c4b","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":81,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"1063b272-9e7e-43e8-b536-0c5e05808aa8","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":81,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"db595bb5-aed4-40c4-a571-7070cfd34521","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":81,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"fa61d678-2c7f-4dde-9938-b2e19a307404","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":81,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"baa12841-3bb0-4c3d-a518-aa554e7a5e40","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":81,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"33f61976-490c-473f-99c3-4e0869250618","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":81,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"42218c80-b56b-4f83-ab74-41a158969987","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":81,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"498f2506-06f9-4979-a28b-36d3fd471b83","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":81,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"b6c7d6a5-0f9c-4292-be98-2bb85ffae4f3","block_type":"box","text":"typically the case for investment managers.","page_number":81,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"6ef2e4d3-94a5-49ae-a7b5-c9039172c392","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":81,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"d718c1e0-3f57-4da3-a821-c3e4780982c9","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":81,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"42c552f9-357a-4260-8c2b-c0f48068dff1","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":81,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"e2541944-c570-4c8c-9518-f9d0af25081e","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":81,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"cc8c9e16-3c94-4e63-a490-e36986185c01","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":81,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"457343f2-1611-4d37-980d-417c9827166d","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":81,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"b2626eb2-692e-45b7-9f8a-b15015d71440","block_type":"box","text":"II-39","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7bba1c52-a1e5-4f9b-8aef-7a2eca1eb3ee","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b0c1c094-b110-4422-a5d0-98374e0e627a","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":82,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"4da91b1b-d711-44b2-87a3-208f50d2c3d4","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":82,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"a769168a-b9d3-42e8-b529-6b5d492b14c4","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":82,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"995e5cf2-9c46-4fc1-b02d-6a21f4fe633a","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":82,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"f9ea0789-387f-47b1-b5fc-29e813122a90","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":82,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"5be73d16-2a5f-4122-9b09-79d24667bf15","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":82,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"decb7575-ab6a-438e-a923-7cef09a4e550","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":82,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"b0faf947-82ea-4c91-b9f7-7e476a305efb","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":82,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"74371dfb-c70d-438b-8c96-f59ebb7dc37a","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":82,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"f9a5b3e0-32d8-4a56-a830-e8653b87ab06","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":82,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"e3132abe-e64b-4289-bda6-6079a08cc767","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":82,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"c2947f0d-6468-4d26-a428-648d0827b090","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":82,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"ce392e98-3396-4ddd-91c5-e123a101096c","block_type":"box","text":"will be indirectly subject to those risks.","page_number":82,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"b455940a-7010-4840-9590-7344d6e45074","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":82,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"12c8adee-2f72-4b01-9663-69f767ebfc73","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":82,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"89b9a27c-f18e-48c9-a594-b8ebeccd63d3","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":82,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"0720f636-2428-40b9-aec6-fea7ff0fcb51","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":82,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"d0a4a91d-5806-4134-b4b6-bc61aa96847f","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":82,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"a7020114-9972-4c35-bb4f-7deebc486933","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":82,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"28a65d66-4e59-4326-82b7-d60f6756647d","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":82,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"1af2d2ef-077f-42a1-a5a2-00d7f95101cb","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":82,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"ff23b055-1d5c-492f-9795-55394139bb92","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":82,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"b4318908-4af3-43df-ace9-0c636326505a","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":82,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"992a8110-cbd0-4a72-90f4-ee3ed315ac3f","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":82,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"ebe5162a-88fa-4502-ba66-cca74b29cf35","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":82,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"757ea7c3-af79-4ab6-91e5-9ee0378db405","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":82,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"1eb67241-c382-4582-952e-b601c94f1fcd","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":82,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"2078ae70-1294-46fd-ad09-32d9eb61f808","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":82,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"557aa836-2346-4c4e-8786-60f1050db5f8","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":82,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"cedf781e-625f-41eb-b425-8a9d6eb8145e","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":82,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"4bbd93c5-12b1-49c6-b831-bf3b934f7d9f","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":82,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"a9efd022-d28f-43c9-b63a-8485f951bdbe","block_type":"box","text":"impact on a Fund’s investments.","page_number":82,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"cdd76fb3-56b3-4cfc-928a-abb4d5e0c2d5","block_type":"box","text":"Brady Bonds.","page_number":82,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"6a5381e8-c6c7-42ff-af0b-324da80b366e","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":82,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"d8c036a2-9628-42bd-8f26-3934a8c08492","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":82,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"8a764617-f4e4-48ba-9339-fa9659fb9a7b","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":82,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"c989f7ed-5aab-4cc2-a955-68048fd63905","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":82,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"330fac56-c41b-49d3-a60f-c0c6b1e46816","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":82,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"2bb90a44-ca5c-41c5-8bb7-0ad3be2d3501","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":82,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"0b84e85c-8393-4b92-9af1-3d8b6206b9bb","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":82,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"cc6a5f46-279d-4c0d-ac74-a6b99e0b0ba4","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":82,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"8f6d43c0-7ad0-4521-ad58-eac56a5bfcb7","block_type":"box","text":"Venezuela.","page_number":82,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"662c0510-3af9-4772-a6ad-f306419fb211","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":82,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"5d09eb95-8337-4678-bb7d-98dde931e15b","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":82,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"25721c4d-ab20-438b-ae6e-d13e855f1611","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":82,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"9ba9ec5d-98bb-4e6a-bf4c-81f34912923d","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":82,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"e8aad680-1ccd-48db-82bb-c9131d6837e3","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":82,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"ecb25441-1cfe-4e27-8e1a-d8a6b6b5de99","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":82,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"1f2ce5c3-3a35-4aab-b238-1e51d4903eed","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":82,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"7d699c09-3821-4210-87ba-147f60e41485","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":82,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"8567e922-6d94-4cd3-a2ff-568557e28884","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":82,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"2f94a983-8dbe-4870-a459-7893ea4e3ce7","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":82,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"832244bc-8bc9-4b41-a002-2651c280e77d","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":82,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"2353e7c4-6877-49f4-8348-19bf63435289","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":82,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"f482d9bc-12c3-410c-b55c-473d90b27fc6","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":82,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"31dcec06-d3d3-4d9e-aa93-7d414cbc71dd","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":82,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"4491890a-3347-4b18-8d67-d4d4cdc57f5c","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":82,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"93cd4d08-5325-45cc-ac87-698860683536","block_type":"box","text":"II-40","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9a1c07b6-12d4-40bf-833b-0940ca457520","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1d924689-a791-424f-9b0f-13b0a59977b2","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":83,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"687a03c1-c952-406b-9b50-5ca0f41ba102","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":83,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"82754203-110d-4b12-ab31-dddad6237981","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":83,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"c33440f4-3651-4a7f-877c-53a5c2c4bfb8","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":83,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"fc6aa44b-f200-4f0f-ac88-0defd8122695","block_type":"box","text":"China Investments Risk.","page_number":83,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"5d35ee65-50a3-4601-8880-4e3cced1fc73","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":83,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"9228567d-1cd1-4f04-b091-3af9609f323b","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":83,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"a460c1cd-c8e2-48ec-b9c9-e87059a3db33","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":83,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"917b17f1-efe7-467a-9bf6-62e25206404b","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":83,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"e785582b-1545-4eec-b986-8f0061ca1c83","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":83,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"8da24245-8b38-4b1b-b014-19c9070e50c5","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":83,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"3b986351-b42a-4e33-91ea-4ffa85e7671f","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":83,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"33578be4-cf8e-4159-beea-f17923d566a7","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":83,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"bedceaac-7819-43ce-921c-1243351814b2","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":83,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"d3353079-fd6f-40e5-a8c5-b40d47f4cadc","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":83,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"3dd7dbdb-378c-47a6-a5d6-89c441a6545c","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":83,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"307d77fd-3354-4f6b-bd43-50b918552457","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":83,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"56df7ca5-ede3-4301-8e4e-ceb57fb6be2b","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":83,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"764dfa35-30a6-4656-afbf-b070b6ea5761","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":83,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"290d444b-925d-4acf-890f-ec7f4e2ad059","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":83,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"de0606c8-f92e-476e-8726-aa3530b4aff5","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":83,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"7c0326d9-48be-42ed-8318-59fa65d8c17c","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":83,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"1516aa62-d177-4da5-b8cf-d4bd8876657d","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":83,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"72383a0a-b8fe-4bec-bc48-12e63da61364","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":83,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"e1718998-275f-404d-a8a8-ba111e357335","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":83,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"adc193dd-383c-445d-a322-7931cc766570","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":83,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"8f8ff33a-4aae-4666-b2ca-a489a7a797e2","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":83,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"db50380b-9033-402d-b292-54e126c12f23","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":83,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"edb7e5c1-28a1-4c20-b355-5bbea73c7009","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":83,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"9410f749-8192-4dd6-a50a-11a4bb98a70d","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":83,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"44229ece-252b-4c47-bc75-b9059d551c19","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":83,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"c25b0302-a599-4bef-bbd8-a5e5b53530f2","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":83,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"1f01eb67-0a8f-4b50-b270-736eb8d9079d","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":83,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"2848cc95-68e2-4937-96cf-57cb87697903","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":83,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"5f1e22a0-a7cd-4936-9f7d-82609812d1f9","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":83,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"96732ceb-3068-4b89-97dd-42680085616d","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":83,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"b571645c-e7d2-45dc-8180-803602d97b88","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":83,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"a42e5319-7c54-45f1-b1fe-955d3cbdf2d0","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":83,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"7f8f1ec1-de3a-4335-9bcf-6b6fc963bfc2","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":83,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"1b4cdf0d-ec6a-4a15-97cb-a00f12f1ce28","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":83,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"e5b006f2-9923-4834-b96f-756582126d62","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":83,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"d3e9cd2a-13f5-4752-83d0-50df6074ee9d","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":83,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"afb5a12c-a6d2-42a7-9de1-d21a8560d3bb","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":83,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"db42976e-6af5-4429-8ead-c66e503b58f9","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":83,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"37ec5ab3-c023-4858-9d70-6d72aca9c869","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":83,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"a16df295-148e-4cd2-bb79-7d8da3cfb62b","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":83,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"a84aabc0-05a5-4f61-8665-e6fe55c87837","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":83,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"a7601df4-b862-4646-89ac-91aefc3be854","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":83,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"8e00770b-8a94-452d-8700-8012a4d13523","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":83,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"d66ed806-75d0-4ec0-a30c-5b88d0b8b05b","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":83,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"23c39986-5250-4b70-8ca2-d08844d45fbc","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":83,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"9e5ff3cb-e5bf-4aba-95fe-3db82c4ed31e","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":83,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"bb561875-12c7-4028-b099-7d97de77b85d","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":83,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"812e0843-b113-4730-aca9-0fc81b84bb4d","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":83,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"eb21396c-6195-4f08-91ba-bbdc58ad49ff","block_type":"box","text":"sub-custodian.","page_number":83,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"5366b6c5-5dfe-442e-9da2-1f97552fbb12","block_type":"box","text":"II-41","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"84f1e06b-acc3-4001-a821-507d7358e15b","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1dd2227f-d00c-4992-8e42-2ce87e4fb6a9","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":84,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"99949d58-5f10-4562-85f6-b18ae81b9853","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":84,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"2dbe847c-0744-4c22-ad44-3f95ef62f9c0","block_type":"box","text":"on investor protection considerations.","page_number":84,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"144a5aae-4071-4066-a456-600c18ff1908","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":84,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"e3aa47a5-c77c-4fcd-919e-b07021652de6","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":84,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"75890b29-0cf0-44b9-80eb-316f32281197","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":84,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"6b867d3a-9b15-4da5-ab54-cc24667b78f2","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":84,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"db3995a9-c06e-45e1-ac82-8d650ff3b20c","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":84,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"ed80a1f9-c365-40fd-ac44-3dd9e992885f","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":84,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"d25e4fe6-434f-483e-b306-da6a63e78240","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":84,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"2ec5dfc9-1200-4b7a-874c-89eef5333ef7","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":84,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"ef7df0dd-3af0-434c-860f-cc721b3067fd","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":84,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"7b11dfac-4075-4c6d-8e69-03751cbaa133","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":84,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"3f0cf9d9-5a28-4851-a366-01c3d31fccd4","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":84,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"3337fb8e-82b8-494c-bdca-ac06a729cb95","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":84,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"b5507974-ffe7-435c-9ed9-16f7ba65f88f","block_type":"box","text":"accounting firm.","page_number":84,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"c644e75f-1796-4362-a661-1e3ae327a27a","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":84,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"1f7c8fb6-b22a-4f64-a244-55d200e09f15","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":84,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"da3d3b32-efc5-425a-879e-4a6cc01175fb","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":84,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"f841d133-51a1-472c-9bdb-8534c2b0a8d5","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":84,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"f7228862-7568-44db-8069-8e54206fa66f","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":84,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"9147d193-0460-4f3f-bdf5-0aa77caf9526","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":84,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"bf736616-76ec-49f5-9c56-8b64a8ef2bbd","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":84,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"b27cb8ec-dacc-4c42-a86d-d8ff9dea9b71","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":84,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"dc7f3e28-f2c7-48e5-a451-0a95f7e934a3","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":84,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"a2664d74-a7b1-4f69-b704-d2a777135609","block_type":"box","text":"RMB (“CNH”).","page_number":84,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"c896cc92-536a-4b54-ac1f-6d9b3446b98d","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":84,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"d5466c11-5c35-4c7b-81e8-9fb8464baa99","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":84,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"9d7bb135-8869-409c-b795-cc725b78538b","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":84,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"97b02993-291d-4e43-a289-822a38259c99","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":84,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"97b1bb41-246c-4e6a-a22c-94414d7197bd","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":84,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"42ee85de-7984-45fd-8ce8-12ea7d4e985c","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":84,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"1045dbb2-6ef7-4235-a022-9a510b1806be","block_type":"box","text":"represent equity ownership in the operating company.","page_number":84,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"fcd00007-bf87-4e96-834b-15803a55f00b","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":84,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"f24980ce-6428-498d-b952-cf9b47db491d","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":84,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"584f052c-3252-4c44-b729-2b9ecacd9b79","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":84,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"1c14c88f-bcf8-404c-b01d-40b84c711a84","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":84,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"226e5633-3d20-441f-974b-7a97e5a142ce","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":84,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"a352a1eb-b2ca-429c-83e1-62a8ef10fad7","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":84,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"4700b34d-1b33-47ef-8f37-a6ba22c444b9","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":84,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"7519d7f5-b6f2-45b9-b8a0-75f94061ba7d","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":84,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"29242ffe-3614-4e03-b7aa-f778cee7c534","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":84,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"8ab42033-a459-4f43-9469-263228fe9313","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":84,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"be672a90-cfb1-4509-8f17-0bdddf28195c","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":84,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"86c9bf53-827c-4426-860e-14bdd66dd610","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":84,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"6c43d39d-e291-47af-bc78-d55e855d4c5c","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":84,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"406d762a-5049-4d3c-b9d6-79cbf37560ac","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":84,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"bf525386-6ea8-4f09-98db-aae80045cc64","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":84,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"79219fd8-b38b-42cc-a3fc-9ac6488e692c","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":84,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"f3fe69a1-1ae7-4f3b-b8c4-9d2d6f0a0808","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":84,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"af993646-9027-4f8d-8bd1-f6f405f2d99d","block_type":"box","text":"losses to a Fund.","page_number":84,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"76d72d09-690f-4a2a-8613-f90f99baf889","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":84,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"97a6d58c-4804-4742-829f-2334e5d6f219","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":84,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"80c00080-eaad-44b2-9446-5d189d9fcb2e","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":84,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"a5f35d97-52a4-4cdd-b144-4f2a95f944ed","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":84,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"eb15315e-b4a1-4325-ba66-c78415f969b0","block_type":"box","text":"II-42","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"63fab03e-c9d5-4f5e-98fa-7e6e711ad0cd","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"523d0193-18fe-4bff-bcc0-0b522636c3d4","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":85,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"5fe91370-1c8e-4825-944b-039f8e6a3208","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":85,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"f704fcbe-9324-426a-afa1-eb5d5a5e8aea","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":85,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"3ca6bbce-ad46-407c-9318-0a662d12c999","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":85,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"769d2e1b-73b1-403d-be40-7e03bf76ff7e","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":85,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"482ba714-07d2-4ea2-9b0d-052a254389d0","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":85,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"6fe59475-83b8-4fd0-8f7e-cc196a257cdf","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":85,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"d7a21277-dfa2-4e8a-9673-fde7876e3979","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":85,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"bd7cb3d3-5185-4f8e-b048-840e9f6b9762","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":85,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"d2df29ff-3c7e-4c98-8d89-0f8bdf762480","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":85,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"d8241e5e-7cda-4ffe-853a-72282d79990c","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":85,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"ab8cb795-f021-4fd1-bab2-87b9e8ff1d4e","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":85,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"e9bc66ef-fa66-4784-8931-4ac3b9e78bf9","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":85,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"756ef501-defc-41cf-85b9-bfb976020a77","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":85,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"5843bdc0-b301-46f8-acaf-2589b810a083","block_type":"box","text":"such companies.","page_number":85,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"da1504cb-6b0a-4812-b031-e8fdea3dedd5","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":85,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"a0c9d7cf-91c8-4160-8736-8ed1af687396","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":85,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"97b15486-306f-499b-a083-10e875e4fe66","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":85,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"f42571ca-99fd-43a5-9457-f060bbe2e746","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":85,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"bc12a11e-f20d-49e2-90da-cbd7af3a2c89","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":85,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"68428d0b-2270-42df-add9-8361981df05f","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":85,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"8f34a121-ab07-4bd0-a708-437e0b4433c9","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":85,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"a12426a5-f47f-4feb-8f9f-cc6e3351d146","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":85,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"de06eaed-abdf-4edc-8b43-a91f8047833c","block_type":"box","text":"standards.","page_number":85,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"971ab967-7703-4e3f-be3b-9ec4aebcacf0","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":85,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"803ab64b-4ade-4463-a127-1d92380ce859","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":85,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"b2acb57d-50df-4bc5-a43e-28517b236820","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":85,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"7d78d71b-b761-4b28-aae3-1efc88a8f177","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":85,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"0c3eae8a-e948-4d5c-978e-3b99d933a685","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":85,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"6c0c2314-327d-466e-9a34-dbfd3f1aa2dc","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":85,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"b4b392ad-712e-420c-9388-3e5fca1d3267","block_type":"box","text":"General","page_number":85,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"0d17c5b7-ed76-40e0-835b-440992d95dd4","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":85,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"f825416b-dc14-4932-9e7e-52e23a1bc327","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":85,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"2d00a33b-07e4-47f0-84fe-041dcfc69e5c","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":85,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"63a0fb25-69b0-4160-9b52-2595bedc5145","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":85,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"c719a0c7-1840-4ff3-a2f9-9c5e618d56f2","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":85,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"d2052f45-57c2-4dcd-8979-e76378459670","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":85,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"00ead048-b187-4b63-840a-1f4a0788233d","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":85,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"96f51afb-caa6-4e56-8c2b-dc33fd557892","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":85,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"a57051e5-e098-4d0d-9b6e-79def945a171","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":85,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"aa0db876-09df-4c86-9c15-e669ee5e867f","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":85,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"d438f899-f526-46b6-932c-917f929422a3","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":85,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"030beb33-ee5e-41cc-981f-1fc3c13e9bf0","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":85,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"60718686-5b4c-4fa0-a7b2-6e09f3c7f4f5","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":85,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"142b961f-20f8-454a-88fb-ebb40a77157a","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":85,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"67483817-9e2c-4523-9616-aaf77ba1dbdc","block_type":"box","text":"company established by SEHK.","page_number":85,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"8752786a-08b1-4853-a83a-da56af3689d0","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":85,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"6e471a55-1c98-4244-84e1-bef0f4e0fe76","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":85,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"3859c98d-b539-4202-bdba-792a08420c3c","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":85,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"317c2321-a29e-4caf-bea9-6a090581de3c","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":85,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"22a5fb67-9c12-4e8f-97d8-270a165eafdc","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":85,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"97048b77-f9ec-4e3e-8c46-b16395a687e5","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":85,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"cc9a2a63-a90d-4ee9-b7c5-0cdc17521dd8","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":85,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"456054ea-0b03-4b18-a265-5d32b1d6bc9a","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":85,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"2ea4ea43-f58d-4910-b011-9525cfecfdd1","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":85,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"ef512fb2-c5f8-4736-ac05-930398473255","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":85,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"cfdc31ef-3449-4fec-a24a-5423e9d2193e","block_type":"box","text":"II-43","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"945173b3-1f71-4073-bca3-8624d86ca542","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"13946066-2244-4878-8c0f-272c74e34d02","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":86,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"e2ededfc-c2de-485b-add1-5deec7e783d0","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":86,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"6e6a7381-2b26-4317-ad1a-8c31ca2d68c9","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":86,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"3296b952-5c22-4c04-a630-0f17708928e8","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":86,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"b2480c3e-13be-431d-b477-74fd3b872ba0","block_type":"box","text":"i.e.","page_number":86,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"1021a2da-9b1d-4186-ba38-517a18c89bd0","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":86,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"0eaacc5a-6b7a-4894-9c06-68273e0c00d2","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":86,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"588c7ef8-d9a2-48fc-9d4c-ef09acb78b4a","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":86,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"83f53927-abab-4354-afb6-f773a3255084","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":86,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"9e00c9eb-9f08-44b2-a1d2-a8709aab545d","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":86,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"8d50ead0-79f2-4ac4-88bb-46e1ae9d6ea3","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":86,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"c5c91818-e740-488e-92d1-408ceb2aede7","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":86,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"76ad2a25-e447-402a-b270-935d845b06bf","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":86,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"a340e804-0483-46df-892e-ee9609f67cc7","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":86,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"b951e41d-1a94-46aa-b3c7-f13bf02776ce","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":86,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"2d456905-410b-41b1-9064-b9c8bf454a2e","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":86,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"5aedb7fa-ff02-4365-9c83-34e270a4d1d0","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":86,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"ed6f1541-0d94-47ab-9cbe-7343d7bd4d49","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":86,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"d53f54f2-9ec0-46c3-a69a-cdbf4f8c0488","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":86,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"4cb701cb-5213-4979-a3b3-df41831dd499","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":86,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"859e7b61-4746-4536-a576-59bc3fed672d","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":86,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"96b74c4d-3357-4871-b26a-07cc012ac26d","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":86,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"6b8603c1-172a-4523-9dd9-e043781e53c8","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":86,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"4d498754-9968-4c25-9459-1c3d02fd5343","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":86,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"9c43e6be-234d-4ca5-85db-715328f4f2df","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":86,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"554d93b7-d705-43d0-a6c7-3610efdc9648","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":86,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"d819f529-23ad-4efd-9d0f-6409b313980c","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":86,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"0a03dc7f-d147-477f-aa4f-226c977ea842","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":86,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"e1ceb503-59f7-4358-86b3-6fdc592e1208","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":86,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"20facd40-9f07-400a-a076-a73337778459","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":86,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"ece72d12-4780-4426-b28a-cf2b1e7e69da","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":86,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"661dc64f-0d3d-4cdd-b60f-31f632d20926","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":86,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"d5efdb32-7188-4665-9092-c768eba934da","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":86,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"54da0da4-f6e4-45e6-b0b4-58df61e6c1a0","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":86,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"ef8f0b59-745a-44fb-a775-ff3d32a47a13","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":86,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"99bf9395-83a2-4ded-ba99-d75bfa852926","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":86,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"f3940f49-1339-40fe-ab54-50f65281558e","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":86,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"54378a7a-060b-42a7-9927-ca22eae5c3f3","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":86,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"96de3f3d-8002-4abf-a5ce-15e6b8a3879b","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":86,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"d6152c33-4e20-4eb1-aa33-b6b1f3c7b1f4","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":86,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"044744af-1469-4e46-8800-bd93981cbc33","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":86,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"ed90bb12-37ac-4fbb-a73f-282732125b14","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":86,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"0a164389-8b5e-4023-8707-b6c0c8e68063","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":86,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"d190756d-8262-41b5-9c06-26d89753774b","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":86,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"e22c7e40-a316-4cc8-ae4f-affd3c41d566","block_type":"box","text":"PRC.","page_number":86,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"11be99de-c23a-4aba-a1b0-d31afb3cb29b","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":86,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"8a297030-f970-4aef-9bd6-5a9857f1fcb7","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":86,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"e4d2a30b-7aeb-4010-8f53-43930a628b80","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":86,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"d912d602-e3e6-4020-a9ed-c80eca00fa0e","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":86,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"aa6168c8-a0df-426f-9bdb-38e24b80553e","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":86,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"616c8f02-4a1e-4226-894f-4a67b9b71917","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":86,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"5dfa044a-cc5a-40bb-98e2-5098246c1013","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":86,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"6b7c0ff4-6d42-4013-b96d-ad99a6ec4d3d","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":86,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"34b033cb-523f-44ed-b172-ab32410def06","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":86,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"cbbdcf16-c024-4718-8a58-2cf8a9c5b0c4","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":86,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"5004f4f2-95ec-48e3-b857-e675e8531ef1","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":86,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"7d94164a-be6c-4c73-aa87-86ceb8587188","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":86,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"cdfe3f4a-f53b-4624-92a7-220b43dc7f91","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":86,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"4984a468-20f4-4064-ab76-3230bfc093a8","block_type":"box","text":"II-44","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82acaf86-d99d-4d4e-ba02-02f6e7e9d7b0","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a5e1980c-4999-49b1-ad58-a6171c65958b","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":87,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"e327db16-3498-419e-8392-d18f141554d8","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":87,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"229b6130-7dcb-46fb-bfc1-b594094c0a0f","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":87,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"e4614b60-4ac9-47e6-88eb-9b0aec68434e","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":87,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"895d799b-553d-4d41-9b18-d6ac9bd0cf6a","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":87,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"0499339a-24bd-4af2-b1ba-2a3236d0fe04","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":87,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"d64a9b4b-96d7-472a-803c-2778822f946e","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":87,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"dc02f65f-0c37-42aa-a5b9-e8464deca8a4","block_type":"box","text":"Suspension Risk.","page_number":87,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"783e6d9c-00d5-4a7c-9054-63b5e999d527","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":87,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"ca388cd0-0a5d-4b74-a060-e5297abf0270","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":87,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"195fd7cf-19e0-4b0a-8421-898bcf000cf2","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":87,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"04070494-114d-40ef-bb50-d956183cb136","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":87,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"813d0796-c542-451c-a4c4-0bf81d07f678","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":87,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"805432e8-fb8b-48e4-8775-612ed4689cb0","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":87,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"e4a3b673-4484-424f-aecc-4207f5de41c0","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":87,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"ffad70bd-fcb9-488d-b021-9d86d2a8c567","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":87,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"bed01696-6a90-479d-856a-e9cb917ab0e4","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":87,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"5087e6d7-7af3-42c4-9c76-13340b196748","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":87,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"fdc0cbb4-4c95-4d99-923c-f69ae7cdf3f9","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":87,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"d0084d22-5c96-4722-84aa-67c72b4f2510","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":87,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"df5ab953-b9ea-4faa-b345-6ebee9101046","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":87,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"98aa7290-24b6-4cfc-89b9-d25113ae0510","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":87,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"249bc86b-f738-47b6-92a3-ce5233cab93b","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":87,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"cc026a92-0fb8-4659-8c62-05c68b8b6d5e","block_type":"box","text":"A Fund may invest directly in the","page_number":87,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"24ec2d47-32cb-46b4-827e-c68e5026beef","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":87,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"3c313f71-6046-4fd2-8483-d7989c525159","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":87,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"e33fa82d-afaa-498e-bd47-52c2549b80eb","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":87,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"1d6923aa-1a49-4db7-ba77-c3dcb1df0302","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":87,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"d8299bb9-c80d-4f65-b1d8-ebb3b48c4fa8","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":87,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"c474b61a-b982-4ec6-a359-010f49c34f4a","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":87,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"affac6ba-aa8f-40c7-ae43-5e8ce7df0825","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":87,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"7960cf5d-3f8d-4b8a-9113-c95e7590bfee","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":87,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"f8c9bf9e-8977-47a2-80b1-2e1a428c7528","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":87,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"ae9192c5-d1d5-48a8-ae7f-67d07a76ff20","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":87,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"cbfbba81-d501-4522-82e4-d0fae5b542df","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":87,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"e84dae8e-e383-4358-838c-38ab5cb24455","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":87,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"11835139-db08-49c4-91fd-4f0c742d4866","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":87,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"049b4cad-a623-48da-b5f0-6e714c85d5b5","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":87,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"3c445996-ad04-4732-a454-909aeb7850c7","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":87,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"59dc057e-e4c7-42b7-9ac7-aaef0210aae5","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":87,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"53132d0c-3ce2-45d5-ab70-cb5fd78db850","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":87,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"a5bb9e6b-6834-4eaf-b4ea-4d2dc12a1b00","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":87,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"fa9b18f0-c758-43dd-8e9c-8f8d37858c58","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":87,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"098f76e9-00a0-4019-893e-090ab095abc0","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":87,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"5e30acaa-d0ed-4cc9-bea1-5725ed78018e","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":87,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"e5ae466a-dd47-4664-a3c4-e798a753b9b2","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":87,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"4e410446-34de-49df-acd7-2ad57c93627d","block_type":"box","text":"i.e.","page_number":87,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"bb9ff80e-0045-426a-a5cd-6cd8c21bf3e7","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":87,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"a78b5201-6057-4460-8222-c07db4726c3e","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":87,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"932081f8-fdbd-4e14-b7f4-d307f9c907f9","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":87,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"1b916257-453f-43e1-88f8-d993607b447d","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":87,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"cb70707c-00a1-4a5d-926d-f78a76254d92","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":87,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"c1c9ed08-925b-4f9e-b5ad-6550634b47f7","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":87,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"410b328d-af3d-4089-8bfd-0df8f021b6d5","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":87,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"890dc322-4d7b-43ad-a307-f0b9018ebc13","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":87,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"305d5085-66ca-46e4-9047-01df2c3a07bb","block_type":"box","text":"parties.","page_number":87,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"bc597cfe-4fba-4d3b-96d7-bb78ba3d33a7","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":87,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"397a0788-153e-4509-a934-efc6e946b34e","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":87,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"59f67072-ab36-40f7-8151-5ec2d3f74190","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":87,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"f03d4b5a-4b01-4ccb-a923-8162c5eb9956","block_type":"box","text":"II-45","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3254d2c1-8552-43f2-895f-c71fd1ab30a7","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"11b6bc08-0b06-4272-a90b-c35f0bf5ac4a","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":88,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"28514f4e-24e8-4c3d-9422-f86a8efdceec","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":88,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"1b1caa24-17cc-49f9-878b-8c47464e2277","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":88,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"25b13ac6-dfc6-485f-8b1c-6475f181ac68","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":88,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"5817a372-ea58-4a3d-a202-b9b68e115e3b","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":88,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"8ff22ff3-0a74-4664-842a-a56470039530","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":88,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"fe554021-ce79-4498-96e5-b31dfab4f13b","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":88,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"72c75ea3-6b91-4c68-9fb3-f5a7041cfebf","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":88,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"e72375a9-7c8c-4cc6-a80d-0c409022c5fa","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":88,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"04e45399-f6a1-444a-9ef2-87f592328668","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":88,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"8b01f497-0709-4275-9484-860b7ff774a0","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":88,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"b4aa53a1-cf00-4301-8235-6b5046c111e0","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":88,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"36738ffa-2fa5-4b59-bf31-fbed4cdeb934","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":88,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"014e3b60-4407-4847-b662-39c19f99e767","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":88,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"60758854-758b-4bf0-b51e-f0aa2e0de7f9","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":88,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"9e1d3a2e-77ef-4258-b5d4-d996528468f2","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":88,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"e98240c3-2301-4007-b984-40cba8bf354f","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":88,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"60737e7b-64fd-4079-9c65-fe71875ee87f","block_type":"box","text":"performance.","page_number":88,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"2497e1a2-7575-4b46-87e1-97dcdaa4e608","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":88,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"553a3cc7-f6d7-49d4-8bdc-1bc9a9b9a5bd","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":88,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"d76f8ede-f7e6-4f6b-88dc-dc3b5ebca7c7","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":88,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"b71e79a6-9221-4848-a767-3c79ebd203fa","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":88,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"e08baefe-541d-47cb-bf41-bf7f10ba0f96","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":88,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"8fb8cc72-e1f9-4e52-bd57-a8e925fad437","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":88,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"3d2e4efd-3137-461d-8b79-636027fbca58","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":88,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"8f40deed-b4f7-4a86-9241-e31475ff1a3f","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":88,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"73709017-58b1-4256-a403-15c4836ff31f","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":88,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"bbaf663d-48d1-4f3a-a596-fc537552cbab","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":88,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"d521cde8-8ceb-47cd-877e-c648d3540dcc","block_type":"box","text":".","page_number":88,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"0ea5052c-6532-4e1d-9adc-c9bd37ab6bef","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":88,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"ae49cc20-ac2b-4541-b1b3-5d7c10a6f421","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":88,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"19303988-7fb2-4016-bba5-5cda136136f7","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":88,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"ba50326d-0507-4dda-afee-d9c13e19277c","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":88,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"ff13b4ed-3d2e-4644-a5bb-d51eae649d9f","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":88,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"75b37f28-a500-4f8f-8f64-d2ebbbee864e","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":88,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"023884c1-54c9-4252-bc14-93e9c4aad368","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":88,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"a1b93c91-ce08-4b6a-8322-41dd8aa53aa7","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":88,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"d6d85f29-7aae-43da-8e85-f3b674369445","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":88,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"7f80cf46-2ad1-4205-87bc-d1b39e386be1","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":88,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"0d837abe-da69-4e47-b3bf-90725bfbab3b","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":88,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"a7f144d6-4101-4f1a-9755-986cf4a1f4f4","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":88,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"64415366-0716-472e-89ab-651ce3b3c742","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":88,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"e8bcf9f5-a1a5-46b7-9e20-0d7fcec22533","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":88,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"37ab88e0-0c1b-445a-b71c-e1e29deb2b14","block_type":"box","text":"without notice.","page_number":88,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"cfe665f9-bba6-44a8-be08-b7626d445084","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":88,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"9177f52b-9a02-4a1e-8fda-15224393185f","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":88,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"8e2ccb98-5189-428c-9e6a-bd52f10600d8","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":88,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"958766b8-e2d2-44f1-b4fa-cd34191614f3","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":88,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"7475d033-bd5c-4313-bd40-9a10d712b9fa","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":88,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"a5f356ab-06f3-4ec1-bb98-515a8aeefa70","block_type":"box","text":"December 31, 2027.","page_number":88,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"8a18d445-f0af-40fe-9578-0b697f39ab38","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":88,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"5b784d6b-6f65-46a7-8093-303b6dfee6bc","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":88,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"5f9bc6f3-edae-4424-b449-7e9580585b98","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":88,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"d48b2671-2c0a-484b-87ac-08e2bf98d4d7","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":88,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"9cb7e003-e01c-4af2-ad7d-a781150648f3","block_type":"box","text":"II-46","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4e341e59-3f3a-4f91-baf7-1513ef61a058","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"609faf59-3fc0-4727-8c2d-1ca87ca6441f","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":89,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"ce0410a9-21ac-4b7b-9ea9-0f914b677e71","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":89,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"7c9e2e98-538b-4c69-b747-41ccedb310d5","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":89,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"1b576197-4f97-490c-8f74-e355108c67b3","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":89,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"dd7c711e-6133-4c49-a4ef-09fe8389e6ef","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":89,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"fbb2cdec-9208-480f-9964-a82e9cdbee15","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":89,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"583f750f-6067-4f69-ad06-ebb7d62a2bbc","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":89,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"f1078074-55e7-42b4-aeb8-7470474e3d22","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":89,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"29d23bef-32c2-4a99-958f-5f9448eca771","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":89,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"01a90f48-77b1-4c27-82f6-3b29838db2b7","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":89,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"9d770055-ce45-4347-8de6-1d523c9403f2","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":89,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"d9489829-a2f7-4044-985c-765efd17563d","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":89,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"ac0f7dd8-b53e-4a41-8f6c-f16fddeb233a","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":89,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"92728152-5e2c-498b-b54a-2b114909b53c","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":89,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"5d0948f0-6945-4e44-aebd-25fed556dd2f","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":89,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"635ed15d-3bac-4665-bfa6-d514bf28f3a3","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":89,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"a29d6615-4520-4a1a-82a5-c4b191d25aea","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":89,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"46b210e5-e8d5-4cbb-8a93-b50d7c143d78","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":89,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"cfb5e228-e295-4941-b545-2ca0825a85b4","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":89,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"b111c5cc-e2b3-472b-9266-c586e931a317","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":89,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"8a4bacee-e31a-4572-99cd-10ae4553fa62","block_type":"box","text":"the PRC in notifications.","page_number":89,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"715311bd-9755-4373-bf0f-a21955a6550b","block_type":"box","text":"Investment in Other Investment Companies.","page_number":89,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"2d900a49-b480-476d-b24f-d8ee1371ff2b","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":89,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"9d9a318b-c1d1-4249-887a-6a04f5a62e31","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":89,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"9cea69c3-f645-4e81-856c-a7da4fd1ba3a","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":89,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"30ce38e9-ab08-45ad-a02f-06312ae6ad73","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":89,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"de04fcfa-c2c3-4840-934d-bf785cd56a71","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":89,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"17ed8006-9f52-4d9a-8cfa-dcc2534acfce","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":89,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"8cf35bd3-06e0-4fb9-9dd7-0c9f381e5e1a","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":89,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"b8603b0f-5bd9-4dc8-b37b-0775f600a20e","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":89,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"cf95180d-b069-4549-be2b-21f4d3da19cf","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":89,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"869191ab-7ade-477a-aa4d-64d05231f947","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":89,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"131f66d2-b5ee-4096-a6cf-0bb8cf4fcb70","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":89,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"ebf60a15-af85-4d53-a8c5-be7e35ec0980","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":89,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"d511d3c8-7754-4357-b20c-0d18af06f095","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":89,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"216fd9fe-b60c-4468-b743-816e83453cc0","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":89,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"f79c1d8f-891b-445e-ab55-7cae29873e28","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":89,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"11532170-09c1-4b6e-87fd-3ac626b9e637","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":89,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"4dd467ab-07c8-4bc0-8a0b-30be0f8ae2e3","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":89,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"1d639e81-16b2-4900-b0cb-fb830d2fdb12","block_type":"box","text":"subject to certain conditions.","page_number":89,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"caeacc72-361b-467a-9fbd-957281d73df9","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":89,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"48f867b4-4288-4e77-83fd-e20db47f4a13","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":89,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"e0d6d3dc-5b2c-4d1a-9c0e-1f44c846f973","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":89,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"5330f18a-05f9-4f84-a026-57e442029da0","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":89,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"20dbbdfc-439a-42ab-8613-b3163a093856","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":89,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"fa0f5492-0164-4e38-a858-d6669e4a58ea","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":89,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"aca86548-8f6c-44f0-a971-53567f7f446a","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":89,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"59c7e995-e2bf-4733-b8cf-cb2144fe99d7","block_type":"box","text":"loss.","page_number":89,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"8f23a288-fe99-4f33-8e16-fd7cab247e3c","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":89,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"ee835a6e-8582-4f80-a5c9-f67123ce4fa8","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":89,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"23288784-7908-4f75-9a06-004d9b09e028","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":89,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"70567d51-108d-490d-831d-dfa13a3ab53c","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":89,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"bc34d43b-26d5-4805-b269-11a9b956659c","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":89,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"fc89b71f-3027-494d-9814-dfa741a46069","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":89,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"46f4d133-10c1-4dd7-a348-0a8c1966851e","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":89,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"d5dd765c-a570-4ebb-84d6-ee8a4d42f3f3","block_type":"box","text":"II-47","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fc770027-a535-48b6-a285-7e0d89cba475","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2bde81a6-2cdf-4982-b424-aa2f2480ac6e","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":90,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"1e7cb54d-1205-4a9f-b3fb-c94ca37d4b59","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":90,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"36e2a500-e6c2-43e8-bf54-7413e2fd2777","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":90,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"b6dc89d5-58b3-4df5-8226-f8de5cbcdabb","block_type":"box","text":"assets.","page_number":90,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"30f8bbb3-5972-42ea-828a-aebf59fbce91","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":90,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"522f52db-7ab0-46a0-af21-afebf559e2c7","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":90,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"b661b675-4fd3-41fe-854f-9de965899eaa","block_type":"box","text":"e.g.","page_number":90,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"03c7f0ca-9412-463b-9e77-4404824b8d5e","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":90,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"15a6704a-21d4-4344-930a-6000771a5dc8","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":90,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"93c26dca-e833-49dd-8e5c-1c994f75a349","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":90,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"7485b869-25c9-4db1-9ceb-f24b314cab7f","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":90,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"6266fe56-e569-4e8a-a1c1-8ad8b673e0f4","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":90,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"9b7c9f2e-7aa2-4ca6-abc8-0783844ec5da","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":90,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"631ca6c5-6902-45df-924e-8f6f494eb11d","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":90,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"8551da1a-19d8-4eda-ad17-af39e8e231c8","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":90,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"b65757b3-7b4c-478a-bcda-48dad95ab5c3","block_type":"box","text":"countries.","page_number":90,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"81bfadb1-4b69-48a9-af3e-2729cb705d8c","block_type":"box","text":"Issuer Insolvency Risk.","page_number":90,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"bb65bb7f-da62-4f33-baf4-a9285ccbadb1","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":90,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"4c338450-11b5-48cc-88b2-98cd3d49a073","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":90,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"0d7bb97c-1fa2-4c7d-b31e-3a3db94f40e6","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":90,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"4aa39aa9-d105-48be-a502-2820a677360c","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":90,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"ee72c5a2-e971-4a94-90a5-2d9da6ee93b6","block_type":"box","text":"issuer uncertain.","page_number":90,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"36ffc7d5-8255-45e5-88a2-46a074fc1454","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":90,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"ca3051b8-e272-4043-b9b1-6f0ace11a47d","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":90,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"451d73ed-9e53-479c-9a8b-7f3702bbf428","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":90,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"ced8934d-115b-493f-98ff-fbbea8a994ce","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":90,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"a1153f9f-a2c4-41da-86c3-40ce86477482","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":90,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"94a378a8-850a-44ff-b45d-82ee22a8c1df","block_type":"box","text":"eventually be satisfied.","page_number":90,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"07ad68e3-1c77-48b5-8d5a-d7dffe534d99","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":90,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"35848716-8487-42e1-bf22-036c94664f6b","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":90,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"2bb4e041-cbc5-4e1f-be13-fb4795370d1c","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":90,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"37fcee02-c64b-4a2e-830f-b89f36553de3","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":90,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"b72f68cd-e693-4805-a7c8-4347928b0228","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":90,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"07139821-022e-4ef4-9a22-3d20e1c6f89d","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":90,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"f5c7258d-1206-48c0-acc0-cb80c0f3aa27","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":90,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"70f99bc5-2b5f-4430-ad89-a221e3b150a5","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":90,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"59b59625-c41d-4f97-82d8-7ccbb958b076","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":90,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"6ca2e73d-310f-4caf-bd00-a55695667f2a","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":90,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"93edbe08-58ef-45db-87d0-314e73130808","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":90,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"25e9b0c2-12a9-4bbc-92c9-f2f9b28b06f0","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":90,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"5b97d859-615a-433f-9008-fe2109ee8c1c","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":90,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"d78c84bc-0626-4d11-905d-cdbdc232e143","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":90,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"4ad0449f-c6bb-4615-9764-57acdb73a2d0","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":90,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"f299cfe8-3009-4deb-b5f8-434e5a5267c6","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":90,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"633a262c-f090-4787-87de-481a904dc26f","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":90,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"a0521b28-8968-4d18-90fc-3f68c72f2571","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":90,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"da4b3bf9-e573-4366-b94d-9ad6980956b2","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":90,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"4cff3c34-cb18-496f-9408-d8d4a33ae1e9","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":90,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"99c1d358-fcd2-4d43-be07-5a689541d34a","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":90,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"02f82a11-cb7f-4d66-986b-441997671873","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":90,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"0baff949-f281-416d-a513-1f1f3c14cda2","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":90,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"14011e81-7694-4a66-a079-2f47a670c2da","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":90,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"cc9c4b22-6f8a-47d8-8a61-e86d06ce4447","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":90,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"a6d8ab1d-c718-4d05-be70-dd8928719e3d","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":90,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"e92c7a12-3534-401c-8e28-682544140316","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":90,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"e2b4f5a5-c1a9-4117-9be4-59c1b20e6bdd","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":90,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"bc556955-e264-4c4d-90c2-116c70b85045","block_type":"box","text":"that assumed generally by an investor.","page_number":90,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"8a208aeb-0c8e-4690-b2bb-50d8a5d958d2","block_type":"box","text":"II-48","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"761e8c7a-5728-45b3-9e74-634768ed3bc7","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dbc3b4f2-662e-46d5-9dc8-428664d1338c","block_type":"box","text":"Lease Obligations.","page_number":91,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"f165fc4e-5682-4148-8119-839bf2c03a18","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":91,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"98f0ba41-4fa3-42e9-a097-897bce12c26e","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":91,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"32ce4fb9-4049-477e-950f-539d8cb407e7","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":91,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"68a5237b-370b-426f-915c-72918eeab07b","block_type":"box","text":"Life Settlement Investments.","page_number":91,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"fe342274-dd5f-4681-b1dc-c868380671f3","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":91,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"1740a70d-f885-4249-98cb-82ec0df2da39","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":91,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"ab1d183d-e0a7-45f0-9748-e250445829d5","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":91,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"29b78f68-7ecd-4b9b-9391-6e4e7d6e245b","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":91,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"644475e0-1eff-4b85-bb20-60a9a9c08c5b","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":91,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"e4e97fa5-8511-4354-9dce-ec9dc6bd6f1f","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":91,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"5699c585-b49a-4575-a445-d3ee96400dd8","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":91,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"bba70f32-be77-4f3f-ae7b-cf06ea5a16d7","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":91,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"a8913a59-53d0-49d5-8e98-d44bf718d7dc","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":91,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"27a4838b-01be-4600-9e7c-1812aa37739a","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":91,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"8b30cd86-86c9-49e4-8aa8-446da4c5a4e1","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":91,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"bd737bd6-acd2-44d4-9a80-42d8f9ed87a3","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":91,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"0a568a5a-3fb1-4826-96a9-3cccaf1104fc","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":91,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"0163fc2b-2668-4f19-9e15-f6e815f8e545","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":91,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"c2291485-ddad-4ba3-bcbe-be078d08d066","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":91,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"c107eae6-41a3-48c9-9f22-e70ee40937c9","block_type":"box","text":"Liquidity Risk Management.","page_number":91,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"8de593eb-9b32-4239-80cc-75b04222871c","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":91,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"8987ebde-4bc0-4054-a68c-ccbf88f3ca68","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":91,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"0bfbaeb0-3fd1-4b34-a3d1-8801b00bd9d1","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":91,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"87098fe5-34f5-45b8-84e2-dfe86880eb72","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":91,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"40a38f59-3f01-43ec-bd47-357c96f36109","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":91,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"3227a8a9-b458-49bc-9ce6-539279e4509a","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":91,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"4e743416-f357-4076-b664-f75e9dbc99f7","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":91,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"7aae700f-ef00-4adb-822f-ed3286783bb9","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":91,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"aede806e-51a0-4285-9803-514725eac97e","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":91,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"e195c321-e0cf-48c0-af55-529f2df11131","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":91,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"240fa1a0-5f19-4cf1-a66c-150c15c49d7f","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":91,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"59153bbe-f7fe-4eb8-a02d-d531e9533ed5","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":91,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"91aa7e22-3ee9-43e5-ae27-ac49536257fe","block_type":"box","text":"Master Limited Partnerships.","page_number":91,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"9a971b47-b540-4ff5-b179-f6e876ad82a2","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":91,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"890b6b1a-08b7-49bd-8e2c-3e3c600dbd6d","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":91,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"e542e441-c980-4949-b5cb-5dc73b1619f3","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":91,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"42be3842-18e0-4784-bbc7-88bc5f1a09a2","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":91,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"5d2cd7c7-d859-46b8-a192-191d46c3aa8b","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":91,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"54c2a514-f1dc-4360-bd20-a9fa5388c2da","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":91,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"89ed67bc-252f-40c3-bf5f-0c8af0ad461c","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":91,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"7d706599-fa02-4ed3-92fb-30c9fd8d0521","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":91,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"ace8ac21-e434-4290-b165-49f67ad76d58","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":91,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"f2dff85f-5275-4ee7-8267-5f2b1444042b","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":91,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"0ab058ce-719d-4579-9468-ff22f0c25111","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":91,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"2fd8371b-3a6b-4ac3-bdb3-4168c2cf02e3","block_type":"box","text":"in the partnership’s operations and management.","page_number":91,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"d906fe74-dd39-41f9-ae5d-0af3e4297b82","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":91,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"0ea91aa0-3ce3-4cba-949c-0331a7807f4e","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":91,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"ae155fb9-6079-4fd8-8984-e9a73e0a5d83","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":91,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"f3a6e71b-be4b-4a4c-ad86-43e6cd06a55d","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":91,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"4ecfc0a1-4c7a-4da6-933e-6b7b45503f04","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":91,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"3ab75fb8-48b9-40cf-a59b-507f143567f4","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":91,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"21c72a5d-cd3b-4989-9205-192e3743d636","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":91,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"ec2c6ba0-06d1-4edd-9065-d75ec015d76f","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":91,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"6cf5d0fc-4aa8-40ba-b6bc-88136fcadd25","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":91,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"a343b4b4-d8d6-48b3-a083-2ca226ae1dd4","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":91,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"f89c777c-be80-4f0e-9ca0-18f08d29b489","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":91,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"dc747ec3-c57d-4201-9485-0d042d56dad7","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":91,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"c5bc8c29-a4aa-4c4f-acf2-4751b22b4dac","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":91,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"77377a3a-cbee-4f97-b457-385572b9216c","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":91,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"9a3d1def-8958-44f4-9862-ad221be54273","block_type":"box","text":"II-49","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0ca758b2-4fb7-4d49-b3bc-3e3aebaa7ddb","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82374193-7cfe-4283-ae10-db4d7ccbc3c7","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":92,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"640cde3f-4004-4644-a60c-932032d0acbc","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":92,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"e57460c6-b70f-45f6-a1e1-f9fe902db0e4","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":92,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"f980bb6a-ac3e-4dbf-aca7-0dfc7f083086","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":92,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"dd2a0edb-c682-47b0-9b9a-0f994c1e5cf1","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":92,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"4243af2a-91dd-421e-b5bd-3804a19b7d04","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":92,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"2322c3f5-cbd3-4fee-a1b4-34dba6a70b0d","block_type":"box","text":"Merger Transaction Risk.","page_number":92,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"5eb76a43-eb76-4d5f-842f-c7cafbd851bf","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":92,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"91892d68-c3ac-441c-af5b-80f23946dee6","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":92,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"3d436346-718e-4deb-8455-a7a6afb9dca9","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":92,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"4b176b67-f270-4b0c-a809-7d4fbad93b26","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":92,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"2b113c36-7161-4f49-9abf-4d153e8692a7","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":92,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"c6b3ef59-37b8-41bc-9eb3-981992f33360","block_type":"box","text":"the Fund and may lose significant value.","page_number":92,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"5ef1a93e-7e06-4f5d-9c9e-5061b57b82ec","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":92,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"6c22770c-d8a0-4c45-871c-33661583dc30","block_type":"box","text":"Certain","page_number":92,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"9291b05e-40db-437e-b322-883a88aad6f0","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":92,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"fb623b12-d5d2-4028-b83e-a8151260ea16","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":92,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"00dbe9b0-bc51-4650-968d-4cd73aaf7721","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":92,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"22b463ca-b7d0-4048-b47d-275f0eeebad6","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":92,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"320b5603-6de1-45ab-aef5-7874a8592980","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":92,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"57a868dc-28fe-454e-a375-3eccaffe978b","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":92,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"59bb972e-3632-4239-86fc-8244ddc543b1","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":92,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"f6065085-f400-4553-8c15-3ab4528b801b","block_type":"box","text":"branches of domestic banks.","page_number":92,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"095c584d-c7a8-422c-9f2c-3f83cdb6b88f","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":92,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"93563a70-805b-49f4-a3bd-907c83249f89","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":92,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"8bb27b2d-ca80-46fc-9707-721f5f74cf87","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":92,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"14c0b751-f00c-478b-8f79-02fd8921d662","block_type":"box","text":"paper of a foreign issuer.","page_number":92,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"4efcca9a-f4a0-4e64-8eac-c629b3b03f32","block_type":"box","text":"Money Market Securities.","page_number":92,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"198d6796-5c15-4aba-b746-77b8caa778d6","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":92,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"ffb852c2-db8a-4dfe-b44b-0e906ce16ad3","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":92,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"fbf718e5-3506-4470-bf7b-eae7a0273b0a","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":92,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"94ad1a85-65da-4953-afd9-5195bb5e3d95","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":92,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"63f3ef00-d148-419a-843f-51cea06777e3","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":92,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"b3ddcdb7-7892-4ef0-8c82-458349cb4459","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":92,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"88086d28-7ffb-49c8-9747-40f3e1b7aaff","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":92,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"48819811-be39-4ed9-aac9-181cec0c3d92","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":92,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"4492f441-d7d4-4447-a5fc-d36bd2690b6e","block_type":"box","text":"agencies;","page_number":92,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"328974d2-3b19-47d5-b56f-241ed9bae399","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":92,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"7f93f411-96ed-4bfc-b805-5209d53486f1","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":92,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"717050fa-8f79-4abf-82ad-8c28ae769d01","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":92,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"696733e3-0237-4c6a-a4e9-86fc36a1af74","block_type":"box","text":"obligations and credit card receivables);","page_number":92,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"fa1872ef-67b7-48c4-ae6a-c7cdb145c584","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":92,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"56288d7f-cdec-40cc-94c8-2330797d2047","block_type":"box","text":"authorities and related custodial receipts;","page_number":92,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"29b973ce-6a5b-4646-b91f-b48588683217","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":92,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"97783684-9848-408d-858b-d92ded82c945","block_type":"box","text":"agencies or authorities;","page_number":92,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"ae38805f-0a2d-4cf5-b862-3d01c57997ee","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":92,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"19c0775a-99b1-4ac9-9c06-05aa7e796b29","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":92,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"5f218a7f-7681-4598-8647-14f17d67e03c","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":92,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"a62deaa5-12b9-4b19-9ca2-1cb2d86bd99b","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":92,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"6f1de3cb-c0ac-423f-a472-4a2a8b530bd3","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":92,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"1ee7800e-fc79-4a8c-8d23-0182afea9b31","block_type":"box","text":"States;","page_number":92,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"4c7c7ce1-abc3-474d-b525-7cf8e258d7e2","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":92,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"6843d727-6552-4f4b-b767-ffd1fd02d6c4","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":92,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"b16d4baa-f9a4-4bea-87bf-ff4ee37e37b0","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":92,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"f3218c24-8cac-442f-b9eb-fbb5a9454a2b","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":92,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"ada66b70-b91a-46ad-b4e0-e62c4c38bfd8","block_type":"box","text":"II-50","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d647efef-c617-4bc3-8ae3-6a7ecffad995","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0e2393e6-0d7d-4dd4-b3a5-ba5d4d610712","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":93,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"ca76356b-d955-4b01-a91f-2586cdfff957","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":93,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"cdf46d67-a7ca-4fd6-af23-6c2b369ae596","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":93,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"cdd9fc53-26fd-42be-8668-37596e28386e","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":93,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"c7295eb4-76b4-4bbc-a8fb-bac25d2a2b42","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":93,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"c0b564c1-225a-4f49-97e3-56269f79db94","block_type":"box","text":"States.","page_number":93,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"1fc0219b-305a-4cf5-a3cb-d9057e7d8c43","block_type":"box","text":"Mortgage-Related Securities.","page_number":93,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"c758e03a-10d1-442e-ae26-51129ff02cee","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":93,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"2f34e1df-c789-41e0-9abe-be8636225088","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":93,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"e4c637ef-edc0-4240-a396-109281d9969f","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":93,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"6ffbc19a-4616-4e22-9630-4ec8c3aec661","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":93,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"1c65714d-099b-4275-b2fa-1c3e051a83b9","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":93,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"5778412f-a255-4847-a472-d397f21719a2","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":93,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"2fcba5ea-7d41-49f7-bc54-f636d2c4e770","block_type":"box","text":"maturity or specified call dates.","page_number":93,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"e3b935b7-16fb-433d-96df-2cbf16dd15a1","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":93,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"98a8f3a2-289d-4efb-8a64-37cde28d35eb","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":93,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"293f6356-256d-447a-b107-c186ab05e6ba","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":93,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"4adce716-a87f-4699-b7cc-9276bea04ef5","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":93,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"23ef35f0-9b56-4812-bec5-19c3b3505156","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":93,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"25458846-8292-4926-b8ef-7b143489454b","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":93,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"3c29812d-005c-47fc-923f-afcdfa943380","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":93,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"ab11fd2f-52e5-40f3-a8df-2c284b145435","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":93,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"49fafaf3-a9a0-4b00-854f-9d90392e8203","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":93,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"86a60854-792e-44ff-9093-60da8daa8e1d","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":93,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"15ccd056-f486-4532-98f0-83e219ab82e2","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":93,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"00a4da8c-9652-4e37-9abe-46b3b27af4cf","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":93,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"5849c044-460f-4ba0-9f9a-c7fa07f4dba6","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":93,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"162693eb-a84e-4961-be0c-f098eebf110a","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":93,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"47fda050-90d7-4839-a24a-54a45c79e3fb","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":93,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"40e49b84-4d02-4b1c-bc7d-344400d0decc","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":93,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"2004a5e2-a525-4f46-b3a0-3c7bc14f7768","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":93,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"928df4c0-09fa-4a8a-812a-d6d91a351b15","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":93,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"70b8b888-f771-4170-bccb-fc81c61ed055","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":93,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"19554aa7-9650-4fdb-9d89-7a9e5f29929d","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":93,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"df54ecd5-23bd-4e6c-a72e-8848d8670b31","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":93,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"e58b71fa-ac6f-4d44-9d44-36aadc8cd4ea","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":93,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"530e7bf0-de98-493b-a514-a84b57ea1e37","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":93,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"fb3b985b-cb4d-4716-bb20-af33146edf4c","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":93,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"8402278c-5aa2-4779-9752-c457971d57d2","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":93,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"41e4966d-896a-49de-91d6-960709ceeb18","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":93,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"3ab1536b-2bd1-438a-80aa-b28f6f5fee41","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":93,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"9c5bc8c5-09e3-430e-aa49-9b965082932a","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":93,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"ae8d5a1e-9a88-4f80-816a-6c3f4c15c692","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":93,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"7827cf0a-812c-430d-a2aa-c35584765fc6","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":93,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"6aba4504-df79-4840-9d2a-cf282ba455ae","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":93,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"0392fcfc-44bf-480f-8c21-8a39a54997a2","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":93,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"e6543535-51e9-445a-b1e3-87e32542234c","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":93,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"fc3b4941-7873-46a5-abff-ad7c0349b413","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":93,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"9aec1127-eec4-490b-b644-49a124bbfeb2","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":93,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"b63267ef-6b34-4bcd-b608-1a4c117a7fdb","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":93,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"20ac7569-f287-4c74-9560-e22d1b1f5e69","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":93,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"086d25a7-2a69-4385-a46b-d4288934d678","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":93,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"220bb665-d55b-4077-ba03-4e568ab071bf","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":93,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"5747c731-cdd4-455b-9e74-0f0ac716e1e7","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":93,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"054ab479-ddb0-4916-8df0-e0bdd2ea993a","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":93,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"6d284e56-b48e-4e80-aff6-a143148cf679","block_type":"box","text":"II-51","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7fb880da-46fc-4bd6-8a32-a3d29de470d1","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ec687ae-acf4-4add-bf8d-3b4ee21b3c2a","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":94,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"341f2858-1fbc-457a-b913-463c0fbc5795","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":94,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"63080d38-5889-4275-b179-4b4f8fd2c4fb","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":94,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"36443637-a93e-4a67-aefc-0b7542efe06e","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":94,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"d5f607fd-6644-4167-b4d9-aff3069282ba","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":94,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"3886370c-8cf1-4725-bfe2-8b318acf7d9a","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":94,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"2cf6d743-eefd-41a1-9124-0448aa1a15af","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":94,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"eefdc09b-818a-4701-913f-e07daa55e2e2","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":94,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"c0a7f646-a4e3-48cc-a7c9-574b8982baf7","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":94,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"0cecaf68-6e29-4f09-8133-288bb84fef05","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":94,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"625bf913-5ef9-4714-b32c-f337f6f5ec28","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":94,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"eee4298e-7be1-43dc-8597-e205f87daf8e","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":94,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"8df39ff0-8ed3-45bb-a2f7-06613ee8076a","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":94,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"4778b253-da06-4a99-b0be-31823c594855","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":94,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"41f0a5cf-58d4-4faa-8e24-71032ca5c2fc","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":94,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"91406a7a-400c-49a4-87a5-bac048e43179","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":94,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"d223e070-a0dd-46dd-a8f9-98af4a760359","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":94,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"76b8695d-c7ae-4d67-b4bf-aaebcaf5f2ea","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":94,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"ec4b0c63-5c80-4930-8185-190b9cefb635","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":94,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"054b4399-55e5-46bb-8f11-5c4d6da021d6","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":94,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"d09956de-18de-43e5-892f-05fb4184392a","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":94,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"104e3d4d-8beb-4d72-996e-3fa4989ec868","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":94,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"adcf50c2-00b5-4ec1-a09d-4e6614c04700","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":94,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"f0c3f1a7-f339-4028-9930-67ede0e5e554","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":94,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"8a21d37e-c961-495a-a42a-2a2717b443ff","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":94,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"0ffdab96-51a8-4a48-96bf-938cf45985dd","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":94,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"86a38c22-86df-4225-9c5a-bb030b02ab0c","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":94,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"d7a92304-aa62-4136-bb08-0e6cdcdb47a9","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":94,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"d40f6689-b039-4c38-93f8-051ca9b6f2fb","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":94,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"6cd59a95-1512-48f9-88e6-d7184fd259eb","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":94,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"49264402-6094-4272-aed3-2a61bbb651e5","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":94,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"ed0733a0-1b0f-41a7-986f-43eaf2da204e","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":94,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"09811b84-845a-4120-a99b-9a698dd76b90","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":94,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"2f820a96-00bf-44a2-b360-1b946f789d05","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":94,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"e49739fe-a206-449f-8e09-1de67e53828d","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":94,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"1a5be32d-1063-417c-a349-728689ca546a","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":94,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"ad4009f7-4d68-47e5-a78a-14e88d057e8e","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":94,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"ee83a9a3-10ae-44e4-a5c8-8ac8f0632a48","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":94,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"c7f16b00-e721-40e9-ad54-c3b674ccf534","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":94,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"6eca1342-4a7b-4e98-bee0-77a82d2c94c6","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":94,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"b2978658-e68f-43cc-b7ed-1d3312dc9a5f","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":94,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"edc8ffd7-ed72-4388-8cf9-7857b0ad9faa","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":94,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"66755fd7-1d57-44e5-ad7f-427e5489e13f","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":94,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"7bcd647e-7341-4969-97dc-59c6b5f96084","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":94,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"abd282df-8af7-43eb-b072-48e01c185abe","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":94,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"ddccb853-b56e-4da9-81c0-3229fe5b1247","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":94,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"c6b21cfb-15c4-44fb-95d6-63aebbed4b43","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":94,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"298cddc9-1333-4d06-8b80-7fc1f05168d3","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":94,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"a28e69d7-48ce-4907-bc6b-ea13cd8e4708","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":94,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"afe278b1-eceb-4324-b689-06802895838a","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":94,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"720dc6b1-5f0f-4d54-a059-e283ab718acb","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":94,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"59f237cc-fabe-42fb-9b2a-c9855597703a","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":94,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"807ec019-6969-46e2-b4d7-a4f32bb6c61a","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":94,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"07b0a1f9-b7cb-497f-b99c-6d0f48c2bed4","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":94,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"f4d71826-a782-47b3-813d-5ac5432f1132","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":94,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"f09fb95a-bfcf-42b2-9cd5-541aa9c4b035","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":94,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"416b99b5-be8d-4c90-98e5-d397d44ddec2","block_type":"box","text":"II-52","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"56bd3631-1e8c-42f9-a2b9-41a08e68d845","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8a7997cd-0f8b-4bd0-8fa4-821657d464fd","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":95,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"37f0070c-e4c2-49e7-9c58-cadd4d0f1e28","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":95,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"38a8e2fa-01a0-4845-98c8-7c0dafaa15a4","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":95,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"5005536c-690a-4cd6-98b3-287009fb3431","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":95,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"4753a19f-dd18-4e3f-b5e4-4150515bd2ec","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":95,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"a9cf2d70-4237-4ee1-9d8a-76cd4a5218e6","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":95,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"2f5dabd1-f977-4d4b-9fdd-2b7ae93020ec","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":95,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"6e598f48-02c6-462a-a683-90adfa27b2a0","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":95,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"0b2d17ca-4ab2-4012-a9f5-6d32eaa8fcef","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":95,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"5d1c6f91-4ee6-4cd2-9cf1-5af5b3f98266","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":95,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"8dc94d53-bf1f-4def-a002-cf671ec5dbce","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":95,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"14986f36-ece6-4bfe-9207-f5f53b87c8af","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":95,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"b7e9ea0f-8b51-429a-a187-ee2fd2af1f14","block_type":"box","text":"of principal because of the sequential payments.","page_number":95,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"b8c59fe1-1b0b-4956-8961-29f093b7e2b1","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":95,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"e855a820-e527-4067-9fa8-f5677f6a1696","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":95,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"7cd15a46-867a-425f-bca0-cd8e30c4909b","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":95,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"0830eb05-a84e-46e2-a4c2-72938255821b","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":95,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"b7a3177d-a3ba-4c0c-b397-e33530bf4635","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":95,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"3963ee30-dde8-4066-8228-1c5fc378b197","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":95,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"1e7fd623-bd0b-4874-a8c2-67e1975ec220","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":95,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"886e31fc-3522-49f1-9e19-e0014ff36534","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":95,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"a12d5d1e-7032-4a4b-ba2f-67cd3add9b8d","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":95,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"2e28cf58-a6f7-4a4b-9d61-f698c3a32706","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":95,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"b027d9a3-3169-4582-91b8-221f9a901790","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":95,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"dd737d69-ec6a-47c2-aab9-18c735f30e66","block_type":"box","text":"securities of any single such entity.","page_number":95,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"4d229d99-887e-4c1a-be03-4284f291e841","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":95,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"39f3f7d3-92e2-46e3-a28f-4d8ed34a8492","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":95,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"fa7be425-4a64-4914-9963-73cb606b9f84","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":95,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"90776166-8989-4042-a614-31e03fd49deb","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":95,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"8fef5166-8c38-4a27-a5bc-0fbc51e0e700","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":95,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"80e1ebef-bc82-4e2d-a4c1-e53009dad2b2","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":95,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"ee033097-6f55-4d63-b678-2e2ea3dd0afb","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":95,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"8457226e-382a-451a-9ff5-58c05014b80e","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":95,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"7fcec0d7-02c8-4dd9-86d7-e65efe841a4e","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":95,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"24d01507-b6c5-41ff-bf35-b5b53e0a2585","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":95,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"92129400-7c7f-4415-82ae-0d57bc13ddeb","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":95,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"b20e54df-6e7f-4375-85d1-c47fb5bc4aab","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":95,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"70fc6ae7-8dab-4997-9ce9-e7553cf56c2a","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":95,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"c568cae1-5a96-4f2c-bdb0-bdb341c7e279","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":95,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"7e090648-09b1-4084-a777-a7d8220201c3","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":95,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"9bf5408f-6c7f-48b9-b7d8-0e9d5e2a49ef","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":95,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"84185ca1-6708-402c-87b4-b84a627e5024","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":95,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"8656bb7e-6348-4d30-8ff6-8820c1379cd6","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":95,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"09350f6d-c52f-4b49-93b2-ddcc863cf953","block_type":"box","text":"classes.","page_number":95,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"db1ca1ba-99ec-478a-9c21-31593008de25","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":95,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"c927d8dc-6e7a-45cb-b769-d7612a029fea","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":95,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"a9b8cc34-c0c7-4ceb-b544-769d66d0462e","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":95,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"db4494f2-9f17-49cb-832f-5af61b3763ee","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":95,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"91ea8382-b3dc-4c71-a5ac-9fe2eb0133af","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":95,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"24778d85-f333-48e9-9748-6ffba1cb3e9d","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":95,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"094eb08a-6b4d-41bb-91a4-14e0f92d67d1","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":95,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"2af2ab9e-25d4-4936-bc08-16432c62dd03","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":95,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"646f23ad-8265-4f78-9edc-c1336457b74f","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":95,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"e8f89447-7a34-4e1a-b35c-a11b829973ae","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":95,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"8cedd309-430b-4677-8665-d5fb97ec35a8","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":95,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"3b2b1bd9-677a-4c93-9735-70b050faa052","block_type":"box","text":"to a designated benchmark index.","page_number":95,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"76192ccb-2989-44ad-b384-bd21961d7d9e","block_type":"box","text":"II-53","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"66f5e549-47d8-4558-b7c0-05e5fd543497","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85c68ad0-b3f8-45cf-86ef-4faacd7bdff9","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":96,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"35c9fd63-aa52-414a-a424-da6edeace1ca","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":96,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"8f3c0923-8c98-4bad-b117-75171d99da34","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":96,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"6c23dfc9-c834-4e5e-9855-67d85bfefaf3","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":96,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"35e8fe5b-5c20-49a4-8b6d-2ebcfac8602c","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":96,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"81d4cfb4-7619-4bed-a5a6-8c918befe842","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":96,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"b9651034-1752-4cd2-bb42-ea833c9a8ec7","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":96,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"ab49aad0-dc90-4f46-a38f-5ea18cda3e81","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":96,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"85c49a31-befe-4747-b968-71b4ffd80d5a","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":96,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"6432cff6-0263-4c58-b664-d4361ba0abe7","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":96,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"b311160a-7fa2-4fa7-9b20-c9b7ac4dc544","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":96,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"3b5eaa4e-d06d-4c96-8a76-d10269a8f65a","block_type":"box","text":"CMO Residuals.","page_number":96,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"fa09d063-96aa-44b4-a51d-1b5e46a63ed1","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":96,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"691dd628-2189-4661-a592-0f61b873b8dc","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":96,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"afa251ca-1fac-47bb-a697-65d672eb7bb6","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":96,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"d57117b2-bbba-4644-80d8-4baa6db07c31","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":96,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"e19ea5c8-0690-464c-9f71-219e7fd0c409","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":96,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"be6f3f71-57cc-497d-81f0-bb39f5526fbc","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":96,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"54a77f13-dbd2-49a0-87ed-5a2ac0aac556","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":96,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"83650040-e876-49a3-bcd8-caf71018822e","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":96,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"1b2013bb-1f06-4d23-b8be-1cc56e584c56","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":96,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"6f67ade0-480d-4730-8752-79ec910d5b11","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":96,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"11730308-9503-4054-b8eb-b28bd0b97bfa","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":96,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"66e1985f-4aa2-4b9e-b611-a9b44e6afa32","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":96,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"50f3c958-12af-4519-8039-d75ad3c48fa9","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":96,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"5e42e01f-a4a8-46cb-b1b3-eaf42915e1f6","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":96,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"bc654ada-018c-429b-bfac-d85aa5eaf53d","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":96,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"84231c55-9b03-4dc3-bfb2-7c7c37f087d8","block_type":"box","text":"a CMO