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As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":15,"box":{"x":102,"y":823,"width":759,"height":12}},{"id":"76e7af60-0b60-4183-806a-8d1601e33e85","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":15,"box":{"x":102,"y":838,"width":779,"height":12}},{"id":"99b5944b-c962-44ca-9c75-e290da65810b","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":15,"box":{"x":101,"y":853,"width":761,"height":12}},{"id":"0fc2940e-b6c2-447e-9fcd-f96f74a6543b","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":15,"box":{"x":102,"y":869,"width":795,"height":11}},{"id":"bdd1b546-7e03-4b02-9486-cb08260dcafd","block_type":"box","text":"12(d)(1).","page_number":15,"box":{"x":102,"y":884,"width":60,"height":11}},{"id":"76f61d84-b91a-411f-a5f3-d6b05b4a4136","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"81c4b925-b6c5-4d10-888e-d96f3d8ca026","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":15,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"b384c05c-eed4-4a75-bdcd-fda1d3e9f236","block_type":"box","text":"(b) Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s","page_number":16,"box":{"x":134,"y":45,"width":770,"height":11}},{"id":"6a57d19c-9dd3-44c6-85db-a8ce003a1db3","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":16,"box":{"x":102,"y":60,"width":509,"height":11}},{"id":"50774512-bbaf-461e-b13b-5c105faaac6b","block_type":"box","text":"Except with respect to restriction (7) above or with respect to policies adopted pursuant to Rules 35d-1 under","page_number":16,"box":{"x":102,"y":83,"width":780,"height":10}},{"id":"8a2692be-93e0-43aa-8832-e10aa4b47226","block_type":"box","text":"the Investment Company Act, all limitation under the Fund’s fundamental or non-fundamental investment restrictions","page_number":16,"box":{"x":68,"y":98,"width":832,"height":11}},{"id":"acf9d3ee-8731-48ca-b789-d221b22771bd","block_type":"box","text":"apply only at the time that a transaction is undertaken. Any change in the percentage of the Fund’s assets invested","page_number":16,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"32904f90-bba1-45fe-8530-3749a6bf38f7","block_type":"box","text":"in certain securities or other instruments resulting from market fluctuations or other changes in the Fund’s total","page_number":16,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"d40344c7-7a7e-4951-ae1d-c9b695baf496","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":16,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"e1b8f79d-95cb-4ac0-a5f9-bf3409fc354f","block_type":"box","text":"or close out the investment without undue market or tax consequences.","page_number":16,"box":{"x":69,"y":158,"width":511,"height":11}},{"id":"8bdac41a-66d5-4764-8a53-79f62b08b03b","block_type":"box","text":"For purposes of investment restriction (2) above, with respect to the Fund’s industry classifications, the Fund","page_number":16,"box":{"x":102,"y":181,"width":778,"height":11}},{"id":"b1d6e607-f219-4a4e-b713-c4e8d7ceabe9","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":16,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"f033ab75-207b-4ccc-97e3-266c5564b3ab","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":16,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"01f03100-b95c-4bee-bf3c-6533a23848ed","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":16,"box":{"x":69,"y":226,"width":597,"height":11}},{"id":"cb3f960c-1e60-481b-9576-abe1d4c09030","block_type":"box","text":"III. Information on Directors and Officers","page_number":16,"box":{"x":69,"y":256,"width":294,"height":9}},{"id":"48121a2a-f495-45e9-af21-548c273f6a8d","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Director”), thirteen of whom are not “interested persons” of","page_number":16,"box":{"x":101,"y":279,"width":790,"height":11}},{"id":"56a9b289-ea1a-448c-a32e-e30c4a374d7e","block_type":"box","text":"the Corporation as defined in the Investment Company Act (the “Independent Directors”). The registered investment","page_number":16,"box":{"x":68,"y":294,"width":828,"height":11}},{"id":"a4317584-06bb-44d2-bb01-3d4e7d60ef20","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":16,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"b05065ec-ef47-4f6a-b884-90af36894c7b","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":16,"box":{"x":70,"y":324,"width":793,"height":11}},{"id":"af34473e-b17a-4f60-8d1e-99429aac999a","block_type":"box","text":"Complex”). The Corporation is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset","page_number":16,"box":{"x":69,"y":339,"width":799,"height":11}},{"id":"1fb41da6-b18e-4e26-9923-3e66b851e736","block_type":"box","text":"Complex. The Directors also oversee as board members the operations of the other open-end