residual.","page_number":96,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"8c1d6dff-b6db-448b-93b8-c65ce94a571e","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":96,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"8320c7c9-5ba2-4379-a209-7fe700dea7d6","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":96,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"625652d6-ef9b-459e-b009-f206f82a7575","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":96,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"0ff83ff3-1737-4219-a9e4-dfc89ac7dc86","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":96,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"fb6777ef-8127-4ec8-b9a4-f44e3d540be7","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":96,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"bd56547a-2240-4fe0-899a-775f31559efc","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":96,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"40989397-1df7-4f5f-99e1-871f6df4904c","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":96,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"a09d050f-e26d-4a61-8756-312d112e8a28","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":96,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"d6c834be-cffa-4309-95d9-6acee9a0744a","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":96,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"2031f473-4cc0-43bb-a457-56c812bca095","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":96,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"bed2a5d9-90ce-4689-b4e3-433ec61c22e1","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":96,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"1aaa9e8d-990e-4593-912f-72cca6a5f84a","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":96,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"c3a8cd7f-749f-4b9a-b579-31a0b2be2b3d","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":96,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"af32f233-fdab-4b88-8d64-d80c5bbee426","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":96,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"7268dfd6-0bb3-4b57-8190-85ee538a16a7","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":96,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"c921bf7b-8ea3-40d5-afa1-b92facf17184","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":96,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"f36cbc56-ea8d-4090-bcfd-40c9d92a63b0","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":96,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"cc095bb7-2a8b-464b-b400-f63a5e2e59c4","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":96,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"d11fdf3c-2d2c-4bd8-b2ff-1303fd256481","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":96,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"fbd57298-e6ca-4804-bcfc-042b452e905c","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":96,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"b6ba51c6-d39d-4136-ab5c-5dd58f4a8ad1","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":96,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"d8f492a3-a114-48cf-af79-fee04a7d1e3e","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":96,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"18b9bb2b-15e6-4583-bb60-b66d09708279","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":96,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"66aa9039-b11d-4298-bbe2-630d56beb878","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":96,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"36439284-2d09-4c8e-9787-23d2f966a5ce","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":96,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"ea2ab56a-099e-48f8-9e00-5225de48ea1f","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":96,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"7281f5bd-5258-4c30-a041-89bfb920b491","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":96,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"940aad24-c3ef-4de3-b207-d3054d29920d","block_type":"box","text":"Tiered Index Bonds.","page_number":96,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"4de34692-56e4-4764-ac76-ef9e9d2667a3","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":96,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"5bab78bd-3612-40d0-abb2-c8c0e43d3bd5","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":96,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"781c08c0-a44c-4036-8b7d-a48ffdaac9bb","block_type":"box","text":"II-54","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b0ab4deb-9194-4d2f-9abd-7d090ac646ee","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ee469a09-ef2e-481f-81d6-cfff79be7582","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":97,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"5336290c-4732-4c9e-87a4-db7650897a06","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":97,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"fa5d6514-1547-42c0-9801-06145b2f1afa","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":97,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"16830641-77b2-473e-ba0d-6b17f89b7ea3","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":97,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"073a380c-62c0-496e-b2b3-5cba0d519c1b","block_type":"box","text":"that of a fixed-rate bond.","page_number":97,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"1a92e2b1-d8ea-4de8-83e8-5d2082af1833","block_type":"box","text":"TBA Commitments.","page_number":97,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"ec45a592-b500-4950-9853-29feef4e71c7","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":97,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"b7c66f2c-e2ef-4ced-8b1b-4318c10cf729","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":97,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"9fed20f4-c46b-489e-929e-cf72f29c5022","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":97,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"b83f192b-9b34-4470-9575-22f8824bc183","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":97,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"1e90f415-bbe1-460b-849b-f0022fd0a792","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":97,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"7727db4f-bd18-4c13-aeb8-c58fadeb8734","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":97,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"5f593d05-e7fc-4337-9854-748d9aa43d79","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":97,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"4ea21afe-8b5a-47e7-8f26-2f6fbc7c21a4","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":97,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"b979e284-8569-4ad9-bd3a-2a2dedb11d0a","block_type":"box","text":"below.","page_number":97,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"ac05d36d-f785-4f4d-aee8-abed0953053b","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":97,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"4cc5d3be-d2d4-4a56-8636-d354a76a8715","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":97,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"be48df9e-3bc8-457d-aebb-a2b97718e79b","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":97,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"938e3756-8962-438d-a884-9967843eaa83","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":97,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"deb1b0ec-5af7-48a6-bc82-53567642dd4f","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":97,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"3fe32b12-b8d8-40b4-ae48-3dec687e7b4f","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":97,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"ffc63df7-d009-489d-b0a2-66e6996a95f7","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":97,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"6c6c3ad5-9cf9-49d6-ba04-f0348bb564a4","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":97,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"1be9c9a2-f0e2-4dcd-b2bc-b4e3f9862fc1","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":97,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"3d7ca16b-b853-4853-b9e5-9fdd53133c62","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":97,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"ef8e24e3-a5e0-4d11-a0a0-c6c82f72f0ee","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":97,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"71279b13-f190-492e-8b24-83f705abb671","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":97,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"285683da-3e1c-4237-a1b3-89101ea55ae0","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":97,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"4d0ba26b-ec93-4458-a9f4-7ecd19a859d8","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":97,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"f7f45e23-3f5d-4cb2-b48a-13b61f9559d2","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":97,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"8a362dd9-ebbd-483a-88f3-f4464d3fbbf0","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":97,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"6e097196-cf13-4d23-a7a6-e8c6cbb257f9","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":97,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"e828e316-ed85-4ee3-8df2-d3dd098ed7c2","block_type":"box","text":"securities in the forward transaction.","page_number":97,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"2ca7f2ee-7bca-4384-af11-ee18c9e7ada3","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":97,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"e873d9c0-7e6a-4e45-881b-5bf1c6013fde","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":97,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"f265ebd3-5de5-4786-9d4c-e1fba6e542a2","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":97,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"d4fff286-8a5e-4edd-b723-9017812fbce0","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":97,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"0e3fc547-188e-4f07-8f5c-154ea56806be","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":97,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"0c09d2b2-dd96-4e48-bc51-192e748c17a3","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":97,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"638ed37e-101c-4778-9659-f45ae75697a9","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":97,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"2990d8f4-648c-4324-9527-86fabca4900c","block_type":"box","text":"securities (","page_number":97,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"5e207c95-dabc-403b-b1c3-4e54837aedab","block_type":"box","text":"e.g.","page_number":97,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"2bab5b19-6492-4b20-be5b-45d7e51ce49a","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":97,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"e9abb0cd-160a-49c1-83e5-65e20c4866c1","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":97,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"3c83f4e3-a87b-419f-9b15-b098dd5df8c1","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":97,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"3950236a-1d34-446c-9b11-c8734fc6adea","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":97,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"2d353ebf-565e-4437-bbc4-807161be6978","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":97,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"20867159-1e6c-474c-9ce2-1ebf132e8ab4","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":97,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"f5c9ed4c-6b9a-4aa0-98aa-5f7d4299b48b","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":97,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"f3d95bc7-6014-4acf-aaf2-9ea296d8be8b","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":97,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"16468d54-6090-47d7-9071-c0d8a38afd1d","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":97,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"d1c786b7-5654-4b74-a252-0782edaf15a8","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":97,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"5f44cb07-3ca0-4f3f-8f59-e02eb88f471d","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":97,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"4ace7a0f-f3ff-4033-b028-1bc59d8535db","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":97,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"71ee2af2-0177-4e5f-b868-2189e2ee3a07","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":97,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"f5671e90-3dd4-4e77-be72-b5fceb3cde75","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":97,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"272c28f3-aaed-4e5f-90c5-b5c0cdfd28c0","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":97,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"60c34e20-a0ce-46c9-98bc-7053c289f663","block_type":"box","text":"Municipal Investments.","page_number":97,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"845d5cc0-a68a-446f-85aa-860f67b54716","block_type":"box","text":"II-55","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3492e9b8-5a2c-41a4-9a96-936c2eb7e94d","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a4daa855-2022-4785-8539-a41cbbf0f087","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":98,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"e9fa915c-8589-49ac-b7dc-57342a393f38","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":98,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"3fcc3797-d963-4f88-9ae0-68066132013a","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":98,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"5dc727ae-724f-4d8f-99ea-18052b1ded0c","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":98,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"295ca743-2b20-47f4-96dc-83d273029e7b","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":98,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"7422d733-f1ed-461f-93bf-f89726653c64","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":98,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"14855890-1aeb-463f-8847-f6004b2dc964","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":98,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"8e4746c1-2cea-4123-b0ea-8c2a077763a8","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":98,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"455daed9-fcb2-4caf-9642-c5186bfa73d7","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":98,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"a388c073-091d-4033-a6fc-8e1061a7d061","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":98,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"45aadbf5-185a-4644-94fd-fe3736365a17","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":98,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"b5011ddb-ddb5-4a2f-84aa-07df8f65de1c","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":98,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"5b94a2b2-d224-4976-8820-62b8b9de8814","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":98,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"dd4fd0bc-c641-4018-8cb0-6d0f228a807c","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":98,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"92d65d7d-8a1f-4098-9a71-b715f4f200c5","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":98,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"b5d049e9-1c4a-427c-b29d-c85eaaf698e0","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":98,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"9dafd52f-c3c9-462d-9d26-5f520d946e54","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":98,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"9abe76d2-90d9-4752-affc-0515f0089ac5","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":98,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"5166b2b5-e9ba-4eff-8a5b-3a4d5c1a8a80","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":98,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"026f1bc3-e68d-49ba-a184-65c36aef44b5","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":98,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"5ffe5673-097b-42c6-b2cc-5185c2108057","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":98,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"d9a4d3a4-07f2-4146-83be-22fcd94bbd1d","block_type":"box","text":"The risks and special considerations","page_number":98,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"cc891961-3053-46d3-bd41-b82047bf674d","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":98,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"5f569f83-7c67-44bd-a07b-ec1bec20698f","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":98,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"629de2bd-3abb-4376-9112-bc991b4a602c","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":98,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"12e88c35-ebfe-4d31-9caa-fa3677b66e98","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":98,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"50ea0536-1f8c-4891-9280-6e122a4a4669","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":98,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"8eec4dde-51b0-4a51-88bb-3a3609cb6e89","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":98,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"7953532d-6afc-4aac-8b5f-f1b6949c0a85","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":98,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"d92c1727-ae97-4f26-8551-ad2c8f30b1f3","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":98,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"886c04fb-fc7d-4385-9a24-91acd3fbb0bf","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":98,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"dd406c34-e893-4997-b005-7d59acb45c8f","block_type":"box","text":"II-56","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d51c134d-67f8-4ac8-9fb2-801409405d61","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8d8f901e-3f15-4b7e-aa74-8a0c315dda69","block_type":"box","text":"Description of Municipal Bonds.","page_number":99,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"1635df2f-f3a8-490b-b77d-f5f011201195","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":99,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"7bcb86e0-88c4-41ff-8358-27ec1b6ade75","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":99,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"7e0722fd-d764-48c3-a0b9-03882f2e82ab","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":99,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"602374a1-a9f9-4647-91ed-166fab3c8d12","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":99,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"c3e2562a-1135-41e7-a771-7c297c842b0b","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":99,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"8c60b27f-7329-4d1d-9bdf-ac6f3a69f532","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":99,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"71b650bc-f5de-4350-bd7c-8ccb2a1eaf5b","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":99,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"38d9893b-029d-445f-8a62-b5c2d11a8bdf","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":99,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"76a4bc8f-4424-4c42-ad80-d4ab91f57320","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":99,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"44187ca6-d477-4f33-bee9-683505e58d9d","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":99,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"fd0939e7-4834-4ad9-942e-b9fca67439ef","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":99,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"1fa2779e-e043-48a7-a66c-10f8e8323620","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":99,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"a9d635e7-4afc-4e92-a280-df7877e390b9","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":99,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"6eebae5e-1906-428e-832d-2b4d82b74e5c","block_type":"box","text":"General Obligation Bonds.","page_number":99,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"530ad061-a34f-41bb-b350-4541d495d453","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":99,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"dad41a0f-0e99-4464-b7a8-2a0e989ef973","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":99,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"b14e8c28-2a3a-4b95-8ea4-f763b783bdd8","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":99,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"908471ff-4f5a-4750-a8ba-0ea66ff8fbfc","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":99,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"7003652d-cd0f-479b-a846-877895ba1d7f","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":99,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"12ddd047-58a4-497d-8a86-f0e1d719954a","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":99,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"e019cfdd-7c9e-4258-bd2c-e8ec769a6775","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":99,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"e85663a3-99f7-4996-9bb1-b4c90b9ccdcf","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":99,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"2a851dd6-de5f-459a-b0bc-193aaaf6d665","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":99,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"09a972ea-4219-4089-8f6b-027f9804972c","block_type":"box","text":"Revenue Bonds.","page_number":99,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"8e52cee2-7b12-447d-86d8-00c5abd20410","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":99,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"ae38abe2-6f23-4e55-b3fd-62aaec1bc651","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":99,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"5126329c-ba04-4d17-82e5-e20741805d15","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":99,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"1f0db6c0-e341-405d-bfcc-8c502f038952","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":99,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"e80a70a7-cb81-473a-a6f6-949b8b960626","block_type":"box","text":"viability of such facility or such revenue source.","page_number":99,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"ee2ef378-1a8a-4790-b979-b9fff6c09112","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":99,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"a6f2207b-1bfd-46b6-b727-d4592e9886fa","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":99,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"35432f61-c3aa-450b-ae7e-7ca9a20dac2e","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":99,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"e3a8d18a-c5ce-4ef9-8c8c-c9e8b459554d","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":99,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"e0bfe0a9-7736-4b7a-9ce2-60a1e695d15b","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":99,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"bb353581-a610-49f2-b448-d3d407b6c68d","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":99,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"5d5da077-181f-4a51-b9d2-f46ed9f85b77","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":99,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"80762b7f-f31c-49fc-b893-445876e6ef9c","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":99,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"1d960c51-f586-4dde-876d-15bf54ce1881","block_type":"box","text":"PABs.","page_number":99,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"740fd92f-37eb-41b4-b118-9f20c7d8cf84","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":99,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"72ea48a2-a135-4119-a72f-d9dcf5932ace","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":99,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"1eeb6670-337a-4266-b878-12a9bff7d5a6","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":99,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"cab3436a-fad2-493f-8ddd-e36a892be5a1","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":99,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"b551ee02-b684-4090-a5f4-bfb03f185c18","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":99,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"d9335975-2cf6-4541-bf30-c86bfe375d42","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":99,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"ed70fb37-34eb-4b2a-b070-fff0772f4bf2","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":99,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"2894de86-ed87-4ef5-8a20-25c579897223","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":99,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"b9f288b7-e43b-4570-9109-8e42e205bb65","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":99,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"3cb084ca-42a6-4c10-a37f-973611abed91","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":99,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"5877a103-dce0-40bd-b2e3-5ff57f9e610e","block_type":"box","text":"the particular facility being financed.","page_number":99,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"3e7fcad2-a9fa-468c-a18f-f68592c920fd","block_type":"box","text":"Moral Obligation Bonds.","page_number":99,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"b870e91a-eee5-49b8-96b5-07a85143d7c8","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":99,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"fe8a3b61-bb0a-4fae-84f6-d224cbb3ea9c","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":99,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"e54073ef-9603-40ed-aeea-94708980b231","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":99,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"55155395-ddbb-4514-bea7-ad257f2784a5","block_type":"box","text":"that issued the bonds.","page_number":99,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"817b55c5-eacb-427e-a9a6-8f21c3995038","block_type":"box","text":"Municipal Notes.","page_number":99,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"c05bb383-4e54-490d-8732-07bd4be49bcd","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":99,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"3d358502-61c0-4b86-b2e9-e69e2dc775b9","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":99,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"5338a48c-af63-4d3c-bc9a-23a8589b70f2","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":99,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"1a9949d8-7caa-414d-923f-d4714dbeb6f1","block_type":"box","text":"II-57","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1b5c2b52-c405-4b8a-87ef-cf920395965e","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b851632-5cd5-4b2d-aa32-2c8d0aaae18c","block_type":"box","text":"Municipal Commercial Paper.","page_number":100,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"6ceecd7a-ddf5-464f-ab1e-16b31e181347","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":100,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"2e951db8-7a89-486a-84c6-e25513e20fd6","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":100,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"8ac39d53-2b2d-433a-bb03-dd10f48ed180","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":100,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"2404c1e9-533e-481b-9b39-eb53d9ce95bf","block_type":"box","text":"Municipal Lease Obligations.","page_number":100,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"f372659f-2974-4c97-98ad-900165eb3353","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":100,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"f0a0545a-75c2-4d24-a8cc-a840b04a551b","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":100,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"b61baca7-7348-4a19-a6c5-8daab1646a11","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":100,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"dabbb35a-6efb-4b7f-bef6-d7ab16f1eaf1","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":100,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"e3a1db52-10d4-4f2b-a7c0-2a0259a826d6","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":100,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"7f87053e-3fee-495c-a863-69f915f681c9","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":100,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"27bd72c9-69b0-45b1-80cd-2158ba232cc3","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":100,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"aa110b81-07d4-4a70-a480-1432cf0c3310","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":100,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"7b1bb01f-adb6-44d8-b857-8b6546ce21b4","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":100,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"eea0f568-98bb-480a-9fac-f6bbe5edf35a","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":100,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"bad665dc-d4cc-47f7-ab6a-a6c86cff4f40","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":100,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"13c76bd0-b308-4a73-98ae-58e5564dc567","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":100,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"a1fa95b7-5da3-433b-917c-a17e0d8409bd","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":100,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"a968fb29-33ab-4ae0-b185-df8222c6fe17","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":100,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"c9e942e2-1d03-4951-894f-7b64b2f1fd55","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":100,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"8ff663a1-ab0a-4275-82b2-75b979118988","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":100,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"c5fc7e48-aebf-4612-b40e-3466330208fb","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":100,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"03272255-fe87-4059-b6bd-041203f52948","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":100,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"63b47bed-2a3f-439f-80b3-6d2f7ba5f63e","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":100,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"1cd8e5ea-0ec7-4747-802b-99e45620244f","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":100,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"8357f056-3893-44a6-82c0-dd1f2e2ed3b5","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":100,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"db7ec4be-69a0-4784-bebc-9ee5b4e56155","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":100,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"a8957df8-f5b3-4e02-8a08-377a33b94e7e","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":100,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"513ea8c7-880c-4402-9ae7-192ee2c0aef4","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":100,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"680d968c-e4c2-443c-a0b6-e26575b0d8a6","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":100,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"f81513e2-b5ca-49fc-99b5-2518d8661b16","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":100,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"69d63bd4-906d-4af4-b927-ca735b3c396e","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":100,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"d98b7bad-cadd-4054-88e5-8aeca720074f","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":100,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"a10f7d03-6d82-4066-8ace-35734f75e4b9","block_type":"box","text":"Tender Option Bonds.","page_number":100,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"ec86d7ae-cbc2-4327-8641-d210f05f0c62","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":100,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"454fb20b-cbca-440c-ab9a-4d3655364f8d","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":100,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"12dac272-bf38-40d9-a637-8b76196ffc4a","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":100,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"515a5754-c8cb-4de4-9b80-54a83b039ec0","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":100,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"1f672065-3baa-4392-8c26-b606e39e5648","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":100,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"4d42dab5-f4d3-4462-8083-2d09fe95c8c9","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":100,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"d31c9da6-dfc5-4972-b171-fe0ff199e0a2","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":100,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"d0a6828b-3445-43b6-b0e6-2f10bf3e0451","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":100,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"44037f1d-d850-4fd6-b8c5-41fd683b3670","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":100,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"f25cbf75-0e49-4bf3-acfe-6b26a35b17e0","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":100,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"f7035ad3-082e-4a97-a7cf-7c183519c164","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":100,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"2d2f09ad-b5ac-4ca1-b14e-efc1388b4da0","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":100,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"0267eb6d-a13c-4428-b796-7559768ada18","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":100,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"4c1abef3-879d-43ee-852d-a8e787cf0882","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":100,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"39008429-f7eb-487f-8680-d07558498a65","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":100,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"355b147c-608b-47d8-a00c-67730f004737","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":100,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"75d7e327-0ed7-4e32-a8dd-f0cac56a18ce","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":100,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"fd5dfdaa-5196-44ae-ad92-a7e5552fdc11","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":100,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"37b16162-5590-42d6-8a19-94bbcc251802","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":100,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"b9003577-9829-4c38-bba0-633fb5f4baa3","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":100,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"c34d3e2b-f0b7-4c2a-b19b-2f91ff68a1d9","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":100,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"b7c55dc2-ca71-41a3-80bc-bafe2a5bb99e","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":100,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"62084b59-a66e-4304-8e3f-5fcce5f316bc","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":100,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"b959f535-49ed-4068-ac56-aba5e18b2a0c","block_type":"box","text":"participation in the TOB Trust.","page_number":100,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"3c5278a1-600a-414a-ba0f-15d1ee4ee717","block_type":"box","text":"II-58","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f600a6fd-900e-474d-ab60-294941390a33","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a59e4c70-c9e5-4493-9c27-ffc85d54a13e","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":101,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"a5839c73-9cf3-47bb-a8db-e227a9b67a50","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":101,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"3a9834f8-c636-4a45-b8c1-7a7262664069","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":101,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"0697a6f0-088d-4f6e-aee9-40fb7bb86630","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":101,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"2a9b9813-8e22-47ec-9f13-d5697b0d6366","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":101,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"12f9962a-886d-48a6-b72e-759bb1c1f518","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":101,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"3f710966-1535-4354-9949-a57fdc849d47","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":101,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"90399b7a-bf4f-4eed-9a7a-25f5fb51a5db","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":101,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"9c63a32b-1a50-43c4-8eda-674a17417634","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":101,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"d3ad040f-325c-44e4-a17f-b84a87962328","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":101,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"b0596184-2c45-443a-8adc-10367d57cd78","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":101,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"18e75113-1583-4917-aaca-030cf93955ce","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":101,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"f293c676-2d43-4ddd-bfc1-9f022efbc9ed","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":101,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"f16198be-8234-4eef-b1ba-86401f92eaa5","block_type":"box","text":"issues.","page_number":101,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"a7a9a8aa-80d1-4a23-9771-014603cd0bf8","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":101,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"07a2d9a1-0e64-445d-b5b4-c1cf4ed6d7f5","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":101,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"e922d429-7ccb-4342-818a-4166e2bebb22","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":101,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"a78499ad-b57d-4b42-bb93-3d0747eb5621","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":101,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"a9abda23-fdd4-427a-a373-259796d08a33","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":101,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"7e5f6cae-616c-465b-b1f6-67c4c75068a4","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":101,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"08eeb65b-55f1-473c-be25-ab29d39d0ce0","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":101,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"96ceabfa-1db6-4004-b420-de1304cb2fa8","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":101,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"3c04cd6e-ccc3-4aa8-9e05-ea32afd80924","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":101,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"eddfc14f-0854-476b-b561-66fca5aa6cc4","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":101,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"0b68fbf6-f294-4bc6-9b2c-e2d73ebdd052","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":101,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"8bf96b80-c9fa-4a3e-a595-e71d3453873f","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":101,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"1c3dcb5d-1ac5-45ce-a7e3-0ca8df83cf33","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":101,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"0d356011-1650-4e21-9191-c297ce7cd68a","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":101,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"f0060d74-c59d-4f1b-b87f-a9d20f87d7fd","block_type":"box","text":"i.e.","page_number":101,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"2305f572-7232-4a00-941c-63b48184dd14","block_type":"box","text":", the Fund). In contrast, in the","page_number":101,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"1c7f2164-c560-45fc-9e98-b70215665c9f","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":101,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"ab257a0f-5c85-47f1-83dd-781af96c8cda","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":101,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"9650d1c0-3428-455a-9d38-5f7487440683","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":101,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"10ef682c-0db4-40e2-b706-4f02ffed6df4","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":101,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"c75aacd8-4aaa-4d30-bc6e-5b2c087dd6bb","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":101,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"99138542-0827-43e4-b6ea-c55bc8985daa","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":101,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"11e58239-b6f4-4792-8196-be80ffc91bfd","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":101,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"8af70a4f-3c5e-4e9e-ada1-40bf674d454c","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":101,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"daf64c8c-5681-474a-8fd5-cafd7955300f","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":101,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"3ed82e92-9b2a-4c7e-9cb1-ff019efe90c9","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":101,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"ca838e80-dce0-4f18-90d6-1f48783729be","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":101,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"fc1dc7aa-ee25-4636-9b89-b18e67561bc1","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":101,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"9ebf81ae-e290-43ff-b97e-4a9f1537296d","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":101,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"f27ee183-6dfa-427e-bdd7-64d079172a8e","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":101,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"c0fe45bf-da20-4f85-b9d2-6b00886e24f9","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":101,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"824ad382-92a9-4717-a041-e93e41368151","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":101,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"1c55ed52-1e59-4b19-9fe2-cd80fde2efbf","block_type":"box","text":"Trust.","page_number":101,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"f455a50d-9817-4d4e-a3f8-c1401c80fa67","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":101,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"92564a1b-ab77-4830-b1d7-e9e4788efa7d","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":101,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"19bc1bfe-62b8-4343-a2c1-f10a010536ba","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":101,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"bc28bb47-3698-45f3-a276-51753fedc1c8","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":101,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"b3eac91c-172c-4e81-810e-673605ccadc3","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":101,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"07cfcb93-76dd-475f-9fcc-ef5a583ae607","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":101,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"d168384c-2ebc-485c-a6dc-0b956edef44b","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":101,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"83e0328c-2b1f-41f7-a642-46016b304d82","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":101,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"643684be-89e2-4f14-83a8-0060f5de63f6","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":101,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"928a5d05-d0b4-4ff2-881d-4c8b2f257595","block_type":"box","text":"II-59","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cc18d5b6-a022-44cd-bdc6-ef539393c6f0","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3cc79e63-3aa1-4123-88da-ad7c639dac55","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":102,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"fe7bc97a-9cfd-4b84-8300-587ed11517fc","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":102,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"728e8911-d759-4d64-9881-0fdaa5e0eb67","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":102,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"9be52953-30bf-472a-8718-3722a269223b","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":102,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"3f287121-94b8-4e27-8f03-c3617246c6c3","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":102,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"be62c53a-b9de-4978-9b46-60180293144b","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":102,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"21fba8f3-96dc-4b38-8367-3b633300d772","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":102,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"e5cb2828-40e1-4b99-b422-a4c7fa6bee00","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":102,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"c0f87c08-856a-4f08-8154-d74b42db7930","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":102,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"e6c82a89-aeab-401a-b7d5-ca09b720fb7a","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":102,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"de91d147-2674-427b-9ef3-1fd969e9f563","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":102,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"1d489b37-1e4d-4342-9d28-18fd75a9eac3","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":102,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"d4084787-3832-4938-9e2e-6e5af7627ed1","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":102,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"b8dd7e92-9da2-4642-ab63-91987b0f2219","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":102,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"0807d9c7-6975-4cab-9ab9-ffc829a537eb","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":102,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"fa5ecdd3-0d12-48bf-ba1b-cd86fbd6e607","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":102,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"4e94e46e-54d8-4872-99c8-fff8b4e6d1f3","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":102,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"fe8d21a4-a98f-4aed-98b4-a95014e442d6","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":102,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"d91faa14-9e3f-4486-92e8-cc7ac0505f25","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":102,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"0be20143-81ad-459c-a8fc-4cc086e55c1d","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":102,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"fa282db2-b092-48ad-b6bf-f8b192ab0d62","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":102,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"3cc138f4-72b9-4839-ac7c-a3a565959257","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":102,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"fe8eab64-9046-47bd-81d2-7f639ded703c","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":102,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"4abe2d62-2991-42df-b709-1113847787d4","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":102,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"4a387222-7c08-46a0-9ccd-79814358286d","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":102,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"37d89c75-3154-4cd0-a91d-523fb63c8194","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":102,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"7fdcd5f0-62a2-4d14-baed-8a00b39a0803","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":102,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"08b80546-ef1b-4bee-8afe-f0b6488d3560","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":102,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"83b1e426-2035-4913-a3cb-ace59a13ef5f","block_type":"box","text":"i.e.","page_number":102,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"028ca6c1-45f5-49f0-9aae-79f64bcb7366","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":102,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"50fcf5db-eef4-444a-abcf-34a40f6e3686","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":102,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"14307756-e422-4667-9420-e2c77a2da632","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":102,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"4ea790e6-9d42-462b-995c-094d7419012f","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":102,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"24d4fa2f-3130-41bc-888d-76abaefd1845","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":102,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"6888dd1a-39b3-48fa-a691-75d399bb520c","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":102,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"12a03b72-d026-49dd-ba40-aa5a26da5282","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":102,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"e846a26a-1482-418d-95cd-e3c6eb64e97d","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":102,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"15e2ca92-f9f7-4548-ba9d-59fdbafbbf15","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":102,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"fccb9035-d5b1-44b0-adfc-e2f022e58a11","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":102,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"4869fdd9-372e-4bda-badc-1715918b62dd","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":102,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"52b53053-524c-420a-b96d-8d5f8525add5","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":102,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"2b9fa19a-470a-4203-981c-a242b3d9b094","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":102,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"115f80f3-56e0-4dee-bcc7-02397e996716","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":102,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"188e84f6-8cee-4a3f-af26-917c324c9c03","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":102,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"0ab4a8dc-a770-44f0-bdf1-a804ebae7baa","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":102,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"17e70d72-4cc3-4c4f-aba0-c925e84178e6","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":102,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"3f4b39a0-6f71-49c3-89e6-ed12760ba687","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":102,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"0c73066a-3a4f-4daa-9ba2-57bf0f0a9a52","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":102,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"a876b9c4-1bc9-4271-a06a-4293fefe3be8","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":102,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"2f527efe-9c73-4a1d-8039-e52e91f4c900","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":102,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"0a9d1c95-090c-4b32-bdf2-4295dab0a2c0","block_type":"box","text":"market is not yet certain.","page_number":102,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"21b926ba-70cc-4256-83a8-e1dce4f0d21f","block_type":"box","text":"Yields.","page_number":102,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"a7bbab5c-a7a1-47bf-8e93-eced21cc48c9","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":102,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"9f16ae72-c2ae-4830-8411-10c119244e5f","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":102,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"9aaacaf2-8a15-4f97-adf0-bd2b00b68470","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":102,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"cde5f82c-db82-453d-a338-fe25414696d5","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":102,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"9f4c4576-84ec-4690-9025-9b5963c5e812","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":102,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"a2ee70d4-2468-4965-9ccf-ee08fff9862c","block_type":"box","text":"II-60","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d1d2a59f-24b9-42db-9dfd-1f30e951279d","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"da697cbc-86b9-4b5a-a3a6-e6352c3af1f1","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":103,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"75a05fc3-3837-4db6-8790-bbbd2b3c4576","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":103,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"ccb9db59-c545-4ab9-a232-22398aa29647","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":103,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"9020190c-b8bc-495b-b653-858271d6ea0c","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":103,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"2b2bccdf-f804-4d92-8fb9-a743a0492e2a","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":103,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"51f02d90-4ab3-44cf-931b-dfcdff80523b","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":103,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"19007108-b197-4448-affc-287b73c8f839","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":103,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"63a0643c-32e5-491b-8ec1-81c958162744","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":103,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"f74cd982-82ee-4756-87fe-182a2c808888","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":103,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"ca6b433e-5a03-4d20-9932-0b97375a5137","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":103,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"8884cc1c-6ec5-4c40-8c36-ca99892110a8","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":103,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"616b35e0-9a47-4369-b5ea-513094c51efa","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":103,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"8316c70b-76f2-4a01-8a74-b541d8f47780","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":103,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"46cc49bb-37f7-45c9-97ae-6689d8637b83","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":103,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"f776b4f8-96bc-4380-a620-70bb348f981c","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":103,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"3f71017d-e8dd-41e4-acda-13be1ef55c27","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":103,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"f96be415-aa68-4326-93ff-a600e09ec9a0","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":103,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"6295e0c3-f413-4d47-99bf-db6ad77adfc7","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":103,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"1db02c8e-5e71-4d8d-b974-bc99dbfc85af","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":103,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"2c24dd77-09a1-4e2b-847e-03a57d196844","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":103,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"26ec9eb5-209a-4dff-97cc-55c6597ea2a1","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":103,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"eff07052-e189-4c8c-8494-4482371a196e","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":103,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"86dc2dbd-8f69-4db8-b2a0-5988f83cd15e","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":103,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"6d835e84-a614-46ff-a1f2-42db89e0c00c","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":103,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"d15afcd8-5275-4733-b99c-565a833be857","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":103,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"5b42d00f-56bb-4f46-a352-d55c603ee678","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":103,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"9a6aeb25-6caf-49c4-876c-2711b8afb5f2","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":103,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"c96e1ae6-7779-44e1-8485-c0cff63a3c42","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":103,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"dd24cc7a-2f4f-4245-9342-a90c20aa8bac","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":103,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"2a7e09f7-36c6-46e2-8030-5f7bcd544b63","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":103,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"e6c85540-d7c3-4214-949d-9c5d722436b5","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":103,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"f4fd9d4c-3e25-474a-89fe-ab7e16324843","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":103,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"1762e795-ce2d-49dc-9941-bfa43afc7035","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":103,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"01f9fa44-2814-421f-a6f2-153dc721ff0a","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":103,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"2ae0ec12-2cb6-4ce8-966f-75edfe96ea90","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":103,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"76cfdec4-88ca-446d-8626-5b950311b71a","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":103,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"8d9ceab5-1754-4605-a0fb-e77d98716a2f","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":103,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"783ad222-a07f-4685-869b-329bd08cf0ae","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":103,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"fc333932-7838-40e1-a648-cf2ba6a3f020","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":103,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"3c03b4ee-0bc2-4e44-9c90-074b763fd85d","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":103,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"aa82c831-4804-47c8-a04b-6b8e7db7759a","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":103,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"4f7e88e2-f339-4b69-9b50-24ba1e089a9f","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":103,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"a292c3c1-6413-4711-a4a6-89ec7f25eb33","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":103,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"85fef2f5-1408-48bb-bf2d-7a33959e8d13","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":103,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"9e609fb3-c36c-455e-9731-7e1f7a84d257","block_type":"box","text":"Call Rights.","page_number":103,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"b85f864d-c992-4be3-8d63-296a1707b955","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":103,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"091792dd-4c8d-4c5e-8683-def309adb314","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":103,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"bd98bab3-25ed-4ad3-bd3d-2def77d98c62","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":103,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"f9f9ae06-8cb5-4665-b7d4-c6781392e74c","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":103,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"51327a1c-023e-4efc-9e4c-fbda8380209b","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":103,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"83c33414-9ad7-4572-a730-f0d6bff47437","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":103,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"5047b692-384e-44f9-971a-2ad6689d48de","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":103,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"fd5abb98-3a83-4d96-bfcb-a9f8e127bf34","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":103,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"4fb41dda-84f8-4886-94ea-b44190e20c2a","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":103,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"5bbe2010-f646-4fea-9158-aa76413ee41c","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":103,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"61216a22-f00f-415c-a6bf-e82ce77a4f2a","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":103,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"fb38bec4-eeb4-496b-a14b-ee6a1464cb36","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":103,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"db5eb42d-9427-4c60-a79a-26ad29d80f55","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":103,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"84d7a254-390c-45d4-b89d-1510cc41688f","block_type":"box","text":"II-61","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6c124571-3723-433d-933e-eea6f317c2c2","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"40c36422-5a83-4db4-b0ed-55e9f9576149","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":104,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"fbe8a6e9-0172-4394-a100-20672d8b14a7","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":104,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"623f9fd6-9c40-4af0-9c23-497ddeb57b4d","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":104,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"1b0af107-fc28-4f56-9bd8-49013e465341","block_type":"box","text":"i.e.","page_number":104,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"eaf36967-73e4-48f1-ba81-29ba7885ae70","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":104,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"e8387641-80e3-496d-a1c3-0b6e8a6937a2","block_type":"box","text":"rates).","page_number":104,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"c2cbf97d-eb1e-4706-bbe1-24e7703283dd","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":104,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"d26f56af-bb33-4c23-85c5-b8c6ec7c72bd","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":104,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"cc7c45a4-7e3f-4957-acae-e449a0689dbb","block_type":"box","text":"e.g.","page_number":104,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"2cc3cb48-33d6-4e1f-a584-9409a99401e1","block_type":"box","text":", an exchange of fixed rate payments for","page_number":104,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"a28eff32-f7ce-4bf5-bb2f-d2dc8bed0a7e","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":104,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"024082d9-1876-4c7a-8f9b-15be59cf77d6","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":104,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"b44b4cdf-6989-4134-86d4-b8d69c27b3de","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":104,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"ae6e1bb0-9991-47e5-881e-165ed9db1c2b","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":104,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"ae801d36-89ee-4c99-a30f-6aa7932b865c","block_type":"box","text":"with the same attributes as the swap (","page_number":104,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"d0544a54-f27a-4dca-86cd-3587cdc8236b","block_type":"box","text":"e.g.","page_number":104,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"c28f116f-65be-4b0a-ab84-c042f4ae5b64","block_type":"box","text":", coupon, maturity, call feature).","page_number":104,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"a113f7e6-e525-46d4-af2b-6c1ba79752b4","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":104,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"1d89c5f4-e24a-494f-800d-fe9967b554a5","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":104,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"ea0146c0-efe3-4a69-9d6b-a38f75b7f6d1","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":104,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"a58fa454-e912-4e6e-8efc-c09e8cc18d77","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":104,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"21a2bd72-259f-46ed-bd67-45dd7416caa6","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":104,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"a756b62c-882a-411e-b6dd-97d06f9b6722","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":104,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"d3fec9fd-4379-439f-b074-34b0cd1850e9","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":104,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"231e8a3e-0497-405f-bc29-1330cc7d6b38","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":104,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"f980f251-2623-4fea-9947-11d3ab7fdaeb","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":104,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"8b34f996-6880-4d3f-a409-828e5abb4b91","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":104,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"bdf0d374-89ff-4547-8509-0a0b9af598b8","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":104,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"4b7ec180-5c30-4d76-8984-b1e99bcb1ce6","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":104,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"f4c7e99b-b114-4f53-a0f6-bb075ac8ead7","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":104,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"3217f7f2-2887-448e-9228-513e7d4b39ef","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":104,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"beaa139b-436a-4f3c-b132-49c243d02d16","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":104,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"44d89ab3-d18b-409d-a8bb-38f77cb89975","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":104,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"f345d76f-f544-4943-b2e0-36935382bf99","block_type":"box","text":"Insured Municipal Bonds.","page_number":104,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"48b551ef-b631-44dc-b0ca-3f0b2a3e77b3","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":104,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"6c4ce750-1197-4ca5-9e0b-1cdda20ddd5a","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":104,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"fab4c8a2-c5a7-472f-afac-26ce4d36ed29","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":104,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"7188fad0-4415-4e55-a973-7c4a1b5a9b43","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":104,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"7e4841de-2ece-4d33-9a95-9dee30b7257e","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":104,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"80e4db91-9fb7-4c98-ba9c-861f09f88cef","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":104,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"c2d19f7e-8999-47a4-ad66-203a69a25b21","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":104,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"adcb8612-e79b-48e0-9282-536f9039fb9b","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":104,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"f97d5f26-df3f-4c96-a55c-fbb1d111b0f3","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":104,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"ec7f59f6-e3ab-4c46-8245-b814a80f18de","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":104,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"0f58212a-e23f-49f5-b659-43ed489b777d","block_type":"box","text":"bond could drop.","page_number":104,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"b6fb1334-f215-452d-835f-9584b9a66538","block_type":"box","text":"Build America Bonds.","page_number":104,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"a1c41e28-1a9d-4dc6-9aeb-5bb9c32c2b2f","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":104,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"177725a0-93f9-456d-9a3e-bfe5d335a684","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":104,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"c56fa44e-ea77-454c-8070-9127506ae424","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":104,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"61b0ccfc-8cdf-4891-8cb3-74d1f77e0ae4","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":104,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"2645cbc8-a695-4e71-b35c-b54fd44a6761","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":104,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"b496716d-2cec-4c76-8242-33208bedf3ac","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":104,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"0a9b4cdc-1595-4fd3-a81a-bd519ac6df44","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":104,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"22929c1c-6a57-4602-8cf9-c9510a3bf071","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":104,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"d477c8ec-a2e4-4a11-a29d-5613cd8a69f0","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":104,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"ea08a325-ee85-46d6-834f-e89f06c08f92","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":104,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"fccab5e6-201e-48ca-9095-15ab4e934c1f","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":104,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"1f2c1fc4-441b-4226-99a9-de06aa1152ac","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":104,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"094f2ff8-208b-4612-973f-ca6657b2aa24","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":104,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"b85a1501-22c3-4d10-8cd8-48706ee15854","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":104,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"4079edc9-5f37-4691-afb3-c834fbe32995","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":104,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"64bb52c9-b86e-47bb-a554-231484170ef6","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":104,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"fa7c672c-d972-4bbe-a1d2-4b469c47029a","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":104,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"b067bd09-b8c9-42e2-a21c-dca866c980b3","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":104,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"e9029bfe-543f-4bb0-b1ff-38f69f5de421","block_type":"box","text":"II-62","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76541a84-14ce-461d-8f40-459a7266a475","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a0f1d145-d0ae-427d-8396-a9072da49ba7","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":105,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"c60859af-d8cd-4718-90bb-4e2aac7e5ca1","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":105,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"aae97eea-d774-4de7-be43-851e091759ff","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":105,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"d7bada54-986d-409f-9f4a-e1abc5c8df58","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":105,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"bf29b67c-759d-4438-96a1-9a3ea52dd926","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":105,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"3eb59f10-0476-4533-8380-b7066ed9424f","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":105,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"daf967e1-c4b5-4d96-85ab-df6dbcb4c784","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":105,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"056f706c-5333-408f-a752-2fb979c2f8ce","block_type":"box","text":"their face value to the sponsor (","page_number":105,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"8a073eb1-20b0-4416-89cb-df1b47c954e9","block_type":"box","text":"e.g.","page_number":105,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"c3347e36-3b38-4193-8539-cc7cd0e04ef9","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":105,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"b0e489d6-eb44-45de-8009-6b0805942e57","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":105,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"a3142b76-ddba-4891-b757-69ed69290c33","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":105,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"92c0bd4f-de8c-4d92-a4da-600f2eafa632","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":105,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"22d59fc4-42de-421e-9f22-b04872bbbb86","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":105,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"cf50d2d1-a62a-4a4e-bb81-ce1528751777","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":105,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"a7b6d609-b285-4820-9045-585f31a79716","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":105,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"25d32a1a-2573-47da-9b31-04bff5a6b05b","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":105,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"bcc6f74d-c0f7-49a3-95b7-aa8879e5b352","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":105,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"7a72e597-f6f7-4c80-867f-4687f5703163","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":105,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"92e05ca5-12b9-42a7-86a9-62636d59c481","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":105,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"7fe4e40a-806a-424b-91f1-a36d4098e47e","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":105,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"af54f376-5d44-49f1-842e-17012f3760fd","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":105,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"bad62b7b-9465-40a7-b426-9853a0d555a8","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":105,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"d8f9a106-bb2a-42e7-b5a9-8869ba9dbb75","block_type":"box","text":"such opinions.","page_number":105,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"0a558878-cbc7-4ce1-b7e6-7e98e3d705b4","block_type":"box","text":"Operational and Technology Risks.","page_number":105,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"b6e58c94-8c53-4bf7-acc3-f39e74203b68","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":105,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"27207a9e-a0c9-41a2-8243-96c61626cbf8","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":105,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"e4aef268-23c6-438b-abac-169140407520","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":105,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"3c4ac83e-3779-44f8-a745-4568667203f9","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":105,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"088352b3-b401-4807-84af-6b25c678edf1","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":105,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"e5edb99c-77f9-4333-add4-623da8d477eb","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":105,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"ad991e8b-a7cc-4ac7-8b5b-ccf8c70eda01","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":105,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"b9b0d2d1-53e2-4aaf-9706-2d1bd6fcf1a3","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":105,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"bc979130-22aa-4cf1-9765-6185bd9913fe","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":105,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"39177738-dae4-4120-83a7-6f7376cd9f46","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":105,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"3a345691-52a9-431f-a840-ac7a3d43474a","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":105,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"72d25c44-c9d3-4241-ba37-3f6e9ec6efbb","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":105,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"0f4be615-c1a6-470c-a09b-6a4ff24eeb5a","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":105,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"b0166ce4-aa7f-4fb9-9741-7585ace8c5fe","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":105,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"fa61aeb0-8c63-4e8a-9210-4cfdc20e8838","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":105,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"ad2b9491-3359-4abf-81a0-48445f81c14a","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":105,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"49e8be00-ea42-498e-b71f-8fe8c7db229d","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":105,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"5ac89278-e5b1-458b-9dcc-0ed7d62cf6fa","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":105,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"5b1c7b1e-2b10-43a6-b683-08544b961e28","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":105,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"aae0877b-58ee-49e5-b4b5-6b774de38d69","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":105,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"c38a524a-79a2-4f8e-9306-beef176836be","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":105,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"091f9580-09fb-45a2-9935-72f544f46651","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":105,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"49e8d324-1ecf-4116-9054-89d36c79ff78","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":105,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"d5951d79-c305-4c55-b6ff-ac1d3e05bcf6","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":105,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"06763581-63a0-4e19-bbc7-f936858d1500","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":105,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"a559c071-8a4d-45f2-8329-3497b6e4bae5","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":105,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"1923af37-2006-443b-b941-91cc6dc1d82e","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":105,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"4422d30b-91bd-4699-ab7f-d0e3cbba6549","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":105,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"a78572ef-aaea-42cc-8fb3-37ab3a883a01","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":105,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"35defd37-f9fb-4270-acce-c09c453dbe98","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":105,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"2cf52278-83a1-461d-b15c-96edb1b911bc","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":105,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"bb6a7cd0-9f1c-4231-a213-fc7c50dfd422","block_type":"box","text":"infrastructure assets.","page_number":105,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"14cc4d85-1918-4318-9869-9b9bdfeda29e","block_type":"box","text":"II-63","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bf9ad860-66fe-481b-bcd1-aed85e88d3a9","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec5f5c33-9c35-4ee2-be63-14f46a00b9b1","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":106,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"8415f766-e059-4cb1-a37f-e36988ac4178","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":106,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"893c3148-3fdb-467b-9ad1-adb69dc0dc04","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":106,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"9cfec280-73d3-403f-9428-f7551f88c557","block_type":"box","text":"or services.","page_number":106,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"db0b2e62-f759-4653-9724-fd2527825cb2","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":106,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"b64a7ffe-78cd-4f5e-a01e-7650fbc2354b","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":106,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"a7b8bc2c-e680-48c0-9877-88549d54825a","block_type":"box","text":"other third-party AI technology applications and users.","page_number":106,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"33fed377-dbf2-495e-b384-2e4f94dea786","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":106,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"fcbc306d-1e9c-42db-a476-2f0b87f86b49","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":106,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"837baeab-974f-4228-9891-f2f9adb5baf0","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":106,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"821fd0df-1c88-4f4a-be96-9f910a090002","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":106,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"a7c44662-5f83-46b0-a3f7-4f41f393a5a3","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":106,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"5b276a15-9527-4d20-bd45-c69dd73ff559","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":106,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"8d554acf-42ca-4542-982b-dcbff7583c2b","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":106,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"bcce45af-508d-45f2-bb1b-cf1e3ff5500f","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":106,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"2433e750-7601-447e-9db5-94fcf85ebb8a","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":106,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"40fa1cf4-c4b9-4dba-b93c-512fc8f9d91e","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":106,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"fa243e95-9691-47c8-a767-45fde78f9abc","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":106,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"a9ca78ea-d23d-4a26-9198-4004437cd8ca","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":106,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"6a774ccc-4062-4203-9eda-ee0a66f94ec0","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":106,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"8910582e-2260-450a-94d5-70d2aca29eba","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":106,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"2b3bdc4a-35ef-4df0-9205-90591569e928","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":106,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"47d9237b-97a8-4cfd-a013-25342d7c513e","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":106,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"beb00929-256c-4c24-84b3-52cfdb5545da","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":106,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"73b4282b-6123-44c6-8d5a-8f382455910c","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":106,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"fa28c3ed-1869-4c47-89af-61f88905508e","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":106,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"be894a32-1302-4292-b659-7189be559ec3","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":106,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"a11f4b23-7a9d-4c52-8e01-b939b1a5db0d","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":106,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"97aa8fb1-cfb8-46a9-b167-a54afbe4a6bc","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":106,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"1fbfe7a6-ac33-42fa-8641-81c4d5cf8593","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":106,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"6e8a5c53-6eac-437a-8287-05418fdc6203","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":106,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"f034f74a-8982-42be-8f4e-0c5c0ea74650","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":106,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"6209ad0d-a6ad-49a1-b421-8ab4ba85749b","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":106,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"3b4bc056-e667-4958-bdd6-ac55ea102740","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":106,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"46534f6d-7c4b-4eae-b803-7fbcde967750","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":106,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"9fa23bb5-12c3-4136-98eb-64d83ccb0219","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":106,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"b231422a-b550-4fdd-91db-8355525a45ed","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":106,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"8e45de4d-1b9f-422c-b523-d6228d492ac5","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":106,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"1e4f1f8c-3b9f-400c-8d37-c0afad9a2256","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":106,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"8994094f-3208-4c76-8fa5-46f8cf956616","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":106,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"afe882da-0d05-480f-be71-2c5118d56ad5","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":106,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"d5777628-669c-4fe4-8dbe-37e85c61288d","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":106,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"03c7c3fb-923c-4861-998c-1e2f8003fef9","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":106,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"d6538707-7aaf-4f8a-a1c1-68cc2d97e6f6","block_type":"box","text":"resources to monitor and implement required changes.","page_number":106,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"19d96602-4cb7-4c47-bb51-dec9dcead1f7","block_type":"box","text":"Participation Notes.","page_number":106,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"ddfbb185-aab9-445c-93b3-661fa48fc7b5","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":106,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"d066cd7b-9903-4dc1-892e-958a5340a1da","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":106,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"05c9595d-888f-4cdb-8858-cd849a8fcaea","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":106,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"1ea8d1ee-5b36-4897-a7c0-672187bfc0f7","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":106,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"2f1bb869-967f-4777-a39d-c63bdba99ad3","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":106,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"75fb3210-1695-430e-8240-68eef77e59e5","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":106,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"1fe28c7c-8bcf-48fe-a1e9-5d4e0e775b34","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":106,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"a42d3af3-7607-4708-b672-400b933c4a9e","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":106,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"43576689-3bde-45c1-95e1-17aeaea633ff","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":106,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"bd17f6fd-7dbd-4471-8f65-eae2e91c2e6f","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":106,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"2515822c-6feb-49dd-ac5a-fc13d229bad2","block_type":"box","text":"II-64","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ef0bfbe0-aa98-4d2a-b169-1d8b99452eef","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1df06e44-f59b-48fc-b9e6-406299f481af","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":107,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"eb494996-12f3-4409-aa76-74cc00611d6d","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":107,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"fb81503c-2e28-4216-a97f-6eb184d5e9bd","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":107,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"0588abfe-bc33-4477-9e8b-7d8c13bf835d","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":107,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"ef23750a-360c-4546-abc0-8582dd5d3263","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":107,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"9279020d-6e98-4971-b5ad-ea3f3c9161ec","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":107,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"6196d946-46a0-43e8-bbbb-f4df49479cef","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":107,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"36325acd-8dcf-44b7-bb51-edb6649f6e03","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":107,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"5497ea2a-a16a-44bc-9a77-9011e4b4c6b2","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":107,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"efbe62ca-1a22-40a2-8c2a-8e1ace1e4cc6","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":107,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"d89ac2dc-b1cb-4052-81f6-b0cebd87e0da","block_type":"box","text":"Portfolio Turnover Rates.","page_number":107,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"7d6e9fb9-4373-4a2c-98cf-68a1985d70d1","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":107,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"7e678a5a-abed-4a0b-bb57-6063c64b90ae","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":107,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"8737631a-1ac3-4c3c-9555-2fd4af27428c","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":107,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"b680ce31-598b-419e-bbb6-0e2e88d159fb","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":107,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"d2fc6f0c-cbc5-4fbf-9a00-0340dc0db78c","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":107,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"db43c46a-bf15-4fab-a5e5-8475515a39ac","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":107,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"98ee2e43-7918-4041-9517-a83978a21a2d","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":107,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"d2e9f3b8-ed9d-483b-ae9e-e0a4976943f3","block_type":"box","text":"i.e.","page_number":107,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"c235c390-e19b-4e88-8c6e-1da6fd572715","block_type":"box","text":", 100% or more) may result in","page_number":107,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"258168e7-de6e-40cb-be53-c5ce8dc0ad19","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":107,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"db5cc3c7-892c-4b48-b9ed-caaac686ef78","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":107,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"b2dc26d2-aca1-4ba7-aedb-bc74eac4a1d3","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":107,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"146ede02-fc61-4269-92ec-31b06efa2611","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":107,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"3b6845a6-0d2f-479d-b264-6950202f03be","block_type":"box","text":"Preferred Stock.","page_number":107,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"af6cea4d-5a21-432e-a06c-e9e4dc92fe59","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":107,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"e2350be1-6fd0-4013-a008-b2588b1ae183","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":107,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"246ec93f-0e9e-42e2-8142-a3c45a097bf4","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":107,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"68d8715d-ae2a-4739-ab3c-20605c55953b","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":107,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"9b45917b-b6c2-4388-b79c-3ddb2606fbc2","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":107,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"3aac6502-ddb6-403d-9c05-4e85ece6b037","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":107,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"00d11a13-78bf-4c6e-9f6e-d43449188154","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":107,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"3acb5a37-4638-4eac-947b-2cc747829cc9","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":107,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"c23ea9b1-2da5-448e-b9a6-f14da2fc8673","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":107,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"ccf0f473-fe93-4fa9-8ee7-27a4d5f683ca","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":107,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"76d0a6eb-7181-4fb5-b823-0764019fbb60","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":107,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"17cf7a40-d72f-456d-ab4d-de280e175981","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":107,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"76d4fd4c-210f-44a0-91d2-10301458fe91","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":107,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"078aa8fc-2d07-4cd5-b93b-28c64d32f8c5","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":107,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"b4321d85-b725-4546-8b1f-8b7e6665c398","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":107,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"759297d1-5d24-43e0-b40b-ca06b573b4a6","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":107,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"40647ed9-3cdf-4bda-a5f6-fc7016cdebe8","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":107,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"093943f2-e391-47f6-b9f5-1eb576fc1903","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":107,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"12b8aec2-a442-4aff-a48e-7487c4851414","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":107,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"2031be93-97dd-4105-99ec-85f4da1701ad","block_type":"box","text":"Trust Preferred Securities.","page_number":107,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"3fdc1e64-827b-48aa-82d0-6b6fea1f6da8","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":107,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"2cdb4bbf-ad7b-4c6d-b21f-43528d11a722","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":107,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"52320a8b-a470-4e58-83b6-41999bbbbcc2","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":107,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"84e034e0-52f6-434e-8316-8a018bd3e42d","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":107,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"4a53bf01-a6f8-487e-9bf2-343147c939c5","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":107,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"ea06492e-e7e5-4664-9c28-b0266d13eb5d","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":107,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"a839c88a-9300-46f6-96af-7c5bc0eeb5a3","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":107,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"c4651d14-351e-4a8b-bec2-d06baeee36d8","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":107,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"71f09b61-2641-406b-a1ac-f1586a3c7d61","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":107,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"b71bbc90-f498-42b1-bed2-c7be596fc5cc","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":107,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"bcb522ec-e3f0-4122-900c-ecebcbfc1ad9","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":107,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"50f62eeb-13b2-40e9-8e7a-e6a544593bdc","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":107,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"27c5666f-1bea-4d86-8be3-43eb9cdeec3c","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":107,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"a3fe68a0-91c7-487d-85ee-b1f752240766","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":107,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"a2309674-b37a-4807-910c-f309c93736bd","block_type":"box","text":"®","page_number":107,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"edf9ebac-e94d-4747-98ee-1f6f128d2c7f","block_type":"box","text":"”); monthly","page_number":107,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"4521ef3e-bc3e-473c-b5a8-6a61f0d5c17d","block_type":"box","text":"income preferred securities (“MIPS","page_number":107,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"32a8339d-ac65-42ac-9732-7c95c9320f6e","block_type":"box","text":"®","page_number":107,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"cbc8f21c-a96c-4ff9-8495-dee6a38e37b9","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":107,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"16a48e93-32de-4c48-bc17-49dc3dfa26c7","block_type":"box","text":"®","page_number":107,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"e699a1f3-bb3b-4de7-ac80-ede7d111fb44","block_type":"box","text":"” ); quarterly income debt securities","page_number":107,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"253b3985-9172-4824-a5d6-a0d06a59aa71","block_type":"box","text":"II-65","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9ad60c83-2312-4f79-8d96-151d3a592607","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b300bab-78c5-49a7-beec-b012fa6eeb07","block_type":"box","text":"(“QUIDS","page_number":108,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"79f90e4b-bd0a-4af2-9478-ef3fb7c9b29b","block_type":"box","text":"®","page_number":108,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"0f165997-5928-4174-ac1a-64986333a7b4","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":108,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"9456abd4-02ae-4286-9688-6a783f0ecb74","block_type":"box","text":"SM","page_number":108,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"387b4ecb-6b24-463f-b75c-9fcd8bfbe5c5","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":108,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"82fb5357-32cd-4ed8-b7b7-174f1594592c","block_type":"box","text":"®","page_number":108,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"a0f62652-fd39-4103-b805-234e9dc44161","block_type":"box","text":"”); public income","page_number":108,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"58749f3d-73b7-45c0-87cb-e6886ce9d558","block_type":"box","text":"notes (“PINES","page_number":108,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"3778761d-6409-4708-878f-eaffe3772b4a","block_type":"box","text":"®","page_number":108,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"0e56bd28-c9a7-4b1e-807e-2bbefbd872ae","block_type":"box","text":"”); and other trust preferred securities.","page_number":108,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"0170ea6f-51e1-4bab-a19e-c9d0dcad8556","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":108,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"44906a46-9d81-4599-bb60-da88fcd89b5e","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":108,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"1ef2085e-25a9-4d1d-aed7-d72bbb7d59c9","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":108,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"f062eab2-2ce7-4bdd-b530-fded797c3cb6","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":108,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"9291042d-cc98-4f67-8881-bfeba1be4a70","block_type":"box","text":"regard to whether all payments have been paid.","page_number":108,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"c9e9be77-363f-496e-a3a7-7f463b0369e7","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":108,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"b9ca1873-4181-4dce-ac5d-8407a47beb36","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":108,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"89757ad2-6416-4bdf-8c35-cfbaa6fa36b0","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":108,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"2583c816-cb7a-4780-9800-9a1e8cb8eb39","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":108,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"76d66d1f-fb00-4feb-b79f-96f481c036c5","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":108,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"0ec81a05-a664-4aed-bdfc-80223181cdce","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":108,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"0e1973b2-2383-4b4b-aac8-cb2afe5f3cb8","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":108,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"2b9b0b85-4513-426e-add1-7363d9bd1ea1","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":108,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"c97f32ea-3bb5-4522-8726-1931721be431","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":108,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"dc029fdd-a928-47f8-97da-055edc20006e","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":108,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"8abcd90b-cdff-463e-be90-5b8e54b734ae","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":108,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"94fec86f-7188-4087-990d-c5754117262c","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":108,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"504ad96e-ef18-44e8-87de-ec617659332f","block_type":"box","text":"debt securities.","page_number":108,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"7be84ba6-60d8-4274-b06a-b9f3e6a2b826","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":108,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"680d200d-ca0f-403b-a535-5e9f6a0b2b3d","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":108,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"31bac4bb-eb71-4ae9-b017-74a2f66a81b3","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":108,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"9aa56d8e-f17f-4485-958b-ff6b26ea67fb","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":108,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"c8139cc7-9461-4bdc-8894-b1a501139424","block_type":"box","text":"geographic areas or in specific property types,","page_number":108,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"cccfc187-ad17-422b-8276-23de3d3d05c6","block_type":"box","text":"i.e.","page_number":108,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"4760f416-ff10-4362-ba0c-0467abb6598c","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":108,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"0b3f8998-2d63-4d8b-b50e-ae4621fce255","block_type":"box","text":"buildings.","page_number":108,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"4349f552-9183-4d9a-bc8f-160f373597df","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":108,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"d85d8d11-c489-4622-b762-534533faf00f","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":108,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"e924a650-7e96-4b4e-8e4c-9f4b1a393cac","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":108,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"bb697d26-2430-4b5c-9929-fa7389d8ab0a","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":108,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"af034dda-2d37-43b2-8498-d26d3a2c28e5","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":108,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"513e7ce2-c12e-4426-953b-db0458d656b2","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":108,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"59caa58f-6c6e-48cb-bd55-70eea9720c6c","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":108,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"e4545184-b9ef-4b48-b7e7-7bdb6b7f10c3","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":108,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"b10f1f27-35fe-4af1-9eb9-cab33adb1da9","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":108,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"2fb32845-6e47-44b3-9468-42ed50708e1c","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":108,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"10574c6f-9b5d-4fd6-9680-391141be56df","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":108,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"42e6548e-dba4-4ce0-873b-8280f2542d5e","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":108,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"a4c866d3-9d21-47b3-b86b-bf3cdfc22080","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":108,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"85132380-4450-4424-86ed-bea05360ddcd","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":108,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"23347bc0-1f26-4985-8f1c-d52637c0abff","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":108,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"2d02997f-113f-4aaf-87c5-312244ded796","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":108,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"b36819f8-5516-46da-b1f2-4fbce8d79c32","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":108,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"0dab57f5-c06f-4ff9-bf24-35c4c90b64eb","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":108,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"01fb9ff0-6c1c-4a75-a04e-1f3808c84a71","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":108,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"2b18252f-55c3-4824-b8b9-143d08ec71b1","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":108,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"376af925-96b9-4314-b465-b6720866a890","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":108,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"cd6c5fe3-5b24-4ab9-bec9-357b8a63bd12","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":108,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"40e4abe7-985d-44ab-bb77-9228ad7d8351","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":108,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"0e5de8a1-5844-4961-a7d1-5af6180efdd6","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":108,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"077f428b-3e77-4c83-9f44-83e4d824d3c1","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":108,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"c1b16e02-9ae4-456c-8bbd-97d82ad440be","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":108,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"4e496b6c-0b51-4e6d-a2ab-360d4d62d5e9","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":108,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"06c2b292-6029-4dbb-b1fe-2349760d67f3","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":108,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"066deefc-c7ce-47cc-9039-9e61ea4a7a96","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":108,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"91738e04-324b-48d4-bb08-93ff2ede0b8e","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":108,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"d5bcbbab-c76b-4ab3-905d-49410b983d87","block_type":"box","text":"II-66","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8ab0fce7-b729-43a4-8fa1-47ae08c82525","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1f256e21-5774-4da5-a4b0-1f44d6ed1b4b","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":109,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"17ab618f-9757-4f1d-b547-dac937c6ff0a","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":109,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"90e2490f-7208-4fb2-8679-41b0349a593a","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":109,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"af8239b9-8afa-4a29-8510-1af9c02ab96a","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":109,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"a3266feb-f9c1-42dc-8b98-985ba613fbe3","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":109,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"d5d06b6e-588e-403c-876e-4359021db483","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":109,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"a270f053-0355-401d-9d5b-2397fa1b805b","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":109,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"b4a6342d-34e7-40e7-b419-1a5f8e342a11","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":109,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"9218a6ef-d4c4-46d8-a893-663aa0af6b0b","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":109,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"9d68b11e-d826-4092-a933-a1700d73d46b","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":109,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"ff2534f0-fb53-4c08-aed4-5ac354635fc2","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":109,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"5fee28f4-3ce5-4d87-aaa5-06a6f0097ac7","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":109,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"7de18297-23a6-4308-95bf-a5b6df319bd0","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":109,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"a8b85501-71df-430b-a6b1-39b97c0e9624","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":109,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"180a504f-0fd5-4e74-b7ac-dcde73748fcd","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":109,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"597f1f76-8669-403f-9f3b-13e639f1d4f0","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":109,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"73fc0c98-984d-4076-a136-fa5ba0c6af8d","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":109,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"99ccec97-7b57-411d-9d59-99f07e964606","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":109,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"4997a359-e83d-488d-a6ad-97b4f0b8467a","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":109,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"df39cb26-7876-41e8-9bc7-0c702b128f09","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":109,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"92587ea0-68d2-480f-bd5b-5c329208e2ec","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":109,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"7e037185-dc1f-4871-b600-43979a46a160","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":109,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"d83f489f-2cfe-4b69-9068-e80c6d37f299","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":109,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"fed878cd-3cbf-4202-b30e-37467db83a63","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":109,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"2aed0590-d8b8-4974-96c9-d1e6454fa09f","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":109,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"2d7c5ab6-f6db-4064-af33-5c7419a27b2a","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":109,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"cb1835fb-8c4c-4258-b6d3-6d1857e2f2bb","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":109,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"64c3c9a1-d337-4c01-b7d1-dd589825c0e0","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":109,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"325967db-ffd9-4e74-8958-736186df589b","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":109,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"1f54edf8-c04b-4d59-8b01-89f101be2265","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":109,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"b94efbde-b53c-46bd-ad64-dd6e0eed8c02","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":109,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"7fe9cc0b-d0b5-4160-a367-f6c94edaa05d","block_type":"box","text":"conditions.","page_number":109,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"dce1ee5f-7a4d-4f4e-aa83-14ff43b97417","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":109,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"19b86ebb-85a5-4f70-b4b9-ad899aca799a","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":109,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"c6fc8636-34dc-47c5-888f-2b6c22288e8f","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":109,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"6f18fd99-f28d-4326-af1d-5d0d3a19e44e","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":109,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"313ed4fe-6d27-4d08-af94-7a3d41a1d568","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":109,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"00e7255c-bad5-471b-9d00-3ef5ed553a32","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":109,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"2fbc5480-664a-4d33-8a0e-bfa02b57fc21","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":109,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"57f175c7-e6c8-45b2-93b7-f178c291fec5","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":109,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"ad8f480b-814c-4b68-8b4d-2dbfcd2a24a3","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":109,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"4e2389b2-48e1-4a5f-b8b3-595cecfa6f4d","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":109,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"809b2a73-6d47-427c-86c1-d92a5d513e9b","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":109,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"21516cec-3dc6-4a1b-831c-f6bb30f7c5a0","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":109,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"74c43c5f-0a0d-40f4-b5c3-165610684f74","block_type":"box","text":"affected by such events.","page_number":109,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"9067445a-1790-4e94-ad27-a20d7c06e302","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":109,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"970ff6c5-1b1a-4512-a853-c185d2ab17b2","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":109,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"9d71f2b9-5e8a-465a-b476-3308091ef114","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":109,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"2e13e03e-7136-4d5b-a415-fcded2fddc0d","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":109,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"fd66e8d3-ae39-46f3-9e25-a316be363832","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":109,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"49cd0dc0-593b-4766-83de-652332da470c","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":109,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"c5a65d39-8e09-4f12-83b0-d9fc09d390f8","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":109,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"3b246109-07c9-4b75-b75e-1092767ea3c9","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":109,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"571fb7e6-56db-4993-8f52-265e7cc00cf8","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":109,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"66c7471d-2cc0-45e8-9110-880342c5e711","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":109,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"41294008-2b46-4c4f-af3b-727710b820fa","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":109,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"b874ecef-a666-4eaf-9576-8bc06d92a422","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":109,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"bcc9ca49-b41d-4a6a-a0c8-0d0da005d54e","block_type":"box","text":"II-67","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e985583f-0091-4946-996e-fd54c2056cdd","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0774024b-4996-4936-ab44-6144aa1ec29c","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":110,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"7ec642f7-2f3f-4909-bf35-b12b8ef5fdee","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":110,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"2a61e5f4-554a-4605-9928-b7c3fd1803a0","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":110,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"97e3bd7f-d89f-490e-a1bf-536e39270a66","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":110,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"7a82a459-ad3e-4ff8-9229-9bba02c6b90b","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":110,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"7c4698cb-272a-4d56-8c80-3b101900c37c","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":110,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"7bae5ad7-d57e-442a-ada3-e13131860792","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":110,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"50066e77-fabb-48ef-ad51-5eb7c4841fe0","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":110,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"565fd1f9-3e8d-4a2b-864e-20e9e0fd89e7","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":110,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"f48e97a4-3489-47f2-a54c-e92f243c3240","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":110,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"0687f2f8-9a51-4ba6-86dc-6389189e5406","block_type":"box","text":"investments.","page_number":110,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"3c99c927-0cf2-4a77-a9e7-e1f2787c3810","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":110,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"a5efa1c8-c955-4a77-898b-1cb580160b29","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":110,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"c6f3c0d5-6ef1-4722-aa07-31a70c62b4c5","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":110,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"60de271e-6f80-4f22-95d1-7b8da102ad61","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":110,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"3bd7ba6b-8bb5-4e7b-b1ac-fb46febefe98","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":110,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"35f8f097-6003-42c0-93d1-9ac34c93e3e4","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":110,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"0aa34201-b47d-4dd4-a7b6-d11e95bf144f","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":110,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"b4fbb91f-b04c-4691-868f-c816f819bd8d","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":110,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"4e64ee34-7ba2-44c9-a042-9cb80d2023f4","block_type":"box","text":"Legal and Regulatory Risks.","page_number":110,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"c36cc8ba-75d1-4d94-9ce0-04f2e7b5bc8a","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":110,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"39b65990-f762-4592-ba6e-ca0640a44b94","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":110,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"56dc24ff-c5bd-4b4b-aff5-3c547034e05f","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":110,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"7237a7a1-84af-4c44-88f6-f1d6b466bd33","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":110,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"da8f7640-01a2-4c3f-9327-3156b0b03be0","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":110,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"983f4ca2-a362-457f-9915-fd5fd39a0d1c","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":110,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"765a68e9-c9bd-417d-9acf-922bc23f1a45","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":110,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"7524288a-0039-407f-8e55-447cbe0b79aa","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":110,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"61ebf55d-5aee-48ce-8535-68c9f29ead34","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":110,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"545af250-6eda-4a0e-8e96-2999bf60f26a","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":110,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"de634be9-bae7-4615-a118-7f54d0692ef4","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":110,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"23f5ad26-1a45-4e1d-81cf-736ece6a260b","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":110,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"08624d08-4ff2-4333-a775-0ac8f56713f9","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":110,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"3e6b82e7-6cbe-48c1-8664-c40d66461591","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":110,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"274779d6-4fce-4b49-928b-da3221382010","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":110,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"8ddfbbb6-7765-4ee1-be57-3bd8b78dd3d8","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":110,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"868e5209-9093-4d70-b7e2-570ec727765f","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":110,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"e9ad5b5e-861d-4a85-806c-62121dd58c88","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":110,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"1ff7d894-1d05-47a4-8842-340df5b1e9d1","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":110,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"b7798c3f-90ca-4718-b973-03c0cfff2937","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":110,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"c2ce92c5-aecb-4f71-a5d7-2c39f31c73bb","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":110,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"05f14454-6da4-4089-8e54-8a2e0dcdc920","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":110,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"3128b846-a2ba-4f70-bad9-e6791ce432b8","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":110,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"eef21acf-ddba-453c-876f-e492dd60ea2b","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":110,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"b29e7f4d-ff66-4807-bb14-cfc2714c05f7","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":110,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"9a1212f1-86cf-4e1f-be1a-b05cb6ac4e0d","block_type":"box","text":"Geographic Risks","page_number":110,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"2aed149e-1b4c-4fd1-92a5-c09303cf4a63","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":110,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"95f8bd88-50f2-412c-a0e3-d2a8bb84dd55","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":110,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"a5984613-49db-4fd0-b055-87fd5e398308","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":110,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"2ec6a946-52e9-4678-9df0-a38e2236f1cf","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":110,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"75d7c649-796e-4db7-ae2a-c3ffcd72c70c","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":110,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"f698373e-ba13-41b6-bedf-7c0445469021","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":110,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"c90c81c4-0ae4-4c61-8309-10db7465696f","block_type":"box","text":"Fund.","page_number":110,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"2faf3e14-3529-4a4a-94dc-082c12e33093","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":110,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"6c0c36e0-3ed3-4407-be55-a20f48266373","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":110,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"719647f4-5a0a-44b1-89c1-c65ee2b2ea44","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":110,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"c902ac1c-694e-4f5c-bddc-bf91106454c0","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":110,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"10b35273-2389-4639-9288-45dcec152059","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":110,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"bfb741da-4d05-45d1-9f65-5e577b714c0c","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":110,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"870be1e3-ee51-4085-ad53-a4b8c7de2a6f","block_type":"box","text":"II-68","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"14036f09-8425-42bd-b244-fe77762488f2","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df66fbf2-a626-4150-b895-9303df737a93","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":111,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"da0ee307-d4ae-4809-90a5-b86ea39bbdba","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":111,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"ce83c3a4-d85a-4976-9abc-542a8a5914ea","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":111,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"3a2d0a53-160d-4ce9-bffd-8738610eaf34","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":111,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"157642d1-ab9e-4e21-9959-813114b08a87","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":111,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"0e0eb7d0-25d1-466f-a74c-ae73f8de62f8","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":111,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"636b765a-dfa4-4d13-82ec-3c9d887fa087","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":111,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"111528f8-4851-48a0-b49e-6adbabeec2df","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":111,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"c23b0ccb-d43c-4840-b1ec-9b57f0bd3b6a","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":111,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"a2f84eb3-b3ab-4754-9a8c-25ac71086f0c","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":111,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"e0df8b7a-9c49-47d9-bc4a-4dc30de137dd","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":111,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"685de568-b6af-432d-a279-38f511a5aa9e","block_type":"box","text":"e.g.","page_number":111,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"7d0078e7-d9bd-425f-a94d-9ee912894eb1","block_type":"box","text":", SOFR