registered investment","page_number":16,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"2bba5cca-6976-4f5a-8371-79b68deef970","block_type":"box","text":"companies included in the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":69,"y":370,"width":418,"height":11}},{"id":"aa11fdf3-eb07-41c9-b7df-5bce1d0276c3","block_type":"box","text":"The Board has overall responsibility for the oversight of the Corporation and the Fund. The Chair of the Board is","page_number":16,"box":{"x":101,"y":392,"width":794,"height":12}},{"id":"88e71bfe-f067-4a4a-aa0e-781f2a761a27","block_type":"box","text":"an Independent Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director.","page_number":16,"box":{"x":69,"y":407,"width":823,"height":11}},{"id":"12062e18-2a3e-4578-b870-0984ded40b28","block_type":"box","text":"The Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a","page_number":16,"box":{"x":68,"y":423,"width":766,"height":11}},{"id":"9dd5ba9f-5ab9-441d-ae76-cafbc00c1aba","block_type":"box","text":"Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair","page_number":16,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"9a89f172-c3d6-4680-bcc2-0c51d427e5b4","block_type":"box","text":"of the Board is to preside at all meetings of the Board and to act as a liaison with service providers, officers,","page_number":16,"box":{"x":69,"y":453,"width":778,"height":11}},{"id":"b4e826cd-5d40-4be3-83f0-98f5747c7e8c","block_type":"box","text":"attorneys and other Directors generally between meetings. The Chair of each Committee performs a similar role with","page_number":16,"box":{"x":69,"y":468,"width":830,"height":11}},{"id":"57272849-11e5-43da-b440-2d02319b0dad","block_type":"box","text":"respect to the Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions","page_number":16,"box":{"x":69,"y":483,"width":836,"height":11}},{"id":"d3918818-9d54-420e-ae4f-3187d1ba1637","block_type":"box","text":"as may be delegated by the Board or the Committee from time to time. The Independent Directors meet regularly","page_number":16,"box":{"x":69,"y":498,"width":805,"height":11}},{"id":"6361c074-d8d2-4c2f-b18a-eb76b29b5219","block_type":"box","text":"outside the presence of Fund management, in executive session or with other service providers to the Fund. The","page_number":16,"box":{"x":69,"y":513,"width":802,"height":12}},{"id":"8e028023-c486-4dfd-9eba-623bd4b23203","block_type":"box","text":"Board has regular meetings five times a year, and may hold special meetings if required before its next regular","page_number":16,"box":{"x":70,"y":528,"width":788,"height":12}},{"id":"26d58214-8500-40ce-9d6a-714810067b8e","block_type":"box","text":"meeting. Each Committee meets regularly to conduct the oversight functions delegated to that Committee by the","page_number":16,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"0dce6cee-4094-4d74-81a9-cd5d512d6427","block_type":"box","text":"Board and reports its findings to the Board. The Board and each standing Committee conduct annual assessments","page_number":16,"box":{"x":70,"y":559,"width":821,"height":11}},{"id":"668474fc-0538-40c5-bc6f-49b7b68da509","block_type":"box","text":"of their oversight function and structure. The Board has determined that the Board’s leadership structure is","page_number":16,"box":{"x":69,"y":574,"width":767,"height":11}},{"id":"631a52f1-39ce-4f87-921d-1693c68028ba","block_type":"box","text":"appropriate because it allows the Board to exercise independent judgment over management and to allocate areas of","page_number":16,"box":{"x":69,"y":589,"width":839,"height":11}},{"id":"d046fc35-c241-47cb-8e98-7fa20ef19543","block_type":"box","text":"responsibility among Committees and the full Board to enhance effective oversight.","page_number":16,"box":{"x":69,"y":604,"width":593,"height":11}},{"id":"8990c9f2-21bf-48f6-b4d0-79bfe67cbe72","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":16,"box":{"x":101,"y":627,"width":777,"height":11}},{"id":"b1c65e07-b2a7-44e2-83c9-a0899cf0d07a","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":16,"box":{"x":69,"y":642,"width":832,"height":11}},{"id":"9623e331-9676-45dd-812b-be6c9addd2ac","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Corporation’s charter, and the","page_number":16,"box":{"x":68,"y":657,"width":815,"height":11}},{"id":"cfa76375-9ec8-4442-ba1a-ab049097a85e","block_type":"box","text":"Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance,","page_number":16,"box":{"x":70,"y":672,"width":784,"height":11}},{"id":"defe0bed-242d-44bd-a302-cd733aced486","block_type":"box","text":"operations and investment strategies and techniques. The Board also conducts reviews of the Manager and its role","page_number":16,"box":{"x":69,"y":687,"width":823,"height":11}},{"id":"82fc287c-2415-4627-89a6-228cd70e1abc","block_type":"box","text":"in