for","page_number":111,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"426f2c6c-8aa7-43ac-b3d8-dbc7c685bfd2","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":111,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"70e1b55c-d2bb-4590-be67-373852af44c4","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":111,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"6fadeb5f-5668-4dff-9337-884bcc86e009","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":111,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"12d5ae83-6afb-4271-a77b-055ec088055f","block_type":"box","text":"determined.","page_number":111,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"ed075799-6072-4b24-91cb-2fc3b8f3e917","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":111,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"480ec1c1-a3dd-41bd-9c49-d2fa47aa3cc0","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":111,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"818b42b8-7352-49b2-8603-6a5b92743532","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":111,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"e5800f8d-3903-4200-a10e-2f7305a1668c","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":111,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"eb394cb2-d257-4fee-8dd7-bee2d4b7e83e","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":111,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"b40cec0e-fcdb-487e-ac86-3b510c0e1809","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":111,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"4f8defd8-9637-4eca-a3f8-638c01671f50","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":111,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"7985cce7-7192-4451-bd51-fcd153e97737","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":111,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"79fc7492-c728-4ef3-b76b-b1918f268c21","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":111,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"3ddef374-a3f2-4071-a73a-d44e7d50706e","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":111,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"cc05f134-316d-4bc6-807c-4178a308a179","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":111,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"76b0a25e-b92c-440f-a128-288412d02b57","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":111,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"e2cbb760-162c-40c4-907d-195ae68e183d","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":111,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"8cc94338-480b-42ec-a182-a5463a847291","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":111,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"f8b3442e-bae2-4f55-bff6-6bc1f85f59fd","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":111,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"26f52091-5f61-4d2d-b89f-a5f055e4f036","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":111,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"ada93ee4-162c-4f62-9ae0-f5b42c60b4e9","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":111,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"9fd20f18-a2dd-4ab7-92cc-0ac2bd501c85","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":111,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"44c8cef0-ede7-45d9-b208-162f6bb55dc3","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":111,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"eff9ef68-19e4-4bdb-877d-b4d0dcd99a4a","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":111,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"351a7bc8-0a76-4b05-a3ef-f67760ac10e4","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":111,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"56ea0dee-1fb6-4f0e-8d05-6f11cb2ba299","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":111,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"0309c371-7a79-49c9-a503-097601da669f","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":111,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"f14f167c-1767-4ab4-8106-eb0a0d20b127","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":111,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"932acb99-171e-406a-801b-80fe727a5221","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":111,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"1d7b41e8-c9ea-4643-9a81-2237a33651b9","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":111,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"3fbb33e7-569b-4bb7-9c6f-db24e997d446","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":111,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"8864528b-55c0-40f1-bce1-e558b3f7c6f4","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":111,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"fee73ff1-5fb3-4a8a-bf82-4732e912ce8f","block_type":"box","text":"consequences which cannot be predicted.","page_number":111,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"09796c4b-ba37-4437-9c95-313a39ce228d","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":111,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"9b777d60-544e-4ccc-bd19-41fb992279e5","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":111,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"d561b6af-f7d2-4191-9a87-cd954f1721cd","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":111,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"318d00d3-c4ff-46aa-ba40-86d127c03cf6","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":111,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"415588de-172e-4642-8a1c-c53d78f709c8","block_type":"box","text":"term of the agreement.","page_number":111,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"5c3147b3-91db-4a85-b646-d87f654fc3ec","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":111,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"2263e97d-f607-4409-bcd1-8d379196fdd7","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":111,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"48fdf630-94b4-416f-a9c7-d8e21457b8c4","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":111,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"292443ab-1c43-4839-bef0-d2ac79abfb07","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":111,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"1b41c95a-c151-4abe-bf11-59fb20c25d55","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":111,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"6b0aac2a-76fc-4ec3-8fc4-f4a759f77d27","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":111,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"f87fceb8-1ab6-4247-adf8-a8ae6b707043","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":111,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"c93407bf-8396-4676-b288-aa84cb80e402","block_type":"box","text":"II-69","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"19714edd-14bb-4a17-89b7-c70418ebb1dc","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bac86394-a0f5-4c6b-90b0-41f093b8a40b","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":112,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"5f18f7b0-3590-4953-bddc-cbdb58252ae2","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":112,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"dc765a14-2ec8-46cd-a3bf-7ccb86800f62","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":112,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"ed4522e5-f8c6-4e1e-85e6-56b1235c387e","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":112,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"36b93524-ac76-492f-9286-cd4d6ff99731","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":112,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"c3515467-0383-410c-b297-4f11396687ef","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":112,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"dc25bbc0-26ba-4e23-8e34-e8cdc52155a6","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":112,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"4069f6f6-5a5e-448e-97c1-362c78317df2","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":112,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"edcffa94-5200-4bb5-a706-69da1348d5d8","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":112,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"37fe6e10-31aa-4c0a-9cd3-4ccdd4c96c00","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":112,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"33f9ed30-744b-4ea2-b6c8-18a957c92e5e","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":112,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"27b4e106-5ffe-4147-911a-007d6247f55e","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":112,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"7df9cf3b-8ebe-4924-823a-859ed2f8935b","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":112,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"d48e6790-788c-45e9-abf9-30159672703c","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":112,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"10fc2acb-81b7-4dc4-b88a-ef9217bdf60b","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":112,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"8fbc81cc-ea9d-47d8-a1f4-20f21aa8da55","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":112,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"4f051f54-5716-4cd4-a33f-4650c7eabc0c","block_type":"box","text":"or by another authorized securities depository.","page_number":112,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"22d9a058-59e7-4f1e-a21d-11fcc963f559","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":112,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"766ec9bd-85c8-401c-a658-c3b1b008c906","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":112,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"76d5a875-f1c3-4919-a1c8-77b5c7c5ec5e","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":112,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"8b814f4d-6072-436e-ae3d-08e100068356","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":112,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"6be9aada-727c-4794-a77d-a21583f2f2d9","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":112,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"fc80007f-5574-4dfd-a359-9068def1065c","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":112,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"41df967e-b057-415b-ad0c-a490694b2b94","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":112,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"8d13572d-f334-4692-82d0-f42294bffae0","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":112,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"45c386e9-588a-4bfd-8a64-ccc4d9b6b501","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":112,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"96f46c25-c5bb-44a2-a463-0ad4cfd67f72","block_type":"box","text":"the repurchase price.","page_number":112,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"ad33ab78-1413-4a32-9696-8c1653feb790","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":112,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"b75e61a1-ff75-4834-89bb-96e12c50d964","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":112,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"54ffc01c-6cfd-4948-ba20-d9701de73191","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":112,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"d1f29634-7881-4d29-ace5-5035b1fe2607","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":112,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"af8ddf35-5f06-4fcd-82a9-0315192bfeb5","block_type":"box","text":"strategies without the repurchase obligation.","page_number":112,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"a650ca59-cd07-4988-b911-4d7cacfbe2f6","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":112,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"5a217c85-da08-4b6d-bc5f-68e529929029","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":112,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"f2062944-e40d-44c8-a7f2-4c421ba255b2","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":112,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"a34f0540-f57b-47e2-9170-55c6c67aa413","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":112,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"f3869f28-39a1-4950-9f7d-0fcfccf7a189","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":112,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"13bfc6ef-8514-4825-844c-62ee1c28acb1","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":112,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"e0a5bf60-3357-410a-9d8c-c2673144d4d1","block_type":"box","text":"i.e.","page_number":112,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"1d5e3ac3-b421-40ff-88a0-da68705f0bce","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":112,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"66ea5435-7e3f-4c0c-ac6b-84c8327c4ec6","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":112,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"a7e9f970-4619-4d7c-a59f-3276685eb5ef","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":112,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"c4566254-4e8b-418f-95a1-5f087369790f","block_type":"box","text":"and income involved in the transaction.","page_number":112,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"cad4da9d-8cee-4f59-8a17-33dced9621ec","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":112,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"1303026e-c30e-4b25-a72d-195283b5a89c","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":112,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"34f5d5f5-b661-4f39-9cb5-65f58cad1ed3","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":112,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"18e61404-f728-4ecf-b646-b305d383ab1b","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":112,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"b9d5d920-4642-405d-b59c-7a9b10203678","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":112,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"d362bfda-caa9-4df9-ac6f-f849f658633d","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":112,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"b36dbc1a-4870-4aa7-ad6d-d6dda8e74ac1","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":112,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"c4dcbf18-e73f-4178-8e24-9b16ae998e1c","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":112,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"70727abe-9c99-4ecd-a18c-83026c2b93ba","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":112,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"b6f9624c-abcd-4670-9959-d513f7693cf0","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":112,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"4698ab4a-0849-4698-9865-355923c77b9b","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":112,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"490a8832-1647-4b3f-8431-da4cc7da62ce","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":112,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"a93ac9ef-8eb5-44cd-9c8b-e01b915478ae","block_type":"box","text":"Restricted Securities.","page_number":112,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"816408be-17a9-484e-95a9-dd916f7e84ad","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":112,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"dbdea50f-83ed-4cc9-be84-494f9651e2cd","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":112,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"4ae25cd3-414a-4870-b9db-0574bc4df968","block_type":"box","text":"II-70","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0ca083e4-9e24-4448-bce9-02a011b17b91","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d50d92b3-eb88-4ca8-9657-f3f1abef51dd","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":113,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"ab2d60ed-194a-473a-833f-5e8352bebb39","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":113,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"7b1e9bd2-d3df-43a3-b44b-13eec1ed927c","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":113,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"ad9a1969-3391-4870-9811-4b39f7c81efd","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":113,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"5975b208-535c-4248-93e5-4dc30ddde800","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":113,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"7db0532f-502d-4b78-b5cb-3bd16da74b2e","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":113,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"29c5766b-49e8-4495-866d-58ec6626c1b1","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":113,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"725d710c-60c7-4124-b0ea-335e130f7753","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":113,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"46cad070-b6dc-484d-a0ed-dc0ee8b109ac","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":113,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"c6b5ce2b-1a72-4511-b9a8-fe5e3d697d2b","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":113,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"9f764ed6-3427-4e71-a0a7-be6c33dcccf9","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":113,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"47710360-92d8-4b58-bade-3f60310dded0","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":113,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"1aec62d8-5d8a-4add-a7ce-453def7d0c4f","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":113,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"eeb10de5-af9b-4af4-9fb1-56bd705ccdaa","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":113,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"2c3bf115-64dc-4c55-9fa3-6bd034d63bb0","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":113,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"0c18c39f-7750-4321-8781-f9c15bd0ef3c","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":113,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"2b511613-12ec-4730-82c9-65c0c8d66f8b","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":113,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"9b647c76-02a4-4c28-81f6-40fbd34cec8d","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":113,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"3f57abba-452a-4ef7-b8dd-26e601ed33b7","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":113,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"7feaebde-0c47-495f-87d0-011164147198","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":113,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"edffba80-3fca-48b6-a6af-45fb59347152","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":113,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"0960b4b3-4eaf-46da-8018-2259bb13819d","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":113,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"348f8ce6-c769-4bfe-9941-fb091685e70a","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":113,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"9fb0e4c0-a930-4fca-8ffd-baf84a069f25","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":113,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"e28c89d2-4d3c-4b79-974f-09e3411c9a4c","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":113,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"f4118549-d6c0-4019-87ba-13571f856471","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":113,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"7e1c6181-e480-495d-a57a-f59b1fd1da88","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":113,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"1edeaa9b-0162-4ed5-8136-4fa533a430b9","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":113,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"f6360afb-b8cc-4f0d-bf0b-2b7c3518f19f","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":113,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"41159235-5180-48c8-bb10-f347042c10fd","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":113,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"682089d2-8e09-4029-a82e-d11f31f9e619","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":113,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"87f200e5-9966-4a31-890b-a056b89980fe","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":113,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"66998724-05b9-4dd6-9c63-de5cad15c09c","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":113,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"c3384ab3-ddd1-4dc7-9d4d-1829aff31a1f","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":113,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"e8f10354-2297-4e0c-89c5-e7f3196403c4","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":113,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"847789c9-765c-4d98-8029-8e2c817cfea0","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":113,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"ed1c9bbe-8d24-4af5-98bc-e29eeaaf9716","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":113,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"a82c739c-d6b2-4808-8fb2-f2a423fa32d3","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":113,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"60e752c6-ac7c-42af-b87d-2967a81af8f4","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":113,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"f464776c-5a48-427c-9ea7-677d8f309f22","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":113,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"4a365f35-0586-444f-95ae-5870dee60c00","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":113,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"993fa4de-3c47-4909-8bb2-4a6e61d5e606","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":113,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"996be4fc-00eb-4f9d-90b0-8b5a45dd4841","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":113,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"84ee592c-7aee-4850-bd45-7d250ba6ecb3","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":113,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"91eae6b8-32c3-4cca-8aef-7c1de30adf1e","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":113,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"8c731bfb-0522-465a-b3b5-bf75550b70c9","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":113,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"c7c05ec2-5835-4464-a76a-77d9d2e81b85","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":113,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"c33eeeb7-b611-4053-8bca-17d91e7a2fc1","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":113,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"ece662e1-6b27-441e-81f6-99ece5c1a93d","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":113,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"39b3d066-c5f2-47b0-b553-bd17502a9376","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":113,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"13490c92-1792-4b23-9f46-0d4f80f15fa1","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":113,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"f25d6ad0-db73-472a-afb6-c2532e8f3c6c","block_type":"box","text":"especially as that Fund grows in size.","page_number":113,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"74fce43b-892a-4307-bac9-4465a8e25d57","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":113,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"078510a0-eeb9-4532-a724-88814f4e204e","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":113,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"9cd267b2-56bc-4b23-8cce-1ecd58ba0aeb","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":113,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"6d371f5d-d903-4581-8aa5-3fb8495d3f73","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":113,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"3af1ea72-484a-4f3b-b696-f9788d518495","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":113,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"02574aa5-d137-43a5-b044-41205ea4541b","block_type":"box","text":"II-71","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4794e695-7fef-496a-bc13-9470ef46af61","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5981f6f2-9cba-403a-b3e0-d23ca51a7abf","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":114,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"f2428c88-f1e6-429c-8ae2-4f0d3c2f46be","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":114,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"27d5dd62-0669-41f5-bf98-eca6158e9716","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":114,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"aa5f3d8d-f9a8-4f6a-82c6-c5cbbc1376ac","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":114,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"8ac1c376-44e4-4994-b756-0dfec2ca1d71","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":114,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"ffca246e-1c6b-4e02-9da5-e573639ff959","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":114,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"c314e3d7-b390-4988-a92a-b8abc80a8925","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":114,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"3f221b2b-09b7-439f-954a-fa905ca81125","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":114,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"4f73d52c-f413-4f86-9f69-3b33718398d8","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":114,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"863f48a7-5d45-43b6-b624-4baf4bcc0bf3","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":114,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"ae2efdd5-b5e7-45d8-b61b-72023c3368c1","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":114,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"a810d83e-9abb-4059-a225-50d58d62f615","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":114,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"1b0550df-3d8f-4eb8-bdf3-92b59eadc62a","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":114,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"8f4f51b5-907a-48b8-aa62-0f1e8b17ab7f","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":114,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"d4c7c16e-dda9-4ce7-94b6-c9ae87d363b4","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":114,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"df0780be-62e3-42cc-820e-cc19c4672f46","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":114,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"97ce407e-b017-4d24-9de1-e3457638a8df","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":114,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"aab55518-d1fc-4a23-92df-151152503dfd","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":114,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"4be59755-c1fe-4b0a-813d-6024c21ae904","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":114,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"05621e62-6687-41e7-9e46-b942cf5af4fe","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":114,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"71a78c26-edd0-4636-8c23-9245bb39cc0f","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":114,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"b13e31f7-342c-4c0c-bd7d-f3f675fd666e","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":114,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"f30929ce-a114-4771-b8f3-a6329427bbca","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":114,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"7cdcaa63-d1de-4c1d-bf11-c63a16eceb8e","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":114,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"29c8a8ee-7ecd-48d3-bcda-ac4c2bcb05d0","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":114,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"6388572f-f714-4a0c-bb35-d64a3b581b4e","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":114,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"8acac443-64de-4bf7-b1b3-181d68271d49","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":114,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"bc4d3682-b602-4d2f-a542-1145de5e9780","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":114,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"2bdb3bee-e9e4-424c-8aa6-057406773648","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":114,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"13ee9b2d-969f-415d-8812-cc2a170ef650","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":114,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"352659e7-125d-4d7a-8deb-8fc765d872a3","block_type":"box","text":"similar financing transactions (","page_number":114,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"a6aa1eb7-deee-4a12-8241-5bab56a2b7d6","block_type":"box","text":"e.g.","page_number":114,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"766db767-dd3e-4e30-80ef-a79766582452","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":114,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"6b425ae2-01b0-4c80-acea-6171ff3acb12","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":114,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"978927d5-caff-4956-9719-b835dfa7fdad","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":114,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"0eff16b8-535b-40f2-ac9b-306fbac42099","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":114,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"28c8bbae-564c-4b3b-9207-086ec1e5f314","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":114,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"3ddde01d-ebc6-44ee-bb51-2712d4426bfa","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":114,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"264b8b44-778d-497e-b9b5-8b150b09ec5e","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":114,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"b58d05ea-7417-46f8-8bb1-e3e4de624026","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":114,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"8fa69fc5-9c20-4fe0-8324-db73326f6315","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":114,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"e7c3fc42-11b6-46ba-a810-fc147423a587","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":114,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"34d96df2-6728-46a3-8c07-93c0cb092b2b","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":114,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"59a96fa5-51e6-475b-bd96-1a52336404ef","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":114,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"fea62838-8a06-4de9-9a7c-294a0c1386a9","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":114,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"85ca6af0-aa0a-47c6-9559-db0f66cf0c8b","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":114,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"a99a8cac-20e0-4a25-9ba5-dc837e6bc935","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":114,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"1bc4023b-b345-4e69-bae8-a0da145501bd","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":114,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"ee4c5fe3-4a48-4622-9649-d660567df7f6","block_type":"box","text":"amounts to be received under such agreements.","page_number":114,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"4e3aa91a-9716-429d-a660-70e2ce7a38eb","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":114,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"cb1379ff-5e8e-40a9-9219-083a48a99c10","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":114,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"23c9e140-9eb2-4187-85fd-452e5f60d670","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":114,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"bdc7f395-dd5c-47cd-b3a3-338191a5ab17","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":114,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"eb392ce7-f949-4a31-9bbc-65b7147209b3","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":114,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"df00bd60-b1fe-4bac-ad63-f5ca1474b8f9","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":114,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"90c3de93-6193-48ec-8e20-8211413c232e","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":114,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"77b544f6-a5d9-44d1-a3d5-ecf40a3a3037","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":114,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"72162023-9602-43d8-a330-75fc890a8e08","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":114,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"1cb850b1-39b1-482c-8a2f-b32b2225d680","block_type":"box","text":"II-72","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"10eeeca4-391b-48f2-8126-9b7f6df8f25c","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82905c2d-a601-4fa8-9322-c405b16584ef","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":115,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"fbf2c29b-9654-41e9-bc2d-87d2367f61ce","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":115,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"ed5ad01f-6988-4a3e-91c6-23352bcd3fc7","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":115,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"a9b6f612-be07-4675-8430-035fc8a69d29","block_type":"box","text":"Rule 144A Securities.","page_number":115,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"ce85f9b0-096e-460e-a9c5-7817e4d80712","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":115,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"c13ea2bb-5629-426c-878b-7b2ed80e698c","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":115,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"24c29763-109b-4f4f-a377-4ad10f0ff2e5","block_type":"box","text":"Securities Lending.","page_number":115,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"40910f2a-6a1b-4c46-b0d6-54fdb7016440","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":115,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"5556828d-86a4-41fc-8de7-e33b546ed20d","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":115,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"85870450-642f-44d2-8a04-9fd7ac852720","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":115,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"4398090f-cd8e-4079-a153-cc8b21a2fafd","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":115,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"1b93d952-a0cf-4a34-8351-45549303f528","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":115,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"ce4fad2b-0fcb-47b0-8af6-27d08bac1ee2","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":115,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"750db3af-ffd9-44f2-bdc8-7d395ccfd72c","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":115,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"261e8f77-9553-4fad-8b72-2964a5d7884e","block_type":"box","text":"the securities were not on loan.","page_number":115,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"58f74245-830e-439f-a8dd-be109b9e3c33","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":115,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"2711b9c0-0145-455b-a3c9-57d0f2901b6b","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":115,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"fc8edefa-fc55-46f4-8e43-e4419ee297eb","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":115,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"9421b937-9877-44ce-87a6-f4b919b9df42","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":115,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"68fa6d21-7086-4664-9f06-f29a4f753ea9","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":115,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"8ca7c3c7-cb7d-463d-ad3c-782744ec563a","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":115,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"904a03be-e0c9-47f2-b046-d6063df31de7","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":115,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"5e8124f1-7c79-45f0-bd88-fb4026acf5d6","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":115,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"de630b1a-0dea-4849-bdac-ff9d20bc236a","block_type":"box","text":"i.e.","page_number":115,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"682a4234-f75f-409a-9dfb-a0ad7d01e67f","block_type":"box","text":", the risk of losses resulting","page_number":115,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"72ea4a02-83e0-4db0-b98e-7a0cbfc3255d","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":115,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"70616af2-77e2-4cb9-a039-28c143bd79b3","block_type":"box","text":"i.e.","page_number":115,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"5292d72e-4d3f-47ef-9485-f59cf351d2c5","block_type":"box","text":", the risk of a mismatch between the return","page_number":115,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"a4f1928b-3786-45fa-b5e0-0aec9cda7714","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":115,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"ce2818ff-b27f-4fb9-b0c9-6b9bc9ab177a","block_type":"box","text":"i.e.","page_number":115,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"d66ba4f4-b73f-4b7a-997c-c31cbaf7d2a4","block_type":"box","text":",","page_number":115,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"0e3bfbe7-124d-494a-b8f7-d2ee234e6a17","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":115,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"f1f3ccbf-82ba-4ec0-adc5-120f364ebed1","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":115,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"9c4da946-e9a5-496a-8aef-9d59ada688ac","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":115,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"63ceb929-ca52-4e88-905a-b48a22dde0d1","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":115,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"b6be3f99-5d04-411c-9b52-96b75c350fb1","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":115,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"1e8c3960-cb17-4d9b-92f5-93482a9e048c","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":115,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"a3f0ae59-f605-42f6-887e-f1c9584b2f33","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":115,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"1b46071a-c16f-40d6-ac4c-018a4cc2d81c","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":115,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"e52dab13-5d96-40a0-9d8a-08359f9b5578","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":115,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"b78221b6-e3ce-43cb-b2bc-38bd1a12a538","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":115,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"4f5a7c45-7d36-4c23-8cda-4184924e0ea4","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":115,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"5c5e5826-fee0-4750-87c9-42dc2fffea4d","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":115,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"58de2abb-b29e-4829-a9d0-a21a9d7dd794","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":115,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"de4c52bc-714c-4b7d-9c9b-f54ea024b459","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":115,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"4ca517c2-93c5-4821-85ac-08ec1edc031c","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":115,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"1454a627-2364-46fc-a839-5bb221a66057","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":115,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"9e1c6d72-276b-4444-9436-b8bf4dfac405","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":115,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"1f718ae4-57e9-4c43-bba4-d840e029825b","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":115,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"2fa11c35-5840-4706-8162-7e187b78503a","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":115,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"b31ba4ed-0e66-4b29-ae99-071e7131bed5","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":115,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"bd483e06-f58a-4198-9152-429bd7913a2b","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":115,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"cd73562d-1849-481b-9e81-e2bc9f4898b4","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":115,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"f8e630aa-ae2c-4a79-92d8-76a7ca119d5c","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":115,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"100f4abf-beb0-4c68-baaa-5a6aa6db88a8","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":115,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"c51b96e4-035b-411a-a319-df26ed5132a2","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":115,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"79436828-f3b0-4959-9309-4d4e1268f20a","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":115,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"9495ee48-fadc-43df-97b3-4b4b3d98de97","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":115,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"202a9964-f4a5-45dc-8aed-0d5bedc5f739","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":115,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"24f5fcc0-4cf2-4150-87f2-ef05c2ae63e1","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":115,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"bc71a8fd-a90f-4560-978a-92672f28d9b5","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":115,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"515c4b18-6d19-4567-a3e2-c72d54ac773c","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":115,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"b79509ca-b17a-4857-9570-a726ce2f4bc5","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":115,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"01413184-6718-4860-9642-eb8124eda03a","block_type":"box","text":"II-73","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0b560624-c7f3-4b02-ad0c-a490104c1ead","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0416f30d-d0ac-41d4-9b83-abc0a8dd5d0a","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":116,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"1929e1d3-a2b7-4048-8640-636e3c1eac26","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":116,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"78d6306b-5878-4a58-94b6-2b823598a051","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":116,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"25feb09e-a923-467e-a907-167267bbd8d9","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":116,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"ab5e18d9-a9af-46e9-b8f9-b262cd249693","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":116,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"8834e3d5-f2d3-479a-9556-ba7bd8a1e0f1","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":116,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"3444361b-f815-45ce-8a34-23f32f6a2094","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":116,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"eafaa752-3123-46ed-a700-67a550e58731","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":116,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"a0bcf216-4bb0-4280-87c1-2ad13d073d4d","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":116,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"951dd8b2-eb7f-493d-ad48-01c90e8e3823","block_type":"box","text":"the current expected compliance date.","page_number":116,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"848ad587-872a-4829-85d0-533e055b1ca0","block_type":"box","text":"Short Sales.","page_number":116,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"fd4494b2-466a-471b-869c-b06163ba8102","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":116,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"3bfb0982-f82e-4c26-a241-f405b3d68f3b","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":116,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"c8c9bcd5-88ca-4367-b6f6-693ba4903fa9","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":116,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"667a775d-3eeb-46aa-9538-605908561de1","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":116,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"bfe0fd07-a638-404f-91ab-fc24bfc7cf21","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":116,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"67471c9e-6eba-40d5-9536-f9e908cf2aab","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":116,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"1cfb6198-a504-4c31-936c-d785b30c915b","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":116,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"283a9c63-e847-49e4-a95e-cbb841e51599","block_type":"box","text":"securities to the lender of the securities.","page_number":116,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"2f2cf2f9-19a1-4531-99f9-663de70046ca","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":116,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"eba0110c-831a-42b3-928d-b71c1023a42e","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":116,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"9a284686-5da6-4cc0-9aaf-96ddf17c9b5a","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":116,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"596b75df-fa19-47f2-8fdb-f23107d7f313","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":116,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"eb9b3744-71c1-4a15-a3ea-94ba7f8981aa","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":116,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"bef69d6e-bf35-485e-a146-3ba38bc91e60","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":116,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"216e0c6d-cc40-41a1-a0e4-941963611376","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":116,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"83c61a96-7167-4976-9d32-70776bbd201b","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":116,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"ee31f0f3-d43a-47b9-be1c-421c87778f85","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":116,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"990f8d96-b694-47c3-9da4-bd5456f1b8f8","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":116,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"9686ec5e-910e-4e09-a217-2bd14dd025f8","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":116,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"d5ed5e18-d320-4a01-b70d-e60e787205f6","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":116,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"e5cb76c1-c0ca-4a06-91d9-c2f97ed56b3a","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":116,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"6098d009-e43e-492a-9e91-cdcc57a9147f","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":116,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"a730c3bc-2947-4997-b189-eb157105bb19","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":116,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"2b153c75-0cca-43e6-bc54-7fbb2304f8d4","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":116,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"83a53f95-3524-4744-9f90-e211488efdb0","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":116,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"4a9e2ee1-0bee-4ad5-ae0e-75d26405af7b","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":116,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"7369a109-1de0-4b9b-bbed-c49f0e2f6016","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":116,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"6e68639a-c421-46b6-9aec-f0a4d24b5d46","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":116,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"1e36c8f7-012e-40bc-b95a-88ce59014240","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":116,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"c200b1c3-bb5f-473e-8817-9bc2c23d53b9","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":116,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"04068c52-541d-449d-8e61-5f540012aeec","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":116,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"b70b6a80-4d0d-47a1-8229-e0215e6f5ea2","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":116,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"ca33c021-c19c-4644-b163-0a59cf2003bf","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":116,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"021ac231-f599-4253-bc48-1b0d7c5a36f0","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":116,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"66e445c1-9dcb-4335-95a0-c9b5eefceafc","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":116,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"60223fb5-42d7-4835-94e5-7b60263504d6","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":116,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"bee2c3c5-e90c-4286-b3d5-923bd6fcbae8","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":116,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"fc4a6478-016e-480d-8ee0-5c7a33846529","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":116,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"84e795a8-3dd0-43c1-ab70-9b94463c8ce5","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":116,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"759cdee5-ed79-4761-9b1d-5bf8ab98461a","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":116,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"b1755e7d-7be8-4af6-bfbb-4e61ece8e0f4","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":116,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"9c09db14-0407-4e16-a3ce-e74a8f595a5d","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":116,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"cd90404d-3e99-499a-9252-861473115301","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":116,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"e31e409b-6542-41c0-a3b1-76fcd415138c","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":116,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"26b36084-9498-44c4-80bb-c39d5d7b0bf8","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":116,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"864821af-c45b-4dae-9383-f86894e6da98","block_type":"box","text":"II-74","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8f553b67-4fde-49ca-bec8-2755f2f489a2","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84b7a590-20f4-44fe-a410-722493603511","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":117,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"a75b6dbf-3c72-4f57-b0ee-01dd8e37fc32","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":117,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"a8d7a091-8474-4ef4-8f55-da6672262968","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":117,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"6cddf821-741f-42f2-8abf-39e9c6192130","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":117,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"b058e5e7-a18b-4038-aa51-ffaaaeef0380","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":117,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"77f965f9-c661-48e4-bf12-4f86e7582161","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":117,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"18efa5fe-9fc8-4ecb-8cee-69eb92dd66f2","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":117,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"8eedb5a3-2f74-4fe2-9b40-5f6cfddb8174","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":117,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"c66cb948-4996-486b-9a0c-dcbe6c9f1dba","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":117,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"22217603-8698-4637-b270-cc6848bbf288","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":117,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"0e79cdfc-042e-4301-bf4b-ffe42fd6cff8","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":117,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"ed97a24b-4d28-407a-bf9f-103c837a02ba","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":117,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"bb1fe7c9-5d88-4611-80c4-2ce090b9748a","block_type":"box","text":"Standby Commitment Agreements.","page_number":117,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"726d91a3-b34a-4d72-acec-a595d037e7c0","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":117,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"7ff62e5b-15e0-430c-bb64-1922029549f2","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":117,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"cf01c85a-ead3-40ec-aec2-e36209581ae1","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":117,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"47f8f91c-d8fd-4540-8fb2-0733e6e1ae70","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":117,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"3ebbd1af-d3a4-43be-8b67-8ea2cec25773","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":117,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"8cc0f422-fab9-4440-a776-2bb538dc5ccd","block_type":"box","text":"advantageous to the Fund.","page_number":117,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"f6d28f66-d712-4113-8507-f104eed9be3b","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":117,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"7df594fd-86c9-43c1-b194-aa2623ba6de2","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":117,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"3c5ce6de-5921-4947-b24e-2e66dbf59fa1","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":117,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"387c44e2-d789-4129-99d9-7b33a4cac5b5","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":117,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"df17ebef-ffee-4481-b5ce-840864238491","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":117,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"5b9c988e-26c2-4e54-989c-ad009cfd5ccc","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":117,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"fa487e5c-1121-497f-a742-13b1c74e99d9","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":117,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"9127bf5b-6192-4044-9a85-3cb17fcdbaf7","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":117,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"3e78c7ce-5e70-488a-a073-e71525f25b16","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":117,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"40981458-7ce5-4bce-944f-28901957ca58","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":117,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"78c11dea-a45a-465f-81a6-d848f105d858","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":117,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"394932f9-a017-438b-b60f-926e2c261068","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":117,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"46971290-44a0-4528-8190-fb3925c010d4","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":117,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"2a5cf3d2-efaa-41d9-9840-db496f119c65","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":117,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"1f16934c-70e1-41f2-bb74-00319ffdae00","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":117,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"e08dde66-3b6a-4c59-83c8-cc7b26275dff","block_type":"box","text":"Stripped Securities.","page_number":117,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"0a2999cc-b3df-4def-808a-59184dcb2dda","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":117,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"2f9c9205-3f0e-4bc3-8048-45e77aebd62d","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":117,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"c4e96266-d466-46cc-8cb2-7a409c9483d4","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":117,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"87355f1d-312e-4953-b38c-8b9855987dad","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":117,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"26e7bff1-f258-49da-a94d-9ebfaf3be4b3","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":117,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"ccff0dcd-02c1-457c-ba42-6995d80951e5","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":117,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"f7263e7b-6eed-45b0-8ea7-8e16d453139f","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":117,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"52311544-1653-4355-bdb8-49bb878fe3c1","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":117,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"60fcd905-bf1c-4826-9954-8c518389faa9","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":117,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"0bd9151a-cd11-4b15-b052-46fce53c2a7e","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":117,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"a3e46516-ed29-4ba5-9e95-d27c5f90c104","block_type":"box","text":"Structured Notes.","page_number":117,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"2f79f135-a085-4c44-9844-67a0363971ea","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":117,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"2a2ccd4e-2d07-455a-bccc-63fd3cc0cbd8","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":117,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"becc6254-be1e-4210-9594-7553ea237f9b","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":117,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"b0fe5653-9d32-4deb-8b3d-71b4e4c3030f","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":117,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"849bfce0-0dd7-4771-b8c2-c9393de6f29b","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":117,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"f47a4104-9684-4d62-8ff1-e3cd4ed29834","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":117,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"aa81ef07-9e09-4bfa-9c2d-7d5586b9e649","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":117,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"490bf667-3295-4ebb-b633-aac763acb534","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":117,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"297df8eb-fe59-43ff-8384-3d3bfd0124b8","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":117,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"6f83f5f4-d205-4ccc-a37a-dbb563484606","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":117,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"249570db-f94d-4a94-9399-97c3d9bcb48d","block_type":"box","text":"II-75","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d34bd651-38dc-469d-aa59-df79dd64617f","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59ba7d34-7270-4bae-9398-4538c7555079","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":118,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"18314397-96d5-4eb8-ae79-3d9537cc9a89","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":118,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"a3375c70-e9e9-4a66-bcde-3c6eb568af6c","block_type":"box","text":"the risk of loss.","page_number":118,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"ef98a91d-e46b-4c94-badc-f95f6e43938f","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":118,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"b34887c1-b903-412d-8169-cb188ee2d512","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":118,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"78c3a6ac-5f3e-4f99-ad55-128e7230c7cd","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":118,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"e3895d9a-13aa-4221-8fd7-499fcc460eaf","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":118,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"79ff8ba0-8549-4d36-90fa-1cee7bdb7449","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":118,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"9824c8b0-90e1-48c0-a8fd-bccf2033d880","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":118,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"0030b7e7-11f4-4fff-9cc0-5d66f2cc9ae1","block_type":"box","text":"Taxability Risk.","page_number":118,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"4529a607-1c3d-44bc-95e3-5bce0ef0025b","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":118,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"ae3e5207-b8fe-49b6-875a-7f93fe347b12","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":118,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"503e9266-3f85-486c-937f-15694a84478c","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":118,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"4ee4f150-213d-4a72-9425-c0ba533be99b","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":118,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"f0d78a4c-6740-496d-a8f0-dbbf50a813fc","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":118,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"43daa9b9-be50-49f5-af9f-55c707772598","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":118,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"a64bb2a0-678f-419e-b2ad-62ac19096504","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":118,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"6dc59757-d26b-40ad-811c-82ce4e0bff33","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":118,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"c2250dd1-2578-40ce-a6e0-387914e25b33","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":118,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"c722573a-c5a8-46c7-af4c-cb4ba84e8885","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":118,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"476502ce-b07b-4e3e-af73-88f636a86838","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":118,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"b9329ed3-6500-48f7-9d88-ce196e73c5de","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":118,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"74835ba3-d366-4776-a504-fe0ae99b5cd9","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":118,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"16b076df-a31c-4656-aa5f-704cffe7aac7","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":118,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"88f5c159-fc9a-4277-bf6b-0bed26b741da","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":118,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"e7fc0235-45d0-4a0f-a578-7949902a9bad","block_type":"box","text":"the value of an investment in the Fund.","page_number":118,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"5f8357fd-2072-48b4-9706-71a3bee59dc0","block_type":"box","text":"Temporary Defensive Measures.","page_number":118,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"6108c42d-5bbe-49a9-bc18-2955e61af539","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":118,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"a4624764-8409-4564-a968-7a97affa2019","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":118,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"a378598c-9d8d-48d8-a87b-53563f7d5893","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":118,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"f45eacd6-0048-4812-8436-690de36aaaaa","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":118,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"94fbdf18-ea64-4119-8702-d454d4193a39","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":118,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"a35e3861-e656-43a6-b67b-25ad8f0d6323","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":118,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"9a12dc01-fd2d-4ad4-b597-ede727c2f93b","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":118,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"5224e35c-402d-4081-bced-169cc8b004cc","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":118,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"1bde8997-ce62-43e4-87ce-d54e87b93cdb","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":118,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"cf5fd1e4-671d-48d4-afb8-1436cb8a7bbf","block_type":"box","text":"its investment objective.","page_number":118,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"7ed0d9c4-ff53-4473-a4ba-eb0dd3cfa6fc","block_type":"box","text":"U.S. Government Obligations.","page_number":118,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"325dbd9d-f48e-4a9c-9d6a-b68a1f96481c","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":118,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"b5db3914-3772-45a9-949d-13048470b165","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":118,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"0219d662-aa31-4a5f-86f7-a151b8df6093","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":118,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"7c96e3f9-250c-4a15-aae6-479dae0778e8","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":118,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"57efd61d-a74e-4f8e-a1c3-b8b26e82267f","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":118,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"ee6163c1-2609-41fa-9a80-a28b6a51a7cd","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":118,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"ef4237cd-31ad-404f-b643-fb6503da78e2","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":118,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"8781c993-b1d5-4908-98fb-ea6c699c4982","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":118,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"694bc38d-b7c7-41f6-a8bd-b0311e07103c","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":118,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"dbd38c15-2f7c-40fc-83b3-2577c381f8b2","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":118,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"859acba9-32e2-40a8-b2f8-93975c516882","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":118,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"cb3e1071-bf9a-46af-9b43-db90eef9cdd8","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":118,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"675a00d9-3073-4465-8d91-a556a02f9207","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":118,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"16eb9367-f9d9-4073-944a-831f728b579f","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":118,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"cc15f787-2a7e-444b-a6a0-64b6b40e274f","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":118,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"a3ec0b46-2c15-4cb2-8044-dde85400e760","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":118,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"d4265bdc-4daa-486b-bab9-83f1f47615b4","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":118,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"2bc35d66-22b5-47ad-81ea-df5e1885779f","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":118,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"5a0b72eb-47eb-46e9-ac70-fe1650f3c8e9","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":118,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"843ff58c-d462-4754-aa17-a2fb619a90d5","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":118,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"06e196c3-f5cd-488a-957e-fb9b6ccaf83b","block_type":"box","text":"II-76","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bedd5881-1837-4c88-8a44-3fdfd9b40623","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7c8fa1aa-e6fe-4bb5-8ecc-d6e3156755ce","block_type":"box","text":"U.S. Treasury Obligations.","page_number":119,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"45e55f7d-5c97-48fb-a7a6-b02e36287a6a","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":119,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"105bda68-d2f6-4767-9ebd-df4bc2bfc1a4","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":119,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"6b876ad7-b4cf-42ea-a9d6-512959948091","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":119,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"db644ef8-cfdf-4693-90b0-b42459a672b1","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":119,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"df9617bc-b9a6-433a-8ce3-9ec95ca9ff77","block_type":"box","text":"do so.","page_number":119,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"75995077-47c3-44b9-a1dc-a6b36f5ac363","block_type":"box","text":"U.S. Treasury Rolls","page_number":119,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"84d4ff5c-fed0-4613-a1b7-8a361f22ed05","block_type":"box","text":".","page_number":119,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"0c27a1c0-4093-4168-9ebf-ff860f8461f3","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":119,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"372ecae3-c12e-44d8-ac0d-62283d0abe76","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":119,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"d260b561-86b1-4a8e-ae6e-9b9572b89e48","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":119,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"630e2300-cb98-480e-a945-ad20c70ee75f","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":119,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"ee3d6dee-daed-42cc-ad3d-b9c821b37e7e","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":119,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"a8a18e8d-a931-4be4-a3c3-d3126f882893","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":119,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"247b5ef2-5c1b-4a53-8bd7-2e9b41557834","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":119,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"7d3aa19f-87d8-4100-a782-49db206c9775","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":119,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"9fb9e82e-ef92-4fc5-9184-d250a93a7f0f","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":119,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"7aae1373-f57c-4d08-8076-376bad962c62","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":119,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"219a828e-846f-4afa-aecc-8f755c000000","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":119,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"fbc625ef-0e85-4b8a-b1b9-a28f55078b19","block_type":"box","text":"Utility Industries.","page_number":119,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"e39abf71-a966-41c0-b724-01c10d782582","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":119,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"d25e0031-5483-4896-9fe7-b417501b987f","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":119,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"f0c43632-3f9a-476a-8f3a-3d051852d404","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":119,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"691bbc4a-be29-424c-8907-925889d22f2d","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":119,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"325cf5d3-9839-4e5a-b098-762d1c4428b6","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":119,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"fecb88b7-cbc6-4c90-8756-c8d9346aae11","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":119,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"63221ff9-30e1-491b-aaf7-60c1c54f2c91","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":119,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"83aa7414-bab6-45e0-bfc6-b36d532c8522","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":119,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"d94f9b1d-b61c-48dd-bb7c-b19b3f6649c6","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":119,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"dbf32fcc-73d4-48d7-9200-589f41b6ac6f","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":119,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"a48dd646-1680-4372-97cc-22b9b3d6b09e","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":119,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"3946d779-62fe-4227-a4fb-b1eacd01edef","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":119,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"1a597194-08f9-4fa4-873e-fa99c282db6d","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":119,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"666c8bb8-8ca2-4bd2-ba88-35383f1bf8db","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":119,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"bdde9da8-ce8e-45de-81f0-4ea8d76529d7","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":119,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"e2bbc0eb-6f46-44a7-9a53-b1091947cd5c","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":119,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"7cc1193f-48b9-4556-8013-144a070f3a53","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":119,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"49faa9a1-b647-4c5c-a8e2-71c736cc18ef","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":119,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"06b37e71-8f7d-4f27-b4ed-df6e8ee483cb","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":119,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"8fd5b0f9-31d4-4e6a-b0ba-d3ca469ebd82","block_type":"box","text":"utility.","page_number":119,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"18af3a5d-fe1a-4717-96f3-595c417da3c4","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":119,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"6789af60-ae05-432e-8692-208121f6499b","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":119,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"55300e02-d7db-4fe7-b31c-a125cc5bfbbb","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":119,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"29b20a23-2abc-4e87-b58a-8f83779262c0","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":119,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"d11887cd-9eb8-43d7-b454-7f0b095f864b","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":119,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"cb5412d2-ae50-4ddd-8970-46cdd7f78d89","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":119,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"05ea4d45-fd98-4777-8687-8a8237420b83","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":119,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"bf163343-7af4-44bf-99cb-d3c7c0dbfe93","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":119,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"44f8e998-4504-4277-ab83-f13a796b50fe","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":119,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"271618d0-e828-41ec-9ea8-eda137a46a66","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":119,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"c7ddd7e0-bab7-4b82-8c03-c72366065806","block_type":"box","text":"continue in the future.","page_number":119,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"4e6d11bf-da68-4f28-9193-07ba48c111b7","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":119,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"a1ecddd0-2361-437e-b2b2-104de1e6ef27","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":119,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"4cef3d97-ba72-491d-8b1d-0fdf1194848f","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":119,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"e13df129-ea28-4a72-ad67-a91bc4361093","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":119,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"0ffcee69-0662-48d7-8188-f86e913915a9","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":119,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"00877899-9ce2-4274-baa2-5ea979c53a1b","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":119,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"c75d2f0f-874c-4dcc-8f34-1f1af6feeeec","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":119,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"a2ede432-7e67-45b6-82d4-1724088c538f","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":119,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"aa449d8b-6c4b-491f-8048-1eaf3781a45f","block_type":"box","text":"II-77","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aa2f855d-4faa-44a8-b310-9e0e0f7a6536","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8a60611b-e302-4a67-9ce1-9835c8865cc4","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":120,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"af7d2eaa-907f-4c01-83bd-c403a44353c8","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":120,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"b36919ce-9ebb-4882-aac5-43a62250e5f1","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":120,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"59abc5e7-e55a-474a-a78b-054c6a83be2d","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":120,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"5d7a0fb7-a7c5-4700-b489-aeb5780ed8b6","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":120,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"88b782c6-eff5-4e36-a1ef-82097c3be75c","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":120,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"5650241a-058b-4d81-b0f5-2109de8d4d09","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":120,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"05967a34-0435-45e0-987d-8ed9841a30db","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":120,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"5f40bdb5-600d-4f85-be9e-18c8265d2a07","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":120,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"e888cd81-7903-468d-bce0-cb9b41f4b6f9","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":120,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"6c3db2d9-96c0-4bf0-a2d1-f11563678f59","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":120,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"5101c3d0-99f0-43f5-a641-28cfbaeb8724","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":120,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"148c42fb-a20f-47f7-a0d0-9eedd6c06bba","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":120,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"2b676825-ecf4-448d-9d49-c49dc944844e","block_type":"box","text":"ways different from regulation in the United States.","page_number":120,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"dfd0a136-01df-4047-8570-9c4313c6a71c","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":120,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"c2f260e4-26ca-4a35-aafa-fcf78a36fb5d","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":120,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"d1cb7328-f825-43b3-b886-a36c0b73d295","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":120,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"9d2ecf92-552b-45db-840f-cb45e6808a5c","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":120,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"33f833b4-cbf3-41fb-b4f5-af4150841c70","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":120,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"3de971e6-9293-42cc-b89f-586e81dadf23","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":120,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"64e51913-5088-4d58-b221-b705fe48f6d9","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":120,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"4fe9e360-ca98-4bd1-ab06-44661ffb8096","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":120,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"cda0a6cd-a859-45b4-a72a-f032dabedcba","block_type":"box","text":"increase.","page_number":120,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"9b32c170-1fb9-4521-84b9-9f997b53413b","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":120,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"74b467af-c4f7-4a77-b298-0dc48414bc2d","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":120,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"8343278d-2af6-47e0-93e7-3012d4755055","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":120,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"869c1c28-d46a-419b-baaf-a7111e8cc21b","block_type":"box","text":"Electric.","page_number":120,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"a8990cd2-b71d-4de6-b4c2-519fb39762bc","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":120,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"13aae4d6-cfa9-4204-b6c0-9226415b7bbd","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":120,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"513e8891-5154-4901-805f-0d27b0b99bb2","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":120,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"5e17d912-df50-4720-a3d5-50ded284e810","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":120,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"bf4a4a36-3821-4990-9569-76da57ac858b","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":120,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"cd6469bc-54c2-4c6d-9092-65016fc01484","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":120,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"e026a72e-6635-4ad5-b7f9-bc9fde2d5772","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":120,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"50a0346f-1a46-454b-ad8c-0b3485950cea","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":120,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"3fc1ebba-4fe2-4928-9be3-fbc1cbad20f8","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":120,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"8b063d20-cb3f-430f-a44a-43a38835dc40","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":120,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"4506872b-2afe-4e81-8d98-8516255fcf43","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":120,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"7f6e89ef-d2fa-49c8-82e5-81429c824d63","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":120,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"4c6fdd9b-59af-4375-9f7f-5463205dabcf","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":120,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"9e871f51-1b0e-40fa-aa25-030ac332f5b9","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":120,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"716d5d1f-67b7-4e7e-bd21-b27d0b477461","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":120,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"a31e047e-8f6a-4309-a75f-91fb1407d88b","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":120,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"e2ad960a-1087-440b-8804-51442e69ddf6","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":120,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"0fca4bc9-50c4-4a42-b34e-5b0a10ae1580","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":120,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"a621a5ea-450e-4244-a678-58dc473c1c13","block_type":"box","text":"and for decommissioning such plants.","page_number":120,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"86e990c2-506e-4be5-aaf5-74cc84d5b521","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":120,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"bef1419b-8e47-4efa-87a8-4dc197ea205c","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":120,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"fd7b2a72-7fe8-4ddd-ae2f-dde44cf6b710","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":120,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"f317ed63-e122-4029-ab6d-c4762d5d3fdc","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":120,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"18c061c0-29a0-4847-a4ab-bbc0d877cc17","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":120,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"48f808ac-c2b0-4ac5-abfe-a38662554b96","block_type":"box","text":"greater predictability of cash flow.","page_number":120,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"07f18094-ffd8-455c-a655-c2e4feb6ce9d","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":120,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"afebf97b-2fca-4ddc-be8f-1617af9f0a65","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":120,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"7c4d88ab-d21a-4daa-bbcf-8b41360b9239","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":120,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"71079c4a-cb86-420c-8361-dcf365d31f20","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":120,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"de46dcfe-7c29-4fcb-a8e5-049c28a26cb2","block_type":"box","text":"II-78","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"45a5141f-4e4e-40aa-9ddf-dd301e85d8dc","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"138e7720-0e7c-483a-80d1-f302adb580b0","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":121,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"3161218a-e4c5-4963-a2b8-5e7dda9a5820","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":121,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"3adb09f0-e124-4347-89e8-06f8aa2f9d73","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":121,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"34034a1b-1ae6-4fab-9f55-cadd436fb443","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":121,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"7b17f0ae-dd48-4790-921c-dbb7f6c94f0a","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":121,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"c87dd055-a09d-416b-8273-cb1466eee603","block_type":"box","text":"Telecommunications.","page_number":121,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"bb2c9de5-a77e-4644-935e-83c508e4f8a2","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":121,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"414800e1-959a-4215-b345-f75e8a93205e","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":121,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"ce84c755-042d-40fa-825e-c7ab336eea17","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":121,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"aea57fcf-4797-4479-8136-ca020502be35","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":121,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"d9df5cb1-80cd-4f6a-8587-31e21cee1bea","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":121,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"c18c9f6b-3319-44b9-95c5-7d4fa484aef3","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":121,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"825d85dd-cd74-4474-b7fb-4fdb7c5af70e","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":121,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"7ee9c6ce-e26d-4b5f-a46f-ff7cb7f02d77","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":121,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"f97677fb-1bab-4b25-bdc4-fc2840eeb69f","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":121,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"94a51725-bc84-47c7-8eaa-cd9aa1db17a5","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":121,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"60d2fc7c-e0f8-4c18-816f-78db2ca6cc9f","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":121,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"d70f953b-2d65-40c7-a6b2-33b5412fdd81","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":121,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"ba50872c-57bf-42a0-b9c4-d19f8d644ae8","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":121,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"71223363-95ba-473c-b7e4-398adaa68566","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":121,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"0c8aa0ae-57ae-45ab-b2a3-abc4c51af922","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":121,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"1b9421d9-453a-42b8-a677-f7e42ba4911c","block_type":"box","text":"residential, corporate and governmental customers.","page_number":121,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"7840fb0c-2a52-485f-bbeb-cde8e3195f23","block_type":"box","text":"Gas.","page_number":121,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"e1e19da9-fd38-4445-86e4-8107cab02ce7","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":121,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"ad602182-780e-4c3c-8852-8f5a1dcb17e8","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":121,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"3f0bc183-093d-4b33-b0a6-b310a805c5cb","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":121,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"cabc6085-f886-465b-85c1-bd3c0bbf2817","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":121,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"5928227a-debb-4305-8092-b47bdc1680c7","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":121,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"4b135471-f386-4b23-916c-11863fc279c7","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":121,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"587e4654-588d-4419-b632-84f5d305976b","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":121,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"6320e5c0-a056-49ad-8b8f-30c848418835","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":121,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"dad784a7-650a-4213-8196-7816842d527e","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":121,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"3bc8cf31-bc30-409c-a392-2ac94155c929","block_type":"box","text":"Water.","page_number":121,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"a0d29203-93aa-4d3e-987a-85a1b10ab717","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":121,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"940b19a3-05dd-47d2-a2e6-2d228efac31e","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":121,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"8245c7d2-310f-45c3-b7f2-95c68b2a5681","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":121,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"b422046b-07d8-42f8-a59a-790a8ef2e02a","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":121,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"7182a31b-aadb-4cc4-8b59-09935c5b58e4","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":121,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"cd5dd290-2562-43ef-b0fa-6d9ceb9cfbd6","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":121,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"d98084ae-2029-478f-bf3c-5995766ad2d3","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":121,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"f076fbf3-4ab6-46af-abf1-ff7eb27f2155","block_type":"box","text":"Utility Industries Generally.","page_number":121,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"216322de-d4ed-4163-9994-8fd26b274637","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":121,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"3ac38f2a-e32e-4a6c-b466-a9cb8795824b","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":121,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"d598fffb-4ba5-4456-95e3-e76161a3befe","block_type":"box","text":"not develop in the future.","page_number":121,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"a2dc953a-d5da-4bd3-8c84-eab86b9df472","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":121,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"b7f993dd-b232-4fb3-acba-ab6c9ea145ae","block_type":"box","text":"A Fund may purchase or sell","page_number":121,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"cb5ebde5-4946-4bf4-8bc3-c902d63b1045","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":121,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"83d11a09-cb5a-40a5-aa52-3371ffc19027","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":121,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"e000546b-bc09-49bf-9e41-c26fc2c06e23","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":121,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"33d76a55-036a-4fcc-8532-fadafc70ad8c","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":121,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"b97fb3ad-6fd3-4ef1-9131-05cea47a2438","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":121,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"a5ff9505-79c3-48bf-a08a-7f4faa1b2ca9","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":121,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"fd1d85a7-ea8c-421f-9da3-7b9168b5c8a8","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":121,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"2c59678e-300f-487d-bdf4-b9d2eaf282dd","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":121,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"943530cb-276a-491c-8a59-699ba85e7c8e","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":121,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"1e2116ec-de82-4c3d-bdd2-df6cc1f83a3c","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":121,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"d6dd1ebf-3135-48e1-9b35-21fae1913538","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":121,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"940f01e3-065b-4947-9c7a-7e18ba852eaf","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":121,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"2579da4c-86c8-4571-b115-dd6939bfc05e","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":121,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"d12a1aac-c229-4126-8d4e-3c6209b79bd4","block_type":"box","text":"II-79","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cedb436e-599d-43ce-8bf3-179563eedeba","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"83759c84-99bd-4279-8f4a-6a9f95407e74","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":122,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"731a23cf-0856-48af-aa34-a478db065be0","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":122,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"474c6ff2-7ca2-4b52-9196-b2494ad0dc68","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":122,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"8842a7f4-40e7-4a33-ae0a-4eb4afadeaf6","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":122,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"2456a8a7-5702-4c41-b283-688d907eba32","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":122,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"dccbf55e-6a11-427c-bbf9-b1b0709d61d6","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":122,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"cfcf3edf-839a-496b-ad1f-3690af21941f","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":122,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"7153efbe-e1b7-4e2b-9ff7-286f39af24de","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":122,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"0a31837b-ac2a-490d-ba58-c321f13e3f24","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":122,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"9896503a-adbf-443f-83d0-34cf15389e00","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":122,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"49531a58-36f7-4ed2-ba02-cfa1b1abecb1","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":122,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"0868706c-97bc-4846-bc47-33d1e42fe0ff","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":122,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"44966a3e-c4c3-46c4-90cd-af846ef79254","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":122,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"3ba16a0a-37ab-4606-8aa0-f373d5592b72","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":122,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"fcba311c-3e3e-4adb-87f3-eb254f29c961","block_type":"box","text":"securities (","page_number":122,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"b51ea7d1-aa3c-4fb3-a0b4-7f5bf9254e9e","block_type":"box","text":"e.g.","page_number":122,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"f5e4ae4b-fc2d-458a-837f-fb3c125e63c9","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":122,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"06d62dd6-40d7-4890-b8e6-b0271340e33a","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":122,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"6f1404b7-3dc8-4b38-8862-944b15a83377","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":122,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"06042ae3-7c61-4327-8937-286c0132ba4d","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":122,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"43f1e72a-0893-496e-8c4f-c5fec06b9d01","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":122,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"5b8352c6-80d2-497d-9bf0-73d03d5eef98","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":122,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"a4506a9f-9769-439a-b622-588c4c9b436d","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":122,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"19129eaa-6b5b-4785-a3ff-df2761b8b2be","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":122,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"0ee6d46b-fd3a-4ca9-be29-caf8033d6fe5","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":122,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"1e727bbd-facc-440b-9de7-1a97aa0da453","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":122,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"1e59a6bf-c81d-4d32-b216-b7b0130377a3","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":122,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"37997445-b8a5-403f-b805-0e0ed39368a2","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":122,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"d135bc0f-22de-48ed-b5c5-fb5199e46b9e","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":122,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"48bb1337-0939-4086-97a9-2d3e83508256","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":122,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"d9ab8d62-4080-4f4a-8d3d-c6b48e265abe","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":122,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"1039943c-cb22-4274-92d9-cc59156573d7","block_type":"box","text":"Yields and Ratings.","page_number":122,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"b3b59570-537d-4634-a4b5-1aa9206f2c92","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":122,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"d55aad15-95e8-4af4-bbe0-8b9d14a1acdc","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":122,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"b6c3368c-532c-460c-9005-9be86fa7592b","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":122,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"2e10dd46-f1f4-4704-beb7-e68e71468918","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":122,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"7a816ed2-42ef-464c-9b79-1972a294ff7d","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":122,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"5cd768a3-3077-4534-9ad5-763c53b3ba80","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":122,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"1080f0cc-3e0c-4402-bcbf-934e6f26df69","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":122,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"c6c452c1-332a-45f6-adc9-1d93af422fd7","block_type":"box","text":"continue to hold the security.","page_number":122,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"7dde8680-e58d-4e77-ad75-8608a3d5504d","block_type":"box","text":"Zero Coupon Securities.","page_number":122,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"1ced42dd-0763-4fbf-b8bd-e2198a43fd5e","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":122,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"21102f4d-188b-4b61-8b65-3db93d51dd21","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":122,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"d6c3e741-01f2-439f-8e2b-e46c63dfd695","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":122,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"75ec3dd9-39bc-4873-855d-5cf4a6e497e8","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":122,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"e0311570-5df1-4bc6-86f1-a3ccfd40b8bb","block_type":"box","text":"security.","page_number":122,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"7eeec55b-e604-4e9c-882f-8cf6713050b4","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":122,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"69e76617-59fc-45a4-a962-494dd97ba491","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":122,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"83f86659-d42a-4c83-9f4f-4023120b22fd","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":122,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"7463dbf7-ba3e-4dc3-bb9a-6d84ed64181b","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":122,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"03465d1d-3447-4ccb-8b1d-3468c5f1bd69","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":122,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"255bf4f1-0706-4734-9ed1-3f2ccfe6ffd8","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":122,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"0f2a4f11-68d9-4726-a3af-3e8db8dc85be","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":122,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"8dba62c5-1407-46fa-91b6-a548a0dd455a","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":122,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"a30c2ec4-9b44-4fae-91f5-5062681aa6c2","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":122,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"20c17cec-4faf-4c30-88b4-fbc090112171","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":122,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"d8e3fc96-fdfe-4861-9cc6-e3c07b642c9e","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":122,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"27252e72-a3c8-4e41-88b0-73cc66277557","block_type":"box","text":"II-80","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"baa772dc-3670-4356-936c-ba2ef165176f","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d45ef957-05af-4359-b6be-c15287176d5c","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":123,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"5ab4016e-89a1-44c5-b9a3-cf66aabf01d9","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":123,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"12828145-afe9-47f1-b76a-3451273c82f3","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":123,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"06ed3f32-729a-4fa4-9071-c8a89e0461ac","block_type":"box","text":"intervals.","page_number":123,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"13254127-2108-47fd-9b52-35e5fb0bceb1","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":123,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"7f43c075-bd66-40e0-9c28-f17d3a2ef89d","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":123,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"b3305adc-34ba-4ed6-9c9a-60b85a70636d","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":123,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"434fae9f-67e1-4baa-9767-f78e8376ee53","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":123,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"981990fe-37ea-4217-9cdc-cc4dcaeee2ea","block_type":"box","text":"exposure to zero coupon securities.","page_number":123,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"501ba602-5016-4c90-b219-f439316b48a3","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":123,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"f2154faf-a5b6-493e-b869-9aa18e923a82","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":123,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"38854efc-d13d-4239-bb7c-ade4693ba940","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":123,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"5ef2062f-975a-41f0-94fa-061138027eb2","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":123,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"5e263746-fd94-4abf-bc97-44b0ed077a33","block_type":"box","text":"Suitability. (All Funds)","page_number":123,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"8d5d0c93-700c-4762-b73c-a23a79e28fb7","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":123,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"6dc9c2a9-83db-444e-ae36-64bcefab20c9","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":123,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"5f62b0ec-6db5-44f7-a4ab-d5b81e1e51d9","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":123,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"983d0c64-7f9b-42b8-b979-a53e05ba4fd4","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":123,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"d98e8213-51ed-42bb-867e-c9d9c4b2f83e","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":123,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"f7e10b65-1833-42c7-8e7b-063b31875b3e","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":123,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"686b0c5f-8362-483b-8a55-a33fac8494fe","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":123,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"08add3cd-1c08-4ae6-a47a-7b86e598a15e","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":123,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"a2ec1be8-920d-4594-b3bd-9d42392bec65","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":123,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"d9f097f3-6092-4dc5-9c5b-a34c2d180f03","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":123,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"13dd5b73-63de-45ba-b1e1-a67983562475","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":123,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"8a146b69-0733-429e-b473-b757a0f949a4","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":123,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"0bac9059-c25f-42d4-af06-ee738cb34b4c","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":123,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"b357f701-d836-4284-a337-dcf10c5b999f","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":123,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"214af416-93c0-4e3e-a296-426a80b89232","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":123,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"e41b59ae-d150-4e8c-a406-f1aa90daec0a","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":123,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"05dc67e8-bff4-4d17-932d-80b99b43f13d","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":123,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"3d928edd-3842-4e96-ab6b-c026709218a7","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":123,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"0760d94d-0c6d-489a-aa8a-3e82b1be7601","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":123,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"24249e28-c7ac-4609-9201-632b5c2ea201","block_type":"box","text":"(","page_number":123,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"2da117a7-d089-418d-a30c-3bb2bce0c068","block_type":"box","text":"i.e.","page_number":123,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"0928bd76-655e-4637-b6d4-c0e5eb371bdc","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":123,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"73b4f66b-4be9-4410-af78-a73a1b068958","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":123,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"d68bdba7-8fbb-44fc-bee6-77545cd44dd9","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":123,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"69f3f57f-ba30-4097-8bdb-9ec540653aa3","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":123,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"2c1dea23-c59b-40f0-85b5-b7618a08ac2a","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":123,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"25fa8ca7-34ce-4ca9-9174-4ef90a6973a4","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":123,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"b28ca47c-aa34-44a2-a1da-5f5b04c864ab","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":123,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"b2902f33-575e-4627-b01b-17797fc6713b","block_type":"box","text":"regarded as the sole issuer.","page_number":123,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"c8a025c5-ebef-4f71-82b0-4493d2403720","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":123,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"3c8552af-c512-4208-9bb6-77f4898b8c09","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":123,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"bb5fbb83-7f1b-4784-b620-e044818ec2e0","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":123,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"7cf7751f-6142-4143-8b9f-475675059511","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":123,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"b910651b-3a73-47b9-bc10-d99013472194","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":123,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"9ad152d2-8eb7-4714-907c-a14960e7b9a0","block_type":"box","text":"75% of its total assets.","page_number":123,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"51c11b9c-bb97-4844-b8f5-33ecd678a9be","block_type":"box","text":"II-81","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4556b289-2215-4e89-b20f-4fd0d30093be","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82235c7f-718e-441d-8c91-dae3c388da5e","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":124,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"2b63f849-2db3-4be1-a88b-63e3d70e83b4","block_type":"box","text":"Directors and Officers","page_number":124,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"2e6a02b3-1076-47fe-9164-bd3fa5849f11","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":124,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"67e44bb8-d8a8-4bd1-bc74-a676fed9329f","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":124,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"f1ef0b5c-61aa-44a0-a2c3-e77229fe3307","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":124,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"2954323a-28ce-48c3-926f-7313401d6e84","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":124,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"907e6aac-4aff-4d59-927f-2cc91bc9622b","block_type":"box","text":"Management Arrangements","page_number":124,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"d0368b8e-6b08-44f3-a9fc-f572aeb5fdb0","block_type":"box","text":"Management Services.","page_number":124,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"44d4cc13-6e04-471a-8f8d-bd77adeeaecc","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":124,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"ed59b2e4-1d79-44b2-99af-d4967b00400b","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":124,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"ce742111-fe92-49c8-9568-b498b16b83f2","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":124,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"7c888aff-a923-4d11-8437-d3933d75f674","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":124,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"3245636d-f1fa-49ae-ab34-005e69021ed9","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":124,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"2eebb5bc-21ce-4c52-b775-3b6a70c5aa28","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":124,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"a3f79980-d906-4dab-a64a-7d4403798de3","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":124,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"3315d06e-f92f-439b-8410-1f6fcc33072f","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":124,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"7c069c9a-5ef9-49e9-b346-2bcc82c1d8ed","block_type":"box","text":"Duration and Termination.","page_number":124,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"1f87776d-f923-4bca-8c46-1714bf8f43b6","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":124,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"42ae60d6-6b32-4444-ab17-f7cef20adf8f","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":124,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"691706ba-d5bc-4a9c-81ea-1408f4dca9d5","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":124,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"73f664ed-46b2-41d6-9a6f-24e1dbaa4819","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":124,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"57cafb86-91c7-421b-b496-1249941cef13","block_type":"box","text":"II-82","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9c142efc-587f-4267-bf39-1b153303566d","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6a9cc03b-67ad-4c2c-9b24-4bdbe65d6328","block_type":"box","text":"in the Investment Company Act) of any such party. 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Such contract is not assignable","page_number":125,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"6ba71d3b-2436-445e-905c-317b17281b20","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either party thereto or by the vote of the","page_number":125,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"ba5b7f4d-1a0f-481d-81cd-da2b55179877","block_type":"box","text":"shareholders of the Fund.","page_number":125,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"0a57d63e-b8d2-4bb0-8534-bc6e861660c5","block_type":"box","text":"Transfer Agency Services.","page_number":125,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"4fb00d11-b6d1-4a91-bb81-c0d65796b5dc","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":125,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"d56a92fa-8650-4d7b-a967-741f291f1365","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":125,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"863e0653-eba7-470b-8bfd-f9b81c189236","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":125,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"6c00509c-c0ab-48a7-bb4a-8697bdf45f6d","block_type":"box","text":"with the Funds. 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A Fund also may use special purpose custodian banks from time to time for","page_number":125,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"9ee847c1-d0bb-4e4d-b80a-e5783bd9006b","block_type":"box","text":"certain assets.","page_number":125,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"de3a1c9b-14b3-4f4e-ba71-3f98c33623ad","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":125,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"1add64d0-32c3-48fa-ab0c-40a9355779ef","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":125,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"a250bf81-aafe-48d3-bfa4-faf8b0a167c1","block_type":"box","text":"Fund.","page_number":125,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"c43fb14f-d86b-486e-8531-45e49a336201","block_type":"box","text":"II-83","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f6ab1572-e25b-449b-bcf9-4d7ed3552e79","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5615fd61-1f18-4008-a2ac-93b82286f1f6","block_type":"box","text":"Accounting Services.","page_number":126,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"ae48acd5-1d7b-4118-8d24-400643d68ea7","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":126,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"b13f7a0f-9d10-4740-9f3e-73c78cb80b85","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides certain accounting and administrative services to the Fund. Each","page_number":126,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"72f4190d-34a9-4bd1-96ed-fb87384ab572","block_type":"box","text":"Fund pays a fee for these services. State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":126,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"3c951e2d-ba94-4806-b0fd-7ccce5571527","block_type":"box","text":"Master LLCs.","page_number":126,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"58f17ad1-adb1-4dbc-aeb5-4c743a6211e7","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":126,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"d9a33ab7-78d5-4a55-8701-0e6216349593","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the","page_number":126,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"684ee2ea-22e7-450a-bb2d-3b89d9f978c4","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":126,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"2645ae28-883a-4152-aceb-aa3d025947bc","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":126,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"7466230a-4504-40f9-b86d-fbbb9d73df47","block_type":"box","text":"Distribution Expenses.","page_number":126,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"78abb3e5-2931-4494-bd42-685898604b46","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":126,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"d2de05d4-aec8-4116-9bb4-4c848279eb4a","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). The Distribution","page_number":126,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"cb295263-4026-434e-9833-6bca7955f02b","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":126,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"75c2830f-c010-484e-bade-9c7aa9310623","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":126,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"db5c0b4d-7c29-4e7a-a1dc-cf8f80f58b5f","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":126,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"5919b5b3-991e-4c4e-a1fc-9d4e3e803714","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":126,"box":{"x":70,"y":256,"width":799,"height":12}},{"id":"0ea1f124-9da1-4b6f-bba0-0df9e9396235","block_type":"box","text":"literature and advertising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":126,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"9f87d5cb-b3d3-4f04-be18-0ffc8ea2bbcc","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":126,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"938b75cc-a66c-4a9e-a7b1-a4566f81009b","block_type":"box","text":"Code of Ethics","page_number":126,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"a3873c18-4296-44d7-ade5-cd042324e79b","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":126,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"d88fdf83-abb5-416e-b0e6-ce97ceeb61b5","block_type":"box","text":"17j-1 under the Investment Company Act. The Code of Ethics establishes procedures for personal investing and","page_number":126,"box":{"x":70,"y":355,"width":794,"height":11}},{"id":"e0b5df9e-1c8d-4023-9ec1-9fddceb168b7","block_type":"box","text":"restricts certain transactions. Employees subject to the Code of Ethics may invest in securities for their personal","page_number":126,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"8daf6dd9-296f-45f0-8fdb-e92ace1ac91a","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":126,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"627b79e9-6c3c-4857-ae24-1dade8dda4ef","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":126,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"fee6d692-0949-4da3-b7a7-474f67134cfc","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":126,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"ef2c9fed-ec4e-47ec-8349-0624bae16a1e","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":126,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"74c38bec-a367-48ce-8f89-2ef50a6f7ccd","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":132,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"ec2d7d1c-e76b-4c83-ac15-0a861011773d","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":132,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"84c774ab-31a3-4599-8bdc-215a8d293b21","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":132,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"72c14aff-2e14-4c2e-a409-f5c32ac63137","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":132,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"634ca55f-1559-47b8-a777-6f0ad27f5018","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":132,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"1547e8e0-e55b-4644-b9c0-b043acd73e1f","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":132,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"fe27949c-7116-4b6f-aff4-8b3e973f0bc5","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":132,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"cf71753a-2661-47ce-86c4-d6d0428fa3c4","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":132,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"1916901f-7697-40c1-947a-12d39e805f7f","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":132,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"f3176541-5167-4d9f-8cf5-e8f490ee257c","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":132,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"cf141812-5e24-49fd-ab3a-8d7e9013c7bd","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":132,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"2cc05ab4-5eeb-4eed-8b71-be151330b5f2","block_type":"box","text":"II-90","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f9e9a65c-bdc3-4ae6-a421-76d3edd41797","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"02dd5236-9c3a-4f0b-af7f-c5d436df7343","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":133,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"3de50533-96f2-4d9e-9431-0fce7aec0c6a","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":133,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"2666eff0-41c7-4c38-a63d-fa580854fc8f","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":133,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"46b4ddb1-2cb8-4856-b342-3d6ce42124d1","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":133,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"8f8a246e-1acd-4204-8ed0-3aeca2f040fa","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":133,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"80441f55-780c-43f3-ac3f-4960377d484b","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":133,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"be4f6cbf-fdd7-4efa-a152-4ffc4bc8eb70","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":133,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"2aad7117-5fe3-4bc0-8a13-55b339370065","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":133,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"dae479b8-edf7-42f6-b2b9-8d9baf44765c","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":133,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"fc321d43-bbdb-400d-a71d-7445356fc199","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":133,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"9328c03c-abd4-4908-9ac0-d5b4cc2d3b27","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":133,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"ea2416ad-e694-418b-9a17-5adddc0047b4","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":133,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"b0e3ce15-d605-4ce1-ab58-ccbc5d63423a","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":133,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"696f6147-7b9d-430e-a185-a0ba0a7848db","block_type":"box","text":"managing a Fund.","page_number":133,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"6b63fe33-002e-44c9-a8f4-21d00d5cf0f2","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":133,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"cfe96a66-9897-4922-babc-ef9b9ac5246c","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":133,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"16a47092-6795-4250-b20a-c6317ea6d30e","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":133,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"edec45d2-8751-4a69-b4d3-8439063198b4","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":133,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"ac20b3dd-0fa4-4bcc-aa50-5d7053797262","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":133,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"bb3ee8e9-dcd3-46fd-9881-667ff2dcb0ca","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":133,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"183cfb88-c777-431c-97ad-61daeb98748d","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":133,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"4b3704db-c375-4f9b-8e21-1ae568da37ac","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":133,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"9c6b4916-19ca-4e1d-a686-876d6333430d","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":133,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"eac23b8e-7f1d-4c95-99ec-994119bf72b7","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":133,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"7e33ea7d-fef9-4f9b-addd-571e1bbf68ff","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":133,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"2eb38d22-88f2-4b30-a7b4-97c686a63fb3","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":133,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"724c9189-6999-44c0-9963-aa26bd8a6bd4","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":133,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"00af5fe6-2114-40d1-bdda-b54141f5005b","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":133,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"2363cda3-ab15-4ece-824b-f641663a361f","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":133,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"712ebc48-2e8f-4024-ac31-6ecb605e7a3c","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":133,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"922ab39e-15bc-47f5-b988-157c19997ede","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":133,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"c336a843-4bc7-452d-b33f-f066abff9560","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":133,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"109f15b5-ba4c-476f-9a40-ac3f1d42e3f1","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":133,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"b46dbbda-2634-4606-b657-e9f3069a8bc4","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":133,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"5d892a58-516b-451b-b718-dd5b65062c60","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":133,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"da909422-2a38-4a13-9b99-dd6e933afbf0","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":133,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"9c0c602d-41eb-46d4-9416-5f508ec55f86","block_type":"box","text":"under management for BlackRock.","page_number":133,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"0f9a7396-8ef8-471a-b57f-3ae9d30adfb0","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":133,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"31aef733-7767-43e9-a577-6159f4f57a8a","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":133,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"f79d9095-3fe7-421c-8918-f49a0c120b2c","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":133,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"7451985a-85f8-446d-8c62-113b66a77991","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":133,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"53c2cb79-0a33-4a66-abef-12698e6da311","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":133,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"b69d1540-4f07-41f2-92dc-7b85946a4e98","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":133,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"4229e9b2-58e0-4660-a249-3e31a6499a3b","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":133,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"7f732f3d-f437-40a6-a167-ac716659e838","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":133,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"dcd03c14-53c5-4fd0-b15e-fbf0e64a290f","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":133,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"412963b2-647b-4990-94a8-ca25c2b2f5bf","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":133,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"f80bd0b4-22d0-4152-b057-6b80bb4f38a5","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":133,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"10208f18-fde1-489f-9500-b272d4e1d1ed","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":133,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"229440e1-8d6c-4ea9-868e-fc8a02d2beeb","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":133,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"5bbc9c6d-8b04-46a3-bddf-97510c725f68","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":133,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"62d8a4aa-f6be-42da-b1a2-3d00af635c7c","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":133,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"1838fb9b-149d-44f3-a293-e853f0ba26b8","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":134,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"d7d7390f-c1e0-48f5-b381-89a32dcc365c","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":134,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"1ddc95d9-8d9c-4600-8de2-7bfc7dca6516","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":134,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"3a192f73-00c2-490b-99c9-9018f82f88ee","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. 