running the operations of the Fund.","page_number":16,"box":{"x":70,"y":702,"width":266,"height":12}},{"id":"c54dbcbe-a91e-47ff-ad55-e7e0c23e86e9","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":16,"box":{"x":102,"y":725,"width":785,"height":11}},{"id":"d9a6aaef-94da-40da-ac2a-87cc7c712fe1","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":16,"box":{"x":69,"y":740,"width":828,"height":11}},{"id":"0670a683-207d-4e4e-93be-1ec8073b8085","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":16,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"d29e1dc0-b212-4c86-aae5-b1a75f21341b","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":16,"box":{"x":68,"y":770,"width":820,"height":12}},{"id":"769b00d3-0220-40f7-8490-cb1666657d09","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":16,"box":{"x":70,"y":785,"width":811,"height":12}},{"id":"481c2475-6b6a-4cc2-96c8-112be7b77c8e","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":16,"box":{"x":70,"y":801,"width":767,"height":11}},{"id":"4bbcdbd7-fb85-4635-a206-d9914de2517f","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":16,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"1b23cec4-9534-47df-91a4-847697786fbb","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":16,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"dbf22ef7-f78f-4abf-9f1e-9cf12a90d73a","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":16,"box":{"x":69,"y":846,"width":840,"height":11}},{"id":"d9efb6e1-4d42-4dcf-bc22-c657cebf6e17","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":16,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"2bf168d2-1c5d-4ee0-946a-c8f7334afbd2","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":16,"box":{"x":69,"y":876,"width":817,"height":11}},{"id":"68294d92-1f6e-4757-af94-f85c1f9c3eed","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":16,"box":{"x":69,"y":891,"width":812,"height":11}},{"id":"4f07eaab-a209-4f30-a157-8887eb1b8338","block_type":"box","text":"testing of the Corporation’s compliance program and reports to the Board regarding compliance matters for the Fund","page_number":16,"box":{"x":68,"y":906,"width":834,"height":12}},{"id":"14a02643-cf5b-4a52-8f45-d7ca4378eabd","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"ccdbdfa4-5153-4423-9e86-00dc9b8bd216","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":16,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"baf54eb2-84e5-4798-8a81-8b34d4bf45dc","block_type":"box","text":"and its service providers. The Independent Directors have engaged independent legal counsel to assist them in","page_number":17,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"d2c0929b-1503-42de-bec0-1852501a52c4","block_type":"box","text":"performing their oversight responsibilities.","page_number":17,"box":{"x":70,"y":60,"width":299,"height":11}},{"id":"f70f0eea-10ea-4317-9403-017a9664e565","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":83,"width":122,"height":8}},{"id":"836ce00a-1097-4157-92a9-1c9234864317","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":17,"box":{"x":229,"y":82,"width":673,"height":12}},{"id":"f49ddbca-ac81-4395-a354-4e648951fa6b","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":17,"box":{"x":68,"y":98,"width":834,"height":11}},{"id":"c3dd5738-9204-4f54-8942-5d2b9854d68f","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":17,"box":{"x":68,"y":113,"width":820,"height":11}},{"id":"83f8aac0-5ecc-4b61-a933-3c2f06a37b5b","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":17,"box":{"x":68,"y":128,"width":823,"height":11}},{"id":"3f0fc408-59fe-4d93-8b95-f32dbe641466","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":143,"width":830,"height":11}},{"id":"7ed4e8d6-2676-4806-9a07-f09d7278b20c","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":17,"box":{"x":70,"y":158,"width":825,"height":11}},{"id":"cd2814bc-8201-46fb-839f-c4a3ff830aa5","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":17,"box":{"x":70,"y":173,"width":807,"height":11}},{"id":"07dcd98b-4327-4a45-9787-4bfae9e8599a","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":17,"box":{"x":68,"y":188,"width":781,"height":11}},{"id":"8535a93a-0f2a-46c4-a9ee-6f52823aa631","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":17,"box":{"x":69,"y":204,"width":834,"height":11}},{"id":"68c339bd-1a12-421e-bbe7-bb94fcd2fc77","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":17,"box":{"x":69,"y":218,"width":838,"height":12}},{"id":"b516ea26-6cc7-4d3f-82b2-39669081e5de","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":234,"width":825,"height":11}},{"id":"68213b1f-5e5c-40ed-8561-22a81491cb6a","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":17,"box":{"x":70,"y":249,"width":809,"height":11}},{"id":"7e58b51b-db12-4f72-a108-e76be5d43144","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":17,"box":{"x":70,"y":264,"width":815,"height":11}},{"id":"562fd7ac-9b67-4c52-9de8-27d7d23694bf","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":17,"box":{"x":69,"y":279,"width":774,"height":11}},{"id":"c8294865-7d7e-43cd-aea2-0ff57316de4a","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":17,"box":{"x":69,"y":294,"width":815,"height":11}},{"id":"5255c3f3-da4d-440a-9144-a4503a0aa8e0","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":17,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"049d46f0-7654-4b1a-893a-677dc3c3facd","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":17,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"43a07d78-b9df-493f-b26b-a66c9c434e9e","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":17,"box":{"x":70,"y":339,"width":574,"height":12}},{"id":"592d8060-ac34-4ade-baee-f40a1cd44467","block_type":"box","text":"Governance and Nominating Committee.","page_number":17,"box":{"x":102,"y":362,"width":286,"height":11}},{"id":"e5b08256-c0ee-4ece-b065-041afee47616","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":17,"box":{"x":394,"y":362,"width":464,"height":11}},{"id":"a62f58c8-070f-43ad-84bb-5379e28c3ec8","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":17,"box":{"x":70,"y":377,"width":838,"height":12}},{"id":"33d7b525-8e0c-45bb-8c67-6c1c7ca2e5c3","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Directors. The principal responsibilities of the","page_number":17,"box":{"x":70,"y":392,"width":786,"height":12}},{"id":"c2c6f4d0-e647-4338-9fda-0592abd30de0","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Corporation","page_number":17,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"a61c51be-e0d6-4f30-b666-758665a56440","block_type":"box","text":"and recommend Independent Director nominees for election by shareholders or appointment by the Board; (2) advise","page_number":17,"box":{"x":69,"y":423,"width":835,"height":11}},{"id":"f8d73086-4dcf-4611-80b8-ff4b08ccb2f1","block_type":"box","text":"the Board with respect to Board composition, procedures and committees (other than the Audit Committee);","page_number":17,"box":{"x":68,"y":438,"width":772,"height":11}},{"id":"94003540-8940-4ec4-95f5-50140efc374e","block_type":"box","text":"(3) oversee periodic self-assessments of the Board and committees of the Board (other than the Audit Committee);","page_number":17,"box":{"x":69,"y":453,"width":820,"height":11}},{"id":"e01b5d90-4816-46cd-bf2e-5b8edea7da91","block_type":"box","text":"(4) review and make recommendations regarding Independent Director compensation; (5) monitor corporate","page_number":17,"box":{"x":69,"y":468,"width":768,"height":11}},{"id":"d35f1b79-9948-4307-9407-1d5279e39788","block_type":"box","text":"governance matters and develop appropriate recommendations to the Board; (6) act as the administrative committee","page_number":17,"box":{"x":68,"y":483,"width":837,"height":11}},{"id":"e2aa7527-565f-49fc-8d38-f1a5bbfd1451","block_type":"box","text":"with respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee)","page_number":17,"box":{"x":68,"y":498,"width":827,"height":11}},{"id":"72a6cbee-aac2-4d66-a56d-28c0ced2917f","block_type":"box","text":"and codes of ethics as they relate to Independent Directors; and (7) undertake such other duties and responsibilities","page_number":17,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"121b1af8-6450-4f23-b4f6-e20b534e07ee","block_type":"box","text":"as may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may","page_number":17,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"fea07655-2f2b-4e76-bbea-01f8cb0f703b","block_type":"box","text":"consider nominations for Directors made by the Fund’s shareholders as it deems appropriate. Under the","page_number":17,"box":{"x":69,"y":543,"width":744,"height":12}},{"id":"313c02ba-9767-4e53-bbce-b91c205aac26","block_type":"box","text":"Corporation’s Amended and Restated Bylaws, shareholders must follow certain procedures to nominate a person for","page_number":17,"box":{"x":69,"y":559,"width":832,"height":11}},{"id":"d2ac9218-8dc8-49a4-8b7d-8cce28c63058","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":17,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"e825130d-c035-4eee-bac8-cb211f88c5c2","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Corporation must be delivered to or mailed and","page_number":17,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"9414a49b-7533-4fff-b321-da6aeb1191c9","block_type":"box","text":"received at the principal executive offices of the Corporation not later than the close of business on the fifth