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There are potential conflicts of interests in","page_number":134,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"c4ebbbfc-cc2e-4982-9fb1-7d04ff38a445","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":134,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"33c45bb9-5e03-46d7-b0cd-84565f248b74","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":134,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"af9f5cd0-37e8-4263-9aaa-8e5cd05dc14b","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":134,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"522c9fbc-1295-484d-8834-af55d373556e","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":134,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"60658a7a-4034-4feb-a15a-5272cbb7e1ec","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":134,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"a06958b2-b58b-4934-9136-43dc4a2cea9c","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":134,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"3ecff6ad-5e83-4274-a009-bf0cf8c56c5f","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":134,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"7aebec8d-9004-4971-a49f-af8d92556636","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":134,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"cca58754-1a05-4537-83c1-e75b1b71f642","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":134,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"d9ef810e-00b5-4f15-8e4c-bc5dc7b876cf","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":134,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"4ee2552a-ab92-460b-9412-a6cf01b3c356","block_type":"box","text":"collateral or reducing borrower credit limits. 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In addition, some borrowers may prefer certain","page_number":134,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"8ae5395e-c3b9-4df1-83ec-2ea8a7503682","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":134,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"7b1d1407-bc31-494c-8498-8e4fe26daaef","block_type":"box","text":"regulation.","page_number":134,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"22ca7d61-0465-48c3-9596-7e153e826506","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":134,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"9998fc76-3389-44ce-a1e4-37ea335508ea","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":134,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"dd347841-86d9-4851-8fbe-2f8b3b301bbb","block_type":"box","text":"various program limits (","page_number":134,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"69141927-347c-4578-b2c9-89cb8d476fb9","block_type":"box","text":"i.e.","page_number":134,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"0486240b-4341-4de8-a438-faf9306f98b3","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":134,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"3f7a3d25-48be-4e9e-a3b1-2b0a041b1c25","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":134,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"5f9d3ff2-dd00-47d4-9f12-e05edd0837d2","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":134,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"616b5b18-2230-42c0-a4d1-efc7633813d8","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":134,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"5971fd8f-a2eb-4a1a-965c-c4db427cde88","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":134,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"25d85939-1d11-4800-85c8-1b8e58239dbe","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":134,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"c918b9cc-6d5c-47d3-90d5-b50a05a32748","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":134,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"1120559b-b1d8-44d2-9a43-6188c0b708e5","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":134,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"63d4600a-06d3-4730-809c-e385fe443c18","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":134,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"058f45a9-ee19-469c-88e7-d8f9d92bbe07","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":134,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"a1cf296e-fe57-4790-8a38-fceacc781da8","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":134,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"b70febf8-55b7-49ef-9dd1-ce5cdd4baf1e","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":134,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"d67c8468-6281-4282-b2d0-ba7571e7e590","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":134,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"105fe45c-01a1-4d4a-9c34-aa1ca1a13143","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":134,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"976d1cf3-7be4-44e9-8942-2c1005d849b3","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":134,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"b016eb9f-d389-47fa-9be1-559e0569b031","block_type":"box","text":"II-92","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"266e5dad-2439-4411-8685-59ae377dd956","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"395bbe0a-5ea8-4872-ad12-ba00cd6666e6","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":135,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"c01cf707-75f5-4d69-a20b-d95225b3f281","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":135,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"a3e00aab-42f4-4b7f-8adc-5eb0ccfb94e7","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":135,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"10a71632-baaf-4e05-93ce-9af1d4b86eec","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":135,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"1367fc96-3661-4cc9-b2b4-2a8a92da7c82","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":135,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"921a1189-c794-4c61-9ee6-0dbb8145a5b9","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":135,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"b561311d-86a2-482c-812d-01d3fd037bd9","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":135,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"407faeea-5e8d-43ab-b4e9-036d61d8fa30","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":135,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"e2370cde-8c83-487d-bc06-30fc15792e29","block_type":"box","text":"than through client commissions.","page_number":135,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"544b4462-ccd4-45d4-85c7-b908085741f1","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":135,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"cfac4241-8608-4335-aa2f-f49a057b0203","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":135,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"a49c5300-f3d3-4e5c-8dae-98cfff1fefcd","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":135,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"af5b5f91-f15a-4f70-bdb6-14df099fc02f","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":135,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"1130f665-6547-404e-b25b-e1c6703c5c16","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":135,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"902a75f6-3644-41b7-a118-9a2bfe3ecd4e","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":135,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"f954fa9b-5c7f-4b7c-b7b6-cfa4ae3268b3","block_type":"box","text":"research-oriented software and other services and products.","page_number":135,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"ed188538-ab26-48ce-a6e2-0e507fd84f42","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":135,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"54405a47-c798-476b-915b-6d14f223b6bb","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":135,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"e176cff7-e2b6-43dd-b23e-f641b599ff56","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":135,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"35f3a291-ee3b-46f3-bbef-72d78353e218","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":135,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"743d4b6a-f475-491c-914f-7fd12ab30543","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":135,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"250ba088-e746-42b4-a49e-7d31eb8defa2","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":135,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"b021e48f-15b3-4774-97b5-8c071748f2b7","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":135,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"10d0cf96-5348-4adc-ae44-c045bdd1ff51","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":135,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"6e022426-4725-4d7b-a0dd-82ed440cd260","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":135,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"7155b291-dc35-4b16-bb7f-c02baf1e905b","block_type":"box","text":"and services itself.","page_number":135,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"dd177a35-a526-4817-b1e2-fbfb26c19301","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":135,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"9fc48052-738d-4b1e-a48f-91a9fbfd05d8","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":135,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"d7740325-8176-4541-a335-09b55412a0ae","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":135,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"fb470f73-5610-4c9e-b266-13e0a98b9cee","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":135,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"02376552-45fb-46d3-8efe-6770780e234c","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":135,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"7b32f2dd-84e4-4c4a-9f32-71cad04578ab","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":135,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"564f6f65-d1a6-4e68-811e-20cfd33a6c35","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":135,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"bdabe602-aea7-4ac7-9e23-b3cee04e74bd","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":135,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"67876aaf-272f-4861-9617-9c54693c354a","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":135,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"74f1e1f0-aadc-4660-badd-ff7b8fff8fd7","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":135,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"df6ef41d-38eb-4685-a4a8-311af97a1577","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":135,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"4488f5b9-bf7b-4014-b378-b300df55515f","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":135,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"5dd891f8-9a77-403a-a75a-43f050e9f84b","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":135,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"600c524e-0d25-40d8-97cb-d79ad27f5f43","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":135,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"c16a4f05-709a-467d-9ebf-34b9522130a8","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":135,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"57b22658-aa91-4015-a5f9-22df00e8d8c0","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":135,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"7d5cfd0d-80f3-4295-8317-648d9ceb58bc","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":135,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"450de202-cd79-4c2f-a358-29860f2d223f","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":135,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"6d62e026-d854-4ae0-a65c-9de5ce394ebe","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":135,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"8b857842-c36a-4841-b1a9-f8f10a4cbeaf","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":135,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"c15c3163-7181-4e1d-82a1-92c823cda167","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":135,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"661b2b73-97c7-4e14-91e4-515329b2fc0f","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":135,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"b2766275-58a4-4555-ab65-bcd3b98562a8","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":135,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"2b6128b9-b2c0-4aed-a704-78028b8dc82f","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":135,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"283407b8-9f57-48af-a3b0-7c50807fa633","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":135,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"843bd31e-ffb4-41e2-b341-b1daa00f1fa2","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":135,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"89e2e6ba-bbb8-4288-a106-acdfdde48817","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":135,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"48826bec-693f-4e5f-a1a2-4d618cfe90af","block_type":"box","text":"II-93","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c8ad8d01-3166-46af-acec-0fea9ae49102","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c947fee8-3950-4b74-891f-5dbb69a6ab2e","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":136,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"77a61f08-7811-44fc-8791-b710f165737f","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":136,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"d26b1025-bdc3-402f-8605-f64b7c87ecd0","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":136,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"6a0faf7d-1b67-43ed-8784-0142b127ca71","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":136,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"2a4668c5-ba03-4954-94c5-33e68cac3549","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":136,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"de0b08bd-0f9c-4be4-bed2-d2f4792cc092","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":136,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"2841e614-58cc-4e4e-90de-48095a61ed7e","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. 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With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":136,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"564b80c2-6f9c-4fce-b251-3c7e81f9c987","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":136,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"9b0cbf4d-132b-4fca-a28d-48b93f3c323f","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":136,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"2c958e4e-1e0a-483a-9496-d54680502fcf","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":136,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"30918dcb-38a2-4fc3-9bbd-fb3674561442","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":136,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"be95167a-d6b2-4fa9-8035-d409257519b9","block_type":"box","text":"management. 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While BlackRock will generally","page_number":136,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"b3109183-d1ad-474c-a4d7-6b2712c10d6a","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":136,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"6a16c078-9801-4c08-a456-c93bb182404c","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":136,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"45dd8b50-688a-4269-a315-354a9e4c8e71","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":136,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"1a1f225f-9bea-4be3-9c23-ec1ac13d41bd","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":136,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"7a09b27f-b72b-4273-aaba-6c3e471c1c4d","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":136,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"3bcbed20-5777-4a87-8755-3b11ecef0dd7","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":136,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"bfe1493c-aaa8-4405-8f7c-2a5fb0e80357","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":136,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"80b0c39b-889b-4f20-8096-1ab4fc1475a6","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":136,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"dc8a92e5-d388-4724-9b87-134f33b0fb29","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":136,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"3743ceb7-ba02-4f0a-a564-8a2a2ae0c15b","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":136,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"6b91b1cb-bd88-4e75-bb17-ec897efa8994","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":136,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"8210fc25-ada1-48c4-a071-d962bf59d304","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":136,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"a4cfcede-9bad-4cbf-9ff8-edc9883b7010","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":136,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"4d0a2abd-886f-4bf6-86da-068741b3ae53","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third party valuation models, fair value","page_number":136,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"6c0c532b-80ae-42da-8c99-641848c615a1","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":136,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"78b16fe6-7400-4549-87d0-d6a9d9a7ac66","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":136,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"c9b40e3e-eb5e-4f61-9679-6c50f2c21131","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":136,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"acea9f5b-5061-4cf2-a261-57c3c8f78a68","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":136,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"bd85a236-9077-45d9-9ad1-b35df8bbefc1","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":136,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"66483762-d756-490b-9cfc-e84da5d3692a","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":136,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"6d26c751-b030-4fa3-a481-ce75b7f0d785","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":136,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"a7c9f52c-ce46-46bc-8513-5f22a34bf3cf","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":136,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"b34a29fe-de3e-4e88-9dd2-3ee3a4c3f4f8","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":136,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"758e61bb-d075-4524-96da-844cd10447bf","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":136,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"968e73e7-7244-48bc-95d5-73d835a9e69b","block_type":"box","text":"some additional expenses.","page_number":136,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"a7ca0735-e1f5-4764-8f71-b4944a0c46a2","block_type":"box","text":"II-94","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"20e717cb-b545-45bb-9235-94736491a26a","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e4ad783-38da-44fe-bfcd-1069f669202b","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":137,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"07b2dbdf-8dfa-437e-95fd-3a88a5b5136a","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. As a result of","page_number":137,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"0f6d46af-788c-43fe-8ba9-021b71deee86","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":137,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"9adb04be-d34c-45c3-a19b-66fd3eef7992","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":137,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"59e7ee2f-2f82-4065-aa36-42f72db69eb5","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":137,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"2a9e3688-e4df-469d-8d73-0a1eef24b0e1","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":137,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"19a6ee76-aea7-4332-9ff0-ab3b0e8d9e75","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":137,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"f0906179-4e54-4ac5-9301-1b977fe519bc","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":137,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"ef19bf2f-e6ee-4b76-98a4-1dc3aaa048ac","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":137,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"794a2a60-3566-4252-b5cd-1c503ea8a888","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":137,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"44a784d7-80f6-495d-90f6-74052aa470de","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":137,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"f2357269-e26a-4906-8de8-9303f01a47a7","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":137,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"4f88d0c5-00c1-4d1b-9b11-fcf58bccab1e","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":137,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"ed04936c-227f-45f8-b003-87d3a4f1d5ca","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":137,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"f64a0109-7d9f-48c9-8682-b9d899b95290","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":137,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"cb1717f1-a9ce-4cc2-ad36-0eca416b3f52","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":137,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"575a22a4-3bf4-47d6-a31b-3f1ec96862b8","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":137,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"bdbaf8ec-1c0d-4bcd-9f29-d47c95f0b35f","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":137,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"67e022e5-93cc-45f9-826a-d67543912af4","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":137,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"a59be586-f2fe-40c9-bbd3-7f31d88e72df","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":137,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"b03e0dce-0afd-40ab-a74c-474962fb841c","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":137,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"a064800b-f9dc-4017-9d23-9cf3b0569e84","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":137,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"5f18c895-7914-4b65-8db6-9740900711ab","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":137,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"a450db79-f002-4973-a123-7ad9ab2682ff","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":137,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"54f61267-73f7-468d-8255-3475fd59d86d","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":137,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"b6c9b76b-507d-437d-bfd3-5c3ef42c339d","block_type":"box","text":"public information about the company (","page_number":137,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"05b693a4-80dd-49bc-8bc3-d6687ebd59af","block_type":"box","text":"e.g.","page_number":137,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"dfce4f06-a2b5-4298-8434-48380db9db75","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":137,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"3e2390b4-67ea-40b6-91ec-4c35ed3f40fa","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":137,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"d57635db-eba8-4ca0-904b-f1d6097541f7","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":137,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"2f62a59b-9f28-407d-9d2e-91317639d272","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":137,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"8617bf27-d3e8-44f1-9071-310de0eae97b","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":137,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"2a0d566a-b36d-412d-955f-39c67a1af5a8","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":137,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"d6ffc451-ed3e-4560-a6f7-959d487a8f96","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":137,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"714f0bb9-1e9e-471e-8ab3-face53f734f1","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":137,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"37b0f70b-7611-4361-a79a-58f897dec2a2","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":137,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"9b5d700b-533c-4f6f-abdf-eaa6834a8ad6","block_type":"box","text":"of the issuer.","page_number":137,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"71892d1f-e5b5-463c-b7fd-8fb10f59ba7c","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":137,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"7c10758d-406c-4f44-b515-08d59d45920e","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":137,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"3911a65c-b32c-438c-8ba6-324249b65e0f","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":137,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"3a402388-76e0-4d2f-94bb-6bb07c7541ce","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":137,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"6a311913-b287-4a9e-b9b5-04922c3291f8","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":137,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"5f68fc37-dcdd-427e-98a3-5dd30e645be0","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":137,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"fae6fb1b-2663-40f2-9fb2-a4e1408b85ac","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":137,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"6e41681f-648d-4a8b-88f0-c3f8c3844f66","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":137,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"e0bbbacf-eac8-4590-86a9-9a750a407b2d","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":137,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"e50d200a-f8c9-4e25-b955-97a8241d1783","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":137,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"205c0073-1bbe-4886-8755-e86ff0c0f56f","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":137,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"5067f4de-d409-491f-8734-00ae9e49d29c","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":137,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"3cf0cb3a-b13a-4a19-9dac-708d953d1190","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":137,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"b2a16758-3186-4fef-99f0-a36caf6e62a7","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":137,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"c5a8399e-9795-4438-aff3-977d4cede0af","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":137,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"ac320b7c-7bba-4eb5-b7ab-6d8ea56a8545","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":137,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"75d7e5c7-4a06-42fb-8297-2afd7d024f37","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":137,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"73207e1a-9638-4a1e-9cf7-034d861e94e4","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":137,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"392fffab-78bd-4b09-9688-2c785c005259","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":137,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"447b2ef4-a597-487e-a61b-5f227c17f12a","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":137,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"fe77889b-08bf-472a-a363-d7e4b5efed6b","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":137,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"c1fe2c2c-ab47-4bfb-8718-5fbf2bb9e2fc","block_type":"box","text":"II-95","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"595da86c-be3f-4bc1-803a-057859f98908","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"035974df-0b6b-40d8-97df-326510d263c1","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":138,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"31cd25b0-15c8-4548-9a8b-1a47bc72931e","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":138,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"45f9c032-13aa-4fbb-85bd-15c33031d6f2","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":138,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"5c24c282-6991-47f6-acdd-85fa146f15fe","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":138,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"1798756f-aa8c-43dd-9129-7fe7c047b9e0","block_type":"box","text":"a barrier.","page_number":138,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"240131c0-29ff-49ce-92ac-378694b3f145","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":138,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"89c7d3bc-97f7-46d4-be4d-b66bd72bb37d","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":138,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"b3ecacaa-d806-46a5-95ab-492aa07bb335","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":138,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"dde526fb-1d07-41a3-8568-35d74d48e3d6","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":138,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"af8ea81a-2e87-4447-b261-b004457735f4","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":138,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"7a9636a0-4e36-4b38-b959-0d02bd6c36e3","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":138,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"20af941e-7205-41d0-bad1-9d1efc507f26","block_type":"box","text":"that operate in certain industries (","page_number":138,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"be6dcdd6-234e-4e93-b104-7f92dc0a81b4","block_type":"box","text":"e.g.","page_number":138,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"95b160d9-cbcc-4ede-92aa-48e208af2d4b","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":138,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"594185b3-2438-4093-ace5-88a2d019e14a","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":138,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"3e77dc0f-4d0b-4016-9216-a3ebcceb5167","block_type":"box","text":"e.g.","page_number":138,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"8f5b39b7-4891-44de-872e-d19ae6cd8681","block_type":"box","text":", with mechanisms such as poison pills","page_number":138,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"9e066113-70aa-4c36-b5c0-e698eb5490da","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":138,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"ec6855ea-9c88-415a-a08f-20cc2bed7def","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":138,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"98b9e034-307c-46a9-a135-2222653ee4f0","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":138,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"1002417f-82d8-4095-a0c2-7126f79e4cea","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":138,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"5613721f-ca3d-40cc-84f9-d6f75f43e8d8","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":138,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"41b0a9b6-193e-473b-b76d-431d6a88a845","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":138,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"7e2cfc64-2d3d-49af-af71-df95b9a1ae47","block_type":"box","text":"seek to make indirect investments (","page_number":138,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"27eb81a1-5e66-46c0-8950-dfeebf7efefe","block_type":"box","text":"e.g.","page_number":138,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"90769d56-173d-47ab-91fb-77fd5eddf88b","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":138,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"dffc7c53-66e7-4fbb-bae1-e15f2dc62a81","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":138,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"5426f6e8-8947-4af9-9ba7-e9cfaaa6f040","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":138,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"726c4ecd-547d-40f6-9650-2e61ba2d9897","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":138,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"4538b9c3-f471-4b02-aa5d-37dc2f93e6b3","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":138,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"aa5c8efc-cea2-4ed5-9845-4f6de56eaf67","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":138,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"9df1dab9-0984-4ffe-b3b6-ad264931a6ca","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":138,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"647bf1c0-e5e3-454c-970f-66b6aeee8242","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":138,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"faef60ac-a51b-4a53-85da-0579781f513c","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":138,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"cc811a13-5eca-4a03-bd42-d5c1a43d35e3","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":138,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"caf74864-2cb7-4149-8770-93dbc5ffe181","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":138,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"1db1907b-8b58-482f-9eae-4d58697415f3","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":138,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"6733390c-e286-4806-9c85-3c4d2a2c2d0b","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":138,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"edf11663-c438-43cb-82a9-53f7cf953fec","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":138,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"9e5467c9-9fd2-40b8-b419-76f36efcc684","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":138,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"48571b8d-c7d9-47fc-831c-a1b63d4361f5","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":138,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"08e854da-2dbe-4ab8-86d0-60f656ede7ea","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":138,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"fea0ce6d-c588-4a15-bce6-5d611d49e0ff","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":138,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"7aab84e7-fdd8-4c53-abca-131c119f9858","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":138,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"a7524547-187e-4400-88ec-5aaddd33ec46","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":138,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"aa30a874-c33d-4851-bad7-c15ace19e2a0","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":138,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"28638e37-b057-46b8-8a4a-87e025201a21","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":138,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"78249640-e4f5-4977-92c8-8c33afe10aeb","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":138,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"e3833fce-dcae-4498-9162-90b3286925ab","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":138,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"06312f00-3d7e-4327-bf04-2b096f9c34d6","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":138,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"09821b47-5c86-4041-845c-712adff5df72","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":138,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"1de86f81-659a-4305-8440-6fb1343875e0","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":138,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"65b9cc26-8732-4264-aaf2-f7817bcdcb47","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":138,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"81ef8534-518f-4e99-80e3-cdf748a7bc0c","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":138,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"4c2fcaf3-a69c-46f7-b1fb-aed915d505de","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":138,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"21ccc5c2-e92a-45e6-8e8e-542be731e50a","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":138,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"87528c1d-0ca3-48f2-8f50-199b3daef837","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":138,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"6268862d-1759-498e-9b31-961e2c17d4e1","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":138,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"f2b3bc67-6058-4aa3-bfad-f9c6e38ba65d","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":138,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"c3dd34dc-9624-40f8-81c6-78ea151854ff","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":138,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"1968d1e6-6ef7-4530-a5ee-c394304c98c6","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":138,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"b64d502a-4aa6-4531-98fa-473312b707e6","block_type":"box","text":"actions. In these cases, the investments will be sold in a manner that BlackRock deems fair and equitable over time.","page_number":138,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"47d6cd03-a411-462b-b791-4100cd18d0d2","block_type":"box","text":"II-96","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2e369832-39ae-4186-b703-b77c207d6e85","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e809d4b2-cbb2-4954-96d2-41917c5ea2d1","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":139,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"069c8e55-4216-4d3b-8870-9d703c16f023","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":139,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"b683847e-6f7e-46d1-9bd7-f7eee81c411b","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":139,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"0dcc2cd7-9329-46e9-ab95-93f3dfb8bf59","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":139,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"dafe4563-d772-453c-8e60-e8d88036e3b9","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":139,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"449d8477-987f-4577-8efe-8c6472750256","block_type":"box","text":"strategy with respect to such security or asset.","page_number":139,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"a4b05098-071d-4b1b-8503-a4a098897f29","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":139,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"c132b1db-23c2-4c83-87bb-0a4d3618aeee","block_type":"box","text":"license and use such indices as part of their investment strategy. Index based funds that seek to track the","page_number":139,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"c796ff44-056c-4433-88b7-bd9a2eaed78f","block_type":"box","text":"performance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":139,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"02efa76a-b4a8-48d3-9da0-17c46bebaed4","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":139,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"1dd8d172-07e3-4a8c-a40f-38a4374114ce","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":139,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"676d7eb9-b38c-41f2-b984-beec1271d746","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third party index. BlackRock may","page_number":139,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"a9af3a24-b58f-4af1-a578-5718075793aa","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":139,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"4b200e7f-8f03-4fe6-88b5-df0b6796cb9c","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":139,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"49d40e1e-ca88-44de-8b2b-c7c6b981a649","block_type":"box","text":"BlackRock indices. Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":139,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"198ec0f2-3760-4d12-bfd1-151030e571ff","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":139,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"b67ecd81-f2a4-4e0c-a09b-2b9b912dbb8f","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":139,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"1c0fa8a9-d41e-416e-bdfa-5b8eaadf5ae3","block_type":"box","text":"e.g.","page_number":139,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"3853fa87-2f50-4658-93ff-f9e3e7defb7a","block_type":"box","text":", custodians,","page_number":139,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"5f3674ac-67d6-43bd-a541-71577821e720","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":139,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"59018efd-85a1-42ad-94d4-63c2710de619","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":139,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"823f512a-79a9-4205-a4fb-03a20e098c5d","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":139,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"38547696-bef5-4dff-9348-cbe86971e993","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":139,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"1de47233-d133-43d7-91b5-b675860dd1b9","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":139,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"c79398c7-c496-49e1-a318-4861ed55972e","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":139,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"d7d6bcbd-d16e-418e-ae93-b6ceba3a8606","block_type":"box","text":"in conflicts of interest relating to the use or termination of service providers to a Fund. In addition, conflicts of","page_number":139,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"58a22705-003e-4c96-b659-e4fb480ff718","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":139,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"5d1afd97-fd91-4de4-9a83-d77eab353abb","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":139,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"f27676fa-9dc1-449e-bb26-10ba7cc1de0e","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":139,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"ff0fa57e-a70e-4e25-b804-d087c51fa29a","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":139,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"6a67e421-df0c-42d7-bfcf-b02bf4301fbe","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":139,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"da00daca-24d3-43bf-90b5-238c8a82138c","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":139,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"8424b751-1fa4-4ecf-bdc7-9e9dffbfc8da","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":139,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"0d9a9aad-5d6f-4a52-a70f-495b146bbf37","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":139,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"b0e38461-d041-41c1-bc01-d0732dbf2323","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":139,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"2ca18262-4db2-44dd-8ad2-dae75a5aea5f","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":139,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"426aef48-bf7b-4174-b346-518f32e89987","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":139,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"7c2ca27b-c2c6-472f-9dca-1f3cc51365de","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":139,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"35a1965c-59f0-4b94-8f25-1cbdc4c9cfb5","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":139,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"fbd8141b-a3b0-42bf-8a80-99e1f0259d67","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":139,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"a3ddca58-8aa3-4b4b-84c3-b3eaa28d07fc","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":139,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"11ca067a-d812-4731-85d1-8b8b9c50d55d","block_type":"box","text":"provider.","page_number":139,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"e7b68b3b-f857-45d8-8c94-3a789e919b57","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":139,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"8aae56d6-6f2f-43b3-a75a-1816ea1790ee","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":139,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"7680dd3a-154e-4f96-b118-8d485cdbed48","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":139,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"b8f91e90-6f53-4671-bc15-795e64010fc8","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":139,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"0f462458-dc51-4e25-8201-8784a89a53c0","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":139,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"3dabe0b6-ca7f-4710-ae32-37bd4a5daee5","block_type":"box","text":"PURCHASE OF SHARES","page_number":139,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"83ec7d9f-a3f8-4898-9d07-d655da714f44","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":139,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"9d277ae7-5f41-4389-9fef-a1b12a6d8443","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":139,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"7b1b537a-1915-4051-85c2-be52f99f9bfa","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":139,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"b8c462e4-81dc-40e8-98d0-d76ec4af7ce9","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":139,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"3352e64a-ffc0-4048-8cd4-8e1c3c73410a","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":139,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"4a97229f-43e4-4d36-826e-4844736c2eb4","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":139,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"febaf3f9-3d90-46bd-a6cb-dccff2d89d8e","block_type":"box","text":"II-97","page_number":139,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b7e3ee25-36c6-4336-89f5-fa321b2946c3","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f694f99-1196-4341-86c9-1c7c3836cbe3","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":140,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"1ec17caf-bbab-467c-b37d-17edda7047dc","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":140,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"7047ccb5-0de5-4d6c-bb26-6b97f162cd9b","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":140,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"4e66ca49-af6e-41d1-86c3-600064eccf8c","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":140,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"cab80e6c-59f1-4a63-9928-302cdceb5594","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":140,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"268dfa24-167e-4b3b-9e4e-958f0803e21b","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":140,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"100d8248-a7fc-4a8b-8906-43194eaeaa93","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":140,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"af5a8ff7-9785-4c76-989b-4e13d7b3d712","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":140,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"24404570-4998-4a2e-b354-278262dc4a4d","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":140,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"e4675040-7795-4450-a9c5-0eccd14077d6","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":140,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"809ed14e-c13a-4e8b-bf2a-8de5a2bed32d","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":140,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"2d4b3fb3-78b2-4292-9e5d-dd57af4a66ef","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":140,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"61fefaf9-5cf8-4c4c-a824-1f0a9d6f5e69","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":140,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"af7c16c8-8df5-4708-a122-fc2c43f7f686","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":140,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"6208a786-6614-49fa-a62f-18b0cca32dc5","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":140,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"fe4dc911-5c28-4416-9b2c-16d7756a12e6","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":140,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"bbc27752-a813-49cf-8f35-6f7d395bb7a3","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":140,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"5c8bcf88-e35e-403c-8e8b-a4a3b09d1d85","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":140,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"273546a3-ad4b-404a-9251-1b17e1ac8664","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":140,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"4edfbb61-f680-4582-9c6c-e7fa97c1017a","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":140,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"ec9b0c5f-bbea-41f1-ad26-95db9d10cda7","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":140,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"87c466ad-148c-4268-8382-5a6add03e456","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":140,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"b46e1879-3150-47c0-ba92-509736ac2800","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":140,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"cd561f89-8605-4fd6-bbfd-f460873698e3","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":140,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"cf0ea2f1-fce2-498f-a743-55634b1cc00d","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":140,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"949aaa1d-b36a-4772-b8d3-02942e701e65","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":140,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"c62d752e-7ffd-40a2-a9a6-307db75b8b17","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":140,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"ce6d731e-cf6d-4239-8524-d43090ed7fcc","block_type":"box","text":"investment is $25.","page_number":140,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"85e0c72d-2d4d-4b2d-814c-f07d27e8a0a2","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":140,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"8f585271-c214-4056-85cc-fdabd21852e9","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":140,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"12332236-4e00-454c-bce1-2ef53fcde40b","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":140,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"024a9141-be33-4df9-8f78-12e43db750a0","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":140,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"41aad0f2-98d1-49b7-9c66-36d3cbb569c7","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":140,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"00046d4a-b08b-42ea-a099-4ed2b93ebe87","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":140,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"6bcd23fc-cfc0-4efd-9a0a-4cfbf1b32be5","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":140,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"2e455ee9-00c8-4912-b4f6-6150b1707ba9","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":140,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"2d496209-edf3-43d8-8573-eca95010bcca","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":140,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"be272c90-bc13-4d8a-9aaf-35b3480d1219","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":140,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"a57546cc-ae04-473a-8438-828af117d09b","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":140,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"b26512c8-5e6e-48d0-b330-2f41d5f10528","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":140,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"6ac98ab6-2861-47ad-a898-089f65a79fa5","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":140,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"0d45d72a-0a92-4382-a1dd-35549640d826","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":140,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"8ce68f02-094b-4405-9f4e-5ffe2da05a4d","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":140,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"9d174c94-393a-4990-9c3d-c9daae5e2473","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":140,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"4a49d9cd-d051-44be-867d-0a916213c300","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":140,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"06c45b91-1add-4223-8521-c7a73c79cd20","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":140,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"dfd03b95-0f79-4be6-959f-73d064ef3e02","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":140,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"ca68192c-13ad-4bab-8283-fe2b96989bc8","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":140,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"71c13edc-890a-4e90-8b1c-29fb44099e08","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":140,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"94d0da29-b216-4f74-91da-ad0431c564b4","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":140,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"d9fb21a0-b415-4a57-85a1-ed56bdeafbff","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":140,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"7b7d768a-48e3-4b12-8878-7054c201c31b","block_type":"box","text":"adviser.","page_number":140,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"364113fc-3ff0-4183-afab-1a2a54ef9863","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":140,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"9395cdf7-1728-4d90-aaf5-d2c26bd30328","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":140,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"b656b967-444b-436f-acd5-24db67de2508","block_type":"box","text":"II-98","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"53cd81a7-9ade-4359-944a-c6101b44382e","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5024b05-435b-491c-b5ef-cd797a6a9cab","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":141,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"88b36e51-07bf-4489-bc62-054c428a4f22","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":141,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"57a08ab1-2fea-4b19-b1d8-560907cb28d0","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":141,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"c26da9cc-447a-455b-ad81-feae702c406b","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":141,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"11ad882f-9f43-487c-8146-a974f80206e0","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":141,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"397805fc-7999-49b7-8039-5eb8b2d83f22","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":141,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"0d26e673-b242-4241-80c2-284f98fa964c","block_type":"box","text":"also be restricted from making additional investments.","page_number":141,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"c0fb3335-fc1a-4b4a-82c0-f8fb2ef1251d","block_type":"box","text":"In-Kind Purchases","page_number":141,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"84220689-ff8f-4ba6-9099-fc4786961c4e","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":141,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"5bbdc3e5-e9ae-4349-a3bd-94312bfbba56","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":141,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"b329f6c7-8cd6-40e7-946c-01c6baafa814","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":141,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"4e5bd210-237b-49c0-b425-217cb75a5ba4","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":141,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"4ab4ef71-6640-4782-be15-5bd3f6067013","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":141,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"effae6c1-58d4-49ba-abeb-848032924a1f","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":141,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"fe1786b4-c276-440e-8239-80ed35bfbebd","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":141,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"472b0ad3-0bcb-4cce-a989-0ae884a09d16","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":141,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"2a34ebdc-11ec-4dc1-82df-ffdf125033ed","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":141,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"cb988e59-ea58-46d0-8557-e749d8b805d9","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":141,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"d362ccea-2b81-4db1-be81-aeea0a659164","block_type":"box","text":"has settled.","page_number":141,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"d527051a-f075-46e1-a856-7750e738f6ee","block_type":"box","text":"Institutional Shares","page_number":141,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"994eaec5-f89f-4a96-8b41-604c447522e6","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":141,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"a1d5dc30-f93d-4a77-b10c-f0bd79c1b8eb","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":141,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"18f5931b-4793-417b-aff9-bcc4b53352bb","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":141,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"c158eae2-92de-4faa-a9cb-d30f4925b626","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":141,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"a79d9640-8ba5-4e83-9a06-9719a823fd35","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":141,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"95071bdb-e3fb-44b0-a3af-7952ff58d538","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":141,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"600e8acd-3199-464a-a2f4-442ecf8e9239","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":141,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"94031ed0-49ca-49ff-b9e6-a125ed0c84b6","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":141,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"366ed74b-6e97-4221-8e3e-7e51b3e0140e","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":141,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"ee5af389-2b7d-44d6-9b1a-ae0d3944a811","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":141,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"a50640a4-4fa5-49b4-8d80-be268db347ea","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":141,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"f2051364-99ac-4bde-9a9c-a7ea64be38a4","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":141,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"42345eb2-93b7-4d8d-9711-7c464e37fbb0","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":141,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"8362203a-77bb-4338-85d8-74e3a1af7d19","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":141,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"84dfc005-1b2c-4a8a-95bf-18e8b9ced7dd","block_type":"box","text":"these fees and conditions.","page_number":141,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"37f22202-7a6e-4631-87ea-f26cb30b4ee8","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":141,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"40ed8071-73be-4972-bb3d-88567d3e2e7d","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":141,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"4d343639-a9eb-4dac-b7f4-b3bd37ab3f9a","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":141,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"7cdfb6d9-6dd7-43a6-ad50-617eb59d60dc","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":141,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"d2e67e88-33b2-4f32-b6f4-e33fa4e6aae2","block_type":"box","text":"incurred by the Fund.","page_number":141,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"b00ab9c0-12c1-4443-9559-2579b31b94d1","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":141,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"e3cba49d-d190-4d22-b964-1259b04be767","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":141,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"008ab724-7dca-4663-b037-89fec8520b34","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":141,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"5cb4e08f-fecf-409c-966c-1e27abc46c8e","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":141,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"eaf4a6d8-3da3-4555-99ec-5c86bdf7ffb8","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":141,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"8fa8101a-0773-40be-9d38-3a9b3afefc2b","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":141,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"07fc4bd2-95a4-4ca3-9c02-925b27e3b993","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":141,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"9248beb8-3bf1-4b3d-a986-d0163517bcb2","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":141,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"efbb3e31-b547-4696-aea1-7a0d7d1ed96e","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":141,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"82532b24-39d6-4c87-85e5-6ef75dca73be","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":141,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"a096c472-cbe8-4e1b-b078-7a019e182123","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":141,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"f32abd05-cfb0-457c-9eb9-f32f5cf1d8a5","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":141,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"24291b07-eb18-4457-ab31-6380ee91c769","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":141,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"e5ea1593-e808-4cbb-8f4b-c1a90bc6b48c","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":141,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"65ad1456-0702-4ec5-b863-0bdd1a378548","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":141,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"6cc4dd10-496e-443a-b600-3e18937ea706","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":141,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"38e077c5-8d40-4759-8c84-9612758a63df","block_type":"box","text":"II-99","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fdee2b6f-e8b5-4aa7-ae5b-c9d59f2116fe","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b125f801-732e-48ad-8417-39d3734bd63c","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":142,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"94e68728-0560-401c-a5d6-6d46892c4001","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":142,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"3e246a95-5be9-401b-8c86-8fcc2f0ee549","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":142,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"a836ce9b-3a37-48b5-bd0c-421cefe60227","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":142,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"d2e41fc9-239f-4526-8e88-56b8c7891ffc","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":142,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"e07706fb-1616-4bee-8b62-ed25c392915d","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":142,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"c54aa7f9-830c-4c82-9456-bb1755cc5af4","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":142,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"3971db10-90e0-46b0-ae33-bd069054efca","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":142,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"806dc093-884f-4a8f-ae20-21aeca94e88f","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":142,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"ee6d3655-c445-4ce7-ac1d-5abf026c79f9","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":142,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"e18866bb-f035-41da-b935-ffad2ee4c364","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":142,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"fda047e1-f29d-487a-a5ff-8de3174ce357","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":142,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"06c95740-118f-42a0-97da-15f1b2751fd8","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":142,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"2373f5b4-c937-4ed5-ad72-f11ccbef1c51","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":142,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"ee49acec-244e-4b98-bef3-fd8d6b4723d5","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":142,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"8b508b3c-848a-4576-925b-fd0e6233a2ea","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":142,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"e0677fd2-c4c6-441e-846e-5679fea161da","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":142,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"13e4e031-5973-4a1f-8122-5b16626f63aa","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":142,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"69774793-4bf3-4b8e-ba46-7e1860fc544f","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":142,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"13c17234-05cc-4b8b-ade3-9c568dcd4248","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":142,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"1db2bf29-9be2-464c-99ae-30c4cfbaf100","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":142,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"d8842346-1666-4c03-8b72-1dead1aa16e9","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":142,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"ca635a97-6d55-4d7f-b6e3-074775c261bf","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":142,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"87e7ceb0-b783-40b3-a9d9-4274316cbd79","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":142,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"76c86f63-f923-4f87-a6f2-2804c124c1fd","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":142,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"1887fd0b-6ec7-4cf6-a7f7-e3d982f76d08","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":142,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"149452da-be87-4266-8013-e9cd52c9904d","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":142,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"b5785470-b9fc-49c9-8cff-37b3ea8cd17a","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":142,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"b4f03cd0-3276-4d54-8594-127da142679d","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":142,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"252b64fe-92ca-4041-818a-4f3f6fa57104","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":142,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"cba50b22-5e7b-4b80-959c-383379bb2ac9","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":142,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"652aeb33-5281-45ea-b8ee-ab3fa522ac00","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":142,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"68b5ba09-451f-4c27-b3da-15117f3f6d45","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":142,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"91c1fdf6-76ae-4137-bb58-023c1af5a6b2","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":142,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"d8f8cb7f-3dea-47b5-8bad-cca7c17ee56a","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":142,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"d7d7080e-e64d-4cba-bd16-6b0adf4caca3","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":142,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"efc5962e-cc46-45ba-8538-9d3e9cd01a04","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":142,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"acf8f977-f748-489e-a18a-78b089f00f68","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":142,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"3d9e1cbb-b101-416f-b8cc-5823fb3cf94f","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":142,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"6330564c-b159-4331-9a4e-e16be8f4a10a","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":142,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"b5dbdbb0-47ba-4376-9a55-3bf59ac413b1","block_type":"box","text":"periods indicated.","page_number":142,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"07aca9ab-b012-4d9c-83e5-3ab765e460f1","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":142,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"dc22c348-8fc6-4ae8-9668-1d1e51dd4a50","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":142,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"8c2c7207-f095-4224-944b-9e04574eade7","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":142,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"502c4b0a-a49f-49fe-9bd6-8a487b3ebb1d","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":142,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"1d29a2d8-c5ef-4e56-8c70-5cb34879b9be","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":142,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"cce26533-4102-40cf-bae1-9164a1ae8144","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":142,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"5618b50a-feee-49f1-bb3e-d4acdece8563","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":142,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"795810fd-16c7-4817-8161-c8a8f9bfa147","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":142,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"7c0c05dd-8d6b-4280-b4d1-3904df2c57f6","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":142,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"3820f84a-a146-41e6-af7a-58c739702dfe","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":142,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"c787b4c0-fddf-4cde-80f9-a9f46ab603b7","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":142,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"990fd113-9803-44a7-ac07-f44789093e46","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":142,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"2e496a0e-c186-47a5-8e9e-6f4a718c67de","block_type":"box","text":"II-100","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"71c1a6ca-2086-4f43-b8c5-6555a5a33fc6","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7103e77b-4d4d-4da5-afaa-ab1daa729e83","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":143,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"9ae23de9-4438-4203-a2aa-58b469b957bc","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":143,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"fb095b7b-1b6a-4575-b9e8-72d3b2c8288b","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":143,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"ae33c9a2-5218-4296-b8b3-e1c440174ad2","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":143,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"e956645b-53ee-4e37-be29-864947eccf7e","block_type":"box","text":"Reduced Initial Sales Charges","page_number":143,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"a4b5f3fc-8e98-4933-97a7-1f8e6f8259cf","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":143,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"ca46d674-2ed6-433a-8d4d-c85ae47d0e58","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":143,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"cd4df54f-647c-465e-bcb9-2433a0ced672","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":143,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"870d2bc2-371d-4fa6-b1f6-d45bd68ac64e","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":143,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"90021b7d-c8d9-43b2-b094-f0ee46592dac","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":143,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"73726256-82a7-473e-ad8d-abd45fbcc924","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":143,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"2ceb84ba-d5bc-455d-97ee-b715de6f6140","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":143,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"c3048f4e-9739-4996-b627-cb256eea27af","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":143,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"1171d113-95ef-4941-afe3-f09e825dce6f","block_type":"box","text":"Reinvested Dividends.","page_number":143,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"f7773c32-a716-483b-96ef-fa358f5a6437","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":143,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"ea1fe5fb-d1c2-4f40-9654-a59e77f9da21","block_type":"box","text":"reinvestment of dividends.","page_number":143,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"3c65dd4d-4e18-40e5-afa1-9c1f263a9955","block_type":"box","text":"Right of Accumulation.","page_number":143,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"51ac724c-47d3-433b-99f9-ac0529fc8f30","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":143,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"9caf19a6-4847-4a2d-862c-c6ecf736c496","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":143,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"01c95ac4-cbe3-4455-8e9b-cf0c971fbdc5","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":143,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"bc4c083e-610a-4b64-8af8-099abb6a915a","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":143,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"29afd62c-37d7-4cd7-ba73-4e62ac4b0972","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":143,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"feddf436-2cd2-4b09-8a65-d66afdce6ceb","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":143,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"83b8aca3-cebb-4b2a-b1b8-7aec6df26e2f","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":143,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"c6be5dc0-600a-4971-ba1b-e7017f6b7614","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":143,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"2759102e-a963-4370-bac6-9ed6286c8502","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":143,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"9b41d95a-f500-4acd-9a38-bdc431e00d1b","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":143,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"e39f17df-9906-448c-891d-7388fb794656","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":143,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"85a272db-e61d-4632-bdad-fb7073628dab","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":143,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"ccd6929d-a41a-4f1e-ba0b-e6d5e0f8cd80","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":143,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"9a64edf2-1233-451f-9ca4-000618a702e6","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":143,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"b59edf4d-c68d-4709-bf89-eff79c9b3c26","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":143,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"b96c21e8-921f-453e-a482-263a25490379","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":143,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"9d1de2f2-673b-476a-9055-bf69ed8904dd","block_type":"box","text":"Letter of Intent.","page_number":143,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"d33d8e60-df49-43e4-bb2b-78ed6f3bdc42","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":143,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"711313d4-5fbf-46b7-b426-6fb89e9397c9","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":143,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"212d44a4-fbb8-44e1-9f10-6b528bd58e8e","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":143,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"2e17f539-f12c-4f39-a8e0-17dbc5b556c3","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":143,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"d487e913-e009-4275-99da-bf0f898d416c","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":143,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"e4d44cd8-96d4-48b9-818e-a362252c09f2","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":143,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"e27ed02a-fb28-4d8c-9ee2-7452ab90dd6f","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":143,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"3d791d8c-17f5-4ad6-96f2-52da93d30f19","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":143,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"2bac3fc8-08a5-4300-9624-62081f0a893d","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":143,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"b565bceb-6190-43c5-94ed-110a943dcd81","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":143,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"bf4c8f01-d5d5-44d6-836b-22399e258c23","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":143,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"52791418-50b0-4d95-ae39-9739d835e213","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":143,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"af946af4-b979-4eb4-a8ed-7fd36c7af717","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":143,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"21606990-2a15-43d4-b172-a52c58f7afd5","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":143,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"49c4dacd-3aa5-42ea-b72f-00a2d4810af0","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":143,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"c63454f8-3d05-411e-8037-20de92c81dd1","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":143,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"a5b429a0-bd2c-4c0e-8dd2-bf54f188528d","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":143,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"ad2901f9-3c0a-4eed-8310-b5d502fce107","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":143,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"69438ad1-3201-4fc0-a917-b9238bbdf131","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":143,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"bea7a87a-8816-429b-8975-9fefcecdf111","block_type":"box","text":"Placement Fees.","page_number":143,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"813b0a7b-0ae5-444b-9ee6-0fd97d298087","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":143,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"45879036-95b3-4ac1-a3fc-4f1bb8ed5ac2","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":143,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"673ea2e9-7469-4a1f-b853-268eb914c745","block_type":"box","text":"II-101","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d53a1a73-f7e3-4547-a77c-89d721715511","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a0693fa-081a-410b-820b-c3abd784206f","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":144,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"d07e5ba9-4901-4c42-afd5-2252cdc31ca9","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"f83169c5-92bf-4941-82a7-da7c6dffb15f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":144,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"12436159-aafa-4689-af34-dd9255c20fac","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"d6db1ba9-a09d-49bc-bbf1-559a01ce361c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"03265d5c-5dde-4fbe-b91b-6af780fe4d2b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"f5ade195-ddff-4b76-8428-8bf7e8ef1a5e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"dd5c8ae4-43b3-48ff-bdc5-f67b7144d66b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":144,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"4ed0888f-a8d5-485f-9d93-a6d03bfe7d81","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":144,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"05e778e8-273c-4744-a958-115f31e0c454","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":144,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"7fc6b0f7-3314-46de-86da-8296d2eb2a83","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":144,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"ada2078a-3dce-4c96-aaec-dd3f686b4b2b","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"5e18b7a9-9487-4025-82d0-95d1a60b7b94","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":144,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"0dcfc31b-b606-4998-a5ea-9ac37994d854","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"6a486e4e-7220-44b8-8ee3-78c68bcbc5c2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"1bbc8780-dd2d-45f4-a1a4-10a71fbdfea8","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"6967463a-1eff-4c06-9796-c2c5446d85f7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"5a61d712-ab81-4b01-bd14-e64ef098689c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":144,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"91ac39f8-97ad-44c1-af27-a8a2e97dc4bc","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":144,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"b15ba589-3fb0-4331-a47a-3ba5f9f4bcba","block_type":"box","text":"SM","page_number":144,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"074448b9-58e6-434a-8849-77ce3106d13a","block_type":"box","text":",","page_number":144,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"ada9b33b-6798-477c-8131-3f58944d30d7","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":144,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"c46de020-ad96-4de2-b560-ca40c0e18c41","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":144,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"971d063c-ce1b-4b48-933e-da793f19bd0a","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"9410d7ea-0b74-4b27-a036-81574a5ee653","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"dc2c48b9-9d93-4023-a341-cee4bafacf7a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":144,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"2b84278a-18af-415e-988b-a6e0ca58f531","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"af19f033-b3fc-4ecc-935c-0496250c55bd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"4ce9b08e-23fb-44fd-9ea9-0a40db56adb2","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"fd599345-e689-42b0-9aa1-eb3ff283c585","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"d8e99e86-143e-4fe6-8be0-b6bf0a8fd57f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":144,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"b824d8a4-8f8a-4e89-833c-85c5f9ee9b60","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"20c8362f-a9c5-4fcc-9135-d3a37db10eab","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"8e5b09e4-9c8a-45a2-9c5a-40c036cf5a39","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"44454211-eebf-4010-b635-ab4543096945","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"372ebadf-68a7-48ca-86f6-b2b50d09800f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"3ac9ff43-78d9-4dad-8179-2640d6612bbc","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"dd0f662e-d499-44d2-ac0c-0a40a632b624","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":144,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"547e42aa-2090-423a-8b3f-eafcb72b45a2","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":144,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"1ace34d7-431c-4bec-8bfe-838bb229a460","block_type":"box","text":"may be up to the following amounts:","page_number":144,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"30998e46-3d31-4bc8-9ce1-58f232afc94f","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"15668513-a261-4ae1-a906-8033af4a246f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"58099400-7599-4ef7-9ce7-ad73e0ca1df9","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"72212b22-e92f-427c-a4c4-d63858eab29f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"1cdd882f-0094-44bb-b4fd-7a12cb3e407b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"1eb9292d-8949-4af2-b66e-39f588c2c8e0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":144,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"0ff8783e-9949-4393-8119-e34f157aba69","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":144,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"d5f6dcf6-c4bb-488d-9a33-8d3996caef5b","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"c5591911-9200-457b-85d1-ec0f792c3b84","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"9e15e1a7-daab-4cc9-a10e-a24102795d43","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":144,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"a1347d7f-63a1-4ed5-8b69-00f4f6ea72a1","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"4d5b8069-14f6-4767-971c-8d600dced83a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":144,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"4513ed83-5256-4e39-98d2-36c3650ee4bd","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"afea3dd0-4caf-4a72-b876-c3414f88ba46","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":144,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"737954c1-96b2-44db-be9d-80fe29507cb9","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":144,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"3c44a37b-6cb3-4a1a-8fc4-d046218ba3c0","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":144,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"c908207d-ba3f-441b-82b2-85f4fa03e43e","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"2d78f2e8-e29f-474c-ba4c-470c4d9fada3","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"f2a80b3b-85eb-462c-a46d-2580cf78b13d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":144,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"62cb6b08-b144-495c-b7ae-46de5d0df46b","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"573b061c-a88c-4406-9222-d2c0587b7d8a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"2e45e444-812f-4bd8-9f2e-4781b1723b7c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"fca5f681-e80c-4188-9cf8-63e55b34f3f9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"ff295879-5724-4765-858d-a424fcef0301","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":144,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"ad2bd3b5-f666-4129-bd0a-f7249e1ad9bb","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":144,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"1a9336c0-c921-4aa6-8b37-13ababb959f5","block_type":"box","text":"$250,000 and above . . . .","page_number":144,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"3ae1ffeb-dd94-467b-ac7a-b133ce871722","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"b792601a-9a78-456b-8323-e0b8648e90d5","block_type":"box","text":"II-102","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"46d7b74f-2084-4890-bb09-10e54e48df42","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"46283196-73f1-4eb8-a049-32850aa25169","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":145,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"3cf2df04-6e11-40f7-8287-e8bbbec1e280","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":145,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"49961514-2e70-4ddc-acb0-8c1faf97d1a0","block_type":"box","text":"the following amounts:","page_number":145,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"98bf5546-0f12-480c-9023-dbd86aa20c09","block_type":"box","text":"$100,000 and above . . . .","page_number":145,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"3e6ea0f1-bd76-481d-8997-c2726704c680","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"7bdc44e4-41c7-4483-8219-c4819083fe23","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":145,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"a3de7eaa-f23b-4c9b-a797-5acbcb9ea520","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":145,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"9e045e02-ac1b-45a7-8706-ef25c2796217","block_type":"box","text":"$250,000 and above . . . .","page_number":145,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"2fd07e00-28a2-4b5f-bdc4-d147d6e40ca0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"9b3b92e7-dec6-4500-bc0c-2aa5e0e6bec9","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":145,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"35071d29-a172-47c7-a32f-24cf466aabac","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":145,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"cb36dd2f-dfe9-4391-b4b7-18149d5cf233","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":145,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"0de3b012-81cd-4a8a-8bc3-9fd778c20dda","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":145,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"01af7925-b748-4699-995b-8ca45f4793d7","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"bd79e47a-441c-453d-8667-46946158d57a","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"9587da93-0d19-4f9b-90cd-a37102e85fe1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":145,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"2dace220-6e94-41e7-bec6-714328cf173c","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"cc2e1071-5cec-401d-81f2-44b03f5c6916","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"1ffa3f9c-a552-423e-ad5e-05c5897ac405","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"efa42679-b109-4184-9d05-babca75a3688","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"53bba3ac-11c9-4f64-8e49-91883e41310b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":145,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"4b15363d-7fb6-4d21-917f-38ad70bd97d2","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":145,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"34807f45-8041-4cf9-a919-3f6d7b1185b7","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":145,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"16f5685a-673a-437b-aab7-d44c46b0fddd","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":145,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"0eafa03e-9086-4ec0-a0ba-568650a66639","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"e63e5d55-c482-41a2-b8bf-ba3062ac0c8c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":145,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"1a8cf14d-c8b7-4f3d-9ba0-a9b45e061285","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"8249cf21-cd3f-4b5b-ae31-0eff73955464","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"a9517844-afd4-4837-b055-2bd7a860bffe","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"c2264e8e-b24b-49fa-b6e3-6f83479225b0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"f15c4733-8709-45a6-95b2-d08fd4c79bcb","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":145,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"43893dd6-40e7-4424-91f5-4f27c142a094","block_type":"box","text":"®","page_number":145,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"0e6d206b-4959-467b-9bc2-74605da9763b","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":145,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"05596f37-ddf4-412c-9398-9faa2dd264e8","block_type":"box","text":"®","page_number":145,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"4ea753b9-b99c-4b7b-aba9-aa2febc399c6","block_type":"box","text":"Index 2035","page_number":145,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"e8e877bf-ac56-4a07-9ad7-55cc85bd34d4","block_type":"box","text":"Fund, BlackRock LifePath","page_number":145,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"183b6c25-15be-46d9-b21e-dc189417be60","block_type":"box","text":"®","page_number":145,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"1285d211-2279-4875-bcbc-ce4703783d54","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":145,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"7821de9a-8fac-44dc-8c83-6ea5ff0b4df6","block_type":"box","text":"®","page_number":145,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"74e2c58b-9ece-4e5d-9af1-dd026510e03d","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":145,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"7f8fc6be-00f7-4d7b-b0a2-9dd11dad42ec","block_type":"box","text":"®","page_number":145,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"96a1cbee-2870-46cc-b94b-1fc12000c854","block_type":"box","text":"Index 2050","page_number":145,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"63a29c7d-3a2f-42f6-96e8-e37e06949c81","block_type":"box","text":"Fund, BlackRock LifePath","page_number":145,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"b9f5517f-fd5c-4c8a-97c6-b3c3bf239555","block_type":"box","text":"®","page_number":145,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"7acfbab1-3026-4047-b46d-833471c35d7b","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":145,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"2a87a105-f4d1-4c9d-a278-e860c2dd5b3c","block_type":"box","text":"®","page_number":145,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"f7143334-4d8b-4b53-8934-723f9447c8fd","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":145,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"cfffd256-08d0-421c-822f-b8beb3319259","block_type":"box","text":"®","page_number":145,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"9bb1c175-a0fa-4e47-ba84-bdf9352c6009","block_type":"box","text":"Index 2065","page_number":145,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"13e51c4c-283a-44d3-aa66-00dd6663a0a3","block_type":"box","text":"Fund, BlackRock LifePath","page_number":145,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"0685d0df-5633-47c5-9de7-fa04988293dd","block_type":"box","text":"®","page_number":145,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"db9c5269-0d7a-4156-b46b-20c5eb4ffaa4","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":145,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"ba68a1b7-1e6d-402f-9b38-8bb1c5370937","block_type":"box","text":"®","page_number":145,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"54881b39-062a-43a0-b7cc-62034cee5788","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":145,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"10413cd9-ca1d-4c39-8490-f6e797bd05c3","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":145,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"2174c024-3807-4fa3-94bc-c2d48fdcb37e","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":145,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"6b0952ae-1e8a-4088-8d03-aa8bb76792e4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":145,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"b78ecf0c-0da6-43fa-b3f9-6b98a38af37a","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":145,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"364b1b1f-28d9-459b-87d2-f88ab7e179b0","block_type":"box","text":"SM","page_number":145,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"a35db9a4-bffe-4a13-af8b-48cee04c6f28","block_type":"box","text":", the placement","page_number":145,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"6a386947-4786-421b-982d-d1f4fec5337f","block_type":"box","text":"fees may be up to the following amounts:","page_number":145,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"04fe5dd4-1c40-4981-8e0e-426cf0758b1d","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":145,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"ab69eeb6-aec0-4a5f-93b1-a56d62d6e8ba","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"14dd29a9-22f7-4bf2-a68c-21d6f6392fcb","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":145,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"78c6b01f-4f79-45e2-8230-68a528faf8b5","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":145,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"0f5eba96-bdcc-4238-9b94-f99b98777c88","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":145,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"da231827-f25f-4b31-a52d-faf28cb37ae0","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":145,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"bafea411-f56c-4377-9fee-d38f5779090e","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":145,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"c4ec4178-f41b-420d-b505-a0485c19a361","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":145,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"f4075f57-a3ae-4cf5-8688-cb2a412b188f","block_type":"box","text":"$1 million).","page_number":145,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"17c65357-1751-45ec-ace4-de34d5c88320","block_type":"box","text":"Other.","page_number":145,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"2e9049db-bc40-4c29-a143-dea665899fb3","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":145,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"4f527501-f2f9-4795-bc86-01f92e7a7e3a","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":145,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"549ae616-0663-49c5-848d-fdd0fcb2f359","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":145,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"99590a5c-848d-4a04-a89d-27b8371bbcbd","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":145,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"14c34060-d063-4792-afa8-44340d2b3714","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":145,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"20a46fa2-d452-4d09-a521-2b440bbfc22f","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":145,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"5a6e5538-47a6-48c0-9e56-773bcdd5260d","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":145,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"436555ed-2dc8-419c-b242-229236b520c5","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":145,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"45a9ad83-3330-4ffb-b600-f84805cbed95","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":145,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"6bdc5d33-ea1f-4a38-bc32-50f420fae58a","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":145,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"384b06f3-90eb-4259-9991-bfdc4e2f8b3a","block_type":"box","text":"II-103","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0285273e-cbe1-4062-9542-c1f92ea6450f","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"071acb55-ddb7-4244-89a1-0f804675195d","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":146,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"63d92da6-506d-4013-aa18-02f70eff3587","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":146,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"a4596d45-b663-47d3-ad0a-43e7e710fc91","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":146,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"5c4eb1bc-f598-4bb8-98c7-b06de1127373","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":146,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"ec1e66ad-4195-4ebc-abf6-6be52217beac","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":146,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"8cf632fc-29d7-4f97-9341-818fec9010ee","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":146,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"a9986fc4-eaff-468f-800d-39335308fad5","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":146,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"47b57e0a-e6c9-42f9-89b7-97ca89d20e4b","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":146,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"6ee307b3-b1cb-465a-b7e8-f12b67ddb45d","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":146,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"90f0307c-649e-4a7d-9d49-f7bcb2e90664","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":146,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"8e0ac281-658e-45d7-bf22-4b152a6b27ec","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":146,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"726a5b05-52bb-44fe-891d-e5d4fca8c6a7","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":146,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"60460de0-e8c4-44a4-9bc0-58cc8846be15","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":146,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"1a796dfa-d71f-451f-ae02-d035c8c61e8d","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":146,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"c2fb2b41-264d-4bf1-9006-537c0282f555","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":146,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"f5b9cb60-0134-4b56-8d97-5942f41d69c1","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":146,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"62b35d2f-a5bc-43c5-9690-e9e60b418caa","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":146,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"f429f4c6-87e7-41e5-b135-8d0e36209ed2","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":146,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"2992b859-76f9-43ba-9bf5-da9ceeb0327c","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":146,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"75228de6-ede7-48c9-b56e-e3069dbd9452","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":146,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"d0bb7982-cae5-43fe-9fd3-56bc902932de","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":146,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"741257dc-d6cf-4a98-8707-e8df0f442c77","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":146,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"e38953b0-2c6a-4a02-8f3c-4029efe1dca6","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":146,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"96dc7015-233b-498f-840b-0351d3086cac","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":146,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"863d1085-d2c5-442a-87c8-3241add47f29","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":146,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"3331eab2-c364-47e5-89fd-2c253045548e","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":146,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"13ddcebf-e28a-4497-a097-149bc6932938","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":146,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"a6d4ea3d-44e7-41a2-a28c-c64dac11fdf7","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":146,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"86fb3e4c-a169-411f-846f-c6aff4a10ffc","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":146,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"aefbefa2-0880-42a3-9753-b13bb228fcb2","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":146,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"efc9837f-ca47-4d5c-9dfa-3a225d98a3db","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":146,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"88b28aff-995a-49ad-b400-b2c93a5b7d5c","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":146,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"202a0e3f-7179-4bed-9c23-405f2fdc62e0","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":146,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"21879607-2158-4814-aa41-8d8847533ede","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":146,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"60d43ae0-77fb-428f-9a1c-63ce2679e576","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":146,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"5d691f12-1fbe-4b89-8703-d9039bcf197d","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":146,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"00957838-8a35-41b8-8d59-effe9305e3c6","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":146,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"b9eff960-9591-4449-be0e-73f51f10131a","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":146,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"61dcb534-3863-4d2b-8d67-479968c2fa0a","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":146,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"639762f5-3be7-48a7-951b-4a9010461baa","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":146,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"6b048cb1-909c-403d-bdf4-475b287fd99f","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":146,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"d00a4c7d-1984-41bc-8d5d-93b5f34c1556","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":146,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"52ad48e6-7275-4f34-ab1a-70cb0c35145d","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":146,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"1b626c87-297c-49fd-abce-8eb0662155cb","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":146,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"c6d2c2dd-3d43-4b71-9fd7-2bef14e99525","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":146,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"29de89a5-28c8-44cc-badf-1301bcebac21","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":146,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"abb4bd01-0f9e-4121-b9ce-0ebb719895af","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":146,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"cc8394a0-22ad-4045-8192-2356b4c86f37","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":146,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"aa42e9ca-e2d5-45e7-a84f-846987900f68","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":146,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"0e02e81c-cda9-48b3-993b-346fcd2bb610","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":146,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"39c7227f-a391-4de9-8eb2-1aca963400ad","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":146,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"6ed9fafc-ae7e-4175-9579-458d75823ef2","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":146,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"3a6c16cb-3c31-4358-ae5c-66c8cf5117b8","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":146,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"c6b160a6-4013-44f1-8bc2-b392561bcdfb","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":146,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"de28fcc0-e130-4a81-97e6-6bc1288acf01","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":146,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"2b153886-f356-4d41-b87b-f9c0c2a55ed3","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":146,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"9b352b11-35d3-429f-bfc1-9df8078bad1b","block_type":"box","text":"II-104","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e00ef87c-503c-4bc2-8937-f0d41d589fbc","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4b9a0ba8-6d64-4903-9ccd-4e1bb99c0b91","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":147,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"d1004456-73b6-4c1a-9d18-a913148b50ef","block_type":"box","text":"the absolute discretion of a Fund.","page_number":147,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"3ea15691-7efe-420b-bb8e-c98e6cf67aed","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":147,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"7e4c23ee-ad02-47d3-bfa5-58d3d4b9859c","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":147,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"61ab95e8-1235-439d-8254-8997381f5e52","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":147,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"7fd81e10-1d2e-4da5-b55f-098d547da58d","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":147,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"877df9d8-bf91-446d-b7be-802a4c1fde68","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":147,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"a815392e-9f95-4da5-a045-79e35e410e42","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":147,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"1186ff39-b305-446a-a981-beed8b68fb0e","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":147,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"da3b8152-a698-48c6-ad40-1c41d2c0e5a9","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":147,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"6a936040-7b64-4404-9cf0-8b285a28e4d0","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":147,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"476f8239-41e3-4d6c-8b9f-8ec3754dc201","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":147,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"c2019dad-2d35-4842-92f5-914ae7663143","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":147,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"b9cffaea-b18a-43ac-b707-83174b91fe44","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":147,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"b8cfedb5-91ec-4938-9420-fb1cd557d5e7","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":147,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"d92704ae-0819-4b64-94f4-b57d8dea3471","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":147,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"adcd2ed3-1971-4a5f-89fc-791b3b676830","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":147,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"ef2d9ad9-4bea-4122-a9ea-54d3e43b1520","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":147,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"a3ccac4a-0c6b-454b-991a-f69f0629654d","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":147,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"f8af8b2e-69fe-400b-b0b6-386f57e0dc2a","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":147,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"eedd7400-def0-4d70-aeab-d355eb4aa7cb","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":147,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"dcd11b81-f3cf-416c-9a5f-d7d1dfbf39e4","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":147,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"8a6f38d5-1ee5-49a6-a08a-24487a866de0","block_type":"box","text":"public or private investment company.","page_number":147,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"96897f8b-b918-47f8-b1f2-1119be3b97db","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":147,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"b699029c-f0b8-4add-a456-de174fa17a12","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":147,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"00c8ca23-5e0d-4905-91bc-6d529f65edc2","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":147,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"052afe6f-edbc-4c72-a1e7-713b9041bed9","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":147,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"1d634d3c-22b3-4157-a96f-c8615ce20a2b","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":147,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"66b8e28a-136b-451c-a273-5670b37dd038","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":147,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"4c3d6b8e-52cc-4a7a-be09-20e3cad29962","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":147,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"3ee67adb-86c8-4868-8fef-e649ad0ef069","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":147,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"fdf53012-0979-4757-ac30-6a7761ea79f4","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":147,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"a0a8746f-5c8d-45d5-975d-ed43085fefde","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":147,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"802b90dd-48b3-4ae1-88fd-9f059111a95e","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":147,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"69ee2bab-c597-42e8-af8b-4d6901b79cac","block_type":"box","text":"intermediary associated with the account.","page_number":147,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"71e1ef57-1623-4fa9-93c3-3778960d02e7","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":147,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"adf9ea94-ae58-48e4-99e1-eca531ea11de","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":147,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"fcbbdcf5-2dc3-41e7-a4a5-cf96002b7b88","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":147,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"a4377ca3-2b31-46e4-9fac-e44b5e8b4120","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":147,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"c6a63a3a-cd32-4205-8d5b-330a6575e8db","block_type":"box","text":"CDSC shares.","page_number":147,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"5395612d-14a7-45ec-8aec-17c1c4842fa2","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":147,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"2c8bd2ad-624e-46ce-989e-f5343e8d9b59","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":147,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"75492146-5e15-4f07-84b6-95bbcdcc5506","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":147,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"654a47d0-5c52-4c91-ac43-8bf706455eef","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":147,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"e6c2afb7-8495-4086-81a4-60f0c2143f01","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":147,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"d0d9e5a2-e59d-43fa-8523-3ed961ec4f98","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":147,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"b2871ab0-c875-42d8-9fd5-9f675838c788","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":147,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"85bfbf8c-adf7-417c-a8cd-84fc10c06a32","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":147,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"15843dd4-d45c-4614-a608-de1834c744f7","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":147,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"a1a85dad-237b-4452-852b-eb30f02536e6","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":147,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"12329cde-5dc8-41e6-b391-9299e03dbdc7","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":147,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"4e22c8ee-a3ab-48f8-bc46-cd9fc145d33d","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":147,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"adb8e21f-ef40-4123-9335-3cde86a2a369","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":147,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"93ba75a2-5e7d-4c67-ae7c-e570551dedb3","block_type":"box","text":"II-105","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b1c6e5d9-6c1c-43ca-9090-b513d6ffae0f","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cfea9172-3866-4822-8f5c-a7ac61fd7ceb","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":148,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"cf36e260-3e65-404e-82fe-0944a44b5b06","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":148,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"fc00df24-dbc7-43ac-b25d-70f89b744aaa","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":148,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"dd23bea3-3b20-4e60-b014-19e845707be8","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":148,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"c3137898-427c-44de-a4cb-c7687f397b1e","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":148,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"68a8c8af-a03c-4978-a543-1b643875f6d5","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":148,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"aef9f5ac-22e7-4d48-a2d7-83833c4114a3","block_type":"box","text":"Investor A Shares.","page_number":148,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"ce2399d6-5ec9-4d17-ae7c-49b6273e9885","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":148,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"42485652-2fe0-41c7-abdf-e7ac728e19d9","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":148,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"fc60b6da-b9bd-42d5-bcc4-2d23feb12f4f","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":148,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"4215152d-f06c-4a8b-92ef-407e19f0fd7a","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":148,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"c7efd635-d50b-4884-a61d-db7ff059c21a","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":148,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"88dd1302-08d8-41af-b894-315968b9b933","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":148,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"fa684910-81b7-4b19-8b28-ef34000888ad","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":148,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"856fc3ba-e0be-4be4-9279-f8dfac20d849","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":148,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"b02af95e-5554-426b-9dc4-e9615dd8a3d5","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":148,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"d3106a2a-61db-4b6e-89f1-185932ec37f1","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":148,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"6a465b50-358d-4a43-b07e-7acbf4493829","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":148,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"815bb555-7518-428d-aa61-6421f14bf3a5","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":148,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"c912e7ca-4025-42cd-be9e-1f1834357faa","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":148,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"33ac6d83-2f90-4a1d-a3f1-f2a28eea4eb3","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":148,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"6a371709-a58d-482d-ba3e-c50ea918458c","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":148,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"6d779d49-979c-4d13-b221-ffb1a5918420","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":148,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"1ecee1f2-defc-4c97-8059-c2d95e25a3ca","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":148,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"231d6fef-88b6-4e20-8e5f-1827463343d0","block_type":"box","text":"“Investor C Conversions”).","page_number":148,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"93f4aece-5907-456f-afd2-648a83d7f058","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":148,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"87c0759f-71a0-49d4-b340-220fb06e0a94","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":148,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"4968394d-b83f-44ed-8b10-44059f150b8d","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":148,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"72d3667f-c45e-479f-8a8c-730775a9ecaf","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":148,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"2f2bccd7-0f25-44f6-af6a-ef38ca361f27","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":148,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"ff521690-e1fb-4006-acc5-e208048d7619","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":148,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"7ef867b2-24d2-4b7b-9711-dd217ed9f4b2","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":148,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"8f2cfdea-df2c-49fd-9ff2-645f94dd716a","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":148,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"4dc912c3-c29a-4732-9e51-1e0c2521cd70","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":148,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"35913774-2052-4935-a1f5-fbefd8376028","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":148,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"fe0b5af1-e3e9-40d4-9112-3d9a4bff4ec7","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":148,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"737a02a2-d341-4dd9-aaa4-bcba1c236eab","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":148,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"2bd710c0-9c97-41c0-8ad2-ea75f1c84731","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":148,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"da9b63df-3538-4d90-b0a9-1342393099d4","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":148,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"0fd7307d-a745-45e1-9d71-eca71014637c","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":148,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"27c9ed5d-120b-4293-9b3d-fb6dc2c2b146","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":148,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"e95e1714-ce05-4854-a7e1-8d0d42093507","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":148,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"b8eb2820-bd98-4b04-b660-29308d6dd9fc","block_type":"box","text":"redemption.","page_number":148,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"35c5fc7e-57bd-40b4-922f-805c9cc30b2c","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":148,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"4caf1ead-8092-4c6d-bd93-44b71a8a6962","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":148,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"fc76f05c-37b6-4d2f-b905-a7496ab5cd9c","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":148,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"34bf5a73-a7ea-4dc8-916b-a098777d28d8","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":148,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"69b040ce-d8da-4a0e-a842-e419ffa82962","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":148,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"445e87c1-c6d5-48a9-9673-81900a0871a5","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":148,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"b7b47876-ead4-4a22-bf90-f49c4c20cf9f","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":148,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"a64fab0c-44ae-46d6-b876-9db7211d64e5","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":148,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"5cb8b157-c89d-47f4-bca1-bad5ae0b1e48","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":148,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"63309285-2959-41e3-8e0e-3aad05805178","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":148,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"8fe88b60-f227-4367-be74-735c7b0df233","block_type":"box","text":"II-106","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8838adeb-9a64-4e5e-831c-ee0c5ac5d63f","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4accba58-08a0-4bd5-bcbd-9a30b4ebe11d","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":149,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"34c6a1d9-bd85-4251-91bb-71f83dbf11f3","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":149,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"aafe6f52-bef2-495d-be20-eea4164834da","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":149,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"fab5dc0e-41a7-4274-97b3-fa9e673b17f9","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":149,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"daacdf63-bac1-4f97-931b-334350e0032e","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":149,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"4282756c-e5fe-4b6d-bd96-ef662f72fb55","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":149,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"3b8879ca-a243-460e-b8f4-f5ac67dde852","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":149,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"5a91341f-8580-41e1-9ebf-fad1416f571d","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":149,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"2d3591f6-bc01-4c03-8a8e-789d4c55c98e","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":149,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"b63106df-2705-4a03-85b0-b4b4c608da01","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":149,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"293b20d6-d1e5-4159-8d3a-39e08f885529","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":149,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"6140db69-8b83-41f9-8631-9b3d31420c68","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":149,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"5d081e3e-21d2-4771-a4a6-50b8169b2ff0","block_type":"box","text":"Class R Shares","page_number":149,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"2647901d-7594-47c1-b491-63d8c422b089","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":149,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"89eb7665-cff5-4515-959a-e7700b871e9b","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":149,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"d58b1005-9ab4-4999-9027-c296a25b299e","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":149,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"d0d5c8d9-4f8f-40a6-99c9-cd864e339f9c","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":149,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"b8aa0045-d437-44dc-bc27-530f846b7764","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":149,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"e20e30da-4520-4739-8d7e-8424f53958b9","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":149,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"2414e45c-1021-4b1d-86e7-badd6a626f68","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":149,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"2a79e153-2e25-40c8-a7b7-1ee242ce6f14","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":149,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"6d80a02b-7848-4c74-a314-c2d974f4de01","block_type":"box","text":"Class K Shares","page_number":149,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"3d95f7c5-c953-44dc-83f8-2baf83daa626","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":149,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"96fba07e-60d1-4ed9-a822-7839fe3f5719","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":149,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"a93e2880-e558-459d-90eb-4b29add6c859","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":149,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"6eb5678d-c27d-41d4-8e0d-96951c71febc","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":149,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"0159e202-c949-42d6-a7b7-18aed803c665","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":149,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"5ae4e68e-1960-455d-98da-3b2c8375f5ff","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":149,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"e01f7930-43de-405b-94c4-a878c33919d0","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":149,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"f0857875-4409-471a-8a12-21130982cce4","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":149,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"9b65dfc7-5c9c-4d88-96a1-74829d896e5e","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":149,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"a085247c-7863-4dd2-9ce2-a50e93befc54","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":149,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"2144dcff-55ec-45e3-b8bd-8a7fd112d521","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":149,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"d9c805d3-5047-4ab6-b18e-d0565c72b019","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":149,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"064fa82e-9218-41ba-814b-752598f2df22","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":149,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"ac327a81-0eed-4834-961c-b09b8b361205","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":149,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"41df8de6-8640-45ee-a70a-f91e63117688","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":149,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"d25cc80b-40c0-4792-b0ff-04e6620f0d5c","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":149,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"8f693de0-8f6a-44a9-9fd4-46dd054dab99","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":149,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"d2ec4c57-2ddf-40f0-aefd-3d6df95e9b2f","block_type":"box","text":"distribution and marketing agreement.","page_number":149,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"9c294f94-d272-4248-8a38-0f6e3dabaf0f","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":149,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"85ce11b9-99b9-47df-81b6-326fbfbf0a63","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":149,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"46ebce42-c4d4-43fb-be52-174982a07475","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":149,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"b9cdb78b-fd1f-4d00-b9fc-676d9b907fa1","block_type":"box","text":"Class G Shares","page_number":149,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"644e166f-0565-4312-9cfb-1474beb59d15","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":149,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"ceba8628-62ac-437a-90d7-31df608507ed","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":149,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"8cfc3c76-6960-4cbe-a42a-992385f2a979","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":149,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"5ac425fd-115e-4ae1-8ae2-076727473d8e","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":149,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"68628c81-f13f-4eaa-bde3-b6684717f611","block_type":"box","text":"eligibility requirements.","page_number":149,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"cb9b67c2-bab6-47f8-a67b-11de35b0adcd","block_type":"box","text":"II-107","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d4801311-4473-4eb7-84e4-e6f265504267","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49f9157a-b605-490c-bbe3-0289d38a5732","block_type":"box","text":"Service Shares","page_number":150,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"a5fab12a-18eb-4508-9360-5c9051f0dec7","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":150,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"46bb033a-1f3c-4d96-a488-d07d428a7153","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":150,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"e2017563-7dab-456c-b378-fe2ad88b1e24","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":150,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"e394da61-c39a-44e9-8eeb-a61cee57fb75","block_type":"box","text":"®","page_number":150,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"2699e7eb-99eb-480e-ace1-a07aa7151f6e","block_type":"box","text":"Fund in 1996; and","page_number":150,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"2f346a48-c9de-42fd-952a-50c5f9f22634","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":150,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"a690baeb-4fd5-4725-ab62-779756ffd3e9","block_type":"box","text":"SM","page_number":150,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"d3272fb3-df35-488c-a413-ebad9fc5e1f8","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":150,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"80ee1cd9-5229-408f-a7e3-78145948729e","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":150,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"1eb5c055-acc9-435a-aebd-39725d87d269","block_type":"box","text":"BlackRock Shares","page_number":150,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"539f03ec-bf0d-4b4f-b0df-2b8d5b7c9986","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":150,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"c6106590-5dba-40ea-bd4d-ba316c26a860","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":150,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"0e140840-3b24-4bee-a437-eb2f0e921297","block_type":"box","text":"fee-based programs.","page_number":150,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"ba72e90f-e498-43bb-b1e4-809b6e43b89a","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":150,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"6ed41e02-9c5e-4dbe-92ff-007c8d9c1be4","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":150,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"3350fe0b-eba3-4c9d-b3ae-6c680c09883e","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":150,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"f09d6217-24d6-4539-9686-acd65aa0ac5b","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":150,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"1d2253f1-9e43-4959-9a30-4d83ffa5655b","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":150,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"e2dfd547-3f3a-4d7e-9117-4f06d737cd28","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":150,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"36877678-14e9-4b97-83f8-e617e7cd6256","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":150,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"cb85a19b-ded8-4cb1-aace-8a0c091a285f","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":150,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"bfa71b36-c97a-431c-a159-7abee5b202c5","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":150,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"e6267936-6bab-4441-8b18-31ec34d4da9d","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":150,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"c1d1e5a6-42af-426d-97c2-57a4028d6b99","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":150,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"c42ef49f-500b-407d-8cbe-455f9315d39f","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":150,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"8f9dcfd7-5a01-4cf6-9085-f8fc2dccc9c3","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":150,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"8ccf5789-abd3-48bc-9786-1870f312c9b5","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":150,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"e8fdbe8d-2039-4581-8004-9058da7584e5","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":150,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"ae4b6cb9-6d64-4521-a459-16604a626547","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":150,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"cf2e45ab-5edc-4b7e-bc4f-79f94f747c5f","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":150,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"ba97ed41-4c20-4d01-94f1-c66b40dc7c6a","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":150,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"c583e582-84a3-48ff-9dd4-52827bf708ba","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":150,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"40b5f747-3370-4c7e-957a-e1b40526f6bb","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":150,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"efa31e94-5bf6-4212-ac60-928886c7ed32","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":150,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"6105eaf6-fa18-4e12-a555-768eece88791","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":150,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"489a4d89-7a86-48e2-998d-ef6abeaa6555","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":150,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"00dec32b-906a-4885-8f79-ea3d5779c178","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":150,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"298bd6c6-5840-4db3-abe8-d34d84807627","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":150,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"e63faf22-c262-4892-adf5-69460fd2b1f9","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":150,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"fd7e1bd7-8731-4634-b95e-b5409f4d855b","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":150,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"d5ae61e2-0440-436e-86e3-0de1e3f1739f","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":150,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"f9285bcb-2ba6-40d4-8701-e1b433d107f4","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":150,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"ceabd2b7-91da-44bb-b0ac-f16aa28169c3","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":150,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"2af685a6-7ff5-4c54-adad-d6ecefc2b958","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":150,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"2ebf6a0b-e27c-463a-a370-d483900eeca1","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":150,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"b0897192-a7f8-42ca-bb1d-93d0a1b7dc57","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":150,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"a1a38176-00d4-420d-a6b2-c24578a2a50e","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":150,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"5965860d-94ff-42bc-aa3a-1939d03302c3","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":150,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"0494d5f5-8ec7-47e2-912e-827638fb9e20","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":150,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"e2d2b3a0-848e-4bc0-9233-45f1b0fa09c8","block_type":"box","text":"compensation for selling different classes of shares.","page_number":150,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"bd2d3434-c9f8-491c-990b-cc47f37230bc","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":150,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"edcc13ef-aa9b-4d21-9613-b8dd92e8a61a","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":150,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"878b6620-bebf-4608-9070-41129c98442a","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":150,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"603a5bcd-0c77-4ffe-b2ae-f87deb555aa9","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":150,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"4d5e5777-90ad-4728-b0b0-d895fd8a15df","block_type":"box","text":"II-108","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"93f91fe5-dd47-4747-bae9-71064a59ab1c","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e07d227-948a-465d-a087-1d708e970428","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":151,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"b747f4cd-8b5b-4c97-8604-d7615940d3b6","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":151,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"96556b1a-3f08-446b-bcb5-05e28b76dd56","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":151,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"fd5f1cd3-caf7-4156-b6e5-7fa6acf5ee28","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":151,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"f00d2425-ca4f-4d54-84cc-a9b4b8d3cbb8","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":151,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"c849e3ca-9587-45cd-9880-ce2fe2c20295","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":151,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"9af6e774-e897-4119-8957-99f96152d952","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":151,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"b2962492-f501-4838-9646-03b8c3718e30","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":151,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"8fd25676-e088-45bd-b091-e4a5d5a8b757","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":151,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"ad11d396-ad31-44fa-b7d0-d7952adeeb60","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":151,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"9e008a6d-e0b6-425b-b98e-309ce071c791","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":151,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"c698cf16-4531-4df5-8a8a-34869e91d795","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":151,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"3e2bb4a1-d2a1-49b4-8868-f7a55c3b6ff2","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":151,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"0d7ce964-52ab-43fe-bc20-9e749a8419a0","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":151,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"456fe8da-4ee0-4b0d-8932-cb033a688cf9","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":151,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"a11cdfe6-d175-4d40-815d-5f97e3b62426","block_type":"box","text":"easily accessible place.","page_number":151,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"67de4671-f26e-4848-b320-8f66b6b0cc6b","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":151,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"66a04ed0-6e12-4cf0-b603-f79ef62f545f","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":151,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"38b6b5e0-e185-47d4-9bbc-561f702a74db","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":151,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"8faf0c10-4de9-4d6e-b547-a59917ff2f76","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":151,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"4509186e-8d30-4973-bde4-8a5f9c12876d","block_type":"box","text":"fiscal year.","page_number":151,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"d79e707c-a6b5-46bf-90b7-178d7176fb25","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":151,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"fbec87d4-5905-435b-a9a9-42927c5e23d9","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":151,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"1118a66e-77e0-4d31-96a8-4e6a03514405","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":151,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"23bd0ded-b662-46f8-a508-cce4819db187","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":151,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"02ae105b-4eed-4a34-aef2-e374636cc3e1","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":151,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"8d18a7f3-004c-4a05-ab1b-457c53a05f86","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":151,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"f90fca63-23fe-49e0-ae5d-eef5dbe3e2c3","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":151,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"f123d08f-3851-44d8-ae50-5715bc23f8f8","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":151,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"9de80b9a-2711-4848-97c1-4a9d91e9dd42","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":151,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"c69c2240-1d1f-4c76-934c-d72617e85fde","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":151,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"6a3ad96c-09bf-485c-a69a-6e5a14b938e9","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":151,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"b443642c-2621-4ae7-8694-86f3b1cd818b","block_type":"box","text":"and Class R Shares of your Fund.","page_number":151,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"e0724262-51b5-440a-ac8a-8a0bbbd780de","block_type":"box","text":"Other Payments by the Fund","page_number":151,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"001adebc-bd51-40fd-aa05-ae1172e2f6c4","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":151,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"0c78c643-0deb-41fa-9527-85bc99e4b741","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":151,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"b4670f04-45ba-4488-bfee-4d28757adc16","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":151,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"f89ae48c-e434-42b7-9412-6bddeb14da54","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":151,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"7ff601c3-8544-435b-a5da-4aa7b3f44922","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":151,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"a02a58b0-1c1f-4482-8f52-0c0c74480461","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":151,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"d0133468-ffbf-4c12-bf9f-d8dd406b80e1","block_type":"box","text":"of these payments may be substantial.","page_number":151,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"a4acef66-c475-4d2e-86fc-2949f0b064fb","block_type":"box","text":"Additional Payments by BlackRock","page_number":151,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"0c55777a-69b8-4531-8ef0-35cd7cff1a40","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":151,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"b5e42065-fc91-46c5-8471-916d777f9f62","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":151,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"32a60d6a-322b-4ecf-97af-946f967bc8c9","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":151,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"d3ec703f-6368-4452-86e0-0a9057d4d5c5","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":151,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"9d04b002-075e-4ddd-9985-20199024a590","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":151,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"a6ab509b-168c-4527-aae2-6ac15d6b6ddc","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":151,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"18f50f29-c3b3-49ae-b060-d64323917037","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":151,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"87f5a212-b8c2-469d-a0db-54b64adbd1e0","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":151,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"fe75e411-42bb-44c3-8aa8-e7b5e785b872","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":151,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"badfcf5f-d611-4e88-abfb-8dec8b6f966f","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":151,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"ad3c2b97-742d-4751-8ee9-96ea478b211b","block_type":"box","text":"II-109","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7452c543-1f3f-4163-aa9c-bf704477164e","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f754dd4e-c8d7-4b0c-9964-ef51916525e5","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":152,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"d069801f-7395-4945-97fa-845b98f6b0a5","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":152,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"2b8d7ffb-9971-4a79-84ef-29b33c7491a9","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":152,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"3894e3ef-1e37-44f4-8bf5-2aab63da2ec8","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":152,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"bce8ed82-ae06-4aa5-b33f-6c45f444be38","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":152,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"9c419b00-1ff4-4181-b738-577458b53bf4","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":152,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"ae6c4aa0-a9c0-41a8-8ee0-07404238707b","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":152,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"6330ad4c-9b62-4328-92cd-877f3ccc3916","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":152,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"63262649-1c3c-496b-a64d-ae1fdcbe96be","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":152,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"1323c84f-f2d2-4c75-bbc9-3598688663b6","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":152,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"1df40cfd-9e63-4bf8-900c-60444d6227f9","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":152,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"3709e5bb-8256-45e1-8bca-5b1f6f15ab26","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":152,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"ec546a5c-30c4-4828-acc2-0ad2ac7b44f8","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":152,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"b1b3e590-d1b3-4489-9f49-c952d385f15d","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":152,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"dbdf2e6c-8a5c-4f73-8f73-d65ba2f44a1a","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":152,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"534c6e5a-d925-417f-b355-49d8aca31911","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":152,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"7d3eab17-a3fe-46dc-97df-8c6f98e31404","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":152,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"5b895c0b-b2fb-4aad-b17d-1170829df685","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":152,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"28ada397-695c-4458-a41e-8c2827a1d674","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":152,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"071bf937-1d7f-43cd-87ac-359ce250c3ec","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":152,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"66f1f031-1790-43c1-97d1-23ec0d2f3d82","block_type":"box","text":"Funds.","page_number":152,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"70424701-0886-4df8-908c-2f9d64777ced","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":152,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"e41ebf72-7948-42ee-bfb1-2c80e15bc8ea","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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These payments","page_number":152,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"d23bcedc-d5cc-4859-a3ff-4ddde4e61938","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":152,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"98dc4378-8b05-4b6f-b0f4-63f88b30a8f2","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":152,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"e917a4d3-d430-4c10-98b1-eae4b14586e1","block_type":"box","text":"B. Shareholder Services","page_number":152,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"b8e1b274-acad-41d4-8468-2b39f04165ac","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. 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Service Organizations Receiving Additional Payments","page_number":152,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"1a706fd0-7015-4d4c-9865-fa620f4318b0","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the Service","page_number":152,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"6f67b6a8-3133-4380-aaa1-fd2a0d14911f","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":152,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"684be18b-2554-4fb1-a1bd-1dc02bfd30b7","block_type":"box","text":"II-110","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bc64710a-b221-48fc-b10b-1dee09700b80","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31e5a58e-e5b3-4a8c-99e5-71adea065189","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":153,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"3c39db29-5ed3-40c5-8851-f1736061a5f4","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":153,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"585c2919-729d-465d-b47a-e5979576e0c7","block_type":"box","text":"payments 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BlackRock","page_number":156,"box":{"x":70,"y":341,"width":833,"height":11}},{"id":"e6a47fce-af86-4beb-825c-94746a284817","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":156,"box":{"x":69,"y":356,"width":817,"height":11}},{"id":"a9e2dc2c-6e7a-49e5-9799-7fce6b3d6dc3","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":156,"box":{"x":69,"y":371,"width":815,"height":11}},{"id":"6abf8259-6a80-413f-9487-aca726a93ca7","block_type":"box","text":"traded products.","page_number":156,"box":{"x":68,"y":386,"width":116,"height":11}},{"id":"b97b7cbd-2132-406d-b259-4c76cfd28ef1","block_type":"box","text":"F. Conflicts","page_number":156,"box":{"x":102,"y":409,"width":78,"height":9}},{"id":"388fefd2-0286-4aad-9f01-299abc6a85ce","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":156,"box":{"x":101,"y":431,"width":710,"height":12}},{"id":"03b33750-87a3-431b-8f8b-8d6d2aa61641","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":156,"box":{"x":69,"y":446,"width":803,"height":12}},{"id":"d4263fa2-fb9e-461d-b16b-a5e0459d4972","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":156,"box":{"x":69,"y":462,"width":788,"height":11}},{"id":"abf70413-0d7d-4181-9797-738a261f0aa5","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":156,"box":{"x":68,"y":477,"width":819,"height":11}},{"id":"15213d1f-7c3c-4f1f-bf62-1addc745eae0","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":156,"box":{"x":68,"y":492,"width":473,"height":11}},{"id":"b9eb8544-4427-4dac-b015-faf5e313fa58","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":156,"box":{"x":102,"y":515,"width":793,"height":11}},{"id":"01f31e3b-7831-479a-ac6f-4cfcf4612658","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":156,"box":{"x":69,"y":530,"width":835,"height":11}},{"id":"23067e52-e651-4a67-bc20-a348d86fdfe6","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":156,"box":{"x":68,"y":545,"width":833,"height":11}},{"id":"f95c189e-b319-463f-9cd6-8dc9c4e23a70","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":156,"box":{"x":70,"y":560,"width":830,"height":11}},{"id":"77bec35c-1868-43a8-980a-820bc929cead","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":156,"box":{"x":102,"y":583,"width":774,"height":11}},{"id":"b5c943b6-4396-42ea-91cd-e0ae7d8e7867","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":156,"box":{"x":69,"y":598,"width":794,"height":11}},{"id":"d957bbdc-0434-47d2-9bb5-b22bd5a7848c","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":156,"box":{"x":70,"y":613,"width":818,"height":11}},{"id":"264a7138-e533-44f5-b346-c232c3624133","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":156,"box":{"x":69,"y":628,"width":836,"height":11}},{"id":"302a4e71-2534-4239-8313-4ba4d66df3db","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":156,"box":{"x":69,"y":643,"width":723,"height":11}},{"id":"12d8055d-e0d4-42f8-8ca2-cc09d2fdf669","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":156,"box":{"x":102,"y":666,"width":759,"height":11}},{"id":"11e0b305-9e89-4abf-88c2-5e0e27946405","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":156,"box":{"x":69,"y":681,"width":760,"height":11}},{"id":"726c53ad-00b5-45d2-9b3c-26166e6bd864","block_type":"box","text":"appropriate.","page_number":156,"box":{"x":69,"y":696,"width":84,"height":11}},{"id":"96fd5396-bd44-40cf-a299-8e2c2f9a74a1","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":156,"box":{"x":160,"y":696,"width":738,"height":11}},{"id":"03e8b84b-08a4-48f6-b30d-4eef8b2206ab","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":156,"box":{"x":69,"y":711,"width":795,"height":11}},{"id":"8211e404-e495-437a-9109-d0affaec8fc9","block_type":"box","text":"described above.","page_number":156,"box":{"x":69,"y":726,"width":122,"height":9}},{"id":"82ee9e78-cc02-4456-a01c-93d393b0dfba","block_type":"box","text":"REDEMPTION OF SHARES","page_number":156,"box":{"x":385,"y":756,"width":208,"height":9}},{"id":"9a4d7d19-fb89-4752-b818-538d9b9159ca","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":156,"box":{"x":102,"y":778,"width":798,"height":12}},{"id":"12d94bc7-06d0-48fb-b23e-2b62ea8f66c5","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":156,"box":{"x":68,"y":794,"width":836,"height":11}},{"id":"75283645-96d1-42ba-b1cb-878d87b892c3","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":156,"box":{"x":69,"y":809,"width":840,"height":11}},{"id":"c37ddf99-06f6-49ea-b8ca-475fc69c0cb3","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":156,"box":{"x":70,"y":824,"width":814,"height":11}},{"id":"1f1e6257-b34b-443c-8d21-44766b055475","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":156,"box":{"x":68,"y":839,"width":809,"height":11}},{"id":"d307989d-04c6-4d26-a3c9-56a0df6b78a1","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":156,"box":{"x":69,"y":854,"width":827,"height":11}},{"id":"b96956db-98ba-40f3-a44e-f0a9006b807b","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":156,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"98feb36c-e76a-41dd-a2d7-8329e8c6e890","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":156,"box":{"x":70,"y":884,"width":797,"height":12}},{"id":"6af3e23e-4349-4980-9a73-e1999786267f","block_type":"box","text":"II-114","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5c3a7dcf-79ac-4452-bc9f-dc63097cd106","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d7ad85b4-e3f9-4fc5-a4f4-9095fe28d706","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":157,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"f75285f4-3425-47c2-83a5-05b295f68341","block_type":"box","text":"for any shareholder of the Fund.","page_number":157,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"fdd8aed5-ae60-4343-906f-66895ffe89e6","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":157,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"dca86e3c-085b-442a-a8e4-34f3624c27f5","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":157,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"a49f58f9-d667-4bfd-a681-803619914abf","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":157,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"16b3d449-ecd3-49ed-9104-cf4ff57d401b","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":157,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"43915d9e-3726-4124-a7e5-873ab31e791e","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":157,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"64f9ce51-4c5c-40bc-925c-2b881fa44f43","block_type":"box","text":"redemption.","page_number":157,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"53daaf55-95fa-4d9d-96ef-52f719a7ea9d","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":157,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"b7cead12-505e-43d1-b964-4dc4826fed56","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":157,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"cb012f81-ece0-49a6-8a37-2565284fae91","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":157,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"b5b3c85a-769d-4f65-a959-1674d90d7f85","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":157,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"db45fb80-6b3d-400f-8cd4-bd96b04e83c2","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":157,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"e6352a3e-a3c8-4411-ac73-0a84e1943a73","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":157,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"61c8ee67-30b8-4fef-8351-ad1d3cbb3e49","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":157,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"55bf9f9e-4884-4edf-98be-68541d484c41","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":157,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"ec950089-8497-4947-8f8b-62eaa4b4aa3c","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":157,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"eb27cbec-f4d7-428d-a491-dce8a80f2d66","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":157,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"2243c462-bcb9-4d04-b0e4-46f3f0f95509","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":157,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"7085935b-c2be-4cf2-af90-12dccf67f311","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":157,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"5bd7afc7-6ff4-4b8a-b1c7-474dee574c2c","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":157,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"d06c5b1a-3a4f-4692-9c7c-1fe7ab223616","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":157,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"b77c57ed-c588-49da-85aa-68dbf92518d1","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":157,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"8da6b6cd-8593-4dfb-b2e1-da0a759e29bf","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":157,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"5d9ebe67-7a85-4bc2-86b2-e0ff5f32a89f","block_type":"box","text":"Redemption","page_number":157,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"5764e38c-b2d7-4c1f-9bb9-90d4fd9423d9","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":157,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"0448aae9-6d97-4ef2-92d2-19bc5a67404b","block_type":"box","text":"Redeem by Telephone:","page_number":157,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"b393c56d-4abd-47ac-95b0-d930820df406","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":157,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"03d4bd10-58ec-41ff-8f0c-b24476141659","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":157,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"72e9776a-9686-4cba-aab2-e630e19f2cbf","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":157,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"321442c8-c09e-4f0e-bff1-d3f359f8cf15","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":157,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"cffe352e-ef84-46df-994b-e7bed2e7f4bb","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":157,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"cad8cf3f-28b5-4d5d-a645-ec6b70301494","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":157,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"9732a25a-73c4-4ce9-87cf-69f0a3254f01","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":157,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"5a2bb5ea-9334-4c9e-848f-ae77ab4e501f","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":157,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"304350b4-476e-44db-8b03-eadc8805f79c","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":157,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"3ae4ed9a-ad33-436e-9cdd-47986beb3f4c","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":157,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"9fdb2364-7a20-4f52-8d3e-845e8edbd09f","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":157,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"746970eb-00d5-4adf-ba15-0bbee018f758","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":157,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"a7df13fa-f2ed-4ed3-aa6f-7f52f9fef1ea","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":157,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"01c69215-1c38-4746-bb6e-ea2d324ce245","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":157,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"6af89829-4e96-4e86-abd4-046f08eb37aa","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":157,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"1537c0ff-64eb-42e5-abc4-2610109c0c60","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":157,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"021a391e-6c88-4868-a278-b2bae1ad0af9","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":157,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"6b5ff671-c5e4-4c6d-9ed4-1a58c41a0f89","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":157,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"f225cabe-f42f-487b-83ba-f306b69e338a","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":157,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"0571974d-5f94-4b2c-8553-39e4fbaf4952","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":157,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"e840d301-70fa-4e8e-a928-f52fe2933669","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":157,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"387993ff-a22b-410f-aaa1-0255f25be05a","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":157,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"c643dbfa-989f-4c20-ac55-1542eada60ca","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":157,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"ec9a0b91-121a-459c-8d5e-b923803ec2a2","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":157,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"7ec9dfb8-513c-45c2-87d3-cbb5c1ce52d1","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":157,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"1d9d887d-1883-47a6-bc75-98330b43742c","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":157,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"892a9c5f-c6ff-4c54-85d7-9ef98024fbaa","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":157,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"2a88047c-7924-4b10-9203-d6cb70a73bc8","block_type":"box","text":"II-115","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"977a24f8-7549-49d8-a924-a448da144871","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d755e0b4-d7f4-4da1-935f-df47dbc84082","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":158,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"811e1b1c-9a0d-4ef4-b896-3a70b5f17d02","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":158,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"412dd1ae-6eb3-468c-9eb9-053f15eb39b5","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":158,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"11793c5d-60ba-48ac-90df-cb7fd2a14359","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":158,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"713cbd60-73a9-4e9b-b216-ed308f608dd6","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":158,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"f0ea5e35-bcc6-4496-ace1-4fc78fc5f0ff","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":158,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"82c8c734-2db9-4fed-8bbb-cf9b577555e0","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":158,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"54f55842-e55c-459e-9f56-358a50163008","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":158,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"a110d6d9-57fc-497e-8f97-2955ede69422","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":158,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"dc4cbf68-fb52-4c19-ab0e-78808e70ef02","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":158,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"7b030224-02a7-4060-9705-c2cc85b50d98","block_type":"box","text":"Redeem by VRU:","page_number":158,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"1243002c-be77-4b42-b639-693b7222f92b","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":158,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"1b609850-b0b1-4e8d-bef6-d96b9d55756c","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":158,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"51a16383-5d91-4cf6-b284-a7b1a398c9e8","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":158,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"81a5c291-7496-4805-a982-b3aa3e68accf","block_type":"box","text":"Redeem by Internet:","page_number":158,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"3559573f-a5fd-4935-95ae-66639bb9431b","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":158,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"ca499d5e-e56a-4d79-8c77-d8d29a5ce629","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":158,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"24ebdcaf-fe0d-49c6-9a56-9ffcac3b6182","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":158,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"9aa8f8a7-eeb8-456d-bdf7-45180ead15d0","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":158,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"3b307594-27c3-4339-873e-95314445a178","block_type":"box","text":"institutional investors.","page_number":158,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"3ed46a45-2fff-4af7-a903-74536cdc6202","block_type":"box","text":"Redeem in Writing:","page_number":158,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"53d9ef9a-b83d-4aed-8637-ce89f0dee288","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":158,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"abcce5b8-97de-47a4-99a2-ed252b1ef322","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":158,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"8383d396-5361-4212-82d0-99bcfa6af5d2","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":158,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"f590a0fb-3d34-4367-be46-ea4531947e0d","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":158,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"ed2a5240-e824-4ae1-9054-e718f975c81a","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":158,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"51e2664a-3820-4107-8695-1f0c25100eb3","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":158,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"ac0f1674-d014-4107-8f46-a92128132978","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":158,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"cc7931fa-1276-45f6-a8b7-c892654a4b47","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":158,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"58236490-6bfb-46e5-8617-e43d188d7df5","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":158,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"4c68afa5-2f1d-4c61-8954-1d3655246fde","block_type":"box","text":"or wire to the bank account of record.","page_number":158,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"132f80ad-f094-4fb2-bf08-1282689742de","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":158,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"23bf766b-f84a-450a-b6a9-0fb523af1c68","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":158,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"8e0105a2-668f-4c01-a366-955826955c13","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":158,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"173250ef-d862-435d-aaac-6ab90d30582a","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":158,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"b7e1198a-1fba-4899-a373-7135dbf65f8a","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":158,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"70eeb842-13f8-4925-890e-bd56df53aecf","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":158,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"7a4d007f-1a09-4b70-acd2-f784f5c7e4cd","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":158,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"c6dc94ee-0afd-400f-9c72-8d5bcb003412","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":158,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"ce6861a3-49ac-4077-8bdc-ece1dfb3622b","block_type":"box","text":"redeemed by the Fund.","page_number":158,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"3190e5cd-6ece-4ba4-9b86-461ec166a4f1","block_type":"box","text":"Note on Low Balance Accounts.","page_number":158,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"a8f163a0-6a54-4149-a7d9-f02755e3e4e6","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":158,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"2f9748ee-5e0a-4f98-9988-51a350e2a2c3","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":158,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"8ea38142-467e-46d9-b9c3-d377170c9989","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":158,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"039b496b-b0c4-4c04-9858-d77b5961ad42","block_type":"box","text":"for any reason, including market fluctuation.","page_number":158,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"853a2afa-774a-4529-9e5d-d56589f7182c","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":158,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"7e96b38a-bddb-4c96-a837-a3c5ed833698","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":158,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"e28038bd-d0dc-4cca-89b9-56a90a52b848","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":158,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"11654561-532e-4b2a-8c48-5809df9a564f","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":158,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"fa07f143-6153-4aad-9ab6-f370ab807733","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":158,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"dffc6623-e012-4f77-a88d-dd5e487f7ab9","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":158,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"e78e106c-2c57-483f-b3b9-1dfefce5ccae","block_type":"box","text":"Redemptions in Kind:","page_number":158,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"72aec768-8f3f-4b95-9adc-afb28a6b21ae","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":158,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"a8914e72-f11e-48f4-8cd5-eba7aa57c454","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":158,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"57a6d895-6ec3-4645-9f04-e859cc8cb796","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":158,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"a55505dd-3c6f-478f-9394-be901acda207","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":158,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"ae01bf40-c959-4165-9d04-d29a6d328f0f","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":158,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"408de274-1769-49eb-8a2d-e4073163d24e","block_type":"box","text":"II-116","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fb354946-89e2-4d56-bfd2-ab2ebcb8908f","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0cb6ff8-23a3-4449-950a-63fd140ae0d2","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":159,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"9abc754d-f817-4f7a-9909-b54995f17c72","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":159,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"f77e952e-a0d5-400e-b0d1-a6b86d3b05b7","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":159,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"298a3deb-46fb-4cd8-b2df-97a7ebd0c355","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":159,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"c28a0bb5-e4da-4df2-acc6-068128ffe18d","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":159,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"d28a9cde-ebe2-4b05-860d-d66868466703","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":159,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"7631baea-be26-4b9d-a021-2176d831ee3d","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":159,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"f288c16d-0591-4df1-a327-5f4c4d86b4f4","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":159,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"596da625-05fb-45d2-824e-f0459917e6e6","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":159,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"6c306456-a364-4be5-b9b2-c35688715ab6","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":159,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"d28383e7-bf8a-410f-85ac-f3cc94c81c82","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":159,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"43f46f5d-cbc4-4b5c-82ab-31358a1062dc","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":159,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"58397eae-2aef-40ba-a1aa-2e2370e72ef3","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":159,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"38fa30f4-3b84-4dda-9af9-bbc357fa2580","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":159,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"c320be24-9ec7-4395-b889-64aee47faee1","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":159,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"837f1356-158f-46e8-86b2-d601a3e9fdc6","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":159,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"ecf538ff-bd42-4b08-8d33-d2b7631a49e8","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":159,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"de54176f-47fa-4259-937d-a304638e9ece","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":159,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"ebec11a6-1133-44fe-8ee0-bcbfaa32e925","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":159,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"8bcf62f0-828e-4ac9-8f4c-ea88f2faa470","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":159,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"18574ba9-9fcf-43ac-9677-5b9f3e799aea","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":159,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"66aa07ae-d151-44c5-932f-82a61663e43f","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":159,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"76613493-683e-4a40-97de-e90a740b9133","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":159,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"f42aa318-f7c5-48c8-a2af-082da7017f2b","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":159,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"03d07378-4d1f-4ec8-9292-4404a6790c9d","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":159,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"efcd4f71-f7e5-494d-94fb-1dd3546dc269","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":159,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"ec3f0e48-fa1f-439c-a13e-88f68a795e4a","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":159,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"9a4a857c-afa5-4358-8573-2a6e3c0ba05d","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":159,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"d97b2f2f-2803-4c72-b5b6-8d11942c853d","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":159,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"9250d2cc-d367-4c9e-a35a-5e74a308bac9","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":159,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"b79fbb3a-7bf9-45c3-99d7-e1c1d76f507b","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":159,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"aed959ca-26ee-4aff-bb9a-0a836617d841","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":159,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"01dfbd3b-72a8-4d90-9e66-e1d805b0d062","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":159,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"95ec5795-44ee-47a6-af4f-4b79b620939b","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":159,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"4a39d132-2f29-4da7-9d17-ad81b276b430","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":159,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"02cf3500-6926-4d46-b219-50f0e3ad883b","block_type":"box","text":"Repurchase","page_number":159,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"4146551a-a600-4229-8503-886bf2c680f7","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":159,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"9bbec5a4-b1c2-4a2d-9172-edc3b4506bab","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":159,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"344104a0-0b2e-4c4e-a277-4cc88c6acd92","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":159,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"93487936-4421-4877-8926-3c670068c75e","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":159,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"27ea7f3e-5e39-4788-8698-e429b6c031d9","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":159,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"c31d9a92-8244-4004-9042-7eca51b6a24f","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":159,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"49367fd2-09b7-40f6-bc92-0c8985841a57","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":159,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"fdf566f4-e0d0-49c5-886e-f7b88308d912","block_type":"box","text":"next business day.","page_number":159,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"dfe6e86d-e8fe-408e-b777-873ba5acf2fe","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":159,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"97cebea0-4b94-4be2-b999-29433337412a","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":159,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"02325a29-c358-4da0-9d9d-e53f44a37cc6","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":159,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"05fb9325-226a-485a-90ac-01c26e883831","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":159,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"c14e1403-6ca2-41bf-b1f3-142e2e97d8e1","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":159,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"8f391205-1c6a-4a50-ba69-2626ce5c7a9f","block_type":"box","text":"redeem shares as set out above.","page_number":159,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"056afbbc-95f1-42e6-8af8-42235a1ffbaa","block_type":"box","text":"II-117","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cd0f3a45-2ecf-425a-b575-035934c39481","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ab3f1c4-355d-4e2d-9b71-df3a9247016a","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":160,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"494d4541-c9d1-4b50-af87-13f709beec37","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":160,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"6dd44abc-c65a-4531-948c-6899130e512d","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":160,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"92a18919-f876-48e8-adf2-1eaa0959eeb9","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":160,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"2ca86cab-4040-4b8b-8284-62146d5b2465","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":160,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"ae9af611-c89d-4143-84e7-0e7edeba2560","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":160,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"55597800-4481-43f4-964f-2450dd83184f","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":160,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"80c9c1da-d593-4e39-af2a-6606958d9450","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":160,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"75a023ea-21cc-4ca8-813f-83cc6a67f291","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":160,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"75f287af-a50f-4961-8a63-9d563b0ff1ea","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":160,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"d1b7ffbd-73af-41d7-af4c-15fb47333a55","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":160,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"26ac5006-48e3-40ae-915e-c3f15b5d12c1","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":160,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"f5d99e1c-22f8-4431-9599-4f9043693fbc","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":160,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"a4fe16f1-181c-4b2e-9fc8-36b980535356","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":160,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"250d7a34-aa41-4e17-910f-8fcff038f945","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":160,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"34982252-4bd6-40f2-bc51-3c87d5cc5440","block_type":"box","text":"Investment Account","page_number":160,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"b0900099-1014-4681-80b8-dc81b264c34e","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":160,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"62af03f4-65e6-4cc0-9373-fc0eb0a05552","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":160,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"346adcfc-f871-48bd-8675-c69df95c1b90","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":160,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"353df2f6-fc17-48f1-8dc4-fc61692acafc","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":160,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"3eb3cb95-cb9f-43c8-b344-fcbc1fd2e7e5","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":160,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"7247f723-be74-48f7-81e6-0b585dabd1d0","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":160,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"8eb9cc5d-a7dd-427c-8cb0-c16dc3b850cc","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":160,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"08da66e3-b246-45cf-adca-dcd018281137","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":160,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"9daff2e9-6d7b-42d1-9785-1ca4ee8359c3","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":160,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"09de4132-c106-44bd-8aa9-5fb6751cbd0b","block_type":"box","text":"automatically at the Transfer Agent.","page_number":160,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"e89987b3-a85f-4d2b-a558-15505419f0dd","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":160,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"9f2798ea-46b2-4211-a449-26274876681d","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":160,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"b87c6fb2-944a-4677-bb8a-0496402035bf","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":160,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"44eea2ca-f3dc-465a-8a7a-116c99b093a6","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":160,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"5fbbf467-e082-418c-9043-b757745eb352","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":160,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"3b32e837-4d81-4952-a0e9-448eee0d4a85","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":160,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"af5ef41b-287c-4615-93aa-bf819b9a3fc9","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":160,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"ecca9a61-758a-4d57-a0e2-9308f485084b","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":160,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"868edd30-3fc7-4804-87af-264b55fda175","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":160,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"f3c293f8-a8e0-4306-9429-9592102b782f","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":160,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"b57b8e33-38c4-4893-9ec8-efd073fe0678","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":160,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"5fd4b658-b912-4a41-90a6-b76bf5bdc919","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":160,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"b33aeac8-7891-46c2-a63a-e86e86f18ae5","block_type":"box","text":"issued.","page_number":160,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"bb6752b4-1ec7-463e-9cf5-2fb928c5a9d3","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":160,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"5157e484-01f8-4ce5-8091-6ae49bc4182b","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":160,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"677fa5a2-462c-4ac1-919d-6d9c8d258e9f","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":160,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"00f77a17-170f-41e6-b80c-319868b334b1","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":160,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"87be9213-c9fb-49f7-b94c-b2c25748251a","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":160,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"5da6eebc-55b4-47eb-8e71-b681243f56c5","block_type":"box","text":"Exchange Privilege","page_number":160,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"67a3f6d5-a0b1-4aa8-9db7-0f1713d22293","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":160,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"87254b3b-87a5-49c2-a314-e91bb3f8427a","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":160,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"4d4caa4f-b261-4cd5-be4d-eada1d4549d9","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":160,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"1e5196d3-a32d-4766-b1dd-588b0cf3f216","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":160,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"024ed79e-8c5f-44d7-a5b4-f84b5ade2afa","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":160,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"f2ef8d48-3f8b-4e97-b89b-b44100b9ad7d","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":160,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"8f29a9a9-acf7-40eb-aa45-0f749e2b82cd","block_type":"box","text":"II-118","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4288258d-2d78-4290-a67d-652cf6a039bf","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0bb92b4a-b710-4cd0-8fa4-849d4d5c578e","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":161,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"eebb7943-a730-42be-b5f3-dd36a20a6def","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":161,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"6bf46f76-0ddb-4b66-8de6-5c3f3c9e4abd","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":161,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"259fee7a-e06e-4444-8522-e0b6cc7e52ad","block_type":"box","text":"Institutional Shares","page_number":161,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"8ffc6d5b-3411-4f19-b0cc-146b9f9e2968","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":161,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"327a80dc-0a2b-4cb0-addb-d5021dbb3680","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":161,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"aa1c0d29-4932-4cfa-9e42-e736c2f5f5dd","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":161,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"5bb89401-3c66-4c35-bd70-4101e6ca7046","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":161,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"1a23fa39-04df-4c69-a01f-3365ff29cc4f","block_type":"box","text":"for Class G Shares of other Funds.","page_number":161,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"431fc54b-afaf-470d-a3d2-248aa32b0ec3","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":161,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"b6958e9e-a8a1-4c7e-91df-3c3be20ee31e","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":161,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"1ae53552-0903-4c93-a242-53ce3b203942","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":161,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"028156ee-8c79-4c7e-8761-a8d6f29a646a","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":161,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"5a5e5235-ba0e-4560-845d-17637f01bca0","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":161,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"2eb49668-3918-47e2-8521-b8c91a3e4e24","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":161,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"82150347-8bbd-4963-ad1c-800f67476459","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":161,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"890992e3-e111-40bd-be28-a184b7d5a697","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":161,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"908b1756-46d9-4a6a-9463-eafc06df355a","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":161,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"5a971ade-9a4c-4686-b075-b30726c419a4","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":161,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"079b538f-8eeb-4a19-a51b-ada9634b745d","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":161,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"0aa41ca5-c17b-4ba8-a3a9-51bc0ad852b5","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":161,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"8b040127-6b2a-4aab-b983-49dd01058c81","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":161,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"a95ea5aa-e791-49f0-9b8a-35a4282e747a","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":161,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"e4300146-df56-4b9a-85a4-e792841bce5a","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":161,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"5c31a09a-3aa7-4512-81ee-cce524190c43","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":161,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"e73577dc-e3bf-4451-8aa2-0b2a84c88601","block_type":"box","text":"Exchanges of Service Shares.","page_number":161,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"a7a6f438-94ad-4010-aaa8-2f467b06ad7e","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":161,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"f30c79a6-3596-4d7c-b999-298120848f2a","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":161,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"11b25f0a-ddd9-452b-8861-11f13720395f","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":161,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"7a93d1c0-cefe-444d-b6d7-c1094899a18d","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":161,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"659a53df-908a-4bc8-ab44-d7f85ed12010","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":161,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"9d5c69c4-40bd-4500-a54e-e5bf3aad6797","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":161,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"3d522bea-0c7b-40ee-9f70-fe2dd6fb7a8f","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":161,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"59df2d3f-d8df-4023-bbc1-0c65dc2a2858","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":161,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"863e607e-e260-41ed-8284-edf4a6fccc8d","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":161,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"a3483285-3d10-4602-8487-8ed4c6d039dd","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":161,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"aebb1c15-341c-4539-93f1-2e12e7ad8ab1","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":161,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"40b03b37-fbd4-4d4f-8bbb-e43a96cf029d","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":161,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"f05a4c01-110d-4829-9519-508b1e0aec61","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":161,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"a585d5ac-33f0-4fa0-86b5-a48cd7382ac6","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":161,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"5cb95a6d-972c-4f6a-8cee-9b30451e46db","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":161,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"189241fa-e9b5-482e-bd8a-397f3b009648","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":161,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"4dc343c7-4f7b-4ae5-91c3-36e569f73b7d","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":161,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"ca4d44f8-cc89-447c-884b-d13829a30572","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":161,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"1b69db53-2567-440a-8a62-f694d6af3a45","block_type":"box","text":"exchange.","page_number":161,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"50e4fe36-f507-47bc-8963-261b55f42c04","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":161,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"77d9f51f-8348-41c4-946a-2f579a860f58","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":161,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"884c9472-058c-4277-bc2f-bfb1ecb6b4e6","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":161,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"ffd1cbb2-8b37-4403-a9e4-dceb11968616","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":161,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"64714b40-73a5-4351-9ddf-e537fc47e3cf","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":161,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"e23604b7-ef37-45f9-86ec-60d94b0f59e0","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":161,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"6badf51e-9b58-49c5-b672-3a841bd8148e","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":161,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"24d993c8-907b-44ed-8844-6ee5e737a86f","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":161,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"7d0e0e1b-e9e7-4867-9a71-5dce4ff7e0b4","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":161,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"4010f287-704e-41e0-ad8f-2c8d2ae30bcd","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":161,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"2d14eb5a-f06c-43d1-a4ff-a2452ea5ef19","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":161,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"f88df861-855f-4fdd-972f-ab2cff9dc7da","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":161,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"b83dc025-9150-4faf-8a70-5ad7988478a7","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":161,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"82756b69-5aa8-40e5-964e-b89fc173fcb4","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":161,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"da950bcf-a1b3-4e3b-b68e-962f450c8829","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":161,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"bb09bb87-b8ce-4767-a7f0-6a2835a72a8a","block_type":"box","text":"II-119","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7ed41494-c9ff-4c9d-8a15-685bbca758d3","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"503c9cd6-0056-43c0-a5a3-99a6a75076dd","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":162,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"df39b568-65ae-4395-a18c-ac814846fb15","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":162,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"44810df3-9d0b-4e65-aba2-678024d4e5d5","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":162,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"2e381126-d117-4563-a7c2-2bb9bffd9f59","block_type":"box","text":"Transfer Agent in writing.","page_number":162,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"ce4d442e-55e7-42a0-9041-7f52a4bbd47d","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":162,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"75748ee0-2d65-434b-9091-924c4b4d5c09","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":162,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"a38260c4-27cf-4096-8b73-d2149078cd46","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":162,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"5ccc1e0b-7adb-427f-baab-ef6077fbb952","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":162,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"bc45113a-d89f-4540-9ad5-22cbd681388e","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":162,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"7805e0ce-7e10-4664-a344-9447b03f55ce","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":162,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"458b2c57-b936-4c84-96a1-3fbb7cc12fc8","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":162,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"ab4e8020-2ff5-4eda-9c17-11beb7512ac4","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":162,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"86b5c55a-5713-439c-95d1-3e5268d5120d","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":162,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"804f9569-ee98-47a3-9e57-f6276f8411fc","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":162,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"a213f39f-8d88-4344-b042-c603a8fc2df8","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":162,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"c022d63c-6751-4aa4-95c5-7143fd31b434","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":162,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"94907f17-8a5c-4679-a947-4692db20e585","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":162,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"49bfe6c1-c2cc-469f-a58f-95885af6e676","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":162,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"ca97dbc5-8458-44b2-8d07-c9a848097678","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":162,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"35fc6bf1-cd99-46a4-a779-76f94c4cd8a4","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":162,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"64890f39-cb3d-4d89-a023-2b05da63d7c1","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":162,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"cf604b42-21af-4ece-8ef3-1abcda51c2b0","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":162,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"e2d21804-be81-422f-ab76-1b7aa14ab933","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":162,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"731ee5a7-9ba6-44b3-85ce-5ce98f261308","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":162,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"ce5c8e99-b6bd-43f5-87e4-a00bea7d5186","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":162,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"a566bb81-1c78-4850-bf14-7ce8672e17e7","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":162,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"ad1f7129-d68f-4cb6-9708-037a22a900c1","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":162,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"2de4c227-e5c6-46c4-a2ac-2cceec78b5f8","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":162,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"3ce04ec4-b7f3-4941-9672-5a9ec7b4942c","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":162,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"c6b26ccb-c1f0-4c6a-8a23-3bbab09270c6","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":162,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"d77f7aad-e583-41bd-8c18-2f886217fe23","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":162,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"aed4e4f5-a4ee-421e-81f7-f5a4bbcdef4f","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":162,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"25456e3d-a3b8-438e-96ae-15123a4c7084","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":162,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"bcfd2303-31dd-4f2a-81c5-20c27eb9fa24","block_type":"box","text":"may be distributed by the Distributor.","page_number":162,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"9e3fef6e-b78d-4411-b8ae-758798724ca0","block_type":"box","text":"Participation in Fee-Based Programs","page_number":162,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"bf2f5bd4-6555-4d4c-92b1-291fc91f4b6a","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":162,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"8673c863-0699-49ff-ac0a-cb6b5e5aa11d","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":162,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"d8a39e1a-d664-48dc-a2cf-5352fa4dd75f","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":162,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"ed28e751-c302-4e8c-9b41-ed81ae7ed3f2","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":162,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"d4549dca-292d-4d46-994f-9df28b3f14bc","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":162,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"281972a2-c58f-4373-bc91-e65fe11f5f4d","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":162,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"67539f00-614e-4eeb-bd81-e0bafd210a77","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":162,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"bdd1da87-6fed-4129-8d8f-195103669cf2","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":162,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"1c4f9bf2-b864-4cfc-a680-5267dd706fb7","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":162,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"1756cd0c-595d-4bf1-b476-a49472697501","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":162,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"4dd9be24-f885-43ad-af04-7c8fb3838eb2","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":162,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"02647dfc-7667-40da-aa1b-1ead6f4ae4e1","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":162,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"2bbaa924-4648-4d50-89a3-70ee441e4ff9","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":162,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"52aa4941-341a-4e48-b25a-56d34e57ab5c","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":162,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"c701eca3-baf0-4154-8f42-dbca67e994a3","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":162,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"c6a51279-ad8d-4425-8aaa-2f9178aea703","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":162,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"0d9f55f7-fbbc-4043-979f-388d950d64f8","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":162,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"9c6a9999-4c49-4eb9-9f03-4ab3b76ac024","block_type":"box","text":"II-120","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"726f20b4-1ed5-44e6-952b-dfa0b363c29d","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eac2a1e5-9912-4cb0-ab54-b08d36734f12","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":163,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"bc3af6a3-242d-4542-9d27-0ef579cf92cc","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":163,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"babfecb4-a262-4bb2-8b64-04113afe019d","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":163,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"2c133998-7b0b-4173-99a9-04ccb9da7b01","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":163,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"e33cfd02-c20c-4ad3-8809-8646aa1f206d","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":163,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"0744fa6c-61bf-41a0-8e3c-67dfc9b3ac9b","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":163,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"1f89d45e-8b98-46ee-8549-7f3f38df3b37","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":163,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"3db336b5-7a5e-4fa1-adea-9c677a24ea80","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":163,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"e971b96e-ba98-4870-b38b-96807eae81ab","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":163,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"7f956d36-0423-43de-8dca-0e0d78185106","block_type":"box","text":"information.","page_number":163,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"a8663075-95a2-4fd6-b81e-3fa62a5b4091","block_type":"box","text":"Retirement and Education Savings Plans","page_number":163,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"78c6d6ef-a650-42dd-ae90-6b2729dcfaa2","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":163,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"37c3a383-1658-4d96-af03-938f1b498a2d","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":163,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"44bdd047-64c3-4461-af46-14bd95f1734d","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":163,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"023913ff-2de1-462b-a08d-766223048605","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":163,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"11c7c661-dce0-4dc5-8914-e9c4351c5735","block_type":"box","text":"your financial intermediary.","page_number":163,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"a4e579a8-3802-422c-a6a4-4a92cbfe9eff","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":163,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"336cfb84-7ec9-46e5-8f6d-8a4b4e22841c","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":163,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"38fdba76-5673-4109-909e-dc2271ba9bde","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":163,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"976cf0ac-9f70-40f9-87f9-aea89dd29b7a","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":163,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"69c006cb-3212-4279-8d86-20bd679d84f3","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":163,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"842a75d0-72fa-40f5-b400-372854bc86e8","block_type":"box","text":"Automatic Investment Plans","page_number":163,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"e78fb1c2-0ef4-4dc1-805f-855aede2c854","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":163,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"e11856b4-ba03-48a9-a578-3070e693d5d9","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":163,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"3ad757da-517d-4809-bfb4-fe0a702d7296","block_type":"box","text":"®","page_number":163,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"2da7e875-03fa-4d17-be00-bcfe6980bb3e","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":163,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"652010e9-8e5f-41e9-9d5b-ccd8955c55a8","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":163,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"09799fed-8b35-4eba-91ed-b62e663634b7","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":163,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"0d5f5c43-6320-4f31-a914-b3256f4bbdf6","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":163,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"9ff556d4-5fc1-49c8-bd07-fc1d4058e30a","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":163,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"9e9ade6d-537b-45e0-abb9-2b326269704f","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":163,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"79cfc653-f0c9-4d77-a7b6-fcf1fcb4c9bb","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":163,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"50597bf9-b27a-4925-a758-3eb128b8525b","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":163,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"28a22524-cfd3-4ee4-a2b6-e8a6ce854d5b","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":163,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"f98614b2-79f8-4b19-ab4d-36951fd197bd","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":163,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"7e38a995-1d54-4e51-9b00-b9e08bfabfa1","block_type":"box","text":"Systematic Withdrawal Plans","page_number":163,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"deb819c5-8655-4161-9228-e093437b6f95","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":163,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"86dddab8-5b53-447b-9366-f7d312efd33c","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":163,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"3c87120e-d328-4ac8-be3c-322bd9d52979","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":163,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"509f4f24-6002-438a-9cda-47545505ecc5","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":163,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"0af86d17-e44a-4765-b0d1-a84dbb448016","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":163,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"c6a3f4b9-2319-4bb5-b241-253398ae3a4b","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":163,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"b8c1d673-98bf-484e-b8fa-1d8bcdd43976","block_type":"box","text":"www.blackrock.com.","page_number":163,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"25474af2-84d5-4ed3-bfd2-52bb941da181","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":163,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"505177cb-0d29-405b-a103-abee2115285f","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":163,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"d7cd187b-ea1b-4e1a-8c79-495f180b154c","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":163,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"86db027a-81ee-4a59-bf88-c591658cd05e","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":163,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"8e3fcfbc-dd19-451e-920a-9d8f2e78653d","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":163,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"8c85bd62-b52b-419f-b435-2b77bae0139d","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":163,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"1633ead4-eec7-406b-bc93-e54f9849d2f2","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":163,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"35cba387-47d8-4fbd-9fcf-c52881f1f25e","block_type":"box","text":"II-121","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"93cabce9-6224-446b-bba2-28bee484ba2c","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7012e7ee-b1f1-4f0e-a1f1-0a1816ad64ad","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":164,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"ffe77234-dcae-4e8a-969a-9b4bf7fc7fe7","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":164,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"a6c5c083-27b6-4e91-96be-7df4fdb41a2f","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":164,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"da0a0601-f001-4cfa-b6bc-4f246fb6990c","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":164,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"02e380b3-1daf-4393-96db-af9da9d63486","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":164,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"cc06f2cb-99b9-4011-89c2-e5013cb72a80","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":164,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"f1e0d424-f64b-46e1-93b3-92998a6530c5","block_type":"box","text":"Dividend Allocation Plan","page_number":164,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"dad4bfe0-18f8-47a6-bdcc-31c68236c49f","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":164,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"e457d56c-48dd-4d1e-862c-3daddbe2d480","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":164,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"b32ec215-4394-47e5-8fd5-c607393cf5f4","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":164,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"a0083fef-8622-4fa0-ac7f-f853503f5e93","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":164,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"8dd182ce-cbc9-4f97-887d-54ff2b0e6688","block_type":"box","text":"PRICING OF SHARES","page_number":164,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"4cbed697-f98a-480f-951a-c0a70360e9c1","block_type":"box","text":"Determination of Net Asset Value","page_number":164,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"b894c306-a496-45f6-8482-03caf59d3d87","block_type":"box","text":"Valuation of Shares.","page_number":164,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"042c71b5-b791-43c6-8d89-7acb1716aa39","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":164,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"4de7c19c-43ac-4231-bab9-a1bc99cfdfdb","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":164,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"b577e174-77f8-43a4-ba93-0c3ae7276804","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":164,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"75e9fdb3-3e24-4cfb-913d-90984ef692ed","block_type":"box","text":"Equity Investments.","page_number":164,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"581447fc-f1e0-45ba-ba4c-c4b2417a799f","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":164,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"b6c0a19e-2ea6-4240-9cc4-bc70e548cdb2","block_type":"box","text":"e.g.","page_number":164,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"9bbcb55e-df38-472d-bc6c-116a04044738","block_type":"box","text":", NYSE), on separate","page_number":164,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"bfac5854-1ab3-428d-a439-c04b1cb68834","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":164,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"ba0642a6-a899-4dd0-aa0b-41ff0477f715","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":164,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"d29d6a13-3d1a-4f53-8b96-b5fa8cf2105e","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":164,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"3198cb09-2073-454c-b6a0-19f9e867420d","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":164,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"83d5966c-3f29-46c4-a2cb-63ecf2e2d89b","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":164,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"570a6497-6aa1-4748-8ceb-0bd09371949d","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":164,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"35cd8689-640b-48d1-bfa5-cd374bf13295","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":164,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"29bc79e3-9c59-4949-92da-51e4793bb0f4","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":164,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"cba64d52-9fc8-42f9-8941-306b57d41427","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":164,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"0e987401-2acb-48f5-89c3-f3a57018abeb","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":164,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"9fdc7080-f069-41fd-bf5d-006f77af4c13","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":164,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"11aaae4e-1647-4f5e-a0f5-e8ca8f20859b","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":164,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"a0c9388c-15d4-4794-a130-2a0232178dcf","block_type":"box","text":"defined below).","page_number":164,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"b53a5a00-a39d-4bd2-a65d-4ec9ecdc90b4","block_type":"box","text":"Fixed-Income Investments.","page_number":164,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"688998bb-844d-47fc-b6c3-4ee7d4f03ddc","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":164,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"b012e9cb-0513-4b18-a637-2c31d040a8dd","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":164,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"e4b931b4-76b0-485a-b88e-e2852dda3ecb","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":164,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"f64949b2-4939-4d4c-a068-7fec7cbc6243","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":164,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"1f01da33-e6c8-4020-9b95-427914fba2c5","block_type":"box","text":"e.g.","page_number":164,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"5d453f4f-b4f6-44b5-9fbb-c0acaf91717d","block_type":"box","text":", recent representative bids and offers), credit","page_number":164,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"c33f5a10-9878-49aa-bce2-db20e170798c","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":164,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"2a822e7f-b7a4-4cf8-bd30-4d985ad3dd62","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":164,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"f61114dc-d2b7-4ae7-9b8a-267d2c13e725","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":164,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"f32e2d2f-77dd-42c6-85b4-0a735202211d","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":164,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"79877b18-38cd-4f29-a5b5-19062cdf1f91","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":164,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"e64bc107-e181-49b5-8720-311fb4002748","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":164,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"49867a6f-65d8-4fb3-a468-1712d3f050a3","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":164,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"1c942e3e-5c42-45cb-b9e0-33e934f90f39","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":164,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"c65e829a-2d42-44a7-ae90-8a5878c975ae","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":164,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"23ec085a-201e-49de-8e1c-6a1bff6206d9","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":164,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"71f16b4f-fa03-4e37-a8b7-052197825d8f","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":164,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"aaaa3d24-dffe-49b4-beae-d262ab471307","block_type":"box","text":"attributes of the tranche.","page_number":164,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"2ac49193-4e7c-4333-9963-9bf416c2b040","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":164,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"715e6207-d0e7-4de5-b546-419aed4a7206","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":164,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"3105857f-5bf8-4d69-9e10-2beedd456c00","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":164,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"0148b02b-e780-4634-b4bd-484db25be64f","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":164,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"b5e610f7-90bb-401a-9069-3f7c418c33e3","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":164,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"840b1326-ab81-482a-8261-7e538d86cb7f","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":164,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"acb0469c-fa1b-468a-8be2-9d1487624f42","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":164,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"4a4d5f16-9bc1-474e-b082-ca30945043b5","block_type":"box","text":"II-122","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0738eb9c-281f-4e2b-8de6-1ac41a7c3168","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"35f275e1-7462-4493-b342-fc53c5dc38e3","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":165,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"6f0a8423-1054-4e9d-80c2-9754b2a1bac9","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":165,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"9a3b3a75-a1de-478c-ace0-7439c54116b4","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":165,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"6d4bdc47-a0d6-4dae-a69a-374915792e08","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":165,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"4791d165-1e8f-4301-9574-aa2dbc1bc027","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":165,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"c594af76-786d-4a2c-9dc0-6a5f7dffca51","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":165,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"bff760bf-d3e3-4ea9-bfc5-5b86214d2a93","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":165,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"080056cc-b2e6-4d9d-9c6e-3e102ae4868d","block_type":"box","text":"Underlying Funds.","page_number":165,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"34fb501a-80f0-4d1f-b6b3-30fd2661c9a6","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":165,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"3a6e9a07-fb18-4531-a257-cc6c6ada02c7","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":165,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"78ad3616-e7e4-4cac-bccd-47d5dc579212","block_type":"box","text":"at their most recent closing price.","page_number":165,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"31ec348c-855f-4601-ad45-2f17fd815c69","block_type":"box","text":"General Valuation Information.","page_number":165,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"32c425c2-0555-46a2-b050-d73b682c468d","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":165,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"22c7dbdc-c8ac-4690-9b9e-ad0b65eca617","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":165,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"319e2d81-af8c-471d-beaa-2341a98f73ef","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":165,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"69d1353a-0b13-4621-8cd8-326072fd9c07","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":165,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"86dc2311-cf8d-4480-a336-da5cb8568232","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":165,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"78ee1da7-97d5-4b88-91d2-c12fba69332d","block_type":"box","text":"the revision.","page_number":165,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"cdf90def-65d2-4f81-9982-6e082aff5032","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":165,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"c2527d9a-ee76-41e2-99b8-c3f8ed12661e","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":165,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"407b972b-7b0b-40a3-aaa9-b86d950d57dc","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":165,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"7f611ed3-2b89-452d-8325-4a6fe0d75fb4","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":165,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"bd2ab1db-7532-4c84-9275-517d0b061c71","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":165,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"536132c8-caa7-4235-a37a-3f695b2b6206","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":165,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"a47e2456-421d-41eb-ad1c-56283765318a","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":165,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"0754d667-644f-4533-b044-aef3d7b38d89","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":165,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"cee63756-4275-4f65-bce3-851c8f9ab464","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":165,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"da5a0ba9-9557-429d-abb2-e81cf8042e2a","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":165,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"5ae606d7-7d4b-4638-a7b9-d3a2fca8637c","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":165,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"d3e07cfe-75c8-49a3-9da6-4237c114b295","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":165,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"361e7228-316b-4fa7-a159-5ab678c5ed28","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":165,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"2f46d412-0aae-4107-aaca-2bb7b61d9633","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":165,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"409e8820-8172-4a6f-a451-0ab13994dece","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":165,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"cc4cc3df-365f-46f2-8a74-94cca5436a51","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":165,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"2bc6af42-c279-4e29-9d2f-5331dac607ff","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":165,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"a011a79e-f932-4dd4-b5af-bb1cdbfc06e3","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":165,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"159692ad-7dc3-42a4-b962-a7a1e37815db","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":165,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"31251236-176f-4963-940f-a8b53f01cd55","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":165,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"c199c6ab-2e61-4593-8ee0-161d20ba9258","block_type":"box","text":"Fair Value.","page_number":165,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"1bcbf493-63ff-48eb-a48c-38f4563d27c8","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":165,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"e617628d-0cc9-49ba-9b10-ecd81852258e","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":165,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"8d1789ff-f6cc-4a64-bc6b-24baaeea0c82","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":165,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"3d3ffb2a-8083-4ef1-b045-57900b374ec1","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":165,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"2e76045f-1d3b-4e48-83c4-a1351f536ae3","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":165,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"9dd52403-66a6-48f2-b4b2-8c45c2f70ef9","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":165,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"69486578-e696-4f34-901c-0c9526c10831","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":165,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"e86f7fde-54f8-47ea-bddf-808efa24de9f","block_type":"box","text":"(","page_number":165,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"1ab73aac-cdfa-4c66-b220-bdeec6f996f3","block_type":"box","text":"e.g.","page_number":165,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"4fe56b3b-966f-4281-87fb-e6037ecfdcdc","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":165,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"4ca3acb8-80da-4ec5-be36-4fee1de774e5","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":165,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"5198d2f4-1788-4f30-a2ac-0cad2471a465","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":165,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"fb12f23e-43e6-4ed7-b5f4-a0a41de89207","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":165,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"a06722f6-835a-40ed-b659-ddcc7e7cc909","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":165,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"8d22a213-7750-4e79-8dc5-f9d9dd3383a2","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":165,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"d25cf158-f014-49f2-9049-b18b6684760c","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":165,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"0b4a61ab-4902-4e4e-b98e-de5f22fcf114","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":165,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"b9ebd7d4-970d-4f39-9d96-29bc68e678a9","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":165,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"37d5bd5d-8990-4dd0-bdef-9a50b312643f","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":165,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"a1bc06af-672d-4b42-b0db-1544628797d7","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":165,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"e46b2f0d-5a96-41d0-90cc-29a6a29c5a76","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":165,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"b2d14083-da05-4288-b969-26bbb3af5664","block_type":"box","text":"II-123","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8311bef5-10ef-4e2c-b74c-af98ebd08a37","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d7728ae3-2271-4d30-aca4-1b729f07e69a","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":166,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"fb5a50b0-5fbf-456b-8166-603dc8685c51","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":166,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"dd317fd9-b9c5-4052-a856-613e57d06f3f","block_type":"box","text":"pricing time.","page_number":166,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"2ba01472-de6c-4beb-a798-18e585d76c9d","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":166,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"db3719fd-6421-4f56-84ee-52507905ca3f","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":166,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"6f1d84ab-91c3-41f2-836a-3e12d468a070","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":166,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"d770a904-44e1-46e1-b821-87c4cb0b6c39","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":166,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"c3e6753c-5c2d-400b-bfe8-b82ef6e7dace","block_type":"box","text":"assets and liabilities of the Funds.","page_number":166,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"3f2178b7-ee3b-4f2e-9976-4f9f3a81b7ef","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":166,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"dc7305c6-8eb0-4078-9659-78785731668c","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":166,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"bc1f79e5-38ab-4f69-8f75-9700462714f1","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":166,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"51556423-6e26-490e-beec-641fd0443461","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":166,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"5f40f673-9550-4420-a412-d3dbf836c34a","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":166,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"6fecbc85-ed0b-476e-8688-2226e4e4b898","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":166,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"a9c1a02b-a576-4260-8ee7-4d751dc72900","block_type":"box","text":"valuation models.","page_number":166,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"251e4de9-1d79-4c13-8701-be4aa534cd0f","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":166,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"3e6f5eac-84a3-4aff-ad06-4fb1faf188b8","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":166,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"5c4f785c-9d66-4fc3-8f88-7ec66be8cd8b","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":166,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"abc31c5b-2fd9-43ad-b0ac-957f4ffa0dca","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":166,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"3326c9b4-7077-4c05-927c-ec826cd86899","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":166,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"b5de2caa-075c-4f49-8a77-5d9b651a3b9d","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":166,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"2bc949f5-41ee-4868-a603-0cbc32555d3c","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":166,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"a632bee1-fa0a-4320-92b4-f30773a2eb94","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":166,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"1efb2c4b-d1ca-43e8-88d9-13511e7b1893","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":166,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"94ebf182-b832-4668-828d-593f9156c46a","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":166,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"dcd59aa5-36e7-43f8-8b6a-72100ebdb2a3","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":166,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"a15352be-0bda-4ecf-9262-ba0eb32c9b1d","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":166,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"aed931a7-bca3-4234-9c84-47d8135a732d","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":166,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"93abda14-6167-486c-9fab-2cbb83c94351","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":166,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"d0a2a950-6b6d-4e19-91be-ce9f207f2353","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":166,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"1149d4a5-976a-46b2-808c-6b152b2c35fd","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":166,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"6a6eb26e-ee1c-48e5-bcfa-748cd9b48202","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":166,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"bfcf1fe5-12ca-4f71-b689-3e32c73af030","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":166,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"0d75e7bb-c72c-4122-8e45-f21d28bf9f1c","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":166,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"bd1f4608-f066-4ce2-a32b-b2823bdf8744","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":166,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"ac4f59ee-7e17-4445-9f60-6fb932128704","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":166,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"3cc81666-a057-4125-9d3d-5fb6b2af32ce","block_type":"box","text":"party determination of fair market value.","page_number":166,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"b83fac82-dffa-4723-b74a-3ccccc669067","block_type":"box","text":"Computation of Offering Price Per Share","page_number":166,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"16d9c823-eb94-49e1-b071-cde23df6459c","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":166,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"aab2c8d7-1eb9-45ca-8db1-da816451760c","block_type":"box","text":"the offering price for shares of your Fund.","page_number":166,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"9cf26347-5603-41cb-9c93-6154dd02a8b8","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":166,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"f1564952-1df3-40a1-a37b-7805ab417c99","block_type":"box","text":"Transactions in Portfolio Securities","page_number":166,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"b0cd5edc-7bc8-4e15-8030-011f431f913c","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":166,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"7ba04b18-ba54-4c61-a5bf-06fa8c1584df","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":166,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"22dc88f2-f9e6-4ee9-8733-34bd5e001a21","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":166,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"d3e91100-1b99-49f4-b59f-dc3b2770562e","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":166,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"4556ebbb-f604-42f0-82f6-d70379326df9","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":166,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"ff65878d-cdb7-4380-b6ab-17f18d95e387","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":166,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"c712e851-c9ad-407c-8f3a-aca8bd4538e2","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":166,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"417373ef-26bb-4881-ab31-823072fe4053","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":166,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"768c8c09-3e88-4031-8f8a-32fccf593f86","block_type":"box","text":"II-124","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0785044d-a6d2-41bf-95b3-98c922a8e303","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39dacb40-61da-4c6f-8489-8724aea8d5ed","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":167,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"08774b66-6d08-45eb-988e-97f28cea7c16","block_type":"box","text":"reasonable in relation to the services provided.","page_number":167,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"54568314-5a60-4ce5-8a5e-1f426a525be9","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":167,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"646267ff-0a4e-48b0-a379-43170310d6d9","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":167,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"cf579b04-e36c-40c5-bf14-e45f7b67d83a","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":167,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"3cb38967-ce43-4b65-a725-b1aa14860fcd","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":167,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"cd067c02-541e-4407-9cd5-f9c427cce834","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":167,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"ecd5d3e9-104c-4c08-a8f3-bbb790b434f5","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":167,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"c768401e-851f-4c55-9042-4e26f0d259f1","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":167,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"363376aa-bc34-4cac-8d50-a4787d8e4e1b","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":167,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"bd8a7d62-e9e3-4de0-a950-aef00f84a87f","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":167,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"8fd46292-ada5-435e-bfa8-307634892210","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":167,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"647895a2-51a5-41f6-a7d1-345e201e8b05","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":167,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"45134651-6882-4d0d-8de3-188e3ac37ff7","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":167,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"bd5f20c7-238d-4eb8-8cf4-07bcb769e59a","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":167,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"b7fcc38d-0888-4888-99c6-e73be09f5ff1","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":167,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"d67ebe0f-727a-4efb-9cc2-45aaeeafab55","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":167,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"29e60a9b-09e3-4087-9a22-824090a236b7","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":167,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"7be62445-58af-4a8a-ba7d-9e2b13779fd2","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":167,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"40173bc0-b1d0-47d2-9977-1ff968599a11","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":167,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"df90db1a-658a-4843-bfaa-07a6a2d311e7","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":167,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"cc9b0366-8e13-4135-8386-a31c9e0c10fe","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":167,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"32c9f79a-df4f-4008-8bdb-8655af5c6051","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":167,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"3b733c5b-ec1c-4926-9835-f6913530c22a","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":167,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"f8c75c7c-fe5c-426c-ba7e-dcb8fcb428fd","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":167,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"b1d36adf-cdea-442c-a31b-c5c4484209c6","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":167,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"82ccd098-a52a-4340-b471-d6b4fdfd84f0","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":167,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"b7967081-27cd-4308-9ac8-151100e2f521","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":167,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"46613de5-7c00-48be-96ad-64c5a03da59b","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":167,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"00ed88a7-aafa-4f10-bf46-8ab63f4e2e1a","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":167,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"4d3e076e-9388-480a-9d19-95d80a00e7a1","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":167,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"8da7e4eb-beef-4603-be23-6db96572ad23","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":167,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"10c5e0cc-92b3-40a4-8e7a-4c2c87238fde","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":167,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"cbb0765a-4d23-4781-abb7-464d4fd74a4b","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":167,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"15752d86-cccf-42e0-b21f-05e36135c775","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":167,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"8deb142d-76fc-4635-81e4-b65125f15781","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":167,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"3edee532-2035-4ba6-bdac-3e58e7d8084a","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":167,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"3a0239c0-9e27-40b4-9e62-beac36dc4753","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":167,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"ca7eb768-136d-44ad-a67a-8262bfa8106e","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":167,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"0104895c-c9f7-470a-be4e-c17f7608575a","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":167,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"a5568c65-b442-44fc-9779-1035709152c4","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":167,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"a15c2569-e7d7-49bf-8626-be3cd943fef3","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":167,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"8f121c6f-a89c-4fa3-b64c-5d74c12cfaee","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":167,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"a672bed1-78d5-490a-bed3-c73866589708","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":167,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"815dda87-17ff-407a-b40c-beb468e2f0fd","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":167,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"d7fb2d69-7804-44a7-bb24-c8386076026a","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":167,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"c76e3a54-7f60-4dae-a928-730cb83550d1","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":167,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"961639dd-ab17-4bfc-9c8c-7f4fbcfb725b","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":167,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"7e390817-f4f7-40e5-ad93-8f497462bde0","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":167,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"3dbae2b1-f53f-4d79-92a5-34905b5c9829","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":167,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"5fd6b664-e8c0-45d6-a082-86ec55f3ddb2","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":167,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"c12c9964-44ee-4040-baad-58500dba377a","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":167,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"f13e5eb5-4820-44fc-9f87-dea44e3e7fda","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":167,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"e88e1246-b7b5-4df4-9133-d17352217a6b","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":167,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"8a2d9fbd-9430-45da-bd49-ae326f53ce77","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":167,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"d1ca4b2a-e4cc-4a6e-80dc-e56d5b9c7eaf","block_type":"box","text":"II-125","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"36d60c0f-3ad1-4557-90c9-4723916d1de8","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c62c36f6-b3a3-4284-9084-d856e04094b1","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":168,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"6e5ca172-daaf-4796-b4f4-e7a72b4a6717","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":168,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"10024b8c-7c73-4130-b06a-df7bc2817b24","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":168,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"74eacd24-f6b5-44c9-8f45-92a426ea2e58","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":168,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"cb7e802c-dee0-4786-8a0a-020a8e0fa046","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":168,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"6f64e8f0-b64b-4f75-a079-f7c2c0ae6f69","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":168,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"695dcf3a-4dd5-449f-a26b-7ff3e4efe156","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":168,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"0bcfbdc1-88e9-4a09-aaac-178271fcd6ab","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":168,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"67b78743-4029-45ff-ad2b-f644cab87543","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":168,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"b282f01f-a587-4f81-af30-076ff63a4abe","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":168,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"b380a1a8-1870-4aaa-8584-056c7b0b66aa","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":168,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"77c56d41-67a7-4d7e-a063-0216a85fc003","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":168,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"6110b78b-4ff3-4add-b9e0-b0d23fd174e7","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":168,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"a078a4fa-d903-4791-b272-761cf0167eed","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":168,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"4c18df5e-ea50-441a-9f41-73a4f8304631","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":168,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"3d46caa1-da62-4ba5-a3ef-70d899b90327","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":168,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"73d09bce-efaa-44fc-8fbf-73649bff336f","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":168,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"eb9d0d97-56b1-45fe-866f-95f000419037","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":168,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"66aba628-df6b-4bb5-b0f1-e5c6746d92f6","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":168,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"db67988e-7cd7-40cd-bea5-7ee8b5991d44","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":168,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"55aa9f0a-0d71-4e01-827f-372f6ea9c618","block_type":"box","text":"brokerage.","page_number":168,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"4bc2fe98-0340-4c74-8a64-a43e7ee90e4e","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":168,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"767d4eec-e6cb-4162-a7a7-554c3fb94756","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":168,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"efd2a299-d4e8-432f-934e-c5c7e6b1f099","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":168,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"d29ba91c-988a-46d4-bad3-70e3bd90e6fb","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":168,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"69351713-3140-4bec-882e-dfae24edcbdf","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":168,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"af8ca342-a4e8-42f6-aa88-5c1161e3a679","block_type":"box","text":"Section 