day","page_number":17,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"10db7fce-4ba9-43cc-8bb8-486f8f01298a","block_type":"box","text":"following the day on which notice of the date of the meeting was mailed or public disclosure of the date of the","page_number":17,"box":{"x":68,"y":619,"width":784,"height":11}},{"id":"4ffcfd21-ebc5-4133-acde-a6ccc8a545e5","block_type":"box","text":"meeting was made, whichever first occurs. The Corporation’s Bylaws provide that notice of a proposed nomination","page_number":17,"box":{"x":69,"y":634,"width":813,"height":12}},{"id":"f513ac0b-923a-4980-af44-7cf837ae82b3","block_type":"box","text":"must include certain information about the shareholder and the nominee, as well as certain other information,","page_number":17,"box":{"x":69,"y":649,"width":787,"height":11}},{"id":"5376006d-9064-4e32-9f10-fc96c6150808","block_type":"box","text":"including a written consent of the proposed nominee to serve if elected. Reference is made to the Corporation’s","page_number":17,"box":{"x":70,"y":664,"width":799,"height":12}},{"id":"4edb91ed-75b6-4d2e-8d13-66ed63af9cc1","block_type":"box","text":"Bylaws for more details. The Board has adopted a written charter for the Governance Committee. During the fiscal","page_number":17,"box":{"x":70,"y":680,"width":812,"height":11}},{"id":"590174f2-6e0c-4d26-8a89-3945fe7a17b4","block_type":"box","text":"year ended May 31, 2026, the Governance Committee met ten times.","page_number":17,"box":{"x":68,"y":695,"width":498,"height":11}},{"id":"d7f765ce-f686-4320-a80a-2a4db42ee54f","block_type":"box","text":"Compliance Committee.","page_number":17,"box":{"x":102,"y":718,"width":168,"height":10}},{"id":"a83ebf52-0b82-46f9-aa38-c9dfcb1cf15d","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":17,"box":{"x":276,"y":717,"width":629,"height":11}},{"id":"58629dfd-3542-46f9-982c-4f9c2f6ac9ad","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":17,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"87d1106b-a2ad-475c-a682-7a2e43631c1f","block_type":"box","text":"whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":17,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"d6044718-a434-4ddc-92ad-282525c06a59","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Corporation, the fund-related","page_number":17,"box":{"x":69,"y":763,"width":794,"height":11}},{"id":"88607297-08bf-404a-98eb-b44659086fb9","block_type":"box","text":"activities of BlackRock and any sub-adviser and the Corporation’s third-party service providers. The Compliance","page_number":17,"box":{"x":69,"y":778,"width":793,"height":11}},{"id":"bc7cf482-f8f3-4318-9108-98789c2132ec","block_type":"box","text":"Committee’s responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the","page_number":17,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"3b091ec3-9fa6-4517-a50e-ea9f13adc7cb","block_type":"box","text":"Corporation and its service providers and recommend changes or additions to such policies and procedures;","page_number":17,"box":{"x":69,"y":808,"width":773,"height":11}},{"id":"a1528d81-1092-4d59-b65b-433c891cb639","block_type":"box","text":"(2) review information on and, where appropriate, recommend policies concerning the Corporation’s compliance with","page_number":17,"box":{"x":69,"y":823,"width":829,"height":12}},{"id":"387c04f5-8c15-4efb-9d9f-2bf9fa031923","block_type":"box","text":"applicable law; (3) review reports from, oversee the annual performance review of, and make certain","page_number":17,"box":{"x":69,"y":838,"width":719,"height":11}},{"id":"54bcc8de-2b6c-4367-8fb8-959750b7e811","block_type":"box","text":"recommendations and determinations regarding the Corporation’s Chief Compliance Officer (the “CCO”), including","page_number":17,"box":{"x":69,"y":853,"width":814,"height":12}},{"id":"36fad45d-f7b8-4326-b7b6-600656fae306","block_type":"box","text":"determining the amount and structure of the CCO’s compensation and recommending such amount and structure to","page_number":17,"box":{"x":69,"y":869,"width":829,"height":11}},{"id":"b1f6243b-1835-4fac-ba38-17d50602d8c3","block_type":"box","text":"the full Board for approval and ratification; and (4) undertake such other duties and responsibilities as may from time","page_number":17,"box":{"x":68,"y":884,"width":839,"height":11}},{"id":"bf602476-9824-4081-a323-192501e60675","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"f8239d3d-7c45-417b-a2a4-296ef287212c","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":17,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"725a7413-dfa4-463e-a7ba-5daedec71ed9","block_type":"box","text":"to time be delegated by the Board to the Compliance Committee. The Board has adopted a written charter for the","page_number":18,"box":{"x":68,"y":45,"width":810,"height":11}},{"id":"6a9e15b8-4e7b-44a1-9948-0c7fae90af6f","block_type":"box","text":"Compliance