28(e).","page_number":168,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"304e78cb-93bd-43d9-9d42-32c5ac2bcec6","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":168,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"0a87b970-14ee-4291-8146-e985a43e2c24","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":168,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"4a2e397d-f4ee-44da-8f88-77a06bff5018","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":168,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"e465ea66-2eb6-4d02-945c-7653386d3203","block_type":"box","text":"execute transactions for those mutual funds.","page_number":168,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"c4b10327-ba26-4131-b243-353f0354f375","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":168,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"4987bf9d-eae0-433f-bf55-4b884a223108","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":168,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"5582fbaa-e78e-4a6c-b777-a0a9c4b57b3e","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":168,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"ea3a2fe7-34c1-40db-8f88-b5273fff3735","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":168,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"a301cb82-2a43-4f7e-adf9-692e53a240dd","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":168,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"78bb6a26-58a6-4178-a933-4bd96c4b8fb4","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":168,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"cc76a77b-f56c-47fd-9a51-8c8ab8347229","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":168,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"9d5f3507-a157-40f8-a65b-1d23bd2fc924","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":168,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"b862fc5c-a523-494a-8852-76fc26966d02","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":168,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"0e20a083-d3b5-4cee-8de6-b8f2e52425ab","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":168,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"0506efac-b46f-4c35-a928-c34d94a70298","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":168,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"3d36a9ae-2632-4527-88db-d5548c5d61dd","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":168,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"bfc93b89-3789-41cb-a0ea-19d462213bc1","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":168,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"0632a323-a54a-4378-9292-e386b6470316","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":168,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"f36d91c4-5578-446d-b781-8af278e42759","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":168,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"2a26111a-ff71-451e-9ef6-b834c4d9e565","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":168,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"9e5cfe6f-9614-4747-8ab7-227cccf0b358","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":168,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"28563617-916b-4343-a698-df550a2de51b","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":168,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"e8fd02c7-b5b1-40f0-931a-50163a6d8e20","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":168,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"3fdc11d3-5de9-4771-90cb-6ba46c4f8718","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":168,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"a629e887-435c-4c87-a2fe-d2c0a8fe8dc2","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":168,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"558774ba-e4d2-4134-b886-2f06d7cdbbb0","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":168,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"9cef01e3-d689-4c8b-ae1a-62e81ef829e8","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":168,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"290b9975-d386-492b-9076-7e7472a82e2b","block_type":"box","text":"II-126","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a68c6181-a956-4c52-84bf-80b223ff44c0","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ffff350f-5b06-411c-b078-53f6d589ac36","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":169,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"659ca2f6-96aa-4ef3-96e6-dd9e67e4e8f3","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":169,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"c3592ddd-10b2-4150-bed9-bea6e5253a3c","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":169,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"cdddbef2-f5b3-4dc8-b057-faa75b176c03","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":169,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"7e315a8a-fce1-4cfb-be80-7f3388f067c2","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":169,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"4e915c0b-accc-4d47-99e7-67d249ce8490","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":169,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"a8f30989-ea06-4f82-b883-9bc2d9bce1f8","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":169,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"bbaa840d-1414-446b-9c79-e0fe41e41be4","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":169,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"3e3db9c6-b86d-4741-9baa-a6221cb3cb93","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":169,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"7162ea37-7546-4016-b1a4-53e98db0ce56","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":169,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"28e4fb1d-ad46-47cd-964d-8533d3c4a544","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":169,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"eb222ed4-1c35-4df9-8f62-1efa5fba0585","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":169,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"2142830d-8cfa-4f89-aff2-3b30e21626ca","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":169,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"faadc15d-d062-4618-a885-4d990fa609b7","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":169,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"1241959a-1087-4259-9fc5-8bad291cc33f","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":169,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"c91c0475-41b7-4cfe-bb77-e53ffe9eef42","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":169,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"8304bced-93ac-4385-8546-40f8cb233d39","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":169,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"46ef10b0-9303-4de1-9653-63e4a75a2e7e","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":169,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"28592ccf-c6f9-456e-bcdd-f77f3d9bad52","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":169,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"42620cbe-3b5d-4795-b173-ccc6b3f44c2e","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":169,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"2ed3e969-0184-47d5-a941-1120482dc717","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":169,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"7903a71e-5f14-46a8-87f2-ad7ba59030de","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":169,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"f9a14efe-c328-406b-94bf-cf3e2858525d","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":169,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"71144aee-334d-49d7-9b39-57d7e644269f","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":169,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"ccc56d6c-9514-47fe-b447-ddadfec47672","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":169,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"3d30f71f-cf78-4fdc-a086-233b9c05e15e","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":169,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"497fe3d3-fc7d-4f1a-8043-39c1a19851fb","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":169,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"8bccb6d2-1285-4d39-ae22-ff763371006b","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":169,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"dc7edd6a-d6ad-48e1-8bee-4af52260f2f5","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":169,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"8664dab9-1f34-46d4-9774-a86f5a61e143","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":169,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"80f82822-ef08-4369-be27-4576d3cf6893","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":169,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"75746d64-1017-4ec5-8374-f87393d44a8d","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":169,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"991728c3-1efc-48b9-b801-dbb9cc71fc2b","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":169,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"b45c52a2-9bd4-4559-a6b0-124e4128f145","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":169,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"29ef6fc0-5f46-4ac3-8a2f-8007d050a66b","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":169,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"461b53f0-ff3e-47ab-8aec-beb4cf10b060","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":169,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"d80f9a44-513d-4995-9a24-290d5d2ad12a","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":169,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"168b7900-3c0d-44b4-a5c4-4e2bfe6418d9","block_type":"box","text":"accounts and compliance constraints.","page_number":169,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"dbefba68-634d-4162-937d-4fc4085e145c","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":169,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"d11e2689-388f-461f-b2b4-7238ad9cde96","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":169,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"fefc1d7d-e281-4c69-b486-48b020ef5b34","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":169,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"9444a10d-b7fc-4da0-b34e-e31a3abff259","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":169,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"454d9a6e-7727-4cdb-a066-194277ec73ff","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":169,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"649b17ea-625b-465e-bf77-623123547e29","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":169,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"6823b447-493a-4923-99c3-e6805b730f36","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":169,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"ab56b563-eead-4b2c-b59b-4ed2064f4158","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":169,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"8476ddc6-535e-4567-861d-4a45bad598fa","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":169,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"0a0f3efe-bf3e-4728-bf7b-0887ef6f22fc","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":169,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"809d626c-1537-49e5-81ce-5ce30f520964","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":169,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"1f312eca-58bb-4d09-9709-ba9bdf57f574","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":169,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"f5d57aba-e7e3-48d6-ba0a-b3e2973a73fa","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":169,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"98f3b97a-77bf-4292-8fd8-9c606d08b194","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":169,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"fae30711-07f7-4604-8c3f-c9e6a0433e73","block_type":"box","text":"clients may be used as well.","page_number":169,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"7e070cd2-23ee-4cc6-9721-7efa0cf31afa","block_type":"box","text":"II-127","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"50aab928-d767-41a6-aa47-70de92752cba","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b085a4b9-86ef-474a-a699-3ae54d58b950","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":170,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"0cb263ca-9735-4143-b62d-24471eb926bd","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":170,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"887d0ed4-8cc8-4880-9113-6ffc3702e8c7","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":170,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"79abac47-8946-4895-9760-3542845ad0d4","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":170,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"bade64e1-de55-4844-b635-8256a542c097","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":170,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"ed0f7415-df2b-4555-8601-407696575691","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":170,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"390c4d9a-0edd-44ad-bb3a-6c96766546a8","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":170,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"9b794ea0-d686-469a-a8bf-c216a8c09ad5","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":170,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"ee4b0f7f-bd48-4a7f-914b-e8057d856dc1","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":170,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"09f773b1-7d3f-418e-96f7-681975368b3e","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":170,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"17ca5a81-12f8-4af0-a1e6-b2d337ca023d","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":170,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"22bcf30f-fd8a-4b0e-bed1-24c2e10188b3","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":170,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"a64ea49c-0a22-46f3-a929-f41589751052","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":170,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"a05607f4-f7eb-4b13-87f6-a2d151962fb9","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":170,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"154854f3-dc43-40cf-8178-bb26ccf0aaee","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":170,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"ac35d3c3-6e70-4dec-afa1-4c6d3e040629","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":170,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"7f5d3890-0e2c-4dcb-a363-51387b723d20","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":170,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"ab04e62e-b331-4051-b73c-80267809e7c7","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":170,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"6d951dd7-7a06-477b-a911-3019396d907e","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":170,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"0d4a7d76-feae-4f87-868d-e935c22e409e","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":170,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"5d644096-f821-4dbc-b446-23d7f254a1b7","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":170,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"164d002b-eb1b-4292-a583-a3d98953c0be","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":170,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"e33a8370-a0d6-484b-81b3-0f96681170c0","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":170,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"f31e2ccd-e31d-4d78-a548-5827ca7ed1a9","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":170,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"f42b0033-59d5-4808-bfb5-9e37ceac9955","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":170,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"e3fcdbec-1fc4-4d72-9ed7-318f4900b030","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":170,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"908cbf44-1dcb-422c-96d0-0aa14ec73ed5","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":170,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"f686ce14-cc61-4168-b4a1-5bd333078527","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":170,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"65015b58-3382-4e1a-8be0-1966b45db9f6","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":170,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"0088262c-0cd3-4056-b233-787612866f59","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":170,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"fc967b07-d6b9-4671-8544-c4b5f2c4ab2f","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":170,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"6f5d5091-797d-46dc-8d31-ce19ebe60530","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":170,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"2b354119-0f69-4f7e-a4f9-8fe20b9c4b7b","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":170,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"0a2124dc-3a7e-450a-a628-c2141ddb5625","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":170,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"6fef3b67-fd59-4b46-b9e1-b238ed1c459d","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":170,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"4daa6cd0-d862-4fcf-a4c4-a6d68bb06f63","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":170,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"27587f92-fd7b-4b3e-a97d-240e20296f98","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":170,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"bbc29e26-3fc4-498e-b1be-c95b11175a78","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":170,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"eb87b700-133a-435a-8a0c-0347bee65cf4","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":170,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"f828182d-129d-4619-b241-e9e4b61a5fb3","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":170,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"ca4133a3-d0c3-42af-b5a6-27458b3c1093","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":170,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"eeb86720-4883-45f3-be19-316654cc5577","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":170,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"009797c7-2a03-4223-9c44-8bc60a39d794","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":170,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"46776bc5-8236-4b6a-b82a-285e51a4ac43","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":170,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"f1aa8391-22b6-4e2d-a11d-9eef571d9878","block_type":"box","text":"Portfolio Turnover","page_number":170,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"4a6b82fa-22fa-4573-b4e8-748769ea8543","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":170,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"b7b98a2a-bcf1-4938-84e8-3e0b82241ca1","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":170,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"54c9e0a7-1e01-4cdb-9c29-fb2f1b80acb4","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":170,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"753b3184-cfd6-4c1b-ab53-454b8979aee0","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":170,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"5f987f4d-f6bb-43e8-b1e6-c65d629e912f","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":170,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"77fb67df-57b8-4fee-bd86-d3df9ffb38da","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":170,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"6eb67683-8248-4483-b44b-f9ed9871b7d0","block_type":"box","text":"II-128","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b6d2b853-5d10-459a-84d6-a9ff6c67e338","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b807855-0beb-4f7b-93ef-25f925f597b3","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":171,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"dee26c11-bbcb-4e29-8486-fab3bc24be95","block_type":"box","text":"Dividends","page_number":171,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"eb7570ca-7d06-45ae-ad12-d7d2cf140400","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":171,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"3e08b620-8efc-4b8a-9d3a-f40941cef506","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":171,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"186cefeb-37e1-4e63-a98c-abcf47c90cb8","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":171,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"3e2341b3-9bd1-4260-bdda-02e6bb853f01","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":171,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"a8594fcf-727d-4ac8-8a75-ed381b428c07","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":171,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"9c6a5877-fb5e-4ec2-a0de-b5eded97c2ee","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":171,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"752f7d97-deb1-49d7-ad4d-f44f1f8f1260","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":171,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"32af0c38-afb0-4a56-98d5-ffc14149e229","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":171,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"06ee3e24-8d53-4859-8885-2fea880a28f8","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":171,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"19e8bca2-a711-40d7-98da-4ddf21e00488","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":171,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"595f22a7-f76a-4cb7-b199-7853fdcbe5b1","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":171,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"bfb78b73-1808-4c10-aca0-94eb88414dd7","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":171,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"ae43aa56-60a1-4088-a56a-fb00846b1506","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":171,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"2e4e7d59-62f5-40f1-be56-482e797a6a49","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":171,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"cd59999e-a2e5-46f1-b0fc-f789ab736862","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":171,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"180b662c-d92e-4247-bb75-10cf8c0d8e25","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":171,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"a7d73dd7-bddf-4a49-a948-381e79966d47","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":171,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"d7991373-8c6a-45bd-a48d-058a3e84caeb","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":171,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"d19639f3-288e-49af-a641-1fba7fff0003","block_type":"box","text":"Taxes","page_number":171,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"873426e5-9fe1-4f29-8733-c52af24a2912","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":171,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"95be483d-0abd-4178-b4a8-f3c36d5ed65d","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":171,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"c84ad133-53a2-4fa8-9b79-0b3c55646f47","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":171,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"7dca9f18-c379-4ea8-bc29-32650f46f59b","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":171,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"0fa37fc2-d0fb-4594-9943-761a2b1febda","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":171,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"14706e35-f4c7-44e8-a09a-f31e56f08574","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":171,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"194153ec-59f0-4065-9362-666c9c764f3d","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":171,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"14b5bc5a-d944-423d-b249-36f7252e7067","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":171,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"324527e7-1646-45e6-a3d4-2b06b34a84f4","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":171,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"259b4203-fb2a-4e63-ba26-fa455a5462ea","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":171,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"0fac7a46-be69-476e-ad80-89c9c6f13597","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":171,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"7e9be311-55f2-4354-adca-32e20cad35fd","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":171,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"57288cbb-3842-45c9-bbf0-a42e54f0a7d4","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":171,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"1b520237-f084-4ad9-84f4-2a141e5ffe12","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":171,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"0d778b56-0123-4c5b-9c69-08cb91dc4dc7","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":171,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"b8c853d0-34f5-4803-8988-c878fdea0870","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":171,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"b2302718-4efc-4d10-ae38-6053db290ff5","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":171,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"b264fcc8-29e7-4c42-bfb1-919847430ad3","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":171,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"d0acc336-0684-4feb-83ac-3abd45c9a2f9","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":171,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"f8d73925-533d-4836-a76d-ba34323b6ccb","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":171,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"3df7af18-b06c-46f7-bf37-2b208a9d2fe0","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":171,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"39293c34-3a37-4df5-bde4-4464681add71","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":171,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"c414d73b-cef0-48fd-94a2-16398d8461af","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":171,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"80450474-f590-4c35-b5a9-b14deeeaeb02","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":171,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"888cc747-1964-4e1a-8f1b-272775cecea4","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":171,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"94851102-89d8-446b-8451-f286b79ac881","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":171,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"82f2076b-580f-42f1-ac41-5a096b0a1f5c","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":171,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"6eb03749-1edf-4a9d-be0a-e7668632c62f","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":171,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"cb081389-7398-4684-bf99-f4bd1c12031f","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":171,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"f1d0b5b5-a178-47f8-92f0-72468b31b36f","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":171,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"72a9bda6-39dc-4065-ab15-84c1afb014ee","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":171,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"e84405ee-829f-47bf-942c-d7038a3ebe56","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":171,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"a7f23401-a342-48f0-a4b1-23b76aa237e1","block_type":"box","text":"II-129","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7afa9dbf-67da-4fbb-8faf-bb4c0dbb0d58","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e1bb4b4c-2872-46d3-934e-cfeccb8dddf8","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":172,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"7d36ee1a-116a-4be2-b37b-38205622bd2b","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":172,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"b8c1781f-d592-4a86-90c7-952144496dce","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":172,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"d9b3bd65-5d7d-4661-b8f3-bbeb007b0533","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":172,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"f7eed557-cda7-4aeb-a04a-62cd533b62ca","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":172,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"52911414-239e-4153-864b-3c8d627e3bc2","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":172,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"de23d3a5-aa91-4b9e-bd82-25a1cc6c4ebe","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":172,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"f2b2fde3-d2e1-4022-8c14-14f7cfddc5c5","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":172,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"32896c6d-1a62-4951-a5c0-0a3e81944606","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":172,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"a377d419-1f7b-4463-9ebe-1439fa56cef6","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":172,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"acfa8543-deb2-49ae-a319-687c5a9bee9e","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":172,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"378a52b8-9d49-4d55-9737-d4f44143936c","block_type":"box","text":"limitation.","page_number":172,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"a55f6160-e8e4-4f94-81af-c0f9643e1c71","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":172,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"209b7577-0cf0-4d3a-b322-812967319700","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":172,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"4cecb458-66ee-4c68-9890-5772faef95ef","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":172,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"d000acfe-a222-4f0a-ac26-a081504e8f8c","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":172,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"82a088a1-595b-478e-b50a-ac46f54c50df","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":172,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"51fb1e94-05b4-4c3c-a8aa-9b30d229be68","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":172,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"08438bae-829a-4e38-b552-bd60fa4ea1f7","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":172,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"2d9612e0-352c-4fd5-928f-6b7b92d292c2","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":172,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"f5b19ac8-4605-4d5c-b379-a59435e6d0a1","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":172,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"8cc5e6df-e25c-4ff5-bc87-4f374b894559","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":172,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"e43c8f71-b158-40c2-9060-10de8c633a05","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":172,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"58c45bbb-3c8a-452c-90fd-de0b33ecd25e","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":172,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"c483fdc7-a1ef-4719-bbe6-a3770e5c78f1","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":172,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"f72b270a-9b31-453e-a083-a0054fb36266","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":172,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"0caaeab7-3439-4cf8-9897-13c7844897f4","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":172,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"2b98e151-b680-4540-9fe8-4fd161d0d439","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":172,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"843ae4b4-fc3e-40a5-955d-007805ebcdf4","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":172,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"37cdce58-4754-4edc-80da-f9be1e1aa559","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":172,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"f205aa0e-28df-450a-8c74-6f7826491049","block_type":"box","text":"constitute “qualified dividend income.”","page_number":172,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"07713a21-3244-4134-a56b-625bd09084e9","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":172,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"78b70e46-248e-4527-a96a-2616e38839fa","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":172,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"0e2c79de-25a4-452b-b987-a4ab8ce5707a","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":172,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"92f8e5fe-ae7f-4355-8e74-21fb36241398","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":172,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"0c3e1e82-f246-45d4-abc2-01184a02557e","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":172,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"ad35677e-ee17-4ed2-a38f-22af4855d85f","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":172,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"15357ab5-76f3-4b71-aea3-7d2a79f53784","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":172,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"7ab59462-4d6e-4953-b6bf-7b0a9fe5f8ea","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":172,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"23bd41f5-6756-48f8-95a7-7dee94794abe","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":172,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"8e11a0b5-37fa-43ce-a6af-4c862133ad73","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":172,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"b61bc30d-e2ff-4828-9d23-a0b0d429ae68","block_type":"box","text":"against their taxes.","page_number":172,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"bd91ec5a-ff17-4108-82c0-49b686a1dcd2","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":172,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"78db9c18-9afb-4a23-a905-7ab0628c3860","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":172,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"3c362656-349e-4869-8023-8ddf00a94035","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":172,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"32d32e6d-c813-484d-a4c0-12c048f6c28c","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":172,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"88733cf5-1fb0-46c8-b4bd-f92754bbd92d","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":172,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"8f93b47a-fa2c-45dc-bdad-957535f24dbd","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":172,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"9c4d2c2b-520f-471f-ae64-861e39ba77c3","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":172,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"d4bec849-d53b-453e-8bdf-3b290d8685f3","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":172,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"0b7aa6d3-63a5-4721-b2d3-4987397b934b","block_type":"box","text":"dividends received by the shareholder.","page_number":172,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"0c5fed44-7394-4787-89af-48837cdbb760","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":172,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"216c470d-2f10-4f0a-8a21-a6918ca6a5dd","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":172,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"03d60039-6348-4c5b-9021-2868a17141fd","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":172,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"c829847a-4428-46d0-9c8e-01fd5566f55f","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":172,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"4c1f1f3d-449c-47bc-9b5d-d00c49d4a830","block_type":"box","text":"II-130","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ec017f6d-79b4-46bb-86fd-06ea2f32299c","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7bd11e99-e10b-4ec8-a03e-e080ed685a2f","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":173,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"dbb72597-b419-49bd-8c1a-79d6f1d13352","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":173,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"16f6dd96-1d14-4a63-bdcb-56c35ff06ca4","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":173,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"beff5d56-6d9d-4554-9065-101510786cb0","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":173,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"05c86970-1964-4fb8-b780-5a9c699457ef","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":173,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"f2ceceb4-4a31-4908-a83c-4536dbbe89db","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":173,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"a3316ef2-17a4-4929-a3de-c286f74a1015","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":173,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"9290a1a6-5583-4f5b-a21c-445c5d53afa7","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":173,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"d36d2a2e-336a-481c-9972-2762bc913e9b","block_type":"box","text":"taxable year.","page_number":173,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"72ba1c53-c5e7-4cc8-96c0-d13dbb853b9c","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":173,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"9275e5b2-9529-4292-af6e-ea1b1b876e59","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":173,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"8dbe5510-31d9-4c4d-a0d3-55f504b302d2","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":173,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"6c9624e8-83e5-4c71-8337-e30c2c0754a1","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":173,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"6cf57dc1-447b-46d3-ac66-c325733dd3f9","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":173,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"0782a7cd-cbc8-4888-9066-c1d5cb18ece9","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":173,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"5b1c28c7-be92-48cb-b139-415d13e0d1c3","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":173,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"38b3b0c8-b81f-42e8-a61a-f2feccb2261c","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":173,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"cb0a3d67-5e1c-4ff9-bd2e-5631af5cea38","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":173,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"1ae46fad-ed8f-444d-9372-6d6d8d5b83a8","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":173,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"d820459d-c659-43c8-974b-50c30a450c32","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":173,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"7e2d069d-b8a6-40fa-bbb3-b432e3f768a8","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":173,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"4f94b533-55de-4fbf-8be6-bc4139a9d35f","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":173,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"a227ab6b-f26f-46d9-8383-cd5a10bdd6f4","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":173,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"0753b1ee-3a4e-4eab-aec2-edb5bea2e760","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":173,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"ab6c15b1-5537-40cf-bc3f-6d159cd0a0f3","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":173,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"c9473e98-dbd2-4126-ac32-0faa4f500707","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":173,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"14d282e2-232e-4347-a71e-f07a61317c14","block_type":"box","text":"special tax rules that apply to their investments.","page_number":173,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"bc367c63-c69c-4878-9ff3-b6db76d2bff7","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":173,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"ce7bde15-6cbf-48cc-be5f-8a8327cb0ed9","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":173,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"ab792ddb-22ed-4e0d-88f7-d55e1f70b737","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":173,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"b367e5ce-bcea-4975-95c0-2ab3130bed70","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":173,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"c1e28771-6e10-4ae7-a36c-6f0fa4495203","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":173,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"581cee89-7dd3-4e2a-aed5-bce84323f6ac","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":173,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"af4a8d69-6e4c-496c-9d14-b42b35e52481","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":173,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"98a3f691-af7a-47b2-a4b3-fdd969787b46","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":173,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"f867fcf9-d3ca-43c0-a6ae-23e96a6e1ace","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":173,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"2f7e8fec-5504-4af3-b82a-ee0efa7adf29","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":173,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"b1ea02f7-d956-4986-9289-ffe8c6c3d7df","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":173,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"d579eaf8-e9a0-4c98-aef8-ccb641bb9b6e","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":173,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"06a00d7e-1b87-4888-889b-1970c47eaca5","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":173,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"e60ee937-aa98-492a-a258-07f1b3ddbdbc","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":173,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"ff4d6d50-9a30-44d7-b93a-26659648a48e","block_type":"box","text":"redemption of such shares.","page_number":173,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"b42cfbdc-73ad-4711-9459-33eaa5b1a06c","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":173,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"bc284abf-5a9d-42fd-a74f-09a1ef466718","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":173,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"187c25ba-b8c8-4c5a-8f48-ef069e231802","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":173,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"21af4790-49f0-4f62-b10e-0f9fcb52fb8b","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":173,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"17d71bc9-b458-40a0-9c1e-95188e5a9338","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":173,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"9c673e28-95f8-4f09-847e-a4184831dc54","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":173,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"612436d5-f28b-433c-aa93-229d45eb9a37","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":173,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"66c6cbc5-b163-4dc7-a2c2-76a459ad8c46","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":173,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"f64924df-3f5a-46ee-b396-eadb5ab86782","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":173,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"6bd6d42b-8e60-4b42-baf8-8b6c5e4a6c3d","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":173,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"cd58bba0-cf25-4676-ac1f-287783b578f8","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":173,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"1c5138f8-7ab8-4f62-8eb5-97eb8eca4b89","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":173,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"1a288736-4f71-4c06-87e7-119a12c51436","block_type":"box","text":"II-131","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6c50def6-db90-4c3e-a9e1-75363bec71ca","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"09925f2f-7e48-4366-a22a-8ab93fcaebb4","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":174,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"fb3fd785-2ede-4dad-b822-d048dbb1b665","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":174,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"92808778-6020-4688-9f6a-da439d6eed54","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":174,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"9a8f6727-e8af-422e-b8f8-44f6e965216b","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":174,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"05b06c05-9085-4929-801e-e2e569b39821","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":174,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"904afc7d-bbaa-4026-8416-2aec708bf1f1","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":174,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"f04a5a00-697f-4af0-87cd-7b1e89db104a","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":174,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"a43ca2b1-c5f5-465d-84c8-6d90ab6d4f17","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":174,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"a4fffc72-c8a0-49aa-b1ae-718550dd2fc9","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":174,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"403aae79-b777-48bf-b711-4a426c45dcd7","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":174,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"6a060453-0898-4146-8035-7b4050da5a2b","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":174,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"383ce9ea-1ec6-4bd4-92a8-032a4e5052dc","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":174,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"c603acb5-20e6-4203-8a24-48b42c12524e","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":174,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"1a1dda1b-cc8a-4d92-9367-caffaf50a0e4","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":174,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"71f523b4-4e5f-4d20-912e-da9f2496da10","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":174,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"329b611e-3295-494d-86da-cf3c21f3944b","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":174,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"d0128f25-60e0-4978-b5d1-392c82729756","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":174,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"7d0556d1-1e93-40b4-9d27-3f6948cc0b9d","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":174,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"fe0792d3-7825-4d37-93d9-cd181bdbcbde","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":174,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"cbc8bc86-27e2-4403-aa00-56c4cd234ca6","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":174,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"3ecd90ed-a195-45e5-8b02-94d9c7839cee","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":174,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"c58b6508-6e88-4dc8-8724-5d7f42bf8b23","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":174,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"1cbcc996-8ea3-4cee-9b5a-2be2d5c74d4f","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":174,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"0338cb95-c081-475e-93c6-3003f20d5c07","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":174,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"cc01eb73-20a8-4d71-8a15-411f1ca54e49","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":174,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"f0279f09-9088-4b8a-8af0-902dc42c53e8","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":174,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"92ae9c66-3499-4eeb-b8e4-ff780fb6b8c8","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":174,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"dee9a95d-c66e-44bc-8f1f-a8a645ab0450","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":174,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"655944d9-9a0f-4863-9843-062923c4f776","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":174,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"e3de89f3-8b3d-46f5-9bf7-5b3a8cfd805b","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":174,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"884a4ba5-d4ac-41b3-b0f2-518cf29b2d3e","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":174,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"79890944-66bf-494e-982e-b0ecf900bdc4","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":174,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"a8a32107-99fa-47af-907e-d93a1b09c643","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":174,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"d0ead762-a9b4-458f-8cbe-80a43c365c24","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":174,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"937f7f15-2e5f-478c-bde0-7d4c5aee5810","block_type":"box","text":"in subsequent taxable years.","page_number":174,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"3c637184-b807-4b13-8485-885509f8beb9","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":174,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"96637df0-cb4d-464d-8a9e-5d703c18fe6b","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":174,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"df862c6d-0264-4b1d-a2c2-4221d8d1de93","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":174,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"c89f4af4-68c2-4e23-8609-35fb0e604e3a","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":174,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"639fbf15-0d72-4374-9da0-c8dbc32e60b2","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":174,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"16cddc3b-c159-40ac-9ca6-940eb921450e","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":174,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"8024f05e-d189-42f9-99cd-99fd45a71d30","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":174,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"ca526e5e-f38b-4a44-97f9-181a80c8e4ac","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":174,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"4a672bec-de59-4a23-bc6c-12ee24230c20","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":174,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"ade56911-5073-43a8-955a-870d4769d68e","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":174,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"ce8a54d7-48da-46e1-9f35-d3b627afbba1","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":174,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"e6a36e71-7515-4d23-9f82-5135ba58f22b","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":174,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"20d3aacd-2d41-40ff-af48-7e2dcdef3784","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":174,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"16db4a31-d007-49b4-9337-07c4d3d81e7d","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":174,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"30ea04d5-665b-483a-859f-9d05d2db348c","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":174,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"5021bfcf-ad45-4778-ad2d-e6fc0f4c20dc","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":174,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"4251e737-0e48-48fc-9671-6fd2479b345d","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":174,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"c959f998-eacc-4256-b8bc-344ab79fef8e","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":174,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"2d846369-4acc-41af-ae57-2f6931667d4f","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":174,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"9532be49-ee31-465f-a421-b012843d8db9","block_type":"box","text":"dividends under these rules.","page_number":174,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"24948f0e-c9bb-466a-9f72-223d1efee41b","block_type":"box","text":"II-132","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5269055d-5636-43c7-aeef-f32f2c6a705c","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae13aecf-2c9e-4763-8c62-efbe08868103","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":175,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"93824cb1-2750-4771-a9f0-bcfa1d177e9e","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":175,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"ff49dc65-a694-4e63-9c6b-36f89da8d9d5","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":175,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"fb9f4558-b301-47ad-b7ff-4b56a975f1ad","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":175,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"0e08354e-a295-4eb9-b7f0-aea5dd6d7883","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":175,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"02205988-994b-48d7-ad11-ec1451b367e8","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":175,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"7bd41c46-3f80-4729-9ff9-4e8056c011d6","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":175,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"f256acfb-38be-4036-8279-6ac69a1ad4fd","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":175,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"ed7c251e-c923-40e6-8ab4-eb17d1120a86","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":175,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"8a54146c-d057-4656-8cea-eff0e97177e9","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":175,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"13c35a6b-a640-4fef-bc6d-a2c92a8d5e0d","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":175,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"50f7908f-0f09-42c6-a3aa-ea61ecd56308","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":175,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"5e828b56-6c14-41d0-a02d-26021c3a5f0c","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":175,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"3e6f38d5-b466-47b6-9f41-b1ddc606f2ea","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":175,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"88781d00-3093-497a-969c-0077aeb1d1f1","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":175,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"3e9f4883-e333-4be1-91ed-e9c5dfedb8e1","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":175,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"c6f6b249-43f5-4c18-85c4-dca12d94161c","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":175,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"f5c5b0af-3faa-4589-866b-d95144d023a5","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":175,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"f4420738-7dbf-4192-a2a7-dd0c73549ba5","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":175,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"4537f10f-bf9d-4de5-83a9-e232938c97b2","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":175,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"b0d3fef5-4f10-4be2-8086-1dc0b2c1d9f4","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":175,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"b07d9c9b-139a-4a55-a4a5-f436b49ed933","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":175,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"aa042192-1b10-4719-9ae7-1cbf5eb202c1","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":175,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"e6ec536e-b256-4cce-ae3b-a63d6a1e6365","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":175,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"16aecdb1-1cf2-489c-9079-82fc4924c434","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":175,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"d1fac860-c3a4-48fd-be57-462959b13fb7","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":175,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"c86b4a2c-cbf5-495c-afc2-38c236bbf293","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":175,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"52c56384-4efe-47c3-a83d-d45e81d9014f","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":175,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"350d6d5f-92a8-4b7c-baf6-76ec094d0613","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":175,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"c6ae4d2d-0b4b-4933-9d56-7b3c3508a8de","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":175,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"76da3351-fb2d-4542-b82a-54bc14c4f05f","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":175,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"68e82ca6-1b8c-41be-80bc-e2bf96b788fe","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":175,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"20bf5843-3072-4493-a075-4a74c3ce7b9f","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":175,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"c4f03ce2-07d4-4b7a-9b46-f369d5b689e6","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":175,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"fedf9e37-99f7-41ea-bb54-0efa4254d845","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":175,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"bb593540-655a-40e7-bf05-1d2778b982f5","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":175,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"2f7fb6bd-311b-4660-b9f8-a7bd514a8c00","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":175,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"bbf760f8-ae91-4758-9187-7795fd24d01b","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":175,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"2966f0f9-8d58-4d61-ba17-3ec7b49d15e2","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":175,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"4c5e5e42-2b99-4024-890d-cecb0f4418ee","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":175,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"2906e544-b6bc-4c36-9a8b-0eb6ddf07884","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":175,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"44116fb2-15b7-4eba-b3b3-fca9a47dd0ea","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":175,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"c31af635-6761-4ce4-9e6f-cfa254fe5d06","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":175,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"d47a61f0-4ffe-4d1e-bc37-774a19686a01","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":175,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"9a591724-e39c-4e2b-9535-b984c941b8af","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":175,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"9e3da45f-b728-4f6d-bcd4-b634fd6ea6f5","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":175,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"fb7518f3-a3a8-4d3c-bf56-110d28f6ad53","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":175,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"073f7194-07b6-4ee5-acdf-e072f57df5e2","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":175,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"4e4df76e-6cb0-45b0-b1b5-0721a891d63e","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":175,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"4b970e1a-146d-4fd4-84f2-2cda5bd47669","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":175,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"1a0d3f33-f646-4641-aa44-b9d369bb399f","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":175,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"e9aab07b-7fac-4626-8d13-6b342bad7903","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":175,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"d332ca60-2fbd-4785-bfe3-103d404079d5","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":175,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"2b315cff-3db8-4591-ac78-3a8d6aa96b67","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":175,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"30265e46-a04d-4b83-adcb-303c37a000e4","block_type":"box","text":"II-133","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2b8bedbd-2320-4b7b-9b6a-5d71196a6166","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1c36b22b-116a-4cc2-838f-0ebbd7fc58a5","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":176,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"38fe1896-be5e-46a2-8e52-7652c59cf08c","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":176,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"70e2fb6b-cd61-4da7-84f0-379b1f177672","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":176,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"f1fdd163-a042-4fbf-a2d3-4a4292d176c7","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":176,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"17f9bde8-c8c7-4cc7-9ef4-878211295844","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":176,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"b0b5ba6f-c2c5-4e44-8ef5-5da45c01ae1b","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":176,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"22d0fde1-0e19-4510-8ebf-f906c73741d2","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":176,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"8cb38356-79fb-4558-8195-1b70ecc1f814","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":176,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"9154e65c-5fb4-464c-bdd0-9bbf50e5f99e","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":176,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"a259b4f8-0f95-45f1-ac91-494c679064f9","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":176,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"728fdb15-da3c-46c7-8074-0c1d7ac20527","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":176,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"27321b65-ef4e-46dd-8ea3-49f713cc6d76","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":176,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"3238bfbd-b91e-4d21-bbbd-c434d5ae2f43","block_type":"box","text":"investment opportunities.","page_number":176,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"26fa7b5d-73bb-4c80-ad95-3146cc6a14da","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":176,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"07de3a4e-3bac-401f-b4d7-38a4a0b8a5fe","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":176,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"85a75f7f-1188-493c-a450-b5a78d0dc4d1","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":176,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"89a53bb6-c300-483b-b02b-ae0b24fff08a","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":176,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"b3e10586-96b5-44fe-ae4d-fe0a3882a222","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":176,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"6d8b4349-c87f-4f30-90c4-382b4f783c96","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":176,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"1ba89039-bc39-4ce5-a68c-31d052704db5","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":176,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"8f2597d1-c295-4118-bb8e-216efa32d02d","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":176,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"f907ecef-e214-4753-80bf-597c690d428d","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":176,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"5239b265-4c79-4135-b56f-4f0345f42122","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":176,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"b565dff9-97aa-4af0-89ca-b8febb93fea8","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":176,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"93484571-5f25-44ae-809e-c9a827ca59f9","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":176,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"2b3cbb45-c8fe-40c3-a5d5-747998a24f89","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":176,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"2a80bd9f-f9c7-4c21-a99c-f8372af2a2c8","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":176,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"f3b227c3-b038-48c4-8a5b-84c7da82066b","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":176,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"ad1e7bb3-2aab-4ede-aa65-61f178f678b5","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":176,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"2c286809-6885-4083-b2be-da5662c72d88","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":176,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"9e4cabda-8bd4-49e7-9bb9-c51a6efa22b3","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":176,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"79839bd3-2c6a-4e58-a0fe-07e8c0ef1315","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":176,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"c85a6f9f-0dd5-493e-8c1d-313cee0656a1","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":176,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"2eaec0a7-8b36-4242-9815-48ca5ec6018e","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":176,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"29059474-ec13-407e-aa71-24d168d54328","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":176,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"c7b916d6-26d5-43ef-81af-d1c529d904fb","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":176,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"5f70ba9f-cb60-4ffc-b2b9-9115622acdca","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":176,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"e71ecd62-b6dd-4acf-8e4c-fc15aa599ef7","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":176,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"1badd77c-a3a4-482e-806d-d7d36c8ea7d7","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":176,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"b18f6a98-e90b-4c47-86b6-4d36cdc93045","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":176,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"f0eab90d-113b-4669-9fb9-0bc7bcefe384","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":176,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"3bdf9740-6234-4760-8011-b440b5d39160","block_type":"box","text":"positions in its portfolio (","page_number":176,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"a180d85b-e196-4734-8661-43f124fa7f25","block_type":"box","text":"i.e.","page_number":176,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"bb4fb79f-8851-4159-a7ee-a59eceba4981","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":176,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"8b005022-898d-483c-8dfb-62bff9900daf","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":176,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"5afda973-a9b5-454e-a8bb-a66dbe953077","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":176,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"b365c330-5137-4328-946b-814bd6597a42","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":176,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"671fcf9f-3da9-4ac1-b941-2cd4b89de66e","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":176,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"e162a991-9927-4e1c-90c4-be9a62a04067","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":176,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"cdec1b23-6579-49d6-981f-50bf952c217e","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":176,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"1b725355-eace-4857-8a97-4e85fe8c5546","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":176,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"1622b85d-187c-4486-b7d9-d632538f5007","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":176,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"191f6826-a2c9-47d8-ad2a-0bbabbbaa8f2","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":176,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"5e1173af-eb4a-4608-8a3f-59966332e61c","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":176,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"62c4d98d-8369-4de7-b4d9-ea45b2edf480","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":176,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"317e90bb-87f1-4d2a-bd59-b5a6c0812d51","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":176,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"d1c5bae7-2584-42d1-ba0f-b7d148d2e62f","block_type":"box","text":"II-134","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bac8b7e2-9ce9-4218-9c67-4c506b4b0325","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"33599d53-6efc-4af5-826a-7b25aa65c9b2","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":177,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"fe42374f-e5d2-43e1-b90e-93631d6dc850","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":177,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"62d85a79-6d13-4eb8-84fc-0253b0c9f241","block_type":"box","text":"capital asset.","page_number":177,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"0f825a2a-ebc2-4c3e-9498-d2efbd4ceef0","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":177,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"cba08cc4-377b-4df1-a45b-4b88176d1b79","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":177,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"8580b14b-b18e-47e7-b5f6-ec5c3c4ac62c","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":177,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"3d2d3584-adcb-460e-bf2d-842470ffc4c0","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":177,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"3a8832bd-ab6e-4e20-8394-f7a9d2e5736c","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":177,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"c4760ee8-1dec-47b5-8ff0-3ecf2b950a75","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":177,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"37a26272-bf27-47c3-870c-05dc5b460d58","block_type":"box","text":"Fund were to invest otherwise.","page_number":177,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"e8c5bc89-722e-4572-8ab8-f5c4e8692b3c","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":177,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"29fa91af-bae7-4a9a-b0da-efeecee25377","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":177,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"bd8f385e-eba7-4ccc-b121-cabaa10d0c49","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":177,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"946fe0df-745b-4f69-9232-e2b077482e65","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":177,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"f101a4d2-f4da-46b1-a37e-c75bc87906fd","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":177,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"768d49fc-e633-4104-b9af-3937153107c2","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":177,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"e552386e-9b55-4ac5-a2eb-0af277ff3624","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":177,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"d77ef6a3-8fbf-44e3-8a9b-6bf262872751","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":177,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"f8d642cf-954a-4ba8-870d-dc6d511a980a","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":177,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"0df890bf-9336-4e5a-ba72-f2b40be8d666","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":177,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"9cd3a35a-da71-4791-96e0-0d0c98cd55c6","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":177,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"28289347-6e98-446b-9f0a-907c5d80034b","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":177,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"527a7ced-9d25-410a-a9cf-5477e2f82d84","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":177,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"59562e3f-0fc4-4644-aa0f-8669b59d67b2","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":177,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"9b11b793-0097-4446-b23a-618d12158e55","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":177,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"d9a95248-4fad-4ee3-8b9f-c4f91eec13e5","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":177,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"547b6a0d-ee5c-4de6-94f0-f59ac759b868","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":177,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"1f964d77-6f73-4510-8f16-c8b145abf3f8","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":177,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"cf5a998b-d7c1-42cf-92f4-313cbebadc62","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":177,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"588eb1b0-77cd-470c-9e39-2d506532c076","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":177,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"cb3bfbfd-e4c1-42d3-b182-2897127ef9d3","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":177,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"2f21c41a-976d-4b4e-b5a2-f300e98caa1e","block_type":"box","text":"PFICs.","page_number":177,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"6dac8769-ced3-4700-92e8-7d2291c5fe4b","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":177,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"90a0d6f8-2323-4f64-8b2b-01d7057331a9","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":177,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"16ff4699-fd28-45a5-8f7a-4b77918de503","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":177,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"0443c13c-b9d4-45b0-be2c-be21da6c64c8","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":177,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"86a4fd00-340b-498c-b4b1-8185a2994054","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":177,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"ef03b5b8-47ae-4f65-bd57-5382544ae8c3","block_type":"box","text":"difficult or impossible to obtain.","page_number":177,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"19d58812-0aa0-4012-8987-cd700cb29ff0","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":177,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"77392927-2dea-45dc-a4a3-66e5a1fc8b9b","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":177,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"486627f7-4c3f-448c-95b8-a2fa11f37596","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":177,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"a33afaa0-a14b-4d82-9d9d-f950267c2f72","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":177,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"e469fe20-a351-4d3e-ac1d-95570877f473","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":177,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"ff74e761-95a4-46b6-bb9c-069f1f6a68fa","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":177,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"6c65ce0e-240f-4169-86f6-d0d8123fdb3c","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":177,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"cbbea79d-5e98-447d-9221-d716023b51bc","block_type":"box","text":"Municipal Funds","page_number":177,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"6813d913-e629-4229-b018-7875cbc85f31","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":177,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"ab9b427d-a643-46c6-b6ac-c51a2aab9dec","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":177,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"c558f437-8f00-44b9-810e-35b1ea4f62d1","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":177,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"c9748536-0d73-464f-9801-9e521c32dfec","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":177,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"c37c4737-8799-46c7-b190-4b1258cb5105","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":177,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"abcd6a2b-08cf-4a1c-ad63-74ece7b990d6","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":177,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"ac5c1417-f64d-404b-892a-5e4da9d0ba79","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":177,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"31a3cfec-30cd-4128-8b43-e75c69240dc5","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":177,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"60dfdc3e-95a8-4e81-a514-cc6559fcdaa3","block_type":"box","text":"II-135","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3a99a2e7-db34-4a12-ac48-3c786ee1af4b","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a81c188b-5f58-4a7b-9409-2d98c37647c4","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":178,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"d27928b4-eda9-4a5b-82e2-e0a853df8106","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":178,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"005dbbb8-539a-4446-b1cd-443f4ddbbe51","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":178,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"59e846b7-9b26-4cf6-8660-ae7e205f8f80","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":178,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"bc3a3899-f291-40d4-8b88-56ae2ce3cd19","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":178,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"202db50e-fb38-4714-bb5c-6f318b82fe3a","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":178,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"980d2ceb-db35-4f9a-be8e-df82603ae843","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":178,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"2c7b4f39-1b30-40e6-ab92-111140420155","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":178,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"ab99b543-1123-4375-9fa8-c848c877d2a7","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":178,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"38124943-0f8d-4cf2-b9d6-52c2dd922dc4","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":178,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"f3eb80ac-7fe9-434a-93f7-295306d409a8","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":178,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"9d95842c-d99d-427a-b48f-abbea14a4a18","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":178,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"cb6d7e93-6073-424d-b373-ddd20d27e630","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":178,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"d0381ea5-73bd-458a-8653-ac41a3484841","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":178,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"caebd6f5-9979-4422-93fe-42c4303c80f6","block_type":"box","text":"constitute exempt-interest dividends.","page_number":178,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"a0cf3ff6-c013-4827-8ef0-59cf2f16fa15","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":178,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"32abdaab-6357-447a-bd09-a45f6a04586c","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":178,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"f9134653-f18c-42e8-a1cc-ab5922b2233e","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":178,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"42df95b2-a09b-4457-9930-b2d020e1d66b","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":178,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"113ca73f-81dc-4d08-88c3-c3ef1ec7d7d1","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":178,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"e7110dcf-e350-487b-b12d-e49ed56d9f84","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":178,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"8c9f38e6-4210-4300-a057-da315a4abbf3","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":178,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"ca24c097-11fc-40f4-96b0-77b6c4dca120","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":178,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"22f865a9-c99e-4eda-8218-21da8a67d5c5","block_type":"box","text":"income dividends received by shareholders.","page_number":178,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"d6c665b6-17c1-48c2-adb5-20e332606dc4","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":178,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"82830b4c-a1b1-4991-a6e1-12d3da038f41","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":178,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"cf8a13ea-faa5-460e-9dbb-542bf65efa60","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":178,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"a2e6eabb-f775-46cd-88b9-b93dd47415ab","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":178,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"baf06214-a652-44ef-bd1d-a9f52ce45265","block_type":"box","text":"the accrued market discount.","page_number":178,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"55035b5b-4508-471e-99f1-684a14fce94d","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":178,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"337cf7a0-643e-4ba3-b20d-b1654c197c91","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":178,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"16c4079c-ba06-485e-8b5d-82125748c861","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":178,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"41930df5-aa1e-4a80-aed2-dfda305d2aa2","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":178,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"0cec3381-8673-4b84-a014-a3632d8757b6","block_type":"box","text":"e.g.","page_number":178,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"50d0d2ae-5508-4584-b90f-34fbc69e8b81","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":178,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"55b2be50-e0e0-4526-800a-a85c50a40de4","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":178,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"ed31b7ba-30db-45af-8cfc-0393fb342fdb","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":178,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"2e79dd08-34dc-4f6c-b913-61de40c6a425","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":178,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"6144bc8d-e688-4f03-a06a-96b6d00ec40a","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":178,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"954faa2b-268d-4c84-b1be-f3310ac98762","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":178,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"9a24f1e1-7f3a-4446-bf65-3c1fce31b9a3","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":178,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"e81eee3e-7c2b-4f47-91a8-567805663d50","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":178,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"39b911c2-19cc-4761-b111-f912cbf3ea92","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":178,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"ca73bf89-0503-4b76-9111-702f0eaf0340","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":178,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"04e706ec-f748-4d6a-93b3-44f4e51b0c75","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":178,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"c0efcee6-0e07-4654-a9fa-9201d4cbc02c","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":178,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"e5943924-40d7-4d9b-b716-f1612a2928c4","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":178,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"73010339-bddf-45d9-acfe-938dd42221d3","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":178,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"c010eaf9-0e2c-4375-a95e-4a35b5ae0af7","block_type":"box","text":"within each applicable state.","page_number":178,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"ac97fe32-3920-4af2-8833-df6b4b3a0a9e","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":178,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"589799e4-0203-488c-93d8-e98f2513d70a","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":178,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"abd5f604-2392-44b9-8a6a-6e4996328e07","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":178,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"8df2fa00-9e79-423a-b1f7-24d042af4467","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":178,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"b779d4f6-8e77-48be-a59d-45a6d1d2241e","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":178,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"d537d621-ee5f-43fe-b54f-def62ecabc5c","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":178,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"4e0c33f7-c3d2-4761-8bcb-9017cb620190","block_type":"box","text":"II-136","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b079ebde-099a-4d64-92d7-cfb83c37d463","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"89d656cd-8eb3-49f6-8336-49260237065e","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":179,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"2bc01256-fd32-4e77-8326-a48f6ee1a129","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":179,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"0ee94cde-c9c7-451f-9e3a-f5ae2192e123","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":179,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"42885d2a-cadd-45fd-8f28-ac17244cc81b","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":179,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"3541bf3f-8f82-409f-96bf-3ed97bcc3f18","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":179,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"d5dc6f42-cf32-4083-86b9-dbd25ad9624e","block_type":"box","text":"exempt from state income tax.","page_number":179,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"0038d336-e83f-432f-b47d-117baf37f925","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":179,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"5d41f016-7671-483b-b514-104f4befa2b7","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":179,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"95a4dc42-3171-4e2c-ab6f-0625dc6c0a5b","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":179,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"5c1f39dc-cf38-45ac-808c-3defb015217a","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":179,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"0c8f3ef1-012d-4792-b455-d180abede9ec","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":179,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"8d1835e2-7384-436e-8795-98acb1302e0b","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":179,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"7e13803d-fce1-48c2-9a21-0f1c605efebf","block_type":"box","text":"decisions may have a retroactive effect.","page_number":179,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"233c0dfa-975e-4652-94e3-81f4e8c323b6","block_type":"box","text":"PERFORMANCE DATA","page_number":179,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"e7f45a4e-0a48-4851-9ee6-23a8b5c05e0a","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":179,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"96470627-adff-474e-a77f-0e62963fe0f7","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":179,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"52b835db-321e-483b-a59a-73473b678f75","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":179,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"e82b962e-ccdb-479d-839e-045158e2ae5e","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":179,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"46a57277-e217-4326-9041-388ebfa653fc","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":179,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"6a766fa8-4085-43cf-92c2-ef0be20119a4","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":179,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"02cc4277-1ec5-405b-9eb0-d269ff2a1daf","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":179,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"33c28e0e-890e-461c-b1c1-45542994321b","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":179,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"90e0dbd4-f5f6-414b-987e-0de97331beb0","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":179,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"d3c462c0-c7a7-40fb-b202-da2d6c371715","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":179,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"b20d1e31-3e71-4202-878d-5fd11228fb7c","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":179,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"3fdfb011-5943-446e-b182-bde2fb2502cf","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":179,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"7aaac4fc-d6c9-4562-b61d-70d64556dfe2","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":179,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"37f2f95b-4052-4f38-b838-72957a744c80","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":179,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"11a9451c-0c1e-41eb-8ec1-3c2c2d53b96b","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":179,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"ef1bca53-2daa-420d-8e75-e1ec9ddd92a3","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":179,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"2ace726c-7a8f-4513-938e-b058bc01a603","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":179,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"4418c717-16cd-430f-b906-a703cdff3dd5","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":179,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"ea1c8c0e-b290-4abc-a44b-05da551300c2","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":179,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"3650958c-9a56-4f56-916a-11a3536676f2","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":179,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"ed7f9b27-86b9-4cc4-9d81-62879569ddee","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":179,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"6bdf57e6-f4e4-4c55-84e1-59ca5ea613bc","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":179,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"f3e55dea-3f53-46be-b388-dd1acd5e872d","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":179,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"f4981142-8098-4e30-adc4-2948aa3ff740","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":179,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"0a393db6-4fe4-4c94-92e3-cd9322ae78f6","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":179,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"83ac9a81-55aa-4649-a6d4-107ecb4f8f34","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":179,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"23173282-9f0f-4652-a0fb-85af7dfc8f9d","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":179,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"6ce8716b-0126-4e74-a37a-4384b1a65be5","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":179,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"f5399e22-2d5b-4c21-b4c5-7455bb0c8aa8","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":179,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"0a9e129c-f297-414f-be11-3c7d727a4a1f","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":179,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"054e93cc-866f-4058-bc07-993f31a11690","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":179,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"13a87cd5-913f-41a4-a5ac-36cff6478ce4","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":179,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"9719b692-6101-4276-a912-ee36951c3da6","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":179,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"3d7e117a-77f0-4769-88a8-5985235b7108","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":179,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"dd6b0330-a3d1-4239-8e1a-cd1358fea594","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":179,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"bf410a05-0199-43d1-9634-29f404c63007","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":179,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"12777997-5fe4-41cb-8ae1-9f2d818a8cd7","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":179,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"429859eb-83b3-4e5c-9c0f-1b0b0344d213","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":179,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"95a7f375-6901-47b6-8103-d5ffdf9e30a2","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":179,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"39c9c254-0ce6-471b-b7e6-c801dead6edb","block_type":"box","text":"II-137","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e33e4c5e-6277-4231-9d28-df0d6722ce4f","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8ca050f6-06d0-4c4e-824b-a736ecfc482f","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":180,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"25a5dd18-549a-40d8-bc4e-2403d7b3a569","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":180,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"09628c56-f6d0-49a5-aa1d-b8ed3f65e608","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":180,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"d5775d09-0109-40b8-bed5-d6ebe506eaab","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":180,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"5fc6a36c-190d-4ea5-98ab-3524a8334591","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":180,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"4f0f6874-3a88-45ae-917c-c7af4864b124","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":180,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"b6160b46-483b-4916-91ec-c868041f64cd","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":180,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"10e5ad33-bbef-4744-a1c8-cd033b44b169","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":180,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"a58b7c66-8db2-4916-9ac4-7cc53f5f9b85","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":180,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"0c811fe6-c10a-4c13-ad13-35fbf1937be9","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":180,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"32007122-0b97-4371-9080-bf73cb92f298","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":180,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"01cd2deb-0288-45d5-b6c6-edd72e70992c","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":180,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"f4264987-e498-453e-9eb7-678e6da8a6cf","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":180,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"2436742f-2f9c-4fe5-9ae2-09d0df8afcf0","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":180,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"1d98f3dd-ae16-4b7b-ace9-b0ba1d8ff582","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":180,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"71929c78-6524-4959-87e5-17bb01aa824d","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":180,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"c9471f27-6e26-41bc-b258-1ae07271fc48","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":180,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"042d8cbe-7f28-4efe-b8ae-a2345a92cd51","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":180,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"21f0458a-4d23-4f73-9dd6-5be55f4f5bcd","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":180,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"92380de3-6802-4690-be2f-3148d0841911","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":180,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"ec7c3f60-84a2-46e0-a0b6-3b5127ed7203","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":180,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"9aee5196-1f00-4c98-81c4-2288106ca776","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":180,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"07ab43c0-5a5f-4241-b2e2-45ff794b1d60","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":180,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"6e5683f5-9b4c-48ab-b9b7-3b8a53b41de5","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":180,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"53984dd2-7b07-490f-b8bc-e2fdfab59a94","block_type":"box","text":"less than their original cost.","page_number":180,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"7fa41eeb-060f-420b-91b9-0037d6e64d44","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":180,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"ab9f7e78-e2e5-4c33-b604-674f32b222de","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":180,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"6ac96e2f-7352-4195-a76d-3e733892ca55","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":180,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"047618b5-da15-4ef7-9a3f-f66de42f2a15","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":180,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"ad2d0fd2-6db7-448e-9947-4c2c8cc30122","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":180,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"793fddcd-5471-4176-b255-a0b3387c248c","block_type":"box","text":"lower amount of expenses is deducted.","page_number":180,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"ebac1cc1-51bf-4c75-9647-b752db334e95","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":180,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"af467ddc-2d74-43db-81fa-6cc8c4baf2fc","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":180,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"32166642-95bd-47d0-94d2-8a741cbc9ad0","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":180,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"a5efca8b-b56e-4960-a730-56d3e9f44db4","block_type":"box","text":"Money Magazine, U.S.","page_number":180,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"ab5cf4cb-13b6-42cd-9bde-5eeada5bfa95","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":180,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"21727189-453d-459c-ae4e-b28498508c70","block_type":"box","text":"or other industry publications. When","page_number":180,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"4b6ecf06-c3bf-432b-90fd-5497587f0fbe","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":180,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"01f03cb5-6c52-4f68-a6b7-09582578f730","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":180,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"5c5bf0ad-d570-4b75-877d-3aad2752251c","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":180,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"0589cb6a-0314-4c9d-9563-e5fc85a0f1b6","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":180,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"4358cfd6-6f67-4a1b-9283-abefc095f2fb","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":180,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"ffbaa294-7a70-4f3b-8b3d-32588f5b307e","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":180,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"87730cfe-dd1a-4cf8-a850-3a29054caf3d","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":180,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"3bd23f10-4de3-420c-96d7-33e967c1106c","block_type":"box","text":"developed by Fund management.","page_number":180,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"1c4f4285-16be-4086-944d-8fcf5ce11fde","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":180,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"e31dcb29-fdd6-4c06-93bf-72510d2408f2","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":180,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"5dab880f-6dd6-444f-9dec-d3e5febbfcdd","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":180,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"2cea7071-fc22-4e15-8b98-4e9aa4db4b0f","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":180,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"6d044eba-a104-40e9-b809-41006c0546a3","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":180,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"cc90c288-134e-4df6-b43b-4adf91e9bce8","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":180,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"a2a8529b-448c-458e-9c17-9342accb65d9","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":180,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"42c714f2-8cb3-4762-8c3a-ddc3522a168b","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":180,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"bb07ef77-22c9-4a10-a9bf-ff880240df9d","block_type":"box","text":"II-138","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"26beecd8-9e52-4a8a-8009-9f21a23a9671","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15581386-88b6-4641-ae82-220bf311756c","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":181,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"3e9cf4c6-831a-4e49-83fe-287bc8f6aaaa","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":181,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"e6b44887-cfd4-44f6-9e6d-178ed0b3f60c","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":181,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"d7c822cc-9c21-4ab2-bb8f-70b10ceaa602","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":181,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"32f383fb-ec60-4900-95b0-087feb9bb538","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":181,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"b74642d1-f495-477e-bed3-8b021c122f2e","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":181,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"f23039fe-4ba2-4dbb-9de4-b6919c222194","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":181,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"6844ef7c-d6de-4f0a-be7c-712340b4aee9","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":181,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"b0b97f19-f5ca-4776-af3e-e6a7a098eee6","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":181,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"b0f00d63-0094-4102-b3cd-e839b102d69e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":181,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"be728197-78ad-4c9e-a11d-19620629db0b","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":181,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"3f783fb3-a6ea-493c-8b44-2696ef5a754f","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":181,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"57a38738-79ab-4950-a3e1-e50030e0a0dd","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":181,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"8830532c-2823-402e-9e1b-3a0727ea8f1d","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":181,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"aa1574b0-ed7f-448c-8dd6-239f0d642eaf","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":181,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"2bbc7ade-05a6-4e1c-a215-bde7acc6f1ae","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":181,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"39f1f714-9895-4382-92f4-085a316c83b0","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":181,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"29d454a5-26d9-4d2b-8e2d-eacd54ec9065","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":181,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"436a6894-d1af-42ae-a09b-d9bb36ac58b9","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":181,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"4e1d1ddb-3ea7-4887-81ff-d1f0056a1c76","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":181,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"499f2f59-dd13-4127-8832-c11c90128c11","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":181,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"0879e9bb-74f6-422c-b77e-2160b8265312","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":181,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"8c06f846-968d-4156-aef3-d9a12ebf30eb","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":181,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"09fe54d7-e628-4023-80e2-f27249f6ea8d","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":181,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"5f668a78-6ec7-40a1-8ece-1b56d272a3a3","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":181,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"957e7b05-f1bd-4b0f-a0f6-4b8a93e50f95","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":181,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"5bd9ecb8-46b2-4418-aca5-373dfdcc3438","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":181,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"ea816c08-4b3c-4cc4-9ccc-0d992c35cfa4","block_type":"box","text":"GENERAL INFORMATION","page_number":181,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"ac6ac9f9-432a-492f-bdd6-2df6716099ad","block_type":"box","text":"Description of Shares","page_number":181,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"7de8bf80-8180-4887-a34b-047eec0252c8","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":181,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"1bc7a45e-849d-49f4-8a21-56db58e1b115","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":181,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"64df1f92-380f-45e7-92e9-b24f532f813a","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":181,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"ed09181d-1de3-4560-90d0-70c6a8eab517","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":181,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"d59df8e5-bdb5-4b3c-895f-e71e2e3920ed","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":181,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"62b252d4-4455-432c-8e74-e31c4e4fce6e","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":181,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"697fc643-d4ab-4a3c-bc5e-73bca8471ba2","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":181,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"9614097f-9337-4dc3-891b-134c521370d8","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":181,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"21b7caa7-186c-4c19-b249-4d1c370e52dc","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":181,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"04492336-b9a1-4aff-af53-f03794111fb2","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":181,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"dc0c2eb5-7b0a-44c7-bbf7-a551f3f847cf","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":181,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"761d0225-3365-47de-9c03-c189f71b6a4a","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":181,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"6786b0cd-aec3-402e-8750-9646f122954f","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":181,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"ea2db17f-48d4-4f34-bd5b-cb70c8500abf","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":181,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"370328e1-6ba7-4156-a560-aff43defe7bc","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":181,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"cba76293-f560-48ff-b744-04f3de4775ce","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":181,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"5af93d45-d490-42bd-984c-b9ceec0a71f9","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":181,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"9104444f-c534-44b2-b760-960f7a4a03f4","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":181,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"757bb7a3-060a-4915-b53f-86e6fe1b2881","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":181,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"80bc746b-836e-4c6c-82ab-f52fab4b1861","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":181,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"99fb33d7-86bf-4036-974f-32c5ec500a7d","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":181,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"fa3bc00f-e803-4350-bd6a-03cf8a667f09","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":181,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"973c6a7a-6b0e-4d33-ac38-223daa1ab1c3","block_type":"box","text":"II-139","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2f6097cc-0318-4d21-9441-73f83c4da264","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f4ff200-d315-407f-843d-9fb6b42dbbb7","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":182,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"5b2f9c20-38ef-4a36-88fc-c78ce2606498","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":182,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"e45c7ef3-2ce3-49fc-914d-8f187c71433a","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":182,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"f078dd8f-94ac-4349-a4f2-fe12663b22f2","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":182,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"e713685c-cb60-4099-a6a4-95b9c6a6fd9a","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":182,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"3204effa-b481-4b91-99d4-4172eea105ba","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":182,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"477d9581-5e88-4147-9ae8-589665bb3862","block_type":"box","text":"Additional Information","page_number":182,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"a33013fc-8d81-4d34-9f84-f2b9cd855653","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":182,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"310fe63d-22f9-4166-a212-b9f8fe505f5e","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":182,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"cd77353b-fd70-4a69-a09e-481211ae6920","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":182,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"e67d7362-8792-46e4-b498-bc4789c8b7b8","block_type":"box","text":"such name to any other company.","page_number":182,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"a162efaa-9298-478e-a438-bfa7313d07b4","block_type":"box","text":"II-140","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fe872668-4cbf-44f1-993a-1a8f491e27d0","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"196f4cf3-393b-4cb7-bb23-61eabf5c386f","block_type":"box","text":"APPENDIX A","page_number":183,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"566ce28b-1efc-4a35-9d2e-8a4e246975da","block_type":"box","text":"Description of Bond Ratings","page_number":183,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"0c1d1230-057a-4fe6-b321-fb4f534a6869","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":183,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"3c70e7d7-1af4-49b5-8cc8-e66d83cbaea6","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":183,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"06067604-7a31-4a6e-a35e-8bebd2580cc3","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":183,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"77f6e89b-ab5b-4c95-8fb3-6bab58c24c1d","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":183,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"f0971105-aefa-4fc4-b997-cb9024d156e6","block_type":"box","text":"securities on a particular subsequent date.","page_number":183,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"ee20169e-d190-45f7-ac12-46fd04d0a78c","block_type":"box","text":"NRSROs may rate specific investments (","page_number":183,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"810f52b2-65f1-4a83-8bbe-a543c47b2b97","block_type":"box","text":"e.g.","page_number":183,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"9f5aea4d-9003-407a-a26b-e3cb39b3ff83","block_type":"box","text":", bonds), issuers (","page_number":183,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"73d15056-8b34-43ff-9e5c-fea65ba4c4a9","block_type":"box","text":"e.g.","page_number":183,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"ebd8c9a2-03d3-4757-8fa1-4d371a52a804","block_type":"box","text":", corporations, governments and financial","page_number":183,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"44f2a6bf-1f74-4a9a-a0d8-41fcdbeb33ac","block_type":"box","text":"institutions) and/or programs (","page_number":183,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"c42e5d76-ee63-4afb-b9ef-36e615475775","block_type":"box","text":"e.g.","page_number":183,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"3a5798e3-ce45-4e8f-a4cc-5fe48da44614","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":183,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"dd39021d-1c38-4b87-9a61-7b56dabe6004","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":183,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"8900f572-6fa0-4fbb-a1c5-e02ea30a42d1","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":183,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"ada4fed7-5aed-4d39-a944-95f3a3c6d9c7","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":183,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"d4ad090c-1ade-4bc2-8690-9702f7f71876","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":183,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"d452e1f1-9ac8-41b3-bc82-8a55a6d9df89","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":183,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"82185ae4-e561-4c11-83a7-76c2d4472eb8","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":183,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"643689a3-0bd4-418d-8ef1-d35b8320e122","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":183,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"9126efe1-4a42-46c4-9e28-89e857747f39","block_type":"box","text":"security (","page_number":183,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"bd8c70d7-8c6b-4e8a-b812-34400129cb7e","block_type":"box","text":"e.g.","page_number":183,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"23fa6255-3d51-4a2e-b906-3ac9804e06f5","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":183,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"d0aa142f-2fac-449a-98ee-1fd4877dae3e","block_type":"box","text":"highest of the multiple ratings.","page_number":183,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"7a851569-95b2-46b2-8d13-258b37e20bec","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":183,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"1be8f384-3086-445d-bdae-15606a973909","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":183,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"d89f64a4-5873-441c-add9-d3c705a66605","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":183,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"b4d59d0f-4c86-4e9b-8aad-acbf75e6457b","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":183,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"10b4def8-188a-43fa-a680-7c11563789f1","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":183,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"8dd7cfa8-1305-4a03-8c5e-c44d02da64cb","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":183,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"d4b6d646-f983-4512-8c1f-99adf39588ee","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":183,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"112e9d4f-36ef-421e-971f-06c0445db2c1","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":183,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"7de2bc39-b6de-4f10-a15c-35da440cd306","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":183,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"93d8302f-24f7-43f1-828f-1f216003d8bb","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":183,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"06633d5f-1945-47fa-b0bc-e4b831a4d7a8","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":183,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"02327c4e-87fa-4f79-8382-d66e2c0b6160","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":183,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"a308ca14-dea9-4f1c-992c-05357b4097b2","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":183,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"bcb46a24-e5a1-4a81-9aa3-52d42d712168","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":183,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"1ec31fbd-9f82-400e-b4a4-d6a548454bde","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":183,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"a2fe2abe-b6f4-4420-ae6f-a74fd3948546","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":183,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"45f03e43-7de9-41fa-95d5-ff56a9a74dde","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":183,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"c79f58d8-7ff4-4b24-97ad-7ec8720a88eb","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":183,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"a10fbe86-b9ac-432c-b2fa-c92033c45126","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":183,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"4aa1505e-a700-4718-b005-31e295e5bd7b","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":183,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"9f6b7c70-c137-49a0-a91f-c26a08bcb0ad","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":183,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"d79873c6-0fb1-4124-9f0a-c4b68207fdb1","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":183,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"f80728bd-e8a8-4c38-b30d-16f5dfd63793","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":183,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"d8ac6e84-6db0-44bc-9a7b-55c0476db79b","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":183,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"2e675a12-787b-4874-ab37-3e3e25634474","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":183,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"8ca48d0e-bc68-464c-8fff-789a561b8a6a","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":183,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"606eb924-b0be-40d8-adc8-ba3d8f8392ff","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":183,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"ca3940af-bd43-482b-8e49-46dc7e21901f","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":183,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"3dba848d-b355-478a-a74c-6338391a0201","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":183,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"51c69a31-6440-437a-8b2b-b57c1d589aa0","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":183,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"a23c1dbc-993f-4013-adf0-417dd8a28130","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":183,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"6c03925c-b182-4ed8-a4f2-b6a465f1fda8","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":183,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"664ec6b4-696b-4130-94f3-54fffaac4538","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":183,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"d7aea1c8-152e-49ae-af09-d1a53b3a989f","block_type":"box","text":"upon standard sources of variation (","page_number":183,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"1774133d-5310-490e-9e6b-0972d905cf1c","block_type":"box","text":"e.g.","page_number":183,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"00cf39a6-2537-429e-938f-ac21b4655052","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":183,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"2399c00a-bc7a-461e-bceb-94ee9a8272c7","block_type":"box","text":"A-1","page_number":183,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"a39c8c67-373e-4361-a3d7-fd71309db7ee","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d462e373-d5d6-4e50-97b1-fcb4202db9f4","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":184,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"bbba7755-0053-4bdd-ba62-3c8113eedb8f","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":184,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"0d6c7867-17bb-4d93-b85b-cc70d224844b","block_type":"box","text":"e.g.","page_number":184,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"cc4cfef8-6803-48cb-88d5-6d4355331b3d","block_type":"box","text":", equity indexed), absent","page_number":184,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"1018f7bf-321b-419f-ae6d-3a4b66cf2f83","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":184,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"e661cbce-fa07-4278-b380-17cf40f96290","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":184,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"af7dee5b-2fa9-4a9f-8f8e-38ccbf8d0da1","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":184,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"40aca6ec-d877-47e2-a453-0f57274a5e49","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":184,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"2aec1eaf-3c65-4e86-97b1-b0ec84bc34a7","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":184,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"617ddaff-c5ee-4674-88e4-fa442f465412","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":184,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"f221858a-4f14-4f28-b1a3-634fb369db2e","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":184,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"c5847746-72d9-4f06-b671-e425272366c9","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":184,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"456fce7c-76e6-4ebb-87a1-f2431ddc7a13","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":184,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"91617ca5-2574-46ba-8c1e-dea3b82a2fb3","block_type":"box","text":"i.e.","page_number":184,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"fbe0d2ff-bf93-428e-90fc-0fa489efb368","block_type":"box","text":", ratings on nonfinancial","page_number":184,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"77309a36-3e84-4bf1-a1c2-61aea75003eb","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":184,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"362d6c89-5bcf-4207-acd9-4cb9392d68aa","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":184,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"abc3fdfa-351b-4195-82fa-04199c15e851","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":184,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"b3cceff8-d6a3-4e85-97a3-15d82b8d182e","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":184,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"f9da900e-8a82-4d01-bfa1-48d5929990bf","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":184,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"56997b9d-e9ca-4d52-850a-4517c358b7fb","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":184,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"0f8f68f1-3a92-4415-84f1-0615d6372bf7","block_type":"box","text":"of time.","page_number":184,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"c34e133a-bdfb-4777-871c-b7014d34992c","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":184,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"81be411c-7608-4d4d-aa5d-b1404e924cb7","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":184,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"e994823d-ace0-49da-8aeb-20b8ca2cff8d","block_type":"box","text":"risk.","page_number":184,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"90d23ca0-ad83-40df-9087-1b4cbda92ebe","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":184,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"dad83808-374d-49b5-8b0b-722711b49235","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":184,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"a14af310-cb19-4feb-b273-9c85dfaf1176","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":184,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"74715d7f-ba39-44b1-9823-1f95ada8b49f","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":184,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"d7e539b5-a24d-4ac2-8b1f-a56c6d59b662","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":184,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"40770e92-7ecb-4b46-a2fb-ee72ce1c2afc","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":184,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"30c3335a-e28d-4276-bd17-57b64151ce1e","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":184,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"2e36d365-5ced-4500-9814-65220227b2f1","block_type":"box","text":"credit risk.","page_number":184,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"2df1cd22-22a6-44db-a10a-9feace7b22e6","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":184,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"d4c77212-daee-4378-aa66-23509e8490fb","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":184,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"5aca67a9-16e8-4b54-b91c-f820c8cd05b2","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":184,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"419d156a-a843-4ece-884e-b03a84b8334e","block_type":"box","text":"of principal or interest.","page_number":184,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"b27818d1-fcea-43b3-9b73-0e7842ce95f1","block_type":"box","text":"Note:","page_number":184,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"5726ad68-e2ce-4a5b-a41a-be24650d88f8","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":184,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"358dab2b-ec6f-484a-8c12-8c3cfa672f3a","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":184,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"5d3cf0e6-511e-4c0d-b49f-c3441a3f9365","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":184,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"e9dbc8a9-e383-4846-95d4-59e3785bd7f6","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":184,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"9bf736e5-bfdf-4a40-bbdf-4efe5d2b09b5","block_type":"box","text":"companies, and securities firms.","page_number":184,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"ba165c40-426d-4485-8e63-31104893c988","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":184,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"a7da42e2-c3a1-4246-8273-66d2776c4c19","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":184,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"f11c1224-f7df-491f-8ff9-c6e94da5cfed","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":184,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"23e9c8a4-6c5a-4391-ab48-3896cffc416a","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":184,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"8c4ec83e-9f59-47cb-b0c9-b5c8db436e24","block_type":"box","text":"that security.","page_number":184,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"7a598eed-4480-4c4f-99d7-ab785485827a","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":184,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"aa18226f-9a50-44c4-967d-dcc26cc625fb","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":184,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"a31bc86e-f585-40d9-8eed-209122b50837","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":184,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"b202f459-069e-414b-a4b8-77a40537b715","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":184,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"aee6b1b4-8fea-4906-a918-36851defd74a","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":184,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"6a0561f2-216c-42f3-9141-a2a503e90323","block_type":"box","text":"categories.","page_number":184,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"f103f032-f21f-4fdc-b216-96b4f275b33c","block_type":"box","text":"A-2","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"a29fd9c9-c200-4f04-b89f-1c8fdf7f6aef","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1db14ba3-63e7-4b54-a99b-ef94c23747a5","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":185,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"a940484b-fc1c-47b5-a2ec-04a811ba5820","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":185,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"86117ad4-dcc5-44df-b2ee-839baaeea897","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":185,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"44f06468-f202-4276-a3dd-0fb6350b841c","block_type":"box","text":"an issuer’s self-liquidity.","page_number":185,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"839e79b3-26b1-4728-8b39-4e73be74cd23","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":185,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"d51d09e2-86a0-432e-a04c-fdb17147ffd4","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":185,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"0535e607-b38c-401f-a538-e7f0920bb7ba","block_type":"box","text":"MIG Ratings","page_number":185,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"75cebc18-89de-4b9e-ba74-73781809bcf6","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":185,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"9809a381-5e7e-4570-a79c-21d44e921280","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":185,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"1e15dda7-dd59-4e23-b476-dd712a288a59","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":185,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"096a0c27-08fb-4df5-af5b-71e118d49b98","block_type":"box","text":"MIG Scale","page_number":185,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"4c154463-008c-48b4-821b-27de1a246db1","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":185,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"a4203c0c-9e12-4f38-99f0-d5b280f618cd","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":185,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"afe1658d-082b-4004-8a8a-b743c94601df","block_type":"box","text":"refinancing.","page_number":185,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"0de20951-0987-47ab-ba36-ecffc676d525","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":185,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"91eb05f0-194a-4f48-865b-c977e585a5e8","block_type":"box","text":"large as in the preceding group.","page_number":185,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"e1454850-e1e1-41af-a8da-54ce89798c60","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":185,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"6802f9b5-49c3-48a6-a817-22d599d29cfd","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":185,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"e52fe75c-ff76-4de5-81eb-e1a7cc5291ca","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":185,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"4ce99cb9-5ae8-4764-912f-ff3fbf592034","block_type":"box","text":"lack sufficient margins of protection.","page_number":185,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"d90ce2f8-6da4-46ba-a54f-91ad2d574fd1","block_type":"box","text":"VMIG Ratings","page_number":185,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"3069c7a4-2e10-4c81-89cf-1fd701ed8ac2","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":185,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"0a9c9954-a713-4093-9c80-c44279af6874","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":185,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"5849d50d-4e3e-4a2f-8959-c9e4efbf79e4","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":185,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"cd6e15d4-35d9-4cb2-a6ba-94f9c1db9ce9","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":185,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"745e2497-d920-46b7-ab34-a1b254b3cd0a","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":185,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"7bdeed40-897e-4d56-9516-53908fbe1ea2","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":185,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"a0ce1c60-fb7f-43e2-ba0e-478e497798e5","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":185,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"cd57c529-21b9-4f6e-bdb0-6efec8c1e66d","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":185,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"f8c7320d-a5ce-48d5-aeda-0cdc78a40afe","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":185,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"ce6b8739-a5a5-4794-8fb0-38dbadd1528b","block_type":"box","text":"grade.","page_number":185,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"f62f2cb2-8c20-40f2-8d27-61e754338074","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":185,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"7c34f4bb-3fb3-4887-bebf-8eb112f5de3a","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":185,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"20f1da34-7f14-4fdb-874d-ee7f1f7eb9dc","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":185,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"d1f7a64f-3103-4b8f-aef6-1132e8838933","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":185,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"b141f9a3-d9c6-4913-b4a4-a3cdf30bcd95","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":185,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"aa9f9d36-3374-4e75-b078-20ee6d6b40e6","block_type":"box","text":"liquidity of the corporate obligor.","page_number":185,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"c9bcc466-8022-4f2d-ab46-a9b4e02b1ba0","block_type":"box","text":"VMIG Scale","page_number":185,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"6d9038ba-209d-48e2-9f6c-7192c9925b0d","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":185,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"35d5e75a-2d47-4dcc-a174-120064975a6e","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":185,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"36bd3b95-6205-4745-9734-d1f50e12a7f4","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":185,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"58c2cf55-b050-4f96-b004-378d712e4e7d","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":185,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"ece8a189-583c-4f42-a661-eb43ab71efe3","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":185,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"81ee49d1-a666-43dc-8058-f598e7431ea8","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":185,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"79c6c19c-85a4-4225-8e96-9118676f5397","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":185,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"072d3cbe-ac76-418d-8bd0-81f65e9d0f1d","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":185,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"aa30f8c4-ec60-4fed-aacf-4e83402f2e2e","block_type":"box","text":"may lack the structural or legal protections.","page_number":185,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"e4d8406a-1e50-44cd-9922-6e49ccec455f","block_type":"box","text":"A-3","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c9f9ba66-fd0c-495f-9eec-fdb595c8d6e2","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0820e4d0-617a-4f93-a4ca-cc51298bdcb5","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":186,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"e4f4b903-62c0-47b5-a6d6-c79e6332fe0f","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":186,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"507fb312-7073-4e7f-b409-4047d6a8d578","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":186,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"5d50b211-ee18-44e0-a176-ea7340dd89ec","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":186,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"96c7873e-9f09-4adb-99a5-0c64e9fa43c9","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":186,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"9ca67ccd-eaf9-436a-8517-e01abe0bd2f9","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":186,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"86fc7e92-a5b8-4598-b274-d69b86b24cec","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":186,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"7825160c-90da-4a62-958c-32f85914e798","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":186,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"f34bc1e8-15c4-45ec-96f3-0fa30005caec","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":186,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"928d4c33-35c8-422f-ac4b-0919a7b22f36","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":186,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"4101cb36-2dc8-4392-8bb0-d1f27623c1e9","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":186,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"b1d69afa-857d-4c91-93f7-032efb1101fd","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":186,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"3c7b821d-aa3a-4ca3-be7b-4e58be24df30","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":186,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"23b89328-4f44-4edd-9361-0208aeee4f57","block_type":"box","text":"from these guidelines based on market practices.","page_number":186,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"a6f4c8ec-f680-45a6-8b5e-d0f52bfd99d6","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":186,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"66a9323e-0b67-4ba3-8f83-5c73e43abdfc","block_type":"box","text":"•","page_number":186,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"c0f2898b-053e-47c6-a7b1-74667ff8760b","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":186,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"48a76171-28e9-4a43-b2b1-483998adac68","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":186,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"0b68ecce-4f96-4781-8f74-75d3954479e4","block_type":"box","text":"•","page_number":186,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"d6196cfa-85a2-41fc-a370-c9c8c2867a87","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":186,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"6734790c-825c-47b0-9f85-15fffd241d1e","block_type":"box","text":"•","page_number":186,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"f5dfd5ab-785b-4c09-83e7-21e34d4d45bf","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":186,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"4b668b9c-3141-4105-9f88-c2f852e3fc24","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":186,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"879c9c7a-2ab8-402f-87c6-07e9ca1f161e","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":186,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"4e694d6c-72b4-40fd-b79d-b85e95142b4c","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":186,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"3cd6e9b9-9ae5-4d69-92d0-7f8a04ff97e3","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":186,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"b12b1465-8f1b-43a7-a91a-0ad27262f7da","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":186,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"4963ca9d-0729-4a58-b01e-f19a7798c2d4","block_type":"box","text":"obligations.)","page_number":186,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"d2d03760-821f-406d-8530-cefe130fafc3","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":186,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"6bb053b9-dfd1-4775-8a2a-f97c8685d9c5","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":186,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"f0ae38e3-89d2-45bf-aafb-203d58cbee2d","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":186,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"710fa1ff-03ff-42ae-8441-c2ad81104992","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":186,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"91b3d28f-60c4-4910-a1eb-21d3191a7bef","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":186,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"a9176f0b-5b6a-464b-8dd2-2558b69d0223","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":186,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"9d54a93e-e25c-4af8-a828-0144df16ed20","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":186,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"2115666c-6c3c-4590-8404-bce46798ac68","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":186,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"a7a51fc7-5016-4dc3-9ad9-359e83e34ee5","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":186,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"95f6672e-2d09-43a7-9948-46ddf1ac53ae","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":186,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"89cb6014-5809-4e59-82b6-899b0b20431b","block_type":"box","text":"financial commitments on the obligation.","page_number":186,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"da9b052a-cf18-4bd5-84ab-7f1b606294ec","block_type":"box","text":"BB,","page_number":186,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"45cb0850-7271-43bb-932f-bc5e50544ac3","block_type":"box","text":"B,","page_number":186,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"675eafe4-c773-4b32-bf01-7b0aafc4e327","block_type":"box","text":"CCC,","page_number":186,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"051bb171-7510-4cc8-a803-3b8d7b2093d3","block_type":"box","text":"CC,","page_number":186,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"3a8c282d-b4d1-42a0-a569-34f0edee4e76","block_type":"box","text":"and C","page_number":186,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"bb9fb1b3-01b8-4664-b01c-e2fc0eecdf12","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":186,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"d2f859e7-d71f-4a68-b037-c8b526dda30f","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":186,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"4911dab1-cfed-40c2-aa4e-744e495e997e","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":186,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"febdbb0e-5992-4366-90ec-363d5fada7b8","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":186,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"51ee00b8-91ab-469e-8cca-99033c5b337c","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":186,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"9d6cd4ba-ff1e-4d31-99f3-37481d52bf43","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":186,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"678eee7c-254d-444d-a648-642d21c9b296","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":186,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"af1b1b39-552e-446a-8b9a-e0c3753e021c","block_type":"box","text":"on the obligation.","page_number":186,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"e3ed9bf2-b3cc-4033-aa30-fb55dada1452","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":186,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"75cfebc8-5046-4f2c-939e-a5b177d1ca0f","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":186,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"4a72ebbd-38a0-4994-bf6c-2c9f2319ccc6","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":186,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"d554d6e5-9721-4560-90fc-a22a0e5b17d3","block_type":"box","text":"financial commitments on the obligation.","page_number":186,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"ea59a555-6fd4-49e7-b57e-8db2e62a756a","block_type":"box","text":"A-4","page_number":186,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"bdaa9b01-271b-43b3-9e65-07f007f3a73d","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4e52eb1-b53c-428b-9043-6cebcdb9d1c3","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":187,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"58a683f1-7953-49f0-acac-59fa40782a39","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":187,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"a9a689cf-8065-4143-a342-4aa02ac242fe","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":187,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"ef1cd005-4394-4485-bbfb-af80ba3c4a9e","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":187,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"a28b78be-4eb4-42ea-9024-4f020d35934b","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":187,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"a6ec78c7-75ef-4fdb-9d4f-015ef7706226","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":187,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"c700fc7f-452d-4632-9b8d-d5a5ba7dd69e","block_type":"box","text":"anticipated time to default.","page_number":187,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"4a0170a4-e7d5-4538-b960-5edb3ca0d99f","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":187,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"7d9ddbfd-cd52-4b0d-955d-2e8c704fefe4","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":187,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"a4c65fa4-044a-483b-9c6d-9d711a0d3816","block_type":"box","text":"higher.","page_number":187,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"93be0cec-f45d-4d6a-95b9-0aeaa73dad0a","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":187,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"66771ce9-3ec7-4a32-8d64-0c5b9a37cec2","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":187,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"3428aa8a-61a1-4b1f-92a9-afaffb559654","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":187,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"c5f453a1-7056-4c13-bd1a-e150fcac3fe9","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":187,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"6aefe050-9efc-4dd4-bbb4-ccffebf79781","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":187,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"00ffd1e0-2c75-4433-918b-e3d29367ded9","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":187,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"04d1f9e6-29d0-4d73-81c6-124767c85332","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":187,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"4013b80c-6b49-4dbd-b723-8230544a5b91","block_type":"box","text":"restructuring.","page_number":187,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"fdc90851-1fb7-405c-af63-13fb51e0776f","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":187,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"6712611a-4abd-4081-a1c9-146722bb586c","block_type":"box","text":"standing within the rating categories.","page_number":187,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"9703c231-a51a-4c25-8daa-98016374186d","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":187,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"63e4d80a-c73a-4254-ac39-529fd7afbcc9","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":187,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"036f45c8-ec0a-40ba-896a-0e8caacec4f5","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":187,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"5d99fce0-c6e0-4266-92a3-c4bb8813ea61","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":187,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"d6460d39-3b17-4397-bebe-ff5c9ede511b","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":187,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"c06d7417-8153-477a-96ff-4c76e38a9a62","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":187,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"2644aae8-b6d1-4c8a-b99c-824f82ff8dd8","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":187,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"fad6da99-3fd2-4e63-9378-99a021052dfd","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":187,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"bac5e134-d740-41bc-9438-9cc01b8b7b82","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":187,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"cee09812-4eea-4beb-91f2-76cec019a6fe","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":187,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"8a297f4f-8a2f-44b6-9339-227c2e0eac65","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":187,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"613d6830-1a5b-4fb6-a056-09b6de1015f0","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":187,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"6a80581e-5b38-46e8-97a4-e122a28bc9a4","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":187,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"4dbb7ef6-385d-4a6b-a714-a2206fc41836","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":187,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"1c83e3fd-7e98-4789-850c-b5b0bd2eb1c7","block_type":"box","text":"financial commitments.","page_number":187,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"8f53c56f-d425-4312-8e21-696300e7909c","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":187,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"74b30898-89c8-475c-9033-1910bdb31c56","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":187,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"e8034fbe-500d-4673-9f38-d66068a4c4d0","block_type":"box","text":"commitments on the obligation.","page_number":187,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"6634cb18-a041-4a35-9b8a-2258fc6e542f","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":187,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"c9bc0062-fd98-44cd-91b5-f83a72fd517c","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":187,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"e3bf9fd9-7651-4359-adf6-ac923ee5a84a","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":187,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"17e56fdc-d366-4267-b3a1-1d9ac5085dc2","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":187,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"3ee8dd19-74ed-4e0f-b996-3a06fa201450","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":187,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"d07413d2-4acf-4db7-94da-8d4bab4b3e0c","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":187,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"2e726662-3061-4e55-82b6-6b4b30be3b42","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":187,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"d62c00c1-d486-467f-b6ae-8716c2eba581","block_type":"box","text":"debt restructuring.","page_number":187,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"1e49d067-005b-4e38-839b-610b936dc6e6","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":187,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"5d0457b8-863e-42fc-b33f-d5123ea534ab","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":187,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"43361b4f-ad6b-4b5e-b871-372c9e7d262f","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":187,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"bb5cbb08-9db6-49fe-8cbb-211f7a8756d6","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":187,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"f70e38e7-b70f-4e80-92ae-8b2ee4f49433","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":187,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"07c74caf-2392-4d8f-8cf0-b604dd7d5ef5","block_type":"box","text":"A-5","page_number":187,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"e5e928a9-a97d-426e-8c50-4bbdb58490f6","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2064cf67-0253-495c-bfd2-8d515499202c","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"6dc8902a-a2de-4dfa-a549-f1abef922668","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":188,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"4589b234-03a6-4a10-abb4-0bcb1297e775","block_type":"box","text":"as a note; and","page_number":188,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"d50289f9-0a4c-4ed7-8e1b-410bccd16dfd","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"ce2ee5f9-6ae8-4e33-9647-1d9f48d8e87e","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":188,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"e6721abc-3ea6-4907-8f1f-e5efa4039131","block_type":"box","text":"treated as a note.","page_number":188,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"f46270f9-dcdd-44a5-b933-ef1d6de232ac","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":188,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"640c5534-f309-45d1-a190-c27131aac78a","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":188,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"59828616-9468-40d8-aaae-7ab838cb924a","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":188,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"9ff0a8b9-5f32-4b30-a88e-d71406dba0aa","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":188,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"67499d91-7409-4350-aea8-ea764a6c8d7f","block_type":"box","text":"economic changes over the term of the notes.","page_number":188,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"fbcb5bee-ee8a-46ac-b0ea-68ae4368e8fd","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":188,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"5a841a2d-f346-492b-a828-808dc17cf439","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":188,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"1eb00f5a-9df9-4426-9bb8-a502be94ce80","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":188,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"3761861a-f826-44b1-b241-6368b265c79d","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":188,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"85bbb6a0-31b7-4b09-80a6-5c781e81983e","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":188,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"48aa17af-f163-45d2-b613-88e2759bfda9","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":188,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"fc1d1a75-7cfe-4417-81ae-a94b070063d2","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":188,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"c8bdf219-5671-498d-971b-8b2642501a0c","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":188,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"04be75a1-bad1-402f-81e8-52ba5361c2ba","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":188,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"ee1d841b-96d7-4f38-8d23-8dd2e3660603","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":188,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"fb5bfe59-d5f4-4537-b13a-3cbd2ab5fc4e","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":188,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"ee41c30e-0b9e-49c7-b876-0d565a4b7761","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":188,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"93597560-1664-48f3-a36d-bc647955aed1","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":188,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"878ce348-c43a-4f79-90fa-c2309cc8b23e","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":188,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"c813f32d-aec0-4327-977c-b011e6c93892","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":188,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"15295ee5-a421-4d1c-825c-c2e22c487872","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":188,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"5e46376d-293b-46d8-a354-581fb0de5e6f","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":188,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"048a8398-a5f0-4e32-aab0-35690d6a356d","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":188,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"dad5b1d5-a527-4c6a-8143-e2593f718287","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":188,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"19cc41da-c4f4-460a-9c94-a0435258a07f","block_type":"box","text":"receivables or other financial assets.","page_number":188,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"81eeeeee-ce21-4560-abfb-bdfbb6ac8f62","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":188,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"b9f64b71-a143-4d7e-b36d-b54bb7e65d8e","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":188,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"cffa5f46-336e-4a41-a178-f9b38401b771","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":188,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"a6d33a3b-6f74-4718-b677-82a04b5ff288","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":188,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"cdf18ef1-7aed-43d0-93ac-0c85613836d9","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":188,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"2db66bf3-8e95-4e82-9b3e-d6d754c0f1ff","block_type":"box","text":"occurred.","page_number":188,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"8d0211f6-290c-4a29-b1a3-87050342e846","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":188,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"cad094c5-cd5a-4366-8445-6e70d4ab0441","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":188,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"98638520-d61a-4274-8f2c-395c84786643","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":188,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"d66647ee-3943-4fd0-a46d-33a21bfa0820","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":188,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"c862b45c-683f-4fdc-89e4-83a30ca534a6","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":188,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"67055445-2289-4559-b935-ba7c62b1bcea","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":188,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"29638952-55b8-4f53-b90a-c3175421cef0","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":188,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"c96e6538-589f-4d41-8896-5ec223c956a4","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":188,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"7d5ea436-7685-4964-9b3b-7ca0cd835413","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":188,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"663bc137-41ab-44e2-b017-aa7c916603b9","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":188,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"b6c049ff-3270-4239-9ba4-16034dbea3fd","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":188,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"85de560a-5da3-44f9-b40a-72ba1e1d543f","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":188,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"0c500bed-b1c2-4320-bd69-c754d040aecf","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":188,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"035db033-d54c-49fe-8cab-d98bf503bfa0","block_type":"box","text":"i.e.","page_number":188,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"0a72a7a9-a3db-44ff-acc8-f14299d1305c","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":188,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"4a9365a2-29c5-4847-ab6e-1e62ba68a8fb","block_type":"box","text":"the obligation’s documentation).","page_number":188,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"34fb0b3d-8d86-416c-9a66-1150c69bcc41","block_type":"box","text":"A-6","page_number":188,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"9e66252f-fb84-40ff-8236-3589ebb22bae","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f7f8c53e-6b26-4041-82b7-f908f1c23afe","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":189,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"43872084-d135-481e-8087-d355c61c8e09","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":189,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"7cb514bb-bf3f-4b9b-86f1-b8e7771cf76d","block_type":"box","text":"agents in the form of a rating letter.","page_number":189,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"04260073-e9ea-4857-8721-f4e94a32ca94","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":189,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"a9114185-c10e-4bbc-9d27-73fe971e43c2","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":189,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"364de172-112b-43de-8adb-fc87e9ee0f2e","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":189,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"b79cdaa7-a7eb-4981-9098-f2532fff5f2a","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":189,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"32d36536-ef4c-4e36-b5e7-9de9dadc240f","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":189,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"e8aacf34-dd09-4948-b802-cccae9f3db1d","block_type":"box","text":"e.g.","page_number":189,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"bfc1779b-7957-4a8b-bc92-13e28b845f32","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":189,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"e1b3182b-4c68-42f5-839a-d142b325f61b","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":189,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"4440a78c-5f8a-4f50-a821-da4c7788a971","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":189,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"7480fe08-9b09-464d-87dd-23e968b18cce","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":189,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"0c6ae6e0-3e17-47fe-b351-11ab9a092e99","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":189,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"cc2da50c-eeff-4223-956a-3e6bb7f6b412","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":189,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"58e63a68-ae10-4b90-9dc5-97debb9db17d","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":189,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"0e4127f1-7f6e-46bb-94e5-7aaabf5ec14a","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":189,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"acd535e7-9420-42d9-835b-ce382581f9f5","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":189,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"e7a30050-de94-41d2-9d07-6ae3f2814ff3","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":189,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"db2ac264-1035-4911-aee8-b6a068b9d2a5","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":189,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"98c378c1-3ed6-410c-8351-4802c2565bda","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":189,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"fb8c7a66-d2a2-4320-bf23-5127e5a79b4a","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":189,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"1c08a592-7e34-4b6a-9174-7def10e048bc","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":189,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"46b990fd-ce12-4214-ade2-9c123264083d","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":189,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"46287cd7-4927-4005-91c8-66d61e50f922","block_type":"box","text":"Ratings.","page_number":189,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"bf4ef2c6-44e3-45d2-9bcb-ad97372d0708","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":189,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"131d26be-d7ee-46f0-98d9-44be84da9678","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":189,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"1f1272bc-fe9e-4f37-ad21-4cd84a6f7f35","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":189,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"e45fec46-cea7-4fe6-85ab-8a47a54cdac2","block_type":"box","text":"obligation ratings.","page_number":189,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"fe580652-dfed-4a8a-b1ab-1e591bcde635","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":189,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"37e98f6f-171c-4018-a7af-960cb7bb85b8","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":189,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"83ba57c0-3c1e-478e-a09e-716c79070022","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":189,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"8c41e9d5-673d-46d4-92b9-88a64728cb39","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":189,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"a90638ea-d80d-4da2-a5e7-48caa330fb68","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":189,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"b6869b1c-5d16-4583-ada7-3f3bae02abf9","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":189,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"eea8248b-fb45-4448-8158-fd5bafbfab18","block_type":"box","text":"to foreseeable events.","page_number":189,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"43e3cf0d-2ff6-4ce3-bd66-2460e6762e03","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":189,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"7338ac35-0dd9-49ca-8da1-e9933a788d38","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":189,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"c22a638d-0ae7-46e4-81d0-a01e354ecef3","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":189,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"b77f35aa-7d58-429f-ae8c-1bd1eb1fcd1a","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":189,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"d58ea56b-0666-4e88-9df0-f8d279e0e79f","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":189,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"1823de16-9613-49db-82ef-e6baa31792a8","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":189,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"7660c577-7e46-4a3a-adee-2ff36de366b0","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":189,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"388b10e2-6ec4-40f4-828e-60edb952df6f","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":189,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"92f74a50-fe1e-4bdb-9598-e7dee2d1384a","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":189,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"819a029b-b666-4dc8-b6f0-377573ecdcf2","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":189,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"419839f3-1644-408f-b831-c2916a2b6d56","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":189,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"d8cd88c1-9151-48dc-8212-fcc056931714","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":189,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"3130ee64-c7d3-4d4c-ac53-f67317ca111d","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":189,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"a337931e-d53d-4823-8383-01bfc1e2135b","block_type":"box","text":"possibility.","page_number":189,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"b29053ca-79e0-4dad-9de1-df35b122f60a","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":189,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"40df82d0-11eb-4344-a9ec-0b741f05469e","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":189,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"0f91bfda-0c16-44ea-bb1c-758091a698c0","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":189,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"49e769fa-9053-48ce-bf69-7f11c2d4c488","block_type":"box","text":"A-7","page_number":189,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"bc48a186-c08f-4cf3-a436-b9ecd03929df","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e6277c09-8998-4a01-bc54-0f6aa66a0d38","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":190,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"aa09d5f5-38e2-4950-b5a4-5055c104601b","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":190,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"e9946344-1c53-4bc4-9bda-686afe1f1be0","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":190,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"4cf7e289-8318-4aaa-987e-a3c8f6b6ac80","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":190,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"6589ae7f-2e39-4089-937a-0bd53db78895","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":190,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"05fdc58c-30a1-4294-b662-25285f795fa8","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":190,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"6ea254cc-b8ef-404d-b8b8-60b3d1625d71","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":190,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"5c00133c-ed71-4c32-b81d-682a86d3c7ef","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":190,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"7d434eeb-393a-43a5-bae8-29a472d4f007","block_type":"box","text":"relative status within major rating categories.","page_number":190,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"0721643f-97ee-4abf-aaf5-8aece4a6bbcc","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":190,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"1206ded2-9d93-4b77-8cc4-c3c9fedece80","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":190,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"299ba07d-7b37-4289-a658-f4c11642ea13","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":190,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"c65c23c3-d879-4ce6-b267-581f238e247c","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":190,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"acf7c185-5e76-41c2-8263-1614638f26fe","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":190,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"a13d28e4-daf1-49a7-8947-b7bbb74e4104","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":190,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"2221afa5-2bc3-4f75-ac56-12cee126a0f2","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":190,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"b53953d2-4870-4521-aaea-b9f30674c637","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":190,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"0889523f-eb4a-468f-98af-69448d0ccd50","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":190,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"1f8a856d-2d0a-4961-a9b9-ef0e9b7b8fe9","block_type":"box","text":"finance markets.","page_number":190,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"d0a7b2f4-a48f-4c40-8690-9a9038ccd651","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":190,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"c1b0ea2a-481a-45cc-b571-bf4f8242d039","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":190,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"234e56a0-291f-4ea1-98a0-79b08063b831","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":190,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"298a79e0-28f7-4b7f-932f-cd735e1d6ba3","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":190,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"619da44a-6726-4927-b37d-89db703c3679","block_type":"box","text":"commitments.","page_number":190,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"1c4d4126-809e-473e-81e3-ae127943a30b","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":190,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"0e3b0370-b9f9-4f0e-913d-875894be218b","block_type":"box","text":"adequate.","page_number":190,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"cf27ad6c-6fe3-418e-a593-671e8eed57ab","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":190,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"10f86df2-04a9-4f88-aa75-e53be5080f89","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":190,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"36e608f0-4a5c-4c9e-af12-5b286ba2af26","block_type":"box","text":"economic conditions.","page_number":190,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"6c61d229-e590-44cb-ab0c-fb781215bc97","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":190,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"0bbab882-39bd-4538-83cb-2af3471a1cfd","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":190,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"db7b5e09-cd55-4f1f-9765-91fb4e2a79a1","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":190,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"c4223b3b-f1d5-4000-8617-2847b5dc5f58","block_type":"box","text":"ratings only.","page_number":190,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"44831c07-5657-491a-a31f-59234ada8736","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":190,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"68bd9f43-504a-4043-aceb-4ad259408e56","block_type":"box","text":"obligation.","page_number":190,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"1adbeb0e-a68b-47de-b221-5fa47aa04e47","block_type":"box","text":"A-8","page_number":190,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"7e38aa4c-f449-4297-b98f-65751f9e90b8","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"905415ec-bbfe-4ea3-a726-2ef6a26dceaa","block_type":"box","text":"APPENDIX B","page_number":191,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"ec078360-1721-44b8-a93a-fa47abb41c9c","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":195,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"f8ad5440-0191-4c90-8d72-93bb4be765d7","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":195,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"b446a74d-f9ae-4246-9f49-b5746e35ead4","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":195,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"7b951ea6-dbf7-4bb6-9330-db77fd90850d","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":195,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"91360734-c5e3-41ba-ab1e-9695513262a3","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":195,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"3c468a90-3aa8-4cda-b66e-54dfdddd40c2","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":195,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"0dd7ba79-aa94-4c09-bba7-d8c4a1b97a53","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":195,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"4cfd67b4-5e12-4cf6-bd05-4cc5f56471a4","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":195,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"e4eb0780-fb18-4f75-8961-37834fb0a678","block_type":"box","text":"1","page_number":195,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"a39079f0-1507-4da3-ac8c-4b3fd5c6b20c","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":195,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"d7e92e9f-2a98-43e8-a0d2-c90f9a32df0a","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":195,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"5a9625ec-4698-4cdc-a464-2514875f96be","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":195,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"0fd6f1ea-be77-4a8a-b0f5-c82ad42e3727","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":195,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"9cf1da23-bfea-4a94-9103-0409bc134fb4","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":195,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"dace7e2b-97d7-4741-80b4-9156872ee108","block_type":"box","text":"2","page_number":195,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"10757634-b3ca-409f-b564-021eddf9b367","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":195,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"fea7100d-bbc7-4174-a48b-2a1c3e651f19","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":195,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"47dfd5b5-128f-4533-ab94-121027fa3ad6","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":195,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"10cc5087-bc0b-444a-9a74-703b061e0d54","block_type":"box","text":"policies.","page_number":195,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"cf77e44f-b74f-42c9-9191-ab4527c958fb","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ad5f3b71-eda6-4200-b21c-ddf3b36448f4","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"94b107cd-4147-4f46-9b9f-44d75947bb4b","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e7894fa5-66f9-421e-8d4d-16b85daad64f","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":196,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"dc3711f8-2ec6-4f6f-9555-90f89bc85a84","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":196,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"fb2d0e13-7242-4351-ada4-71fcb9e3fe08","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":196,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"f2590d47-8cc2-42dc-8dd9-f4acaabcf6b4","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":196,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"d50cee86-c92d-4045-9c9a-0cd911257698","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":196,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"f6b30397-fdb6-48f4-9c06-db89ea0db03d","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":196,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"947a0891-0516-40c0-a7c0-6f3c989a574c","block_type":"box","text":"this work with research, data and analytics.","page_number":196,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"4531740c-e664-464d-9052-71b8a2416438","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":196,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"579be2ce-5eff-46fc-a2d3-af12bbc3fb53","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":196,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"6b27b2b8-9aea-459e-9d32-2bc8602afb69","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":196,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"f9cb1de8-47ab-4172-bdeb-037daa034d59","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":196,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"613432d5-993c-425d-a15d-be512ad66051","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":196,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"6f5bf6c2-c953-4e32-a49a-a5c8f7b81803","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":196,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"554a54ef-e76d-4d05-9716-e386f33693ff","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":196,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"c7b7af41-3ad5-45b6-af88-ddab19c7732d","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":196,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"da8af33d-26d5-43e0-addf-79ce0f793ad2","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":196,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"0394fe1d-578a-40fc-95fd-1ed45f0438dc","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":196,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"e506912a-cc5a-410a-8a4c-1e6cee4ec208","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":196,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"460a0156-8338-45af-bb7a-9274443907d0","block_type":"box","text":"shareholder meetings.","page_number":196,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"0c1a8b96-786a-4a9c-959e-ab66a22091a5","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":196,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"f3d53b1d-6ad3-4ffa-874a-89cefc9b78a2","block_type":"box","text":"investing.","page_number":196,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"7fa9cbd4-b93c-4e15-81f0-5d28497b63ac","block_type":"box","text":"3","page_number":196,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"f5ce3dde-34db-4bfa-aa64-87eb807e892a","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":196,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"4f71d06b-3066-475e-a4a6-7a18d4fff853","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":196,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"8d61fa56-7a42-444d-8c70-4a90bd2bd6f8","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":196,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"bc8c5b94-82f6-43fe-89d8-d9fd45239fbc","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":196,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"96c3cc65-db4d-4daf-b2c8-78ef20b6743f","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":196,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"47ec0df0-bfcb-4833-9647-eae40ce2c96a","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":196,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"f5f57c2b-b32c-4542-9c29-2212c9484d3b","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":196,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"0694f9d6-8cf8-4611-bf62-e2d823cfa3db","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":196,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"05f5d25c-5d36-4b41-a82c-2963a0fc12fb","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":196,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"f6f003de-c389-4655-8020-fcbe67283fb3","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":196,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"26755e8d-dcb8-4e68-9f3e-68def8fc6baa","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":196,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"ab8deba2-7601-43d5-9c0c-a4395efe3e2a","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":196,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"955ffdb4-8855-4f21-b9e4-5d31c13e9c84","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":196,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"82a1ab70-b98b-4497-8b38-c887d82e0cb2","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":196,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"efece92c-e6e6-4861-8143-b6a5b3139afd","block_type":"box","text":"management teams and board directors","page_number":196,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"0d8d8859-afb5-48f8-8841-a187e43a5086","block_type":"box","text":"4","page_number":196,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"546fc687-bf58-4ce5-8248-574bb03a033b","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":196,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"b8801585-9a83-4bbf-98e1-cf42aed536ef","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":196,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"80964db2-af20-4b55-b4b6-27c4ffa1e8a6","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":196,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"d81799ab-cd5e-411f-b6aa-1b756cfbc2be","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":196,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"dca99f7b-f77b-495f-ac3b-29bba42a310b","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":196,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"1ff6d5e1-8d75-42c6-b733-670b7ffbf6be","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":196,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"e08f32ea-14ac-447a-b296-3fc9e597e49d","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":196,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"e596b34e-12d1-44a8-83ff-b7c330e25461","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":196,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"9ffc5e12-d9f7-4ad1-9a42-506f75e5e8da","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":196,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"f91e9d5d-35d2-4530-a401-db6d49e94411","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":196,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"2364225c-9b43-4f0b-8299-8f27fc5fa3f1","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":196,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"5c6c95ae-a93e-4ad4-93c9-a996440302cb","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":196,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"679b646b-c1b4-4d1e-8b18-dd4e833e5fb1","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":196,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"a18a2101-f043-4d29-8e8a-9181330ffbca","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":196,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"407a32ab-c3fe-4388-998f-d3e242fb6a24","block_type":"box","text":"3","page_number":196,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"03cadafe-f71e-422f-a561-c7539cee38a4","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":196,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"41aa2527-4cd0-4c68-8714-f9d0b79fddf5","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":196,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"706ad889-6adf-464b-a68e-aa60872c670f","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":196,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"e1b26cbb-0515-4422-9869-fea0010ffd64","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":196,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"60f01aa4-3a7c-46cf-be6c-501d6763782d","block_type":"box","text":"4","page_number":196,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"4d0b47ba-2ab5-4f62-bbe0-b2b82bb67099","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":196,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"e930ad2b-b9c9-4e6d-8dca-2a176cd077cb","block_type":"box","text":"boards and their members, where relevant.","page_number":196,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"b00027f8-5951-425b-ae86-6c42a522f27d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"72355035-1c23-4153-b475-b13d839d96a8","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2c2a92cf-4904-42dc-bcb3-0d074bd69c0d","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2cd82c88-9036-4181-861b-d588e2fe9591","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":197,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"14837925-1974-4845-b903-8f370d73cd40","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":197,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"0ed1a82c-a280-4846-b729-d10d128c1157","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":197,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"47c3c2ff-cc01-48f4-b4c5-0a02f48271fd","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":197,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"7e8b340a-c2da-4704-9d5b-b56b5b67e076","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":197,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"593fbba1-1c31-41f5-b550-267a70bf179c","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":197,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"370a9298-09ca-4a48-bb7f-c16867fd2fb8","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":197,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"ee19413b-e1a8-42a5-b541-2a98a5c45636","block_type":"box","text":"5","page_number":197,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"2da24aea-a137-408a-9bff-a8537aeabc19","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":197,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"70af45a7-3c9c-4e20-9175-b3e99ce1022e","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":197,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"cd058c16-96bc-4e1d-b8dc-2f247c592923","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":197,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"32dd4ed8-ea65-474c-8ee6-9ed6fef671c2","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":197,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"cca33fd7-4799-490c-87ea-efe9aae9495b","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":197,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"12109c79-bcac-4667-94b3-4d9e6ac7a342","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":197,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"7ba1f57e-9bd0-4f35-8b82-e3574dcc7fb3","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":197,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"29258351-6c9a-488d-8f1e-d69f0b23e746","block_type":"box","text":"5","page_number":197,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"e1c640f5-01e8-4b7e-bf33-a5df1d072e57","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":197,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"8332780f-4c33-4d9a-84ed-2e3a05d150ca","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":197,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"060d67f2-4aca-4808-99d8-ff50ddd8d20c","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":197,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"e0643c60-7b1e-48ce-9233-14a1481d9301","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"bd59aac1-9b64-4b2b-ae2b-7513b302c3c3","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"de0b3d77-86aa-4db7-9587-7b6ed9e56cfa","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"04b24934-0d06-4c5c-ba23-784588d4b6d6","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":198,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"db123aa5-7826-41a0-8c78-91d029bcf00b","block_type":"box","text":"Roles and responsibilities","page_number":198,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"59079f21-4897-474b-a1e3-8f9781019ddd","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":198,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"4f2848ca-0908-462a-a03c-dc3a46b6e596","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":198,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"f04b5e59-1842-43b2-ab3a-01215400ea16","block_type":"box","text":"6","page_number":198,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"b8dab564-2894-4493-b6a3-a02eda6cd186","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":198,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"f4714c10-6a40-4d7e-a5bb-b115700ba699","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":198,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"be6319d1-96c7-46f1-ad65-5392f71a9373","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":198,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"74d81ddc-51f9-4952-a687-8ac11151ac4e","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":198,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"18dd9883-506a-4d6a-87f8-c806ba637708","block_type":"box","text":"performance over time.","page_number":198,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"9ae95d68-af9e-4191-b42f-6477216d4327","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":198,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"d3d6e9bb-c3a7-443b-a678-b4adc85fed04","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":198,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"bb560042-2486-4115-823d-18f7aab1ee75","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":198,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"7423bdd3-e404-4e53-a77b-87c788a281b6","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":198,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"d82ab1f6-185b-41b8-82cf-bd2442ff1e58","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":198,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"f583c824-4c20-4d28-90b8-676cef4d3df1","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":198,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"a90ee03b-2bc1-443d-a471-2c7e0e1bb94d","block_type":"box","text":"Composition and effectiveness","page_number":198,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"5ea40956-4f68-4e1f-9ca6-42f55729ec65","block_type":"box","text":"Appointment process","page_number":198,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"d497d45f-d183-421e-b2c1-4e1496814ead","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":198,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"6da9c0f2-a931-44d4-ab58-0333fac4f25c","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":198,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"5ff278af-da42-4342-8e71-cce4c00e6767","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":198,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"0b857165-c17b-4124-9657-db446d24b84f","block_type":"box","text":"e.g.","page_number":198,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"a7c42d1a-b36d-416c-8be1-9e23ca5d83f1","block_type":"box","text":", sector, maturity, geographic","page_number":198,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"8d886900-8d01-4e99-9210-430cc672a425","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":198,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"75889bd8-1e2d-42a7-ad21-cca62156bb28","block_type":"box","text":"e.g.","page_number":198,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"daa8ce5b-1918-4130-9855-c93dbbe8b550","block_type":"box","text":", financial expertise, industry track record). To","page_number":198,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"dbd928f4-d532-46e0-817f-fbd1ad736bad","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":198,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"21ac2d7f-1bb6-440c-aba7-92a69077ac69","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":198,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"6571b63c-26d2-4f72-98fe-5966458f960f","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":198,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"fc217e58-42ed-4ae3-9ad4-99b6ac314311","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":198,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"60e4c0eb-c576-4cd7-8f8e-2ba7852060ac","block_type":"box","text":"and local market requirements.","page_number":198,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"9b9dd912-b78d-4584-968c-56122a4f4d09","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":198,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"0b416be1-8c53-41e1-858a-2bd78e7d9ecf","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":198,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"584eaa09-3a8b-4545-9a21-7bd3e488359c","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":198,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"a95d8f13-fc74-4645-abe9-a8df671ed99e","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":198,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"ef5120ff-f3bc-44d0-a934-14d8571006a9","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":198,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"ca6365bd-fba4-453d-9f43-d6a98076fdca","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":198,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"dae4b5fd-127b-4c78-b356-ca17df365d00","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":198,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"67fbb9dc-086a-4b79-9c23-2b1fa995e585","block_type":"box","text":"Independence","page_number":198,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"8dc92fff-e061-4419-8536-7cd38b81a535","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":198,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"09c839d0-ee40-4f4a-b00f-0e0bce62e29f","block_type":"box","text":"e.g.","page_number":198,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"fb92ab16-2801-4a2f-bc23-ee7d6d60ae4e","block_type":"box","text":", government or","page_number":198,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"97a8009b-0862-40e3-a11f-3b2daf5ccea2","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":198,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"c37b1d3d-a3f0-4b3f-8469-57a24f95ff94","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":198,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"ca5f4531-d4af-4a48-a6e8-164924a6efce","block_type":"box","text":"conflicts of interest or undue influence.","page_number":198,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"751dfcf5-6015-4b79-9a6d-4599d5d0aac0","block_type":"box","text":"7","page_number":198,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"14e20739-e6db-427d-a393-d3c189817c05","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":198,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"6f13bc41-a154-4386-ad5b-7ff2e085ed91","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":198,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"991e389a-4c73-4e2a-aa94-65adc298eee6","block_type":"box","text":"independence should meet those local requirements.","page_number":198,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"f5c15fe3-b931-41bb-9267-f1ed79bc4ec6","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":198,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"e78c1e92-e5bf-4d3b-bd87-1be364872947","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":198,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"174ddd74-4820-4d7d-abd3-b7e7e97c08b6","block_type":"box","text":"composition if this is a perennial issue.","page_number":198,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"09d9c738-62d1-4215-89c9-fed1d0b1edd2","block_type":"box","text":"6","page_number":198,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"5b2588fc-629f-473a-98f6-c0cf50111f07","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":198,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"74776aad-4c2a-4827-9263-9e9790e221b2","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":198,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"9f8602f4-17cd-43a4-9804-52d7406709bc","block_type":"box","text":"7","page_number":198,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"19b0d6c7-63e1-456f-8da9-817dc40c9de2","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":198,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"091a9ebf-f50b-4211-9067-a703155b5f48","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":198,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"0639edd2-633f-4239-a364-11965bf51959","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":198,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"8bd9cc11-30a7-444a-b117-0492aee2f5ca","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":198,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"a181915d-325f-428e-b9c9-dbbaadb22657","block_type":"box","text":"of the company and shareholders.","page_number":198,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"c2809ea6-33ec-4618-aeac-8290c66d4638","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0e86be5c-cb4d-44d2-b36b-e46af74f25a4","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"50589aa0-0e3c-4358-bab7-eea578be8105","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9ce86b66-234b-4e3b-ab40-136fd80e802f","block_type":"box","text":"Independent board leadership","page_number":199,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"66736a4c-efa5-4344-8b4b-1bcd3ffe5860","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":199,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"6c4aebb8-6283-4168-8c85-698ab4edda5e","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":199,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"2e797cdf-7f50-49c3-bafb-4ac20198d96c","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":199,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"6db35dc6-6320-4972-b167-537682613206","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":199,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"0f098ab6-eaba-4d62-8877-1520877f5023","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":199,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"eaa6ddca-4bc2-4571-93aa-1321a7dec2e2","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":199,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"e3742541-98c1-4d8c-b039-9e38048d41d2","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":199,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"7a8fd6e7-d16d-4dc6-8b43-f954d15a1d90","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":199,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"6e76ba05-0261-41eb-b440-ae35532d1c80","block_type":"box","text":"how it serves the interests of shareholders.","page_number":199,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"20a6ea48-b08f-43e9-ab6f-5c176c5ae484","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":199,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"91437d7e-39db-408a-955d-4b060552a919","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":199,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"d2c65872-4720-48af-8c53-66401cb6372b","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":199,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"91cb1d62-b845-40cb-a306-1b04dc5e2814","block_type":"box","text":"Tenure and succession","page_number":199,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"7e20e0d6-eb96-4802-abe6-88d630ff22ad","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":199,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"b7256624-61b7-40d0-a8d0-841b73e3fff0","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":199,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"158b1458-acab-40eb-a24e-39e9d35babf8","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":199,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"abb1fc28-a433-489c-afcd-e977be17f1d8","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":199,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"7ba8326d-af13-491c-9d75-80707055d727","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":199,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"e1fe10e2-c647-4490-b297-9d4c04973859","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":199,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"efa9a8ff-24f0-46b7-96e8-126dac640470","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":199,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"989bf655-00c2-4b7c-9bcb-d1dc00bc1d3c","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":199,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"5cd1c50c-6ea9-46a6-98a5-80da879a1ace","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":199,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"8e62d076-b650-4c77-b764-b0ed33021667","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":199,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"0261be47-199d-4f38-a9e4-4d0d0f30c9bd","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":199,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"0e0245d6-b359-455f-8aa7-005a6d95e0d2","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":199,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"5cc5c396-68ed-46ec-ad0d-4a480bfcd457","block_type":"box","text":"for their continued service is not evident.","page_number":199,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"cbc6233f-96ca-416b-8afa-68bcb9026eca","block_type":"box","text":"Capacity","page_number":199,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"8b1e639b-f8f3-4a6f-9189-34541b4465a3","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":199,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"36f034c9-08c1-4141-a01b-c6edc79dde30","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":199,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"2cc680ae-000b-48ae-9186-886cd40e0179","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":199,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"bf3669ad-1327-4ce0-9ce4-c6ce6f7babdf","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":199,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"91d146e4-8b01-4357-af56-c5adc37bb261","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":199,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"d79f3d7c-109b-4ec5-98bf-21dc9f417a6c","block_type":"box","text":"determinations across markets.","page_number":199,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"832af6f7-43b6-4600-8e2d-91c6dcb7016a","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":199,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"7c1bca3d-32aa-4807-80dc-4676c5fca27a","block_type":"box","text":"their duties to the board and company.","page_number":199,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"8e1ddae4-9eb7-4619-aea8-2191f4f152bb","block_type":"box","text":"Director elections","page_number":199,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"6a6ce26b-1063-47c4-b0fc-eb34e86b4cae","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":199,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"0b34890a-b14a-4bc5-abd1-16414a82d1a0","block_type":"box","text":"structure","page_number":199,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"2646c750-ddff-4dc6-8513-e5d9d1e6023b","block_type":"box","text":"8","page_number":199,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"ee69bc5a-aed7-4c40-9dbf-d0f201c9b976","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":199,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"b88f1b79-62e0-4108-a59f-c6f0f2089a38","block_type":"box","text":"basis of its business model (","page_number":199,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"64de1485-de5d-41cf-88ec-200f2b258ac5","block_type":"box","text":"e.g.","page_number":199,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"887208ee-593b-42fd-be47-7914384b7a9b","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":199,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"0e649ba2-bfc5-4c46-adba-9389651205f4","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":199,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"a2d716eb-eaa4-4538-b095-9efd0ca31f8a","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":199,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"4cadf290-caf0-4b61-9cc2-944e264ec468","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":199,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"aa165bb2-c4e8-4376-bf62-847a866f0e6d","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":199,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"c60f7b52-89a0-43f7-86b1-6577e3250a49","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":199,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"265c840a-0d43-41f4-abe8-f88988fece89","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":199,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"ccc53219-9816-4d58-81ce-374cc34ddcff","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":199,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"aade8a9b-3e9a-4e43-8102-3f2920e6e7d1","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":199,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"41dffd4f-bdae-435a-9ba2-0c10fab05447","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":199,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"8a4cf3f9-d2e5-419d-a121-0e1ea65ad11a","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":199,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"7f34ca12-b8e6-43ae-bb1c-83e31a94f3eb","block_type":"box","text":"8","page_number":199,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"75beb202-73d2-4709-84d3-345de4c87790","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":199,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"bff12635-52d7-4172-b9c0-5d90d10f707d","block_type":"box","text":"directors stands for election in any one year.","page_number":199,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"302fe813-c37a-41b1-afad-89c5c22223a0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f94c11f8-c846-4b08-9dc1-28b3063a228c","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":199,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b75278fa-612c-49d3-a633-2fbc94c712a1","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"689b1e3e-dd98-4af7-8c23-2b2400c068d9","block_type":"box","text":"Committees","page_number":200,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"60880435-da9e-4bd2-b362-688d22b4f4e0","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":200,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"43e12ac8-6f9b-4773-84cf-7043165f1240","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":200,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"802fca5a-cb75-4897-b3fa-bbe0308674fe","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":200,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"53e5af36-7ead-4886-b559-d34fdd501bd5","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":200,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"1674e926-0174-4ca8-87d5-a1a8b96a2361","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":200,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"8b87f50d-ebfd-417f-b0d6-0537cbea8aaa","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":200,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"725d44b9-b39e-48fc-9ddb-e80e221f3818","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":200,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"275e82a7-364f-406c-8714-acfa881c2a44","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":200,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"60bc1bce-0328-4109-8abc-33a28a083cc8","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"dddbe518-7ec3-4af4-b057-03e6c78e87f7","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":200,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"45f6c139-7dee-4b3b-9b3e-2fe23a0b613e","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":200,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"789e7e59-268e-46e9-b4b9-d540bb5204aa","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":200,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"e9b0dcbd-6574-4fd5-bdb9-05f549b46e6e","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"45c8fbfb-2350-4d81-bed4-92cceccb88d4","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":200,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"01d47884-ce6d-4467-b57c-5feb8f9654de","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":200,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"a8896bea-c348-45a4-93a2-cb0e4f3ec140","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":200,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"c19978c7-6492-4c50-a5d9-d69091fcbc39","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":200,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"c9638981-0523-458d-b799-8bc54315bdcb","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"3592a7da-90ed-4fb7-acb3-b1c9396ada6a","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":200,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"eab330d7-fcb8-415f-8172-604f6f77fec1","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":200,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"ecb83e6c-5634-427c-812b-27eef4533455","block_type":"box","text":"firm-wide compensation policies.","page_number":200,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"10b980ab-2aa7-4790-a210-e787bdc3c5bc","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":200,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"7eb6b936-d885-4a90-94ab-8f4c28adb66c","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":200,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"ff57daeb-e601-4fc2-a861-b5ebff464f29","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":200,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"9f6c9cb8-be8d-4d3d-9535-67c164f2f41b","block_type":"box","text":"Board and director evaluation","page_number":200,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"c38b4b66-20d1-4aef-8ad4-0c9a8808bd56","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":200,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"ef6a1701-2bbe-41e8-96fc-69e1fced1c2b","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":200,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"15aebf84-4aca-4984-a630-8dbd548e05b6","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":200,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"d2e168d4-c1c0-45a0-9b95-1dca4d465050","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":200,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"ca0073f4-4fa0-4a80-bb3b-1a17cf0304ea","block_type":"box","text":"a result.","page_number":200,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"247a5a55-4f5c-4714-a8bc-732d3a362a43","block_type":"box","text":"Access to independent advice","page_number":200,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"c4a2335a-5e55-44ed-abfe-4df23e58ba7b","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":200,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"76ec38f5-b354-470e-9fd1-cdfe2c4bdc26","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":200,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"851d1db0-7e61-4858-b06f-38e2a6d6a905","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":200,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"e75d6fd2-b9c8-4d8d-9f3b-4f9020762ae9","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":200,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"3f3cf1e2-d2e7-4acc-bd2a-49ad05781284","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":200,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"55b69652-773f-46f4-a72c-9bfd540ee98d","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":200,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"a2fd5d68-3144-486e-8d6e-f73512ca8a57","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":200,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"bcda238d-df03-4c4c-9c60-c6f696ac89ba","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":200,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"3c0a4860-bd12-4541-819d-79f26daafb72","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":200,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"a6df7d18-9d78-4315-a2e6-2892fb1725a2","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":200,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"cfce9801-3fb9-486f-be02-abe9c3832673","block_type":"box","text":"performance.","page_number":200,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"2828ee2b-d47f-4c11-bf6b-c490d0902191","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":200,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"9cf3ed62-85da-435a-b993-4caef0fcfa5f","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":200,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"e29f7419-89f7-40f8-ba09-0bb4d6705c04","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":200,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"48f20aea-e575-4850-8adf-e8d95a8f6640","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":200,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"fcc77472-c9bc-4d71-810c-3d1d55d8ea7a","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":200,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"e43df625-4c88-4c23-8e4d-d9a3953ad091","block_type":"box","text":"recruit and motivate.","page_number":200,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"feddbf9b-2179-422b-ba68-84549d90827e","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":200,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"c4d75642-fcaa-4250-bf9d-0c0fb135d9fa","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":200,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"09caa805-b7f4-47cd-a538-d4ebdda89838","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":200,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"204992dd-ed7b-4808-924e-d3302e4b2af8","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":200,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"06e26277-adad-4d5f-a756-7b89dd793e89","block_type":"box","text":"arrangements include:","page_number":200,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"74725cc9-44fc-4793-a369-a43f24d1fddf","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"e63ba235-55cc-41b0-aaaa-b5a4a1c46b63","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":200,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"c5a9092a-3d63-47d6-a3c9-1aefb9c49811","block_type":"box","text":"the company’s size, sector and market.","page_number":200,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"b2cfcb28-c544-4228-97ad-d30d4503178e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0635216e-bf30-4e16-96ac-a9a6f9110100","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"672dba86-6265-463b-8705-3dbf5864bc72","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c19f5851-26aa-4328-b215-c80fa88e01b7","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"3c78a0ce-13a6-49b0-8e53-96dda17214af","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":201,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"4484e198-b198-4907-9610-deda1aac7ddd","block_type":"box","text":"strategic objectives.","page_number":201,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"a0dd25e2-0ef2-4c2a-bb10-d3fc2533e09a","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"b1589f95-453b-4efb-a5e7-45904abb28e8","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":201,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"6a3363f7-a19a-460d-ad38-0eadee4af9d9","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"e673be99-fa78-4297-8f7b-2588465c366d","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":201,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"4d54e8b1-883b-4626-8340-c3a3e9d230ab","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":201,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"be1e3362-1055-405f-9bc9-4f1b399a2213","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"c4a20db2-ef92-47e5-abdb-a8e1e858117f","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":201,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"e4cc8339-e833-4b4f-97ac-02782222f2a4","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"ae2d329f-116d-417f-9041-e533c741b845","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":201,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"b143b45d-e646-4367-8a8a-9cf792cc8a42","block_type":"box","text":"transparently.","page_number":201,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"8451d30d-963a-41d5-92fa-91020bd5167d","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"06628aeb-434d-41f6-82e9-0058fe8ecce8","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":201,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"a087bcff-821c-45d8-a2f8-edd6bfebd0e0","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":201,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"51b967a2-a59e-47d9-aa1f-8f76847cba7b","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"45a2d2e3-428e-4e48-9781-3a211e9e5aed","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":201,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"d571cd66-38f9-44e9-9aa5-dfada78ac1a4","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"b65c5e28-d057-4832-bf53-c1964a61f969","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":201,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"c08a96b0-767f-40d5-8ce7-84892c2a747e","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":201,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"505d2c56-d9ea-441a-9eec-f5a52fb9203d","block_type":"box","text":"misconduct.","page_number":201,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"8a38cf69-10ef-4cf9-ae84-9481c8d9cf84","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"895456e2-31e0-43f1-9a14-a3303081e20d","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":201,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"ad74bab5-c62d-4153-9088-ad2a4f0c7be9","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":201,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"b3341fe6-5405-4dd6-9721-f5c15b7389f5","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":201,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"752603ce-9bdd-4e63-857c-26fe8c762b67","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":201,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"1644fe5c-b099-40de-8a6f-aae552c500b5","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":201,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"ea041303-a1bb-4bc8-9f49-fd637666c481","block_type":"box","text":"committee, or the most senior independent director.","page_number":201,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"4f041c1c-3c3a-4b5a-a93f-9652c5dd4473","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":201,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"eb4dd1e4-f0d0-4ee6-831d-a82de683fcce","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":201,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"6ab0ef17-a98d-452a-8340-902fd348e212","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":201,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"1c5facdb-1349-4fbe-a7b2-88f25f8a7db1","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":201,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"0632700e-72eb-4369-9821-02a9f0dfab9c","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":201,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"894caa79-dfc3-4096-8f73-e09cd25974ff","block_type":"box","text":"CAPITAL STRUCTURE","page_number":201,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"ee0066e9-4c58-475a-95b8-ec509a3a2a10","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":201,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"eee970d0-dc30-4b15-8100-b384450937f3","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":201,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"510c65bb-e3dc-4ad7-ae97-b5ad287a4139","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":201,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"84bd6661-470f-426d-a5db-70aea9ce702d","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":201,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"9a3f983d-6e67-49c4-b671-9ab46ef5a914","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":201,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"73353c3e-771b-4fe3-aed7-b8096a612570","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":201,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"598e3782-8df6-4d7e-bcd7-3685c53d0a17","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":201,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"7fb56126-342d-4cc2-a689-c39c7834cd67","block_type":"box","text":"Share issuance","page_number":201,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"e630c78d-8b1e-466f-890a-3ae1c551fda9","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":201,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"5c2a6eb1-0978-4e91-9c38-15c571a2a990","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":201,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"d3a15013-625b-4cb5-b3b6-b251e9eea75f","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":201,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"3925b06a-4ca5-49eb-84f4-793d202528b8","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":201,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"697e5682-fddf-4d3b-adda-e4c91ad10ae0","block_type":"box","text":"market environment.","page_number":201,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"e04933e6-54a6-4a2c-a008-291acdc7d634","block_type":"box","text":"Share buybacks","page_number":201,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"cbe7cd38-ea3c-443a-ba80-f410807a7bdb","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":201,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"d8ff0b22-9ac1-4bd4-8fc0-52c9176f948a","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":201,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"e6bab67a-1442-47d4-8c73-5b6d955dd3d5","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":201,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"b53bd7da-a54b-4f41-ba3b-5f1de71cde0b","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":201,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"0fcdaf06-bb48-4001-8ac1-312abd6eeede","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":201,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"63d75313-8243-481d-a603-46b280099ba9","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":201,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"c995d030-4041-4ba3-ada6-5b5207a6a8fb","block_type":"box","text":"of the company and the market environment.","page_number":201,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"27efcb1e-2a98-4f69-a400-bf86b40b3657","block_type":"box","text":"Dividends","page_number":201,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"bdd495e6-b277-4492-98b6-4b0bd0f00cb8","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":201,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"c59b569e-09b3-4520-b714-6e1112ac827c","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":201,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"7d94c4a4-d614-4dab-bce5-cd4b4aa56420","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a18ebd0c-e23d-4fc9-9b89-c2b9819d4628","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":201,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"f489be68-f708-4fa8-9711-de1a98e7401b","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dff714e3-fe0a-476a-b200-ebe86120dd27","block_type":"box","text":"Differentiated voting rights","page_number":202,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"973bfe96-1275-4bb9-bea3-ba64e7faf17b","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":202,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"353cd6ca-452f-468f-8f8d-30cbf2d023d5","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":202,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"c04f91e1-ae6a-4559-99d6-342f45dc0dc7","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":202,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"4daf985f-2a39-4dc5-b558-8e3a70495162","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":202,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"f29cbdd3-d161-4b3d-82b0-d4e951b27ae6","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":202,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"4782f247-498a-48fd-a594-8628d94c1a2f","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":202,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"237f6245-4ab3-4a9d-90cb-31d47b09a49f","block_type":"box","text":"analyses of proposals.","page_number":202,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"49ba5fce-7b63-41d3-b95b-f488d0fc1021","block_type":"box","text":"Mergers and acquisitions","page_number":202,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"05afce72-017d-4ee6-bffd-7c233bed660c","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":202,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"ba569145-8933-402e-80c3-c6504375fd26","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":202,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"bf83694c-4aa1-4ee7-9470-f843c394e267","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":202,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"255ccf27-3282-4c0e-bbfe-999fd6db7a29","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":202,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"bdf5327d-2d74-426f-93f7-29bd38d82efd","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":202,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"3c08b3bb-bd46-4be0-8cae-b74136f9873d","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":202,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"8e2860b0-061c-48fc-8d95-caf9a1104cb9","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":202,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"db66aabe-2a7a-4052-9315-0b11c7f7bd60","block_type":"box","text":"Anti-takeover defenses","page_number":202,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"33a1b26a-ebf5-4c6f-b6d4-9ddf3baecf66","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":202,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"0d6a3522-3d88-468d-a2e1-a3beae3fe23c","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":202,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"a75c726d-db05-4ef4-8d25-3609f1e63c83","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":202,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"77af2121-e201-417e-acae-06fb872290b7","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":202,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"5951e810-80f2-47f1-b730-1037f7af49df","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":202,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"98424a91-a10f-4aba-8c2b-08b34cfc2e42","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":202,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"7efa2a0d-4519-4536-ad61-110866b541e3","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":202,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"a4c1631f-6e67-42ee-a6e0-ae62a170e60b","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":202,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"b78301b4-15eb-41ad-8f78-94ccb9d7fb36","block_type":"box","text":"Shareholder activism","page_number":202,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"fcf3612e-d647-4ce1-b46f-8dc3e7feaafb","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":202,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"42fb6041-213b-4849-8e11-f6fdaf980d4f","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":202,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"2af3d18f-7df7-4d21-b5e5-794389e3272c","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":202,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"21d95178-fc0c-47f8-92a4-8df8f7292eb5","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":202,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"a8e7bf82-6485-47f7-bc61-dbc31f28342c","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":202,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"7e8fe43c-8de0-4686-8a6a-e31cc499a299","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":202,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"6c32cef5-0664-449a-af9e-0916f34000d7","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":202,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"7d8947ce-4212-4e8d-aa25-1059c3ef5888","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":202,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"e116352d-4917-4548-92b5-487062fd7015","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":202,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"fa0f4df4-d57a-44a6-8925-80388d3d3f09","block_type":"box","text":"protecting shareholders’ interests.","page_number":202,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"46008676-b243-4bb6-b45e-90641ed0b367","block_type":"box","text":"Significant shareholders and related party transactions","page_number":202,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"5171f6e6-c692-43e0-86b4-d6c804f9be6e","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":202,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"aafb09da-6a4c-4399-82b4-fbf6412652f2","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":202,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"14b1b03a-17b7-4f17-bc5f-53132e23bd82","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":202,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"4e89e1cf-2192-416c-a956-9a7365bc96c9","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":202,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"0764d9eb-004b-49ed-8ee7-97c8fbf21e41","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":202,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"55fa700b-29d8-4cf1-90ca-8304efcb7003","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":202,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"c23a0223-c873-4876-a047-9243ad4b630e","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":202,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"5698cbac-47e6-4ea5-a762-12ee637baaaa","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":202,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"f0750af7-3dbe-420b-9b4f-2839ea9887b1","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":202,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"83a113e6-b1d8-4bb2-8b24-c5bb6f5bbccc","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":202,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"c4330a35-16c6-4ff3-ab3c-8f451be6657c","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":202,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"a984c5b6-3392-407e-bbff-98d38211b275","block_type":"box","text":"audit.","page_number":202,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"29ed7968-c873-4bfc-89f0-a06cca6fd357","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":202,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"18376acb-15bb-4140-ad93-c9b2597d48ec","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":202,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"d096905a-2909-4cf5-a849-c7d24ebaef98","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":202,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"5ac6c3d7-db3f-48a8-b0fe-5a31e9d4a9bf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a4e10a40-21d9-4e6c-b881-f625fdb8fd5a","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9cda058e-e214-405f-84e6-fc03c4980916","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"236efeb2-c0ab-4ccd-9856-372166d779d5","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":203,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"6d9aa81e-d155-4a71-b727-c073dffcd002","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":203,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"948f377f-fd4c-41e6-8149-fa3009446363","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":203,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"1565ec71-95bc-4b88-afc4-b8b66c6a6fe2","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":203,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"6ce1ab58-fed4-4a65-8296-fb1c73a39ff6","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":203,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"05460613-a56d-4071-806e-41c7e9400099","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":203,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"ab750f38-e3a8-468c-8756-c453640e5a72","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":203,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"8c51372c-3d67-4388-9031-22add77e3b66","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":203,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"6502a9ef-9bea-41a5-a80d-de326d4acdbe","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":203,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"058d5d24-f6cb-491a-a83f-a6c5bff177d0","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":203,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"6f50d7be-6aca-4659-81e8-691ef86d2065","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":203,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"bb01dd63-4fe6-4cf3-b46f-df4ae255b27d","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":203,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"05d6124c-ec02-470e-bc9c-d70901eac35a","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":203,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"ddf810b3-641c-4087-9a61-621db413149e","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":203,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"5e350bf1-6a2e-4431-977d-79636707e1c4","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":203,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"7488dbc7-d527-4d36-bf18-1f5dec86e219","block_type":"box","text":"9","page_number":203,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"92d9f0df-a011-414c-880c-738f0628bb34","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":203,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"1acd61ea-3776-4687-975b-ac5d39739dab","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":203,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"7530153f-b267-4c21-9bff-af0c0e300451","block_type":"box","text":"standards specified by policy makers.","page_number":203,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"c79de780-912d-4e76-9aa8-3df8206af627","block_type":"box","text":"10","page_number":203,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"56545a29-9f8f-460a-8e1e-a325d224adff","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":203,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"8008767d-0602-482e-9d4a-63106d1ed420","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":203,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"ea1799e3-c2e4-472e-85c5-117044f78a23","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":203,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"8e46d060-c3f7-4ee9-94f3-cc153bdab6c7","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":203,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"c08951a0-40e7-46e5-ab3b-e400ad2f4044","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":203,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"96bf6ed8-9bb4-4098-a18b-3368aad7970c","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":203,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"0fe843b2-c4eb-4432-b5c2-c2a4d26fd6bb","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":203,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"4604bbc4-69c9-41d4-96c3-1fc96e7a2b06","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":203,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"69feecdb-9876-4a74-a506-3607883ace9a","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":203,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"11b44510-802f-459e-94c3-75a90ec71981","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":203,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"8cadc900-2416-4bb8-81ad-4d362f621050","block_type":"box","text":"remained independent.","page_number":203,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"69b04b25-67f5-49a9-9b5c-96376281174c","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":203,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"c43562e9-7831-4cb2-b070-52a0fe925e8c","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":203,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"cb283bc7-9609-465e-8979-a57c508dc8db","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":203,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"cd3d2669-561c-42fb-b2f2-a8eb6efbbb85","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":203,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"7c8d4718-d42d-48a2-a738-a1d5bbf2e9ea","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":203,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"7a65097d-638b-4f65-9f7c-4772242ff84c","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":203,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"8ed17b02-a560-46a6-b020-d2cb8ddbeee6","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":203,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"3467012e-c6a0-4730-8fc6-e3825450d388","block_type":"box","text":"General shareholder meetings","page_number":203,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"95a90239-12e6-42b9-beac-8ec214310dda","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":203,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"b9a1cf2d-e25f-4982-9615-a4df8b46c703","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":203,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"27c27c75-5638-4a8c-bf1c-bd6630f53033","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":203,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"c3a05fac-3284-49db-94db-3d25a994cb24","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":203,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"a1ee6f9b-3558-4351-b219-6ebd356b7755","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":203,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"ae5eeebc-6c8c-4057-a3bc-c0b6e1a6b3a9","block_type":"box","text":"an in-person meeting.","page_number":203,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"5533c247-3b23-4938-b2db-b64376ab3784","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":203,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"e6b52f9d-65b4-451f-aaae-b705fcd1482b","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":203,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"d77d36f5-291a-49ee-b05d-e3960b2fa375","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":203,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"abdcdd73-13eb-4669-934f-301fe3365791","block_type":"box","text":"participation.","page_number":203,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"798adece-e714-42d1-8d4f-f9692091df67","block_type":"box","text":"9","page_number":203,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"847978a9-a909-405b-ac45-0f267f97dd20","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":203,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"538b1f71-577b-4803-961f-f27d6640b8e3","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":203,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"5bce78d7-4a7f-49fd-ba46-dfb8e9a37d28","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":203,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"4aa6e7b0-1a89-45f0-986f-53239f158883","block_type":"box","text":"Disclosures.”","page_number":203,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"972feca0-bb2d-4553-9475-30be35afce2b","block_type":"box","text":"10","page_number":203,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"73010d2d-fbd1-4c7c-a6ab-452b404312eb","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":203,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"72dce949-fe32-42b2-b8bf-c2d0523bd465","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":203,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"c410891a-8f85-45f7-8193-141b70efaf5f","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":203,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"9d4658ae-74ff-4504-8b15-5caae8280d9f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8c17361f-facf-4f7d-9fae-4641dd6851aa","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"cdd40de1-3954-457e-bb28-c18e7644e61a","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34b6ef71-a5f7-45f1-8295-0050267f8230","block_type":"box","text":"Bylaw amendments","page_number":204,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"9a201f17-377d-4baa-9ea4-f09924804e5f","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":204,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"fe17cc4a-6274-4550-9f8a-948ce2a76bf3","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":204,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"bcd6fd5e-3398-4514-8631-6e062ad306ad","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":204,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"de85d7fc-75c5-4bc5-a0ed-33929223f801","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":204,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"a182b908-09c6-4433-94d8-f18824143b1c","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":204,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"86335b2d-c407-48ef-9c2c-b0dd07405b4d","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":204,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"7628bb2e-a1b8-475a-a628-6e8ed981e4bc","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":204,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"973b6408-9b21-4abb-af7f-f9fd43ecafd6","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":204,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"2962caa4-f24a-4643-b8f9-23d73225adb9","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":204,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"db9b447e-40ff-4283-850c-ec6eae9b09a2","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":204,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"4f9bdac2-6414-45eb-bc7d-52a5971d9cb4","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":204,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"60f0a8c7-3d3b-4451-87d2-e2833ea3ec1a","block_type":"box","text":"nomination process.","page_number":204,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"2e19ecb1-8102-4f7a-af8c-ebedf2491bb5","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":204,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"79791eb1-3aed-4b92-a9fe-2a8fd6edc593","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":204,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"bcccfd78-92f9-4851-85d5-8b456daccbe7","block_type":"box","text":"Change of domicile","page_number":204,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"b537ab39-8286-471a-bc69-e6a0a49aa4a4","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":204,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"406a23e4-31ac-4104-9b5a-02ecafa29fe3","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":204,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"9597560f-72d7-4d93-afed-330f1c11de4e","block_type":"box","text":"immaterial.","page_number":204,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"36b8ee27-ba1d-4b2b-a564-df994fdb5f9e","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":204,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"fad4b0a3-37d2-491b-85f3-5c687c35e942","block_type":"box","text":"with our clients’ financial interests.","page_number":204,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"6d6e5b7a-5e6f-41f9-891b-f8999602482a","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":204,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"249ef421-3c37-4c43-9967-6fb2ff681a63","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":204,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"04d56de7-f8af-4358-bcf1-0f21f2be94c4","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":204,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"4871eed9-be1e-4fb0-be0f-08c89efb9396","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":204,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"6139389f-0f7f-4c1e-a695-110b8d9be599","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":204,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"6032b081-bc02-4ae9-9ba9-a53fbd0b48d5","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":204,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"1a9758e2-f0a7-4bab-86d1-8441984dff87","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":204,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"415c419a-4b9e-4385-ac49-9157988f728e","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":204,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"d89be6f4-4b9d-4a89-a76f-aacbc293827a","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":204,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"425d532d-16e6-47ec-9ac8-e586b8739d5e","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":204,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"1ae0fef7-b916-4985-a11b-236c8ba15fbc","block_type":"box","text":"relevant to a company’s business.","page_number":204,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"f77725e9-8cb8-4135-9439-91e71b6644ff","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":204,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"f8066192-2dc9-4a5c-b057-5cafc8a8d2c9","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":204,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"ccfb87b5-6ccf-48a7-8c7d-e2a2f60a104a","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":204,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"ddf9502a-d3fb-4c4b-b4f4-bc9da8f1cdee","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":204,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"d66c7579-664e-4196-905e-7d3c5a3d9c44","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":204,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"584f5eef-e56b-4bc9-9843-d6a074f0f125","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":204,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"a74c16d2-0295-4131-9eb1-742d8ef32e90","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":204,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"ac3301f2-6780-4697-8ff9-87d51e89410c","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":204,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"9b449ca2-9a2f-4974-98cb-ce0151b2c477","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":204,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"bacc1a1b-c03f-4e58-a800-9c4c51ec7bcc","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":204,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"f7b7b4e2-b982-4fe0-981c-69a251963118","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":204,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"0ba793f9-2a04-4506-82d8-285f671a9f5b","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":204,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"b1ea89b8-edb5-4cf5-8f4f-7f54e47ab954","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":204,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"202b169e-dcd6-48d1-b49f-117754ff2056","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":204,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"cda4c4f7-e78d-42db-bdee-b3fca01fe2a2","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":204,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"e3087a8a-5d80-44f5-9d98-86e1dbe33918","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":204,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"47b96a64-4e1f-4669-b2a3-b2aef4310090","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":204,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"84be292d-7a61-4441-8161-e1d4a38d7652","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":204,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"b217fc9f-8157-4968-abe1-a795bc5a0cdb","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":204,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"4df71324-4ce6-44f3-8daf-c9498ca2bf05","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":204,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"3d6686f4-adf9-4ed5-90ba-b9be17fa9ee1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e13e19ba-049d-4578-821d-8c44a9183f6f","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"23b2caa0-f8e9-48c4-8c7b-a315e1e13e90","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d2f71e3-fca4-4564-b50e-7c274b60c76e","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":205,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"612ecada-a33d-4e61-a9a4-ee043200621a","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":205,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"f3aae773-5441-4eb3-b892-c0b0d6826a97","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":205,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"884ab215-4cde-4340-a430-be847cdede22","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":205,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"82768ce5-2dfe-42e7-b8fa-e2f52cfecb2d","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":205,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"ece2f477-5fad-4b85-bcf3-8ed49b4fffcf","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":205,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"23603d7d-09a6-4d50-a75b-62e392d35efa","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":205,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"f1399769-957e-448b-a34f-12289593d982","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":205,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"fb3f3061-07c8-49fc-9cbc-f8e18c61b25d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b497e1b9-c1c6-4956-bd38-ae909398ef86","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"dce744c9-2950-4ac3-9379-1884c35b5365","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c22f89e9-db2f-4d6a-bb89-2ed113d29117","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":206,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"65735255-8769-4df3-a0bd-e9fcf21ce838","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":206,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"01ca1d55-a080-49e9-b54d-9bc92e159d87","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":206,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"c8347f7c-dadb-44f8-8a1c-4a456fdfa4d0","block_type":"box","text":"11","page_number":206,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"715e8c49-b650-486b-bd90-832110065938","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":206,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"d1aa6e6a-d376-439d-a273-fbdd9ae65b1c","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":206,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"cdd1ffdf-13dc-4695-bbb2-c44c238bdc32","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":206,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"3a2427f9-d576-4a0c-98f1-c385faab0e48","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":206,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"b1567679-0ee3-433f-8684-bff8f9c2eff0","block_type":"box","text":"regulatory requirements.","page_number":206,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"b0efc179-3c41-4976-8269-da4704f0a126","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":206,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"f8bfafa9-2d03-4746-8e8c-d9d2a27a5214","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":206,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"4142d552-fe18-4389-a0d3-52a9489d5cf9","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":206,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"860352da-36d5-43ef-94cf-88f543fa6ac2","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":206,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"f2829d8c-a468-4985-b67e-a25373580ca4","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":206,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"51aa492a-bd6e-441b-b32f-5cde88dcc910","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":206,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"f46131b8-f031-4431-a085-ffc91bd82f41","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":206,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"f4320b38-fbed-4c67-9e09-58eb7062d55a","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":206,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"28d3dd68-2730-4f85-a018-64f467c39051","block_type":"box","text":"returns.","page_number":206,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"33a95bf5-8af6-4a45-a6fb-d94a02ce5fc8","block_type":"box","text":"KEY STAKEHOLDERS","page_number":206,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"7dead608-e1d4-4add-959f-c8f9486b3f1c","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":206,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"ab32dc4a-28a4-4955-a1b6-696bdeacbf01","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":206,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"39b20cc3-60f2-4fea-aefe-244c3e39e4b3","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":206,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"257e7515-984f-4742-8022-14d73e6a1fe6","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":206,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"86af44a3-2668-4600-bf09-e5dbf2b13b5a","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":206,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"fcf63e06-e0f3-4a12-be80-866e48777198","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":206,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"13df0b15-3685-4d67-97ec-a44c7307079b","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":206,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"e8856e2b-972e-47c5-9199-4b6e7ae2e76a","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":206,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"d03a6504-6935-4ede-9749-83f4fc7e08b3","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":206,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"d485e168-2c57-4686-a324-3c5fb760ec25","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":206,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"ef1a4bf6-15ae-4b8e-801c-2a2b7d119ac4","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":206,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"bd8e27d0-3117-483b-bc57-be6d08f1937e","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":206,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"3a4a7ee0-7325-4414-8075-55386a66646b","block_type":"box","text":"i.e.","page_number":206,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"6e852c24-a451-4021-91b7-89849ac4e103","block_type":"box","text":", one in which global","page_number":206,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"092485b4-5361-4cc2-9007-7e741aff56fe","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":206,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"2807a546-6add-47ec-a45e-efe470e97a31","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":206,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"18634598-67a1-4545-8a27-67a1d74efb40","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":206,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"c608193a-3121-4617-a616-8d7a8e50900c","block_type":"box","text":"client.","page_number":206,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"ad5d2d3b-818f-4a7f-93e8-c8cea631bf3b","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":206,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"5ef47061-a422-4fbd-b0e6-4a8dd586ac2b","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":206,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"b00d0907-bd44-4158-be9e-a9d706187768","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":206,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"d509816d-fd71-4a0c-84c6-c8a765ff7666","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":206,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"077615df-9e59-472c-8dfd-f3816ed54faa","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":206,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"0d344069-4483-4b9b-96da-eb9fa95cc328","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":206,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"9d74bc68-deb1-4e4d-82db-b19b95ab02a6","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":206,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"dd02c93a-77a5-4021-a788-9fbff2f26c26","block_type":"box","text":"1 and 2 emissions.","page_number":206,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"c3ce0e84-6eef-462e-a80c-7db9918813b7","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":206,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"6905d197-c1e0-4334-89b9-06b2ba9737e1","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":206,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"e77b48ed-2900-4214-affd-210a2c6e1a38","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":206,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"cb39b371-4c80-476a-813a-0834b043724c","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":206,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"c86bc3a4-e671-4836-8d49-93f63387549e","block_type":"box","text":"11","page_number":206,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"0d894fe1-067d-4be3-8aba-1e116371737a","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":206,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"740e46b1-9b66-47aa-9da8-1263e5b6ae93","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":206,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"9db3fde4-3a06-4c1a-a741-7e174f640e3c","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":206,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"d495e345-1bf2-4129-bb4f-17acf3dc0390","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":206,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"9d5e72ca-ec38-4953-9ce2-6d915cfee4e2","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":206,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"c66b68af-1010-458b-a8b0-b6fdede1b9ff","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":206,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"a25e5cbf-cfc8-4f11-8ef8-3986a27fdf00","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":206,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"19cba3ca-d61b-44e3-8dea-a223b9f5a232","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":206,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"51cb1490-a811-4fe4-87cd-d372e3071baf","block_type":"box","text":"sound governance framework.","page_number":206,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"dcb2f95d-9e5c-4801-b1d5-4e98b49d1a2c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"78f6e714-642c-489c-8a14-c18f2cccdee6","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"44c19b77-83f3-4e4f-941a-34b4bf5a4416","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"33cefd95-07d9-4b90-8f37-59464043ee76","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":207,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"66bff27d-b2b0-48af-8b22-a1b5d5b68fc5","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":207,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"c576fde6-e21e-463e-8824-3e376dc5a8cf","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":207,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"31f587c4-7bcf-4225-9e5f-f9275dc1c553","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":207,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"50f988fb-3c78-4b17-8266-0976246c1ca7","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":207,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"070918a8-437e-4f15-95b7-d44f7bf0e5cb","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":207,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"3b98111d-43ff-4267-80d2-3be713fb6b5e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8cbee23c-6b59-415c-bf06-4ac48e702cfa","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"7ce2f356-c51b-437f-91e4-55c7e0e96c69","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"74251bba-7dda-4767-9db7-680284b8a89d","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":208,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"1f442214-6e83-492f-8bda-a3f738c1b154","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":208,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"200bcf58-460d-4848-9bae-e858573f8075","block_type":"box","text":"Oversight","page_number":208,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"ee73714b-f66b-4aaf-b6fd-8eb938f37f42","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":208,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"10816398-8478-4885-a903-c6009d6c73ad","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":208,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"59a6a341-6c54-4f78-a6ce-65184c0ff6fe","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":208,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"ec434e98-02cc-4212-a0f4-567723fea838","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"bbc05978-f9de-4f00-a60e-4930ca2f2214","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":208,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"f33af6a0-7b24-4c25-9bf2-2f841b9db22d","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":208,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"16756011-9e59-49ac-b6a1-c13c92725ad8","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":208,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"3bdb8681-fe40-4d73-912f-4a0399f751d2","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":208,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"5aa106da-da12-4c3a-81b4-48ddb90f3a8f","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":208,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"8fab3397-c717-4644-bafe-b23e7aa5116c","block_type":"box","text":"relevant active equity investors.","page_number":208,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"df261f19-0c96-4db3-982f-53ceb790c087","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":208,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"101c3172-813e-427f-90ea-5b881cffa591","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":208,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"924042f2-aa6e-4cf9-bf8e-805f517e48c7","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":208,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"4fab9194-089e-4d56-bb09-063e2d88b986","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":208,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"e713b795-a703-42c2-8c7f-3b6bd58a23cd","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":208,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"a56680f0-8f60-4a97-ac83-a83a729673be","block_type":"box","text":"third-party vote services providers” below).","page_number":208,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"0081a2e3-161b-4702-8f37-657d38b07fc2","block_type":"box","text":"Voting guidelines and vote execution","page_number":208,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"0afaa5ef-4c20-479f-b082-726e21b87033","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":208,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"382ccb76-87a2-43bd-ab9b-80820e2b819c","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":208,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"75436086-0045-4c64-8ed9-35947ac3dfbc","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":208,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"d53ace18-779f-4c49-8d85-2ab05b04181a","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":208,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"f3b1003f-4f9c-4914-849c-3a10b1980f38","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":208,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"3dbf2434-1a36-42d6-944f-3237822fd832","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":208,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"3dc8a8a2-e1de-42be-bb67-ba0831320417","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":208,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"39724417-145f-46ae-ac52-307c1a34a09d","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":208,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"6736860c-a253-43a5-a51b-db16923b9cc0","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":208,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"a81e845c-ca37-46ba-9b05-12dde8268654","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":208,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"43df045f-fff6-44b4-ab16-9877ab0eded5","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":208,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"f7fcbe42-249f-401c-bedf-11318b10f793","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":208,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"d840e2a0-782d-4a74-a7f4-ece877e3e01e","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":208,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"71530751-8c87-42e2-9e78-31e02fd8cf26","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":208,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"f5862cfe-84fa-43e9-9829-668bc6e57263","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":208,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"0ab38085-9a91-48d4-9535-4eee8ad1ff5b","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":208,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"b1d0059a-c1d9-45f2-8ea3-23130cb9d033","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":208,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"33669215-bde5-48bf-b7e8-29cd103f8d22","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":208,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"a4a20512-32f1-4769-91e6-32cf639ab6ed","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":208,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"dcda87dd-ac13-451f-b61d-ab46485b23ec","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":208,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"8ab41a88-e47e-483a-b1da-ccf926c88e61","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":208,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"201c507a-20d2-4194-b807-a437e055b060","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":208,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"08fbbf9c-24c6-49b1-8e4e-8ed189692525","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":208,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"4f3bb9cb-4a9f-4b1c-bfa5-e570f211e330","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":208,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"2912870c-7ca1-4987-b2fa-bd6c510c0c91","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":208,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"fbc59041-1f08-4db7-b633-ac5c3db6bcd0","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. 