Committee. During the fiscal year ended May 31, 2026, the Compliance Committee met four times.","page_number":18,"box":{"x":69,"y":60,"width":798,"height":11}},{"id":"6295c66b-8599-4fc1-b2a1-3ee5d844fc17","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":82,"width":248,"height":12}},{"id":"77691f36-9786-4592-a168-154a664a5b73","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":18,"box":{"x":356,"y":82,"width":531,"height":12}},{"id":"091aa78d-3af8-4170-930c-56e9589dcc2c","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":18,"box":{"x":69,"y":98,"width":829,"height":11}},{"id":"7a8ec0b8-8935-4f75-9006-5debfed6bc2f","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Directors. The Performance Oversight Committee’s purpose is","page_number":18,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"ea3e927e-fa5d-4d04-9733-a5c9cca02c27","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":18,"box":{"x":68,"y":128,"width":832,"height":11}},{"id":"7e9b6cc5-a9d8-4677-9314-e97ceba4013e","block_type":"box","text":"upon performance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":18,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"4bd0c67e-8954-4754-91cf-b7d37b4c4906","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":18,"box":{"x":69,"y":158,"width":782,"height":11}},{"id":"10c0ae52-efd0-4260-b68e-d523c365af8e","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":18,"box":{"x":70,"y":173,"width":829,"height":11}},{"id":"50230137-4e36-49fc-8f00-55d352aa12c5","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":18,"box":{"x":69,"y":188,"width":816,"height":11}},{"id":"b9b02d00-d675-4a4e-b3a5-4e97eeabf2ea","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":18,"box":{"x":69,"y":204,"width":803,"height":10}},{"id":"e77cee13-e640-41da-b73d-ec6b2ef46579","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":18,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"f632e8c9-c9e6-4145-8e54-e4aa7d3f9b5b","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":18,"box":{"x":68,"y":234,"width":811,"height":11}},{"id":"efd0ff64-f2e8-4ccb-a986-206918bd17f1","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":18,"box":{"x":69,"y":249,"width":757,"height":11}},{"id":"a2825742-909d-4243-b2e4-30a63436aaef","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":18,"box":{"x":70,"y":264,"width":835,"height":11}},{"id":"36f12d64-c9fd-45ce-a3e4-07c9a26b0ee3","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":18,"box":{"x":68,"y":279,"width":800,"height":11}},{"id":"fd0abfea-4fa2-4267-8b10-6188a7f5583b","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":18,"box":{"x":69,"y":294,"width":780,"height":11}},{"id":"e7687612-ec4e-4ee3-8a2c-56061c1cdc41","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the fiscal year","page_number":18,"box":{"x":69,"y":309,"width":838,"height":11}},{"id":"413fd73f-3b19-43de-ab76-b14dae12dc4e","block_type":"box","text":"ended May 31, 2026, the Performance Oversight Committee met five times.","page_number":18,"box":{"x":69,"y":324,"width":544,"height":12}},{"id":"5a101d95-41b7-4eec-9cae-23d667c2ad11","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":18,"box":{"x":101,"y":347,"width":186,"height":11}},{"id":"aa34a8e5-75f3-49bf-be81-fd1d0d5346dc","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":18,"box":{"x":293,"y":347,"width":598,"height":11}},{"id":"4d1f6f28-c818-49c0-b3af-6a72280fdf13","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":18,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"a128f7c7-0c4e-4303-bb67-8c22cc71d251","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":18,"box":{"x":69,"y":377,"width":796,"height":11}},{"id":"315140cd-d827-42bd-9199-319e4d733f76","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":18,"box":{"x":69,"y":392,"width":788,"height":12}},{"id":"99a5c19b-512c-4b88-b458-c615fd511069","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":18,"box":{"x":69,"y":407,"width":813,"height":12}},{"id":"89c44ced-2a8e-4179-b3e8-e9ffbf5f8d41","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":18,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"480f9415-82f5-490b-9541-caf06ea4664b","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":18,"box":{"x":68,"y":438,"width":575,"height":11}},{"id":"11cf8d1c-6d19-434a-83a1-7194a956528f","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":18,"box":{"x":101,"y":460,"width":771,"height":12}},{"id":"25246620-81de-48c6-8d77-75d722afcdc4","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":18,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"05a88c07-9ded-4c3b-aba0-8f3c2cf4ad23","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":18,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"7fb0abcd-07d5-4eed-b4d9-ad423a4e33df","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":18,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"8c69e4b2-7587-4893-a5ae-46d50fa479c8","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":18,"box":{"x":70,"y":521,"width":811,"height":11}},{"id":"a8639b02-e52f-463e-a2db-4ea228ce3e62","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":18,"box":{"x":70,"y":536,"width":787,"height":11}},{"id":"7575c7b2-bb01-468b-aab6-803c27ff0c37","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":18,"box":{"x":69,"y":551,"width":807,"height":11}},{"id":"6f83be10-d1ff-449b-9c8b-f155990593a6","block_type":"box","text":"which allow the Board to operate effectively in governing the Corporation and protecting the interests of shareholders.","page_number":18,"box":{"x":68,"y":566,"width":840,"height":11}},{"id":"6e73ff59-3c34-435c-a3e7-058cc911a393","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":18,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"3d436587-9960-4be6-8624-4ae8418398a3","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":18,"box":{"x":69,"y":596,"width":823,"height":12}},{"id":"f3d7be56-1f99-48b4-8451-6ee5cba1fb11","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":18,"box":{"x":69,"y":612,"width":771,"height":11}},{"id":"299cf558-d211-4ce9-93bc-8a5e65feaade","block_type":"box","text":"business judgment in the performance of their duties as Directors.","page_number":18,"box":{"x":69,"y":627,"width":475,"height":11}},{"id":"e7ac5628-25cd-4043-a037-2a8af441e189","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":18,"box":{"x":102,"y":649,"width":794,"height":12}},{"id":"f803363e-1568-499f-b477-696d2b7d8688","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":18,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"d3cc43a4-10c2-4cfc-80b0-bf1e9ef9576a","block_type":"box","text":"board member of the Corporation and the other funds in the BlackRock Fund Complexes (and any predecessor","page_number":18,"box":{"x":69,"y":680,"width":787,"height":11}},{"id":"88d986ab-a32f-4980-b2a3-82af7775a93e","block_type":"box","text":"funds), other investment funds, public companies, non-profit entities or other organizations; ongoing commitment to","page_number":18,"box":{"x":68,"y":695,"width":827,"height":11}},{"id":"ba542765-debf-4784-ab64-962586417ee8","block_type":"box","text":"and participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":18,"box":{"x":69,"y":710,"width":717,"height":11}},{"id":"2e046c92-51b9-48ad-80ef-0eaef21cacbc","block_type":"box","text":"ad hoc","page_number":18,"box":{"x":793,"y":710,"width":47,"height":9}},{"id":"598ba700-d502-403a-9783-06ea3fad013d","block_type":"box","text":"committees throughout the years; or other relevant life experiences.","page_number":18,"box":{"x":69,"y":725,"width":483,"height":11}},{"id":"1fdc46d2-d331-4e4e-a281-73eeef8d702c","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"4b36ec2b-6a06-42e9-b2f8-ed9af0003438","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":18,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"9e05e6bc-88c0-4211-beee-41e72bd3a6fa","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":19,"box":{"x":101,"y":45,"width":754,"height":11}},{"id":"ccf095fd-b12b-478c-8d55-200463e7b3a5","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":19,"box":{"x":69,"y":60,"width":494,"height":11}},{"id":"718f8c97-4f24-4da2-8571-a571141857f7","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":19,"box":{"x":69,"y":88,"width":408,"height":9}},{"id":"f02c301c-71d9-4eb5-81c5-46761c2b6154","block_type":"box","text":"Independent Directors","page_number":19,"box":{"x":70,"y":105,"width":156,"height":10}},{"id":"b3845835-7c04-4513-8208-3919d4b26d9a","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":19,"box":{"x":69,"y":120,"width":781,"height":11}},{"id":"558239ce-9323-4649-b3ad-033ae9a682dc","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":19,"box":{"x":265,"y":135,"width":604,"height":11}},{"id":"f140e841-f1a5-4ae4-a2c9-fad0fce9f43b","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":19,"box":{"x":265,"y":150,"width":623,"height":11}},{"id":"a1b2094f-f5cb-4408-97d9-253c0a6ab4e7","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":19,"box":{"x":265,"y":165,"width":637,"height":11}},{"id":"d1194d2f-dd3f-42c4-908e-1f4fdc7f0bd3","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":19,"box":{"x":265,"y":180,"width":631,"height":11}},{"id":"2ae64c7f-40cc-4fcb-b12e-e6a239db963f","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":19,"box":{"x":264,"y":195,"width":626,"height":11}},{"id":"971767e3-8280-4eb9-9f03-62beab60d161","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":19,"box":{"x":265,"y":210,"