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All other trademarks are those of their respective owners.","page_number":211,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"2e694a8a-5474-4c8a-a094-367279e8745c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"343749ea-bd09-4a0e-b4e6-36fa56d2d5b1","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":211,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"e407b923-f3ab-4403-b95e-36ce628ee048","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":211,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f6f68ce-ed7d-4d39-b64c-cac50fe6e043","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":212,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"ba20453f-9610-48e8-9119-c50ca4ba93ea","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":212,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"f04fb40e-2497-4d92-a9cb-8e995a51a78b","block_type":"box","text":"□","page_number":212,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"cd062f0d-edd6-4ba2-90d2-d3f02dd0e3f8","block_type":"box","text":"Money Market Funds","page_number":212,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"41da6050-f365-4539-89da-8d75c9950ed4","block_type":"box","text":"□","page_number":212,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"7032260e-3202-4a60-8160-39a293f23d9e","block_type":"box","text":"Closed-End Funds","page_number":212,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"2cd7396b-76ba-48eb-a8fb-76972615c0a3","block_type":"box","text":"□","page_number":212,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"d85f4e85-4381-42d7-822d-77d1616d9572","block_type":"box","text":"Other","page_number":212,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"27948a6a-f7e7-46cb-8369-f4f071b114fe","block_type":"box","text":"Objective and Scope","page_number":212,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"bd710b08-2576-4d10-8979-ffc1053989e2","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":212,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"22afe260-c9a1-4e97-8296-dfe39a76d2c9","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":212,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"ac1c430a-df4d-44be-bd3f-9944c6db0552","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":212,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"ac11ebf9-3ca5-47bc-a98b-4eacb2f24609","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":212,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"009a1605-06cc-44a9-b9ca-b57cb82c26ab","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":212,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"214c9d23-955a-4dad-b102-5409464830b1","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":212,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"54e0cb85-906c-4fc2-8602-cadf4d602a98","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":212,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"c69b36be-2088-436e-9cc4-b85e7d157631","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":212,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"f07c0210-abb1-4765-825b-d623cb833b1d","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":212,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"57e59c13-df01-484f-a2b6-4ecf2c8afdb4","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":212,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"19916f31-c7cb-464f-97f8-0bbefe9507cc","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":212,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"d7457f3f-5677-48f6-bb70-315c25ece99f","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":212,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"d73337b9-4683-4429-b347-15e26691998e","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":212,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"1f8d057c-3f89-438c-8c81-e0a596578ce1","block_type":"box","text":"Appendix A.","page_number":212,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"f9419c8c-7169-4db2-bfbb-c82b486c27fc","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":212,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"2aeceaa9-2df4-4c34-bc89-7acf8eae5d1c","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":212,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"34088682-711c-400e-867a-e9d2943c312c","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":212,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"dd348811-aab9-4660-ae60-53154dbe77d9","block_type":"box","text":"Conflicts Management","page_number":212,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"93e4c908-63c5-41a0-82c1-3f7124e4d5e1","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":212,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"9722e70a-1a90-4ce6-80f1-6ee4f32cc090","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":212,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"e3b84108-220a-4efb-956a-a029e303b27b","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":212,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"38058d5f-7f6b-449d-b839-ebcbcf9f2f58","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":212,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"844cf63c-643f-441c-866a-9e763a509c32","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":212,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"8407bfdc-9852-414a-af3c-53ad803c0030","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":212,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"c80a69b4-fc62-48f6-897d-a5474031cdd7","block_type":"box","text":"connection with proxy voting.","page_number":212,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"b1b2c39d-2a8c-4711-b03d-157b9480353d","block_type":"box","text":"Reports to the Board","page_number":212,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"96d2518c-510f-4a59-ac1f-16a4c55f1390","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":212,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"a84928c3-fbb8-415d-9258-ab5d0da75100","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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Reporting on our activities to inform clients","page_number":216,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"39d253b0-76e9-4fb7-aa47-758d3e45bc53","block_type":"box","text":"about our stewardship efforts on their behalf through a range of","page_number":216,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"6d2b07df-ab09-4bb1-9d18-72facc0ed2c2","block_type":"box","text":"publications on our website and direct client communications.","page_number":216,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"87c9a044-ef4f-4d8f-ba4b-11fb803a76ce","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":216,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"0f8df6b0-7a84-4da1-90b6-938be9d4ebae","block_type":"box","text":"voting on corporate governance matters and other material risks and opportunities under BIS’ Benchmark Policies.","page_number":216,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"81873980-4582-4037-95f0-4fc7b6159c6d","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":216,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"6c1fd178-a6b7-400a-8d39-ca3effdec0d9","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":216,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"1eb20d82-1df9-4231-83e4-20c78e5fac6e","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":216,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"139f24ed-8579-43df-b4dc-4d05f150776e","block_type":"box","text":"2","page_number":216,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"6db44f38-8cdc-4675-bb04-31c053ffbb38","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":216,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"34df2d14-ac64-4161-b89f-242bd9260e18","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. 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Engagements provide companies with the","page_number":216,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"77908ce7-3b6e-4953-b0f5-d2d76d8f2c2b","block_type":"box","text":"opportunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":216,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"505e4168-5857-4138-9553-1ff5a99223dc","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":216,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"71dfee69-6075-4677-90f6-38863b896a29","block_type":"box","text":"1","page_number":216,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"2b2ae6a6-0836-46de-9bbe-50b01b90b751","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":216,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"4db95853-2f0d-4c1f-b9b3-377bed676c52","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":216,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"4201567d-6006-43e7-bba7-07fd61466ac7","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":216,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"52958653-e035-455d-9080-e45e76a835bb","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":216,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"ec51018b-b793-4e8b-8377-21048a1265f2","block_type":"box","text":"2","page_number":216,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"e12ae519-afa8-4854-944a-eea4312cfacc","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":216,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"1307dd6d-666b-43d5-9b6f-d7ee947b77b8","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":216,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"61a950a4-4cf1-475a-964d-a04754d859a9","block_type":"box","text":"material business risk or opportunity.","page_number":216,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"bcf9cc95-bb4f-47ff-be25-39241e135e22","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"73793b6f-f957-4f54-98f8-a71fd2575c1c","block_type":"box","text":"Global Principles | 3","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"88e9aedc-ddf9-4925-b3b1-334fc973b085","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20ffd5bc-ef8d-4a64-954d-4f10f06a7abd","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":217,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"61eba18a-fa46-4fd8-a4f2-a67ecb6580f9","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":217,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"82a4da19-afec-45e8-ba2e-1690071e9a63","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":217,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"da382863-1112-4ecd-9af3-913e58615a8e","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":217,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"be914c0f-e3d3-4180-a456-d773def5e9be","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":217,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"39c530fc-3030-4c37-9afa-a625a9bc5ef5","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":217,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"7a728d76-4cb5-4911-a63a-b5ac02a21e87","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":217,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"19491038-4694-4564-8a2b-4487f07f1218","block_type":"box","text":"4","page_number":217,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"d01f7817-dce1-473d-8101-b39c4d4394f2","block_type":"box","text":"3","page_number":217,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"d8fbfd13-98b1-4aad-9458-7b5f5b0f81b9","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":217,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"59706579-0e75-4040-be05-da7d81ea485f","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":217,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"999a1c32-1f99-4d66-8377-8dc486e0a939","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":217,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"9979d963-ee6e-4537-90ae-db38a4bc6d23","block_type":"box","text":"4","page_number":217,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"d5e469f0-b4e4-4768-9f53-11b0b6e1db48","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":217,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"913bce88-1243-495f-bde5-ffa5ba79f476","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":217,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"441280f3-4987-4fea-818f-1e9d45e8d6da","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":217,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"72fd897f-8742-49c7-8ea7-6f645d539916","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":217,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"952a7a6c-09f6-45a3-81c0-feb810d41747","block_type":"box","text":"guidelines.","page_number":217,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"6039531c-dde8-470f-9e67-dced0804a359","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3199264e-d854-4703-9a66-e933775e699e","block_type":"box","text":"Global Principles | 4","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"50d1bef3-5419-4511-b0d8-88b435e0062d","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e3bd76a-e2ad-4ab6-8cef-887254cd2dbf","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":218,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"3ff1fae9-585d-48a2-8e23-5db6d09f3ede","block_type":"box","text":"Oversight role of the board","page_number":218,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"a5a58d83-2e1d-4184-b60d-70896dd6fed3","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":218,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"ca74f5a1-3bc5-437d-845e-4db4b38b6fdb","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":218,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"69409289-26ab-4dec-b345-e4da269f2d45","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":218,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"53ba329f-89ee-4c42-86c8-9e93b616b9d6","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":218,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"4b9087ab-e56c-401f-bffe-529d41498bbc","block_type":"box","text":"long-term financial performance.","page_number":218,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"e44f73e3-df66-4652-aee1-5977cd590c91","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":218,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"0653d364-c553-485a-ae4f-f9c55e31938c","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":218,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"a7380998-973b-4d3b-b3e8-ff4310698a61","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":218,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"cd05acdd-e61d-4062-8eaa-c352dc6a74f6","block_type":"box","text":"the business environment in which a company is operating.","page_number":218,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"bc65615d-3c92-4f20-a17a-d7946b53e2e0","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":218,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"9897520b-89d9-47f2-b444-f431d016fd4e","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":218,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"12a1e504-7c0a-427b-86b6-a9a341476701","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":218,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"68e35b0d-265e-47e3-80ad-848d8ccfb861","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":218,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"3959a469-5f5f-4d8b-bd9f-5c48e6f506b7","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":218,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"a7fd82a0-2d81-4e01-aa00-6712e01db9c6","block_type":"box","text":"mitigating such risks.","page_number":218,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"feade503-2d37-4e0e-98b7-4f22b8507805","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":218,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"c0110161-6dc6-4a25-9783-54b4fb41c68d","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":218,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"3529c4ae-5497-4434-b5e0-d6ca354fa894","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":218,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"9b7d6ddc-10a5-4e1d-8886-7b683b8c2caf","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":218,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"07cdaac5-08a0-4943-9e29-c2dcc30dd2a6","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":218,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"80b55be7-3da2-411b-9572-9b7b8551b863","block_type":"box","text":"strategy.","page_number":218,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"f54f1b37-5345-410c-b1b3-a38470e266ce","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":218,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"6199c53a-beb3-425e-937c-55dac79f85c3","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":218,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"be62c8ee-2f2a-4e48-8a5f-7f3cf2422bb5","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":218,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"3f2a756e-810a-45ad-82cf-6c3b72e04b45","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":218,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"8f35eafa-1a24-470d-ad6d-d9071be0a5e3","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":218,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"949fa9c3-ab9b-4a83-9192-7677ca5b207a","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":218,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"b3547473-8f5c-494a-b98f-83dcc2cd4924","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":218,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"3ad4f120-d661-4a0d-800b-4861282bd3d7","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":218,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"38817d81-e4ae-432d-8dcc-efde5e22f25b","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":218,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"7935054d-604a-4a7c-84e9-565094961c6a","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":218,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"f8062573-ccec-4107-bebd-b317fa8cc9b6","block_type":"box","text":"Regular accountability through director elections","page_number":218,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"a15a14ea-ea69-4270-b034-73297a4cd262","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":218,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"a6224fac-d2e1-4f90-997f-d5612acafb48","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":218,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"3c7daaad-9cd8-445e-9270-61300421c7b4","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":218,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"76cc0aa9-761b-46e4-aea1-460245b7b12b","block_type":"box","text":"5","page_number":218,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"7da8ce87-e3cf-4b39-936c-0663446d2512","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":218,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"79337a6a-c472-434a-8e1f-654602c2e66e","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":218,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"7e20bc38-6d9e-442b-9feb-2b68b4756b29","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":218,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"5ff150db-701e-47ad-be74-7593ac2314e8","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":218,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"b6f7deeb-fa61-4cde-994e-143d37b2a4c4","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":218,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"a3725034-13c1-4deb-a441-ce9ed64da6fa","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":218,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"236c4453-b6d8-4f39-9d2f-e60649469be7","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":218,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"b83fe231-9fcd-49ed-8502-4757b0c44679","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":218,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"48d47df6-fe3f-429b-94b1-9954f94ad0e1","block_type":"box","text":"5","page_number":218,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"30b708ce-c2c6-48bc-87c9-20512fb8ecee","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":218,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"c489cb4d-573e-49df-9437-b47e947722b5","block_type":"box","text":"market regulation or voluntary best practice.","page_number":218,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"be7eb72f-42e2-4940-a99a-d1ad0d367d13","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"574a29c0-1a6a-4b09-8565-f9bda51e7d6d","block_type":"box","text":"Global Principles | 5","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"162b4ba4-f7ec-4ad1-8a94-5567d185b1a0","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f939b6ab-dd1e-4b72-a1a4-aed300e28452","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":219,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"e2587f57-01ca-4c57-9f7e-41a0700709ab","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":219,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"4b8fa715-cd50-4525-a58a-3a5acb7609ef","block_type":"box","text":"recently.","page_number":219,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"202b4057-3e0c-4c32-9735-1729549690bd","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":219,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"5f6b0329-f7e5-4b0f-8056-639e4c50d540","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":219,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"e38793ce-337c-4433-824d-d71bcecabdb2","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":219,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"68e49c57-0dc6-44cf-b9c8-2ee670031678","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":219,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"abe4f912-013c-40df-a031-425a3ce9f9a8","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":219,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"89d39639-efdc-459a-93a9-d7d720a9fecd","block_type":"box","text":"Director independence","page_number":219,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"d7fcbd8b-9a69-4dc7-af1e-b0e1c2c6db83","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":219,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"dac07ee1-1bc0-40ee-9bc0-e802ebebacda","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":219,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"10c706e9-2a5f-4e03-b5cf-99d482973e97","block_type":"box","text":"6","page_number":219,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"7f1994aa-e8d1-4ab2-ad3d-bd545f913c93","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":219,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"771e36d4-3f92-4a73-a9b2-e8ecbd00d99f","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":219,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"6bf516b8-a968-46ad-9562-7fefa51ecee6","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":219,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"dfab5284-4a47-4b56-8d71-d1b832d19e33","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":219,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"d0603034-023d-44db-971b-29deac49333f","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":219,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"b08bb96a-93bc-4eed-a906-717ab8b06e24","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"1a71f12e-9486-4cae-9b4b-a26c1c64267a","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":219,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"bbf71353-cc42-4924-bf67-d8932c7d4c82","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"66609ead-8a26-44d0-9737-c91a71c25c36","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":219,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"1d1a3982-6fd7-489b-9101-153b0e7f1aa4","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"865850d6-7ff5-4f81-ae4a-34b4a260afac","block_type":"box","text":"Interlocking directorates","page_number":219,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"b6e5f26e-0d06-4aeb-a7cf-5dbb63c90d2e","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"e6c22ea2-ea9e-485c-a3a8-a2e7cbaa50b6","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":219,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"fd759bfd-aaf3-447a-8da5-809466a5b9e7","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":219,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"9c1b3863-4dd4-46df-b329-5e76d848e2a0","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":219,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"6db4be0d-4372-40bd-b0ef-49d90ee0e0e6","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":219,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"fd62c276-7aad-4da8-9e73-120f72590024","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":219,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"2d66cfe2-a951-4a48-bf26-f63c33359212","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":219,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"3e9c9515-ebef-4fe2-ba7d-daa16ed1bd8a","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":219,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"aeb1bca3-d49b-45f0-90a3-3e9ff1b35e53","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":219,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"28c87028-ffb2-4734-957d-1c95faae22e3","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":219,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"24c5c119-096c-46d5-b84f-44592e0f3601","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":219,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"cbb10a73-5a46-4b54-b804-001117542c43","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":219,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"bfc53b4c-bc4b-4ec0-9d1a-9fb2de8251aa","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":219,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"b44b4f1f-fee6-47b8-a68e-87f5852e085a","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":219,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"e66b1893-662d-4f82-b61d-59cceaa91ec6","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":219,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"faf3f6c2-e789-44f1-bec1-2c46a90b59f1","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":219,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"a6dd9e5f-debf-4bfa-8212-36ce627a55fa","block_type":"box","text":"Sufficient capacity","page_number":219,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"3931b86e-6bce-4be0-97dc-c9564e1cfaa3","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":219,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"8e453177-d3b0-43f8-ab4b-d21fbfc96b2c","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":219,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"ea92e5bd-1d10-4c00-a48a-697bccc7081b","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":219,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"92b576a6-10c8-41c2-aa1e-f368cb367ddd","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":219,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"7ba6b132-017b-4285-b67a-77d9ce4a67f3","block_type":"box","text":"Board composition","page_number":219,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"3c922005-810e-4a07-84c6-7501f5c852dd","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":219,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"a6240907-3dac-4244-a753-1f74f0b559b8","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":219,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"fdfb021e-9e88-405a-9d67-8f283b7c03e4","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":219,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"df2c004a-eee1-4748-bee1-48df7610f3be","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":219,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"ff037f4f-f0ee-4438-afc0-8e07c37d4a0a","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":219,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"bf8c691c-e068-4ae4-81a9-0b356f7e1ac6","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":219,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"9ac22001-fbf2-43a4-8b60-39c5c6372624","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":219,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"269fc59e-5c62-491d-862f-5342bb93a917","block_type":"box","text":"6","page_number":219,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"68825fbf-96a6-40a7-a728-04c4043a190b","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":219,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"48eec400-caae-4dee-af67-c2835e929b24","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":219,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"fc7c9256-a02c-4799-bb1a-cce6fba8c2b6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"94773809-8610-4299-b995-6d421081fead","block_type":"box","text":"Global Principles | 6","page_number":219,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"eb157e51-da54-4b22-bea2-8e226639cab6","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"35808bd1-2f33-4aad-bc98-bf91886ff5d5","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":220,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"dbdf0e01-ac55-4499-88fd-aac181bbfae1","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":220,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"82b527ba-fcb4-4e5a-aee4-fcb49556d77d","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":220,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"7b1ba5eb-86c4-4473-90a6-4071c90912fe","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":220,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"08d301cc-ae0d-491d-86ef-fa7e1b31b181","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":220,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"fb0ddb4a-4232-424d-a91b-ea4cc96f7b4c","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":220,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"a6a7b18c-6a10-494b-a5f2-0d789d4f8c2b","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":220,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"d3bd2725-9b88-40f4-a82c-1cd815dc6f7b","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":220,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"7e564332-0c2f-40dc-ab49-526a645f0891","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":220,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"28690f7c-06a7-4f5f-b598-ffaf8427bee6","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":220,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"648ec6e5-d477-436f-91b3-3c749cb00124","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":220,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"a8ae8420-a71d-425e-b0e2-95227c2bb04a","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":220,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"39e05812-824e-4919-a803-ecd2539f08a3","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":220,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"e2817f4d-5a0c-4fec-b015-e275d909c767","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":220,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"a7162bcb-66ff-4a6f-86d5-41119b4ab9b4","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":220,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"eeac3831-e851-47d0-83e5-db0e63becbf6","block_type":"box","text":"systems.","page_number":220,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"dab98175-34a5-41a9-845a-29117767bc12","block_type":"box","text":"7","page_number":220,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"69696594-ab40-4f05-9c59-816fda6b2149","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":220,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"7c94f589-0278-4fb7-80d7-0cc2b227921e","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":220,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"66e02310-1a77-4d77-bc18-40e15ecdcf51","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":220,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"b82f0d52-8d50-4d31-b40d-57dd8891995f","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":220,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"3ef41bc4-4aa9-497a-94c6-b9584f9443da","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":220,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"6e183158-0f30-4766-99f4-de33566582ce","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":220,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"19ccb8f0-3929-4844-ae2d-d057365e1fb7","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":220,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"9b5d4bf2-18fe-4df3-854a-a42a57e74086","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":220,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"7ddedf79-3e05-441e-b121-aa9b9a679ccd","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":220,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"ce91294b-11cd-4b13-9a6c-e564ec50ceae","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":220,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"35df7d26-6edf-447d-b032-d1cc27a1596b","block_type":"box","text":"or internal audit function.","page_number":220,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"c6025462-1ae4-4448-ab64-d7ef98cf2116","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":220,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"b90bb4d7-3bd8-4c31-a593-79f0ae725540","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":220,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"8a0923a5-906e-4675-b497-27fad48d64be","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":220,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"7cd4df65-0961-46a4-99a6-14cb2805a29a","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":220,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"54f40aa9-fb48-44b3-9839-f1b51c17a380","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":220,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"99cfce8c-bc7b-49ac-a1df-115da60bb030","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":220,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"47da16dd-4577-4579-bff5-0e5b6949ffd6","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":220,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"fc420ccf-fe03-4b31-a3ae-7283b017e792","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":220,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"a7247328-82c5-4390-9fa6-c9492f2a1af8","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":220,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"26df2340-34ba-4efd-aa55-f2f7986ba440","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":220,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"6d19e031-3ff6-46de-af1d-afbbfb54eb3f","block_type":"box","text":"risk.","page_number":220,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"11ee6c22-5d76-4570-9c33-48a1ad1f6cc5","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":220,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"0a1cc2c1-4f97-4a20-8273-eb2be66681f3","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":220,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"9d6d7445-8978-46ac-a049-863a8136343d","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":220,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"34662aa7-09cc-4212-98cd-12cfb6a1a1c7","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":220,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"37aa6c6d-fff2-48f9-931e-095cb7cf1fd8","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":220,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"e4588623-6507-4240-9412-220464433a8a","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":220,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"a60985f4-32ec-46c7-ab81-ecc99a4e8bab","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":220,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"051e97fd-e896-4951-a5ce-1241cc61089f","block_type":"box","text":"7","page_number":220,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"5aaad409-a99a-43ba-8d10-4f52b8493a32","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":220,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"fcf2b482-116e-4321-8847-b9a9e67069ce","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":220,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"4e60f6f9-52aa-49c7-a555-6e65af0990d0","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":220,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"6f288582-fef2-4885-b136-c0d5e4f4a68f","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":220,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"89887f5b-2f03-466a-b402-37265605d1fc","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":220,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"b9df00e1-85ec-4ffd-a0a0-e1d8a55e8d50","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"41d7b0b3-a6c8-4cb6-8729-b121dd3ef466","block_type":"box","text":"Global Principles | 7","page_number":220,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"bef2eac3-5bce-4284-8242-87c9a1914630","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"52f7f028-2986-45b2-ba02-56d65f22f470","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":221,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"cf86b71b-83d9-4975-9a50-3e0f9b552692","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":221,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"006c1b91-e31e-457d-9445-1bae76133639","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":221,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"3e053ea8-bd9e-4280-b62d-34900eb45fa8","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":221,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"a4103d18-77f7-4b07-8923-4264a0cc8299","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":221,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"7dd080d1-e8cb-4f8c-9293-f7a89ac085c8","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":221,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"cf3ff703-3445-4ec7-be65-d658fc5eb7c1","block_type":"box","text":"minimizing costs to shareholders.","page_number":221,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"2a61cb34-0455-4d5b-ab48-57e097e6d490","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":221,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"80436897-a657-41d2-99cd-7942882cd352","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":221,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"8b6fb53c-063f-4907-aa67-9b9bc1dfd26a","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":221,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"5c42e7bf-aff5-4130-8838-0c046561d455","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":221,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"14901dba-a5a6-4695-843d-97ea6b2a2062","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":221,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"eddefff2-c2b3-4d8c-be9f-55e70251b2eb","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":221,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"84d308a2-a48e-41cf-b03a-5ab899c7577c","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":221,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"1cd2bed8-7fb2-4017-a62b-e48d8b9c0dc8","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":221,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"ece1d139-a978-4f5c-a5f7-4e5eb4325bd5","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":221,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"797d2c16-089c-4166-bbb1-3ad53f3735d0","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":221,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"c98d633a-fe3b-4727-9023-95bf7358916c","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":221,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"82806282-06b1-4b2e-b86f-a6164aa49dfd","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":221,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"f8c2b99f-b0f3-4202-871b-e06beae905b8","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":221,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"91aa936a-2511-4fab-a129-06f23c8d7a44","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":221,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"6deb205f-7c77-430f-811b-c10bb34a95d4","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":221,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"fb2679da-805a-4ff4-9647-7aa35ac126f8","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":221,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"bfff1c36-d994-4ae1-ac8f-24fd6c8add17","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":221,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"35f4645c-cb98-4592-9ecd-3217fec3dcf5","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":221,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"61fc3492-796f-4de0-a7ad-c788a89edfc4","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":221,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"7c89db1b-de54-48a8-8c49-9f7b64539097","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":221,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"dc0515d4-a5bf-447a-ac5d-4cd05d9c87f5","block_type":"box","text":"ownership.","page_number":221,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"4a597275-df6f-4b73-9578-9b4de25b0b06","block_type":"box","text":"8","page_number":221,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"262faa63-daf7-4983-a33e-b1b87264bb8e","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":221,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"af83c220-5eb6-40ff-a466-d9e60839debe","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":221,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"223a17cb-861e-4c64-8e44-90ce8661a5e5","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":221,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"aca4fda6-dd2a-454b-b023-d2403ea7313c","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":221,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"435ca0d0-a46e-4156-aed8-b590e005294e","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":221,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"4912f41c-3df3-4b23-af3b-d372329c1655","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":221,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"fcb9e345-2997-44d8-b62f-ae47d4b02361","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":221,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"ccecc479-08e7-451e-9519-a71e913d2643","block_type":"box","text":"results over a period of years.","page_number":221,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"1441fe32-bc57-40e9-a17b-5df97935b9be","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":221,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"00e857ab-3de1-442b-9bbe-02ea424d166f","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":221,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"fb4e0a73-fdfa-46fe-9fea-84e8b72f9c3b","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":221,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"0754877b-4888-4665-b272-0ddf0bcedf3b","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":221,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"f14ba4f4-6495-4c46-aba8-e3661ca1fc5f","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":221,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"9250843a-e644-4bdd-9e39-c9f787d141d7","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":221,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"e5eb197a-e97e-4928-b5d8-2429881c546f","block_type":"box","text":"executive compensation strategies.","page_number":221,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"18b6558e-12d4-4b18-99c0-268b4e2a511d","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":221,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"f32c3b30-ba66-4001-94ea-5679fc4ac85b","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":221,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"1f746466-551d-4097-9ae5-910c49a7f270","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":221,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"593af8d0-61ee-4a89-aaef-9c08062b533b","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":221,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"365a77fa-a171-45dd-8419-a18e72d3e6cb","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":221,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"5ccaa976-e00b-4f9b-938b-ebe1feefb558","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":221,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"4d6a034a-2168-4778-92f4-92b0e48e71f5","block_type":"box","text":"8","page_number":221,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"bdd3cf27-17c3-4f21-acda-566a43e12a53","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":221,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"e8109dd9-1f26-477d-8047-19dac7c767fc","block_type":"box","text":"different markets.","page_number":221,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"269510e7-dd74-454e-8e52-db59f72c4311","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f627f8b5-f208-4512-8dab-3fbaf916d763","block_type":"box","text":"Global Principles | 8","page_number":221,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"4e2a99a9-b57e-4c2a-b124-7786f6049f50","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ac15bd4a-2b43-4a2a-89b6-287299417c1b","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":222,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"adace252-b149-4bfd-8de7-34a282b09e5f","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":222,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"4f812a8f-3e7b-4311-899a-c308609e7356","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":222,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"cafbb258-033a-4434-a2a4-d5ffcb0237fd","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":222,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"e55cc9d9-5d48-4c25-86fd-5de5b2e970a5","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":222,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"7f07198b-429f-4e12-a057-52eb1542beb6","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":222,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"3da11062-530c-480e-a769-42b31fb27049","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":222,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"2c47f1f4-57f0-4884-8a23-71b03c5d05c9","block_type":"box","text":"whom they are charged with overseeing.","page_number":222,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"c580e60b-9c22-408e-a323-1cff4ffa1eb8","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":222,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"6fdfd3b0-4635-4160-9fab-7f3d46a398d9","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":222,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"ff189510-9fb3-455c-aefc-9868a699415d","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":222,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"887eec14-aa01-44d4-a5f2-4228fbdccbc8","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":222,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"1de8bf90-e199-4cbf-950f-c3b785a50f61","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":222,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"183b253b-77a2-4ec3-9b32-9acd02c09672","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":222,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"ba8a7c63-3e27-4619-acb5-dbfcb185d33a","block_type":"box","text":"structures.","page_number":222,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"c7acac19-574f-4e3f-a552-7d51923317b9","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":222,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"b0b1c66b-7e3c-4238-b872-a01cbc502870","block_type":"box","text":"Corporate form","page_number":222,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"4e40e55d-7834-4fa3-bed2-8a87a3ac160e","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":222,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"098b2f76-a123-449e-abf5-0b026effa315","block_type":"box","text":"the company’s purpose and business model.","page_number":222,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"61002aa4-09fd-43b9-bc7e-ca4d5d6e7a31","block_type":"box","text":"9","page_number":222,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"8ed2329b-3038-42fb-a3af-46b3fbc0b76b","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":222,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"05ddf814-da7f-4d03-8a2b-d918dacfdbc3","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":222,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"559cd1cb-e8fd-4b52-bd40-f87c0469586c","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":222,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"1007994e-76bf-4e1e-9b64-f0df5db2d68c","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":222,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"2de97778-70f1-40c2-a740-58c926771e4f","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":222,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"e1589687-6946-4d9d-bfd4-effdd1d57ef9","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":222,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"f824ab55-b840-436f-a223-19e4a54349ec","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":222,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"e896fd38-8bed-4d1b-a0a0-013317ac4f20","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":222,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"f119a8c7-ae2c-461f-b5fd-158fe10426fd","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":222,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"e6772db8-b958-4835-bed0-aa1ded041932","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":222,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"af4737fa-e288-48cc-90ff-b2077d4f2d21","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":222,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"8944bd66-6286-4fb2-8cc6-22952ac70d5c","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":222,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"75d9dac7-bfe5-4735-a6d7-5f3e1ed518cd","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":222,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"9fd9f05d-6850-42db-8e7c-48b71d0de2ca","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":222,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"d311d853-9f4f-4c74-a53a-2eaaaf2159e6","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":222,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"f8667a87-8390-4137-b50e-400a3f074fb9","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":222,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"76ee658c-e892-485d-a4a4-d1bdcce5b959","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":222,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"2ecaa031-a40c-416c-bac1-c07f48704ff1","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":222,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"7334541c-fe94-44b0-a025-96a47a227750","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":222,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"bbe43f80-1d5a-42fa-97f1-b666c6a64e17","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":222,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"61792613-0c0d-401c-8b6b-e7d975660797","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":222,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"d90022b8-c546-4ec7-98a9-c3e3ba331acf","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":222,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"c978cac9-2ac1-4cfe-97a4-4011042aec23","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":222,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"02c14aea-d1c2-4555-aac1-9b9c196989b2","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":222,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"cfcdf417-7e19-4a45-b32d-c2dac230cd5f","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":222,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"1e4d935c-1312-495d-9b7a-777a9b7a2fdc","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":222,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"1d8a1fe0-491f-411d-9894-45d766a55bc0","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":222,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"09b1e375-759e-4fbc-8c95-9e8b0ac97188","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":222,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"41ad32e4-6d4a-4b65-b701-829097718e8b","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":222,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"77b45c78-be5e-44e9-b56b-c52cb831bf0d","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":222,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"bb386495-0a2a-434f-9c41-3e735150a4de","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":222,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"e2706230-2bbb-4abe-9c0c-31fe6474c209","block_type":"box","text":"9","page_number":222,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"f522ad70-9341-42a3-9530-29d26b87327f","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":222,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"ae12861a-bf9f-4abc-9bc6-468c515b3afa","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"56ff6f89-d21f-4360-86c5-dd21407719b6","block_type":"box","text":"Global Principles | 9","page_number":222,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"45d17a4e-27b8-4d2f-a990-cda97dda9589","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ef9e3b3a-2111-46cf-b998-f22e86a1126c","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":223,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"0b5083f7-0fc2-4538-b4e8-a902f811a8d6","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":223,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"3ffa3f19-cbc2-4abe-9da3-0138b3e7aaaa","block_type":"box","text":"long-term financial interests.","page_number":223,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"adf8a6fd-f778-4045-a2f3-1b3039939660","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":223,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"c51cbbc5-8f66-42df-a721-93ccbbea00cb","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":223,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"f59b4611-e2ba-41aa-8d51-eb65716f2b66","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":223,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"7fed1502-62a6-43ad-8bd0-8ca2200cda75","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":223,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"ac4e2f02-e951-48c2-811a-4662205c853e","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":223,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"72692429-057b-42f0-89c4-8984a21c4bdd","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":223,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"a92dfe0d-a981-4ab2-97ae-f5795c1c9985","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":223,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"7b5d0b0a-cf94-4ba9-a142-14300898c560","block_type":"box","text":"term financial value creation.","page_number":223,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"a741d992-ddbf-4214-a082-e1a17eefacd8","block_type":"box","text":"10","page_number":223,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"25b3e292-6354-43c9-bdb1-3831d3d10842","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":223,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"1fb64d59-621d-4c8a-abb0-1cf5f63ab678","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":223,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"04e19270-8063-49ad-bf44-44aac54d93e3","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":223,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"3cf128d7-aad8-421d-98f8-31c0b716e939","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":223,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"85a8253f-f56c-4341-b6fa-25b5ff2c93c3","block_type":"box","text":"industry-specific metrics.","page_number":223,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"4559709b-defa-4b32-b5f2-dd32123986d5","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":223,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"05a32885-12de-48bd-bdca-2b4b4c60cc9d","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":223,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"55ee56e9-6cea-42cb-a60a-e65d90a08abe","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":223,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"1861e80b-eaa0-4e6a-a351-898ffb6743f1","block_type":"box","text":"11","page_number":223,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"fdf7d1d4-1637-412d-a3d6-09eed89305a4","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":223,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"68516db0-da5e-4205-ad18-ebd20ec1d056","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":223,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"bdac9fee-079b-423b-abad-dcdd85c1ce14","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":223,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"a32da4ed-6bb2-40b7-bf87-b8f3ac9c7897","block_type":"box","text":"specific.","page_number":223,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"5627218b-e345-4eb7-8d2d-cadafd2b7439","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":223,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"55b75dea-712d-417e-ad14-572e89cfd2c6","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":223,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"fb6ae7e0-4057-42a0-a55b-0d62f80fbc60","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":223,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"92a19a2c-dc15-490a-8a0e-7a841d643762","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":223,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"6ca73056-cfae-4315-8768-7ce43dbd3a00","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":223,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"b37bbdb9-c262-469f-9234-8721f8761aa7","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":223,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"8e9bb2b8-492b-40a3-8246-306aa71f7284","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":223,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"a16fc520-060d-4ba8-a311-e08ec26defa9","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":223,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"edcda1eb-2b71-4541-ad2f-b6b7030c589a","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":223,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"94ea1c7f-749e-40a7-a781-41f73ae9d8e5","block_type":"box","text":"10","page_number":223,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"0b999891-8fd7-49db-9774-d780cf918ce0","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":223,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"42192b40-4e75-48f8-8e08-f9b60bf76dd2","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":223,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"bb17c843-0784-4f34-91f8-60bd8cc3e1f4","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":223,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"4e4058ce-8a81-4fa1-a350-abd60cdf286c","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":223,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"8992e230-5d04-44d9-857f-853f1e6b9d48","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":223,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"3a25c147-fd73-4a0e-bf64-240c1a45bbf0","block_type":"box","text":"11","page_number":223,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"d0a1145b-8195-4642-b0be-f3612b70120b","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":223,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"15a3e035-a152-4568-93c7-1ed1c7336857","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":223,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"a3d59069-675b-4b9f-a474-d32324d4e832","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":223,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"d591e4f4-c07a-4dba-94d4-86958cdd102d","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":223,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"903600d9-7108-4ae9-bb42-5097a21193ef","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":223,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"6e6190a3-eaba-4f7f-81e9-ac922b22760c","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":223,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"da51b8ed-d67d-4184-8a1d-b610ba171b51","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7e0e5e2f-d9f5-40db-9ba3-30dbd98b5122","block_type":"box","text":"Global Principles | 10","page_number":223,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"e7df84cc-c1f2-4ae2-a1de-ddd81281cb60","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba0b1ff7-1a65-450f-ad57-c7c8f7cbb86d","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":224,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"66319827-feec-48f2-b6e7-700db5530cd2","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":224,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"ad450411-c4ca-41ee-bba9-0aedcbb3db12","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":224,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"252298a3-d6af-4b8d-b34e-3057922d244b","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":224,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"f560fe8e-d025-4e04-be46-7bdb0647065e","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":224,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"5a39c0af-d012-4bf4-acac-a22d2bbda484","block_type":"box","text":"12, 13","page_number":224,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"3f4588c5-266c-4a8a-b335-9fa6581d77f1","block_type":"box","text":"From company disclosures and","page_number":224,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"961c8f1e-860c-41f4-99ec-382ed68ce4e4","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":224,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"c22f3d0d-8dcd-4be8-9b22-dfe3d9c9d8b3","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":224,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"54a2c3e9-b517-49af-b7b7-30351f4fd463","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":224,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"e86b1e2a-a4ae-4e57-a406-2d25dda39368","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":224,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"37433da1-bb93-4741-8ea5-f99c69655108","block_type":"box","text":"viewed as best practice in the market.","page_number":224,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"11a346d4-5565-413d-9644-0a4eacf5e17a","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":224,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"78b8b240-59fd-451d-881b-3ba1720be822","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":224,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"6359b361-0064-41a9-9afe-db8ecc12aa6e","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":224,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"7107349d-0bf8-49c6-9bac-1e37554c02f0","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":224,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"a763f16f-8994-449d-941c-7714bb8b7abd","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":224,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"c7ecf43a-1c19-4b3b-b82c-cdde55cfc2a9","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":224,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"cd2e4e9d-6f48-45ea-b99a-6c41b67b54ee","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":224,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"64980359-82bd-465e-b43d-cf7f7b59e5ce","block_type":"box","text":"interests of their investors.","page_number":224,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"0731daa4-739e-4e14-b6fd-6c572305e849","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":224,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"486f1604-aba8-45e0-bf1b-1f6eff6142bb","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":224,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"07a0da26-8e2a-452c-8468-043530843308","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":224,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"a75aa181-2c60-4cea-931c-6b283f69c90c","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":224,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"1876805f-85ba-43d2-89b0-d0b8ebfcf906","block_type":"box","text":"good-faith basis as methodology develops.","page_number":224,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"66dc2225-d480-44fa-8262-e02e0ff1872c","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":224,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"40af8b7b-469e-4c2e-8890-a40fc2b9b7dd","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":224,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"c6012ef1-9968-4a1d-83a7-c29be8f1c1de","block_type":"box","text":"generate long-term financial returns.","page_number":224,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"18245724-eae2-4e26-951c-3567b07dd9e9","block_type":"box","text":"14","page_number":224,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"ca5eb5b7-7443-4c77-9338-62ed2396b419","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":224,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"838839b6-15c1-4a58-b2d8-827044f35ba1","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":224,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"2fcf24e0-bd30-4c8d-a3ea-83746bb07717","block_type":"box","text":"15","page_number":224,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"b0c09f85-5711-400f-9f74-56cd48f1a49a","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":224,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"8229ec35-c9aa-4469-a674-f18a08f40f0d","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":224,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"f31db495-a0c9-4647-b108-b3ab729acffc","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":224,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"1fb0e457-3025-4520-9bce-ebe1323dae3a","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":224,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"5721edc2-e5cf-461c-b93a-62a1e5477c2f","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":224,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"f5e45c2d-fc67-401a-9715-ed44e5dcecd2","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":224,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"a4c62693-9e4f-4e40-a809-648f4d13720f","block_type":"box","text":"12","page_number":224,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"fc0acb4b-ae72-4045-9efc-1b7bc3df9def","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":224,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"5b2a30b3-e0aa-4350-b5d9-0a7e738a328f","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":224,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"ac1f9854-5536-46f0-8b1f-f785d859d624","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":224,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"5e0e7dee-a70d-4c4c-85c4-d621018da900","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":224,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"1f44ab11-9e2a-4279-be33-dee23856ddd4","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":224,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"c6868bdd-50ae-4bb2-8b60-204e462a9201","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":224,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"76878cb2-da84-454a-9650-6a3622ac0098","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":224,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"4d328db2-4405-4913-9227-309e420107d4","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":224,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"ad12f8f3-5aa9-464f-961d-eca207903169","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":224,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"968c6304-88ab-4f23-8dc3-837e8bfaece6","block_type":"box","text":"13","page_number":224,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"6e1a27dc-399f-4a78-a335-4e659238fe84","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":224,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"840502ae-cc3f-4e90-835b-37e3cae3cc52","block_type":"box","text":"2025.","page_number":224,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"08ac39b8-9a91-4d25-a859-f0f49d33fb7f","block_type":"box","text":"14","page_number":224,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"fac5659b-8091-4de3-8b10-672276a6c40c","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":224,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"12d0a1bc-921c-4d02-b9c4-f746fe9f8293","block_type":"box","text":"2025.","page_number":224,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"b5842f31-99a9-47dc-a5b5-da65b191b30c","block_type":"box","text":"15","page_number":224,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"cc6b4497-f88c-4a47-aaf5-6942325802ee","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":224,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"16cdeea0-33a2-4aac-b106-a9737fc99a61","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":224,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"79a2b382-3cb3-4865-9f30-ba5f2da90c94","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":224,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"4651c719-bd3d-447a-b79b-8518841156cd","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":224,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"a5eeb873-b3a2-4d27-9928-487691d49efc","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":224,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"c8afb903-6952-4b42-a119-4866a97c95f0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"87a8fc88-b64a-4475-a036-5ff646b46fc1","block_type":"box","text":"Global Principles | 11","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"a4711ce5-8714-4dc7-8b35-6a2b82a260ca","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e378f21-1b6a-4e9b-ae31-5dfadd8ae3a1","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":225,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"f1599647-1219-4119-8521-3e5864093495","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":225,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"5df21b61-88ab-484b-b9c6-eb4cbbcdfeae","block_type":"box","text":"16","page_number":225,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"b264f98f-af70-4d94-880d-8dc841c17a61","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":225,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"8103852b-e7c2-40e0-8ecf-752a4fbb3de7","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":225,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"73eb9146-ba81-4497-a0d5-fb54ad55e2e6","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":225,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"3dfe53af-c841-46ad-a459-e065445151b5","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":225,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"d113cbae-1ce3-423b-93a3-128c8d78d6e2","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":225,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"8794bcef-06b7-43b7-beed-2f873ff8d209","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":225,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"ff0df0ad-80e1-4546-bb11-a54200027c16","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":225,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"137b474d-9669-4ebf-ad31-1c5022df7f2a","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":225,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"fafe9cee-9a29-4df5-8aea-fbff6f6c5bd6","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":225,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"5df52a25-021a-4f51-aaf3-4c8cb2573481","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":225,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"e5ecedb5-f798-4633-90a8-ec76b57bdf00","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":225,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"c878fbbd-a490-4f4d-ac0a-1511475bc027","block_type":"box","text":"impacts.","page_number":225,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"7b38758d-50c7-4967-81f0-db22d7f527dc","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":225,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"fce1559f-cdcd-4153-9fb0-433eb0ec5571","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":225,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"71310a28-4b8e-4a59-a4d9-c435efc5ab05","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":225,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"647ee444-8acc-48ce-b14e-653fe2c7c3e1","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":225,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"5f2d07a8-cbf6-4b82-8275-914f8849466e","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":225,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"085803ce-d3d4-412d-9d1f-b75e4322d90b","block_type":"box","text":"clients at the global and regional level.","page_number":225,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"021db9c8-09e2-4b7b-b71f-559188632a1e","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":225,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"7bc5502c-eb4a-4263-bd8c-6c8b41273134","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":225,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"5054a30b-590a-4f97-ad0b-3c3c212aa86e","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":225,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"3b3dcea0-0eda-4acb-8296-fae1b397e3e1","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":225,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"ceed2f32-9b9a-4a4e-a601-b470068e2a93","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":225,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"953bcc05-a9f6-4495-b371-38718521431f","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":225,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"39804c08-d6f8-4e3c-9449-52b0c3319a7e","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":225,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"73a2bcda-48da-4f8a-9b41-231049f13c07","block_type":"box","text":"are independent from the investment stewardship function.","page_number":225,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"30d73221-5add-42f3-beff-c9770e9a3c2d","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":225,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"f43e4bc4-9c89-4280-a96e-7e38b377bcb8","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":225,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"72dacdac-d15d-43de-872f-6ad0aa4888f2","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":225,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"b639f83c-4bd9-400b-8bc0-82e316677b6e","block_type":"box","text":"VOTE EXECUTION","page_number":225,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"5fd5a031-ffd2-4f3a-bace-3ca989275b69","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":225,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"51a4dff9-8b46-4f8c-9e6e-778e7ec067e8","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":225,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"55bdf8b7-f1c0-4f55-b49e-fd7634459600","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":225,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"d367389c-5f01-4cef-8e57-68bce9ef8ab8","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":225,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"4478d3ad-1d79-4618-a945-0edc37ab08cc","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":225,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"bec3cf2b-df81-4de4-890a-42e52ba077cb","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":225,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"2992148c-a80a-4710-ba93-65d8894391a0","block_type":"box","text":"management policies and procedures,” below).","page_number":225,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"d6030a45-79ca-483e-aba4-84c99bbfdc5a","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":225,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"aa980060-acb9-4f3f-9dcc-80c005e4153f","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":225,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"ceb97f15-847b-4f58-97db-bbf21920fb3f","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":225,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"53194f09-db57-41d0-9020-726e4d0f93d2","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":225,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"0ae432e3-0654-4cc7-bc63-0d591017ea78","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":225,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"26b36916-1427-4fa6-9957-a0278e5a5585","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":225,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"694d998d-9887-4023-9bf6-d2f603576c1b","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":225,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"34364f96-8e65-413f-b715-c1cf682ce4e6","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":225,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"33de6056-7c23-4daf-87b3-a5e05c205a17","block_type":"box","text":"16","page_number":225,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"049eb9ec-a2f2-4c80-b759-9fd2b64b402d","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":225,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"9eff3e94-261a-43d2-ba29-823a189d3889","block_type":"box","text":"December 2025.","page_number":225,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"02a139f1-e976-4aff-8fab-2574c69f9723","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2d7c02bd-5285-44e4-b11e-bafa2f4ef5d8","block_type":"box","text":"Global Principles | 12","page_number":225,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"55b6e2ea-1f0d-4ef5-bf29-4fc6f658ee3e","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4acff14d-2484-4bce-b5de-9a6c025a9a77","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":226,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"0624b498-58aa-4d0b-b384-0e22f7f6451c","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":226,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"714ec0c0-28af-478f-a043-d9abe2d8123e","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":226,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"f0c74f8d-b21f-4ca9-abbf-361a3ad282a5","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":226,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"d66b99ee-3c0e-4ea7-8c5f-5de6fd1174d6","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":226,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"9d0e949e-432e-45c4-862c-7ed1568ea1e6","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":226,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"4ead43f9-8b10-47ad-ba0c-c83881fa519a","block_type":"box","text":"enterprise-level vendor management activities.","page_number":226,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"5ff3501d-d1d0-4e20-9923-02c730921ea9","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":226,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"0f7c596a-1bd6-4523-bd75-c40f77dbe438","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":226,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"d87ac5bd-9c77-42b2-a4f0-27d72d50e808","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":226,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"2cd33d9e-3fdf-4f8e-a66d-add16b441d62","block_type":"box","text":"BlackRock employees.","page_number":226,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"32e7be75-381d-4b35-889a-668866ff537f","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":226,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"0aaf42c2-f245-4504-9a85-baaf2de10b41","block_type":"box","text":"SECURITIES LENDING","page_number":226,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"0066067c-dd59-4804-a7dc-38243bed062a","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":226,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"0c826e54-6905-4d95-a2d5-eb5f2a1846e4","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":226,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"680aab6e-193c-4d57-a7ca-c9cc9c59cf73","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":226,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"0569b2df-2e91-4b2d-8959-7b9fa8be558d","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":226,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"a3f4bf93-0686-4ff7-80de-21b15b518ca6","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":226,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"fc7997be-3ead-4613-907b-17deba21c124","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":226,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"58ab35e1-22bb-4c40-9926-5d27b4b9c1c3","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":226,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"d1de1f74-6342-4e1e-9a74-0c5e5edcf8f8","block_type":"box","text":"in helping them achieve their investment goals. 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BlackRock can then use its proxy voting","page_number":227,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"1f85fd32-23f5-4ac8-8757-70e1795fdc8b","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":227,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"b7c95fbd-bdb0-4003-850d-59839bb3f9d5","block_type":"box","text":"20","page_number":227,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"31d2f227-cdae-476a-82d9-20f3d9af3071","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":227,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"fa8f6b85-a8f1-4b3b-b823-3248c0b40c78","block_type":"box","text":"21","page_number":227,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"3b094872-6637-470f-a719-db830bb6e01b","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":227,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"535dfad7-9484-42dd-ac16-e4419d4e855d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"af1e0e17-57f7-4447-8abe-e66ae11821cf","block_type":"box","text":"Global Principles | 14","page_number":227,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"74c84f64-da9c-4c20-a9f1-0f9b767b31a5","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d8dffa4-9680-4868-bc82-65359e84c6e7","block_type":"box","text":"Want to know more?","page_number":228,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"0b5027d5-193a-418e-b764-2e60413b211e","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":228,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"b3d8815e-422e-4d70-bf4d-29070f6aa461","block_type":"box","text":"This document is provided for information and educational purposes only. Investing involves risk, including the loss of","page_number":228,"box":{"x":68,"y":792,"width":839,"height":11}},{"id":"98706c86-6070-4cb2-91d2-b25dbb4f1e73","block_type":"box","text":"principal.","page_number":228,"box":{"x":70,"y":807,"width":62,"height":11}},{"id":"40ecf598-b44f-4d7a-8dfe-287fa112b611","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":228,"box":{"x":69,"y":852,"width":196,"height":11}},{"id":"e014d3a6-434e-4f39-b96b-801895badc5a","block_type":"box","text":"©2025 BlackRock, Inc. 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All other trademarks are those of their respective owners.","page_number":228,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"05da2926-49c7-4991-86a8-2390e059a7cf","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6ee43dea-b40a-4183-aabf-84bfd9c85dbc","block_type":"box","text":"Global Principles | 15","page_number":228,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"7070cae2-6fe9-403b-ab5b-cca31212f33f","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cdacfea9-94be-4fbe-8cc7-27927a046437","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"491de471-d712-4fe4-bceb-bb583c6a320c","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":229,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"8346d929-538e-4d06-84b4-a2459d8cfd46","block_type":"box","text":"Effective as of January 2026","page_number":229,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"4b915315-c8fc-4432-94d3-b50a64fe4373","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab808d31-0c7f-4e43-8ade-2348afc95dd9","block_type":"box","text":"Contents","page_number":230,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"3268950f-ec41-4d98-a491-ad2d79e71d5e","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":230,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"7367d0d6-09aa-4dd3-b931-7f7eddc42a6f","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":230,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"ed0d4c35-1530-4cc6-9925-2c76fc0a4540","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":230,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"e859e38c-ccda-43e6-97d9-d4638c3a647d","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":230,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"9a02426a-add5-4569-a593-f9d0d8a75105","block_type":"box","text":"The Guidelines’ design principles","page_number":230,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"9b4999ca-aad8-4842-a0d0-44fcc491ca6a","block_type":"box","text":"4","page_number":230,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"f41d0484-2ccf-4126-90b3-0454fa99c5c2","block_type":"box","text":"Voting approach under the Guidelines","page_number":230,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"ea6f5eec-b0a0-49fd-a4a1-1db9224dc5d0","block_type":"box","text":"5","page_number":230,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"27d2e34c-a41a-4b29-99a4-3a07d1b06c8c","block_type":"box","text":"Related matters","page_number":230,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"b0f9ecbe-d0cc-4339-a577-cf05418ba643","block_type":"box","text":"8","page_number":230,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"6e0017e7-5658-46bf-bbd5-b3786c3e79ef","block_type":"box","text":"Appendix 1","page_number":230,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"9f07e703-7bd3-4c03-ba75-fca75d389a84","block_type":"box","text":"10","page_number":230,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"988dd077-30f6-4081-8833-f96b6ebf2de9","block_type":"box","text":"Appendix 2","page_number":230,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"88661606-5e1c-486e-8a31-555e3df3c5f2","block_type":"box","text":"11","page_number":230,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"a1b4021a-de73-4b65-bf10-cddc5364b221","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"daf22e6c-ca8c-4be0-8b2e-9988382268ee","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":230,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"e78196ea-d690-4c14-aae6-577ef2a4ccbd","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":230,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f50f2b58-e353-4604-912b-da4623060bf6","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":231,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"e781a9b6-e5cd-4cea-b408-3d426b974256","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":231,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"06228d7d-0d00-49ac-abf7-d8a786975b0c","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":233,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"f5819d16-4054-4a8b-be0e-e2e49dee2350","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":233,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"c59d7ac8-0595-43c9-a9d5-4ad0266ab29b","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":233,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"c420ba82-fb20-428e-96b5-b59fd5e18019","block_type":"box","text":"Voting approach under the Guidelines","page_number":233,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"6ca42cae-b3b2-423b-93b5-0173b6772105","block_type":"box","text":"12","page_number":233,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"34db07a7-ef0f-43ee-8fb5-f78fb7c57903","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":233,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"b179a9dc-802f-43b6-be6a-11bb3b28eb90","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":233,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"c4ab6acb-290c-4365-8ff6-3e44c926dceb","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":233,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"a1ea869c-d2d0-4904-ae67-ef83633563d6","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":233,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"48e7116c-bd96-4f33-b827-828b77424982","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":233,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"85074ac6-761d-430c-99e7-13712024f1dc","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":233,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"6660ff40-8bb5-4283-8572-de0f56d32a91","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":233,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"3990194f-93ed-46f1-ab4f-5104f5e4dbc6","block_type":"box","text":"Corporate Disclosures","page_number":233,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"bd31ecf0-81f6-4a18-a3b3-ae8b85f847b2","block_type":"box","text":"13","page_number":233,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"1f7be944-3b15-41e8-a661-11cb2e0bf889","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":233,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"bcacdced-152c-4850-aa91-f7d46e5d7316","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":233,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"cdbf243a-2719-4d80-9fc1-dac9d9b2973c","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":233,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"118b6c33-80df-4e5d-b808-1a7a23308f0c","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":233,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"75a75063-c9f1-4dd8-a76a-f7a8c98ab90a","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":233,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"7936147c-ae57-4f58-8471-8239bc08a7e0","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":233,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"55b823ec-f9db-413b-a4d7-6b89a31cbcf3","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":233,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"e9ad88d7-b84d-4ca5-b364-cbd8cb0206a2","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":233,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"265dcb5c-44f3-4926-8a09-8f35e76127be","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":233,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"8aae5efd-3f33-48cf-8878-4876855e072c","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":233,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"443c3672-595f-4dd2-827c-54d488a90b09","block_type":"box","text":"14, 15","page_number":233,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"a389c14b-3542-42c1-83a8-87ef08e5a159","block_type":"box","text":"IFRS","page_number":233,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"b0d8bb13-d2ca-4b0e-aa73-c1ab0458687c","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":233,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"5f59456d-09af-4f89-88fb-308343cb035d","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":233,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"5db9bef2-1d94-4a10-9d87-a88a1d82679d","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":233,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"3346feb0-085a-4aa7-b51f-05ae14f239ce","block_type":"box","text":"and assurance standards are developed.","page_number":233,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"2a575dc7-239a-4189-bb93-37bb7089d6cd","block_type":"box","text":"12","page_number":233,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"8e7a8b0d-9d16-47ee-8cf8-72ef91e0d9b9","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":233,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"5c526e80-28ca-4ad7-a459-83e036b6e410","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":233,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"52f7c74e-0e79-4475-87bf-6bfaea8b7c13","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":233,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"0416931d-cb6f-43d6-b90d-06fdf8f3247a","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":233,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"f47bd0ed-2fad-4a28-a29c-61754fcb036d","block_type":"box","text":"13","page_number":233,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"41430e1b-63b2-49e6-9af0-183b57f004c6","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":233,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"1fee8879-a89b-4ba3-9a38-311a7380b5da","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":233,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"5a8f2419-c157-47c1-b4ab-f761ebf99523","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":233,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"d3997839-0bed-40d8-82eb-3e45c119788c","block_type":"box","text":"14","page_number":233,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"fed7d56c-271c-4ffa-b836-2e6134da7226","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":233,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"85c74a5e-68e1-4c3c-91bb-aa7ed4e0f5e3","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":233,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"e90c32ad-6efd-4e34-855b-a18a8baaa16d","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":233,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"29acd3c5-ca5a-4b85-8f93-7ce2f11b1c85","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":233,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"ffbb06a8-0138-45a6-a8ef-f83360a1e5e1","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":233,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"8c560650-9d55-4796-9d79-09a8f28817eb","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":233,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"e5777e42-b980-4294-bcb1-2dad394a95ae","block_type":"box","text":"15","page_number":233,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"b2c71c6d-908b-4019-8dff-c240ebcf17a7","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":233,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"44dda106-28b2-4cb9-8b8a-1f28807cbc83","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":233,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"41be3627-7484-4ad6-ba8b-7e2fdf09f287","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":233,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"e353f579-15c0-47e6-8cf8-4e482e257bc3","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":233,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"ae9c7821-8d35-4ce0-b177-9edea8de631d","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":233,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"60524805-4b34-487b-8208-9d89955b5440","block_type":"box","text":"BlackRock Investment Stewardship","page_number":233,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"62b431ab-9324-4cec-a064-935cfea24ba6","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":233,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"2c2d3960-3fe5-454b-9bcc-dc483c8c6f61","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":233,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab5131f5-6725-49ab-b65e-7581aa810ba8","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":234,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"ea71f90a-1def-4b36-b8ca-6c9a8e7e6e1f","block_type":"box","text":"16, 17","page_number":234,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"38d3981e-ff01-4e57-97ab-6c347b913e57","block_type":"box","text":"In addition, the dedicated team looks to","page_number":234,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"afc62033-28cf-43ff-8174-a7234011881e","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":234,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"d11a7f73-8cf3-4671-89ac-47a440c7f107","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":234,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"7ba28de6-f2fe-4703-8948-22f41c4c8955","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":234,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"14939c44-ee68-47b9-a18f-b6566fbff266","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":234,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"113616a5-eafc-42ce-83c2-330be2e435e8","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":234,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"7a81ddd1-8f1e-4446-8194-8336672f728b","block_type":"box","text":"18","page_number":234,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"f396aecb-c880-4ad4-aa93-7dacd9c9ee97","block_type":"box","text":"However,","page_number":234,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"99a28255-0c8d-453a-93e7-ec8812560eeb","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":234,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"b7766006-3340-4be8-8c59-0b7723364f5e","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":234,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"94e54e8a-9937-4a01-a8d4-46aad2d61c6f","block_type":"box","text":"their decarbonization targets. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":234,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"af3c76a2-a6a1-4fe6-b892-c37403216ca6","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":234,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"d4572e7b-3f52-4e85-8de7-5465c12c1c04","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":234,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"74b5eac5-09f7-4336-b669-00db240680a1","block_type":"box","text":"18","page_number":234,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"7f65ae93-c70a-46e8-9a20-a3753eba9cb7","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":234,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"904622c6-df65-478b-87bf-5a9486df0086","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. 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Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":235,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"b6079566-259d-40d1-8ad4-ea85d16c038c","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":235,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"68a560e1-0d44-40aa-af60-c76d9998a255","block_type":"box","text":"with the different constituents in their value chain.","page_number":235,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"c1ba41f9-256a-490b-a8e2-c0e1a48bb418","block_type":"box","text":"21","page_number":235,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"a40bdc3f-41f5-4704-9c29-0facf1319871","block_type":"box","text":"•","page_number":235,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"d29568c5-966a-4c48-94ce-a47b97cd4a70","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":235,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"0300734c-a538-4388-a07c-52fe6e68222e","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":235,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"64a58786-6cfd-4a6e-8b2b-6aaa20c991ef","block_type":"box","text":"22","page_number":235,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"8e5b5dc3-08ad-40b8-9ae7-2404efa43be8","block_type":"box","text":"The dedicated team looks for","page_number":235,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"6091f3d3-ae48-4c73-91d8-faacc90f5106","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":235,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"67e40a50-0fd3-4e34-9762-5c87214eb909","block_type":"box","text":"related to the low-carbon transition.","page_number":235,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"f35cf458-3d21-422a-a635-785b30b17ed8","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":235,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"b63137a1-c3c3-4eb2-80c0-0f32ffb970a5","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":235,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"0784934a-9af8-4b63-81da-ed0f31c11aad","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":235,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"353eb6f3-24b9-480e-b76d-d541e79fcc93","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. 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The Guidelines consider these","page_number":236,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"354bd8e4-7ece-49a8-826f-484ee0d184fa","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":236,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"b5a071b6-fccb-47de-9438-17fe3fac52f4","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":236,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"9905d8cd-f91c-4b2b-b50d-cb876310947f","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":236,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"379a33dd-6f1e-4871-af58-b79af13c796f","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":236,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"42e10da2-3c8a-4dab-b724-c6cac9ad6416","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":236,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"70a2a97c-a118-4d07-ba4a-b8241ec85aa4","block_type":"box","text":"transition plan and targets.","page_number":236,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"7c3586da-90a7-45e7-ba25-64abb03e0a8f","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":236,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"1a482375-839a-44d8-966a-a58bb14f7988","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":236,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"c52ad707-33de-404b-9d11-ab79d1e25cf8","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":236,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"269d4b80-ba29-41a8-8504-7a4f8b1470ef","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may support","page_number":236,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"889c6f77-f72c-4b22-94ac-43cc111435ae","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":236,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"6ba3366a-bc66-490c-8957-f3cc931fc1c5","block_type":"box","text":"•","page_number":236,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"bb8b9678-357b-487f-bd6f-9918ad5f22e5","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":236,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"84e503cc-f7ec-4ee6-b2e6-bf158b75b3c5","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":236,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"16547335-8e98-49eb-b468-ce2f0f576abe","block_type":"box","text":"•","page_number":236,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"413da337-4b10-431f-b5ce-ba56d3c05ee7","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":236,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"ca6d2e33-5724-4cbe-b34b-bbb2338428ec","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":236,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"11f16167-b8ab-40de-b9c5-23fd19df2ae1","block_type":"box","text":"•","page_number":236,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"adcccba7-9b2c-41a7-b8a4-1e10835bbd39","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":236,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"a6160d6e-4c5e-4f15-ba88-12de9572385e","block_type":"box","text":"•","page_number":236,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"38c6004c-f868-4e6a-a74e-fb9e5ab99f5c","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":236,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"c91a5fdb-efe8-4518-8188-c700e33cec35","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":236,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"3468dadf-743d-4973-acd6-03ab49e0a478","block_type":"box","text":"25","page_number":236,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"cb4187b3-5ba2-4152-8c41-ea7a6a462e5a","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":236,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"fa20e8ea-093e-4bf9-b072-6219fbd9234f","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":236,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"60c77445-96bf-439f-ae54-a262a5a514eb","block_type":"box","text":"RELATED MATTERS","page_number":236,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"7fb2873d-85ca-4eb8-8516-7d36be9b676f","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":236,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"13ea9f20-96e1-45ec-9646-92f5bda93d5f","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":236,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"6a10803b-af17-4a7d-b32e-fe19f661a874","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":236,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"a04eeef4-7b4d-407a-828b-742a076d6acf","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":236,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"150b1c17-2e11-4309-9b62-d687535e6a4e","block_type":"box","text":"24","page_number":236,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"dba4c92d-3731-477b-9f4a-8d3918563c08","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally","page_number":236,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"42b06d47-66c2-4b7f-8c28-57a0ab0302b1","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":236,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"07ca481c-e615-4e33-a87b-9bf6eb62687c","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":236,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"0d481e29-95dd-4a08-bdeb-3766f54dbdab","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":236,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"7e2e6733-25a3-4d97-93c8-0a668616d023","block_type":"box","text":"25","page_number":236,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"67a66713-04f6-4bbe-9e48-92010e114db9","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":236,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"4cb096c2-2a54-48c8-aaa2-21aaf2bb63dc","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":236,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"13cfc2dd-fa81-4eba-801f-ea73d10a5f07","block_type":"box","text":"BlackRock Investment Stewardship","page_number":236,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"42c0e9bb-5d31-4eb3-ba1c-ecbe96665369","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":236,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"98e4eb7f-a554-4836-b3b3-aae9e132fa7e","block_type":"box","text":"BNM1026U-6032383-19202706","page_number":236,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"efa0d3c2-39c3-4788-8aa2-eec4dcf4b568","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":237,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"297215ba-9b9b-459b-a611-a1eeae0f69fb","block_type":"box","text":"strategy and risk management.","page_number":237,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"d1ac9050-712f-43ff-be4b-5536f37efa2a","block_type":"box","text":"Auditors and audit-related issues","page_number":237,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"1f2ea1f4-ddc1-4945-859a-188a906b6a40","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":237,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"a7112c1a-1b71-4715-815d-3a4e5e4a4d76","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":237,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"5b277b90-eec0-4f3f-a125-52c1f9e62774","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":237,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"9caa3029-affc-4f72-b425-d1c9abdb6cbf","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":237,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"7986f81c-17ef-46e0-88b0-cf0b3af466eb","block_type":"box","text":"stakeholders.","page_number":237,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"8c8d3131-c555-4797-b5d5-32f4f58962f3","block_type":"box","text":"26","page_number":237,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"f8ab947f-5073-401e-99c4-c5b4ab1bd40f","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":237,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"9f679bcf-3c17-4d8d-a4e1-9f5ed3a19be3","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":237,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"8d2f6531-bb22-457a-a84d-2222d359144b","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":238,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"ac247163-af35-4b5a-abbf-f3f02e453bf5","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":238,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"225005a2-1967-49b6-96b5-5634c7222fca","block_type":"box","text":"e.g., methane.","page_number":238,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"c8921268-7daf-49d6-822f-83b23fc66e34","block_type":"box","text":"Climate-related risks and opportunities:","page_number":238,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"a8042e6f-c46e-4389-a6f1-f9555689490c","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":238,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"029219af-a293-4972-b6c4-20c0afd18a1d","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":238,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"e4df8132-de56-4bba-b8c9-91cc3761dc24","block_type":"box","text":"to physical climate change.","page_number":238,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"4199b6e1-1e44-446c-9e4d-679fba1f3298","block_type":"box","text":"Climate-related transition plan:","page_number":238,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"3dba108f-7a31-4aa7-ab89-7803f6b98e14","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":238,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"fe47e3d1-88dc-4674-8163-fa2223379774","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":238,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"41c375a7-e8e3-490d-87cc-13d5fa421317","block_type":"box","text":"greenhouse gas emissions.”","page_number":238,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"bbec07d7-f4cb-452c-8552-5514dd9eae6f","block_type":"box","text":"27","page_number":238,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"7fe05554-1f27-4923-a104-a20f37d62fdf","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":238,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"49ec847c-7879-46bc-9bb2-21fceb25d07a","block_type":"box","text":"Targets that “","page_number":238,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"d181c06d-5914-4c61-a3d5-d4f2f22c8ebb","block_type":"box","text":"are in line with what the latest climate science","page_number":238,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"cf130c8a-448d-4a5b-b2e5-4206375448cf","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":238,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"9c614d67-c5f0-458c-b299-4df79b09c10b","block_type":"box","text":"levels. 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[It] is defined as electricity [steam,","page_number":238,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"68ab8739-061d-491c-9ecb-4eeb34c7eabd","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":238,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"805adaa9-379b-4204-86c3-026360382ae4","block_type":"box","text":"30","page_number":238,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"56fd646b-9488-4b8b-8baa-b5a8e8200c56","block_type":"box","text":"Scope 3:","page_number":238,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"cf14d101-a5c5-4514-8e94-e33d24aca4b0","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":238,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"de60fc2c-ff51-490d-b61e-1d2a2a05d745","block_type":"box","text":"of all other indirect emissions. 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