width":639,"height":11}},{"id":"8539d788-70dc-4298-bcd4-1232d1aea097","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":19,"box":{"x":264,"y":226,"width":637,"height":11}},{"id":"a0fceea1-47eb-4434-892b-1d8880fb3b34","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":19,"box":{"x":265,"y":241,"width":586,"height":11}},{"id":"728fc201-5dde-4b2c-ad51-c038dd217c27","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":19,"box":{"x":265,"y":256,"width":640,"height":11}},{"id":"ae5c3e85-9875-4a72-87e4-26ed52b6f28a","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":19,"box":{"x":265,"y":271,"width":389,"height":11}},{"id":"04529ac1-b132-4aa9-9942-76919f1fb8ec","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":19,"box":{"x":69,"y":293,"width":806,"height":12}},{"id":"dd506c44-5a8c-440f-9118-285256b82050","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":19,"box":{"x":265,"y":309,"width":604,"height":11}},{"id":"7a4b8707-1c46-49c9-bea4-c340c6ab4bf4","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":19,"box":{"x":265,"y":324,"width":632,"height":11}},{"id":"fb87910e-0c06-46bd-a141-c03ef0995028","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":19,"box":{"x":265,"y":339,"width":562,"height":9}},{"id":"988fb3c6-f299-4fb0-9bd4-7d0788642094","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":19,"box":{"x":265,"y":354,"width":616,"height":10}},{"id":"7607457a-d2bf-41c8-8b56-29cc9dd8bbe3","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":19,"box":{"x":264,"y":369,"width":591,"height":11}},{"id":"4262b937-2921-4407-884b-3caf9dc6beb6","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":19,"box":{"x":265,"y":384,"width":641,"height":11}},{"id":"32dbb19d-8307-4647-90c6-08c0463f7506","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":19,"box":{"x":264,"y":399,"width":638,"height":12}},{"id":"005b7608-daa2-4262-a858-1d06a373e048","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":19,"box":{"x":265,"y":414,"width":584,"height":12}},{"id":"78426d80-e43b-4e02-9239-2662834426eb","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":19,"box":{"x":265,"y":429,"width":630,"height":12}},{"id":"c5a9c7b3-1a80-4a72-ae2a-4c9ae9800901","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":19,"box":{"x":265,"y":445,"width":634,"height":11}},{"id":"16f802ac-49ee-4753-a531-4a8991040146","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":19,"box":{"x":265,"y":460,"width":599,"height":11}},{"id":"269de88e-c5e3-4106-83a1-d8d3e448cc66","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":475,"width":407,"height":11}},{"id":"ccddd7d3-19a2-4ccd-ba5a-fef93a26f44e","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":19,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"102d0fae-c923-4d2a-9464-f81914cdaca7","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":19,"box":{"x":265,"y":513,"width":638,"height":11}},{"id":"38f6eefa-6012-4635-8163-9f1ec56082c6","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":19,"box":{"x":265,"y":528,"width":642,"height":11}},{"id":"b55ece9d-ea10-4d3e-be26-6968e3f4d98e","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":19,"box":{"x":265,"y":542,"width":601,"height":12}},{"id":"74c309bc-7257-4055-a8c9-f69771712177","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":19,"box":{"x":265,"y":558,"width":595,"height":11}},{"id":"9b1b8662-6a4c-4029-942e-f688d964810f","block_type":"box","text":"perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":573,"width":323,"height":11}},{"id":"ed1c18ce-8432-4ded-a6b3-4ca26dcc581c","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":19,"box":{"x":70,"y":596,"width":798,"height":11}},{"id":"49ee2422-0277-4579-9fdc-c7062a61aa88","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":19,"box":{"x":265,"y":611,"width":631,"height":11}},{"id":"cb4a2382-4fb1-435b-b212-cbcea7d2916b","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":19,"box":{"x":265,"y":626,"width":633,"height":11}},{"id":"0c0874da-ae79-4749-bbe3-74ef70183b9e","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":19,"box":{"x":265,"y":641,"width":628,"height":11}},{"id":"73a6ebd5-ec55-47f2-889a-439820a8709b","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":19,"box":{"x":265,"y":656,"width":596,"height":12}},{"id":"2d6c30d4-f98d-4b36-9261-0fd8272a6b17","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":19,"box":{"x":265,"y":671,"width":616,"height":12}},{"id":"77d61213-de83-4f2b-a948-9c3a1597d845","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":19,"box":{"x":264,"y":686,"width":368,"height":11}},{"id":"9dec81b9-eab9-4c8c-b07e-6742214d4309","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":19,"box":{"x":69,"y":709,"width":777,"height":11}},{"id":"477b5357-b80a-47dd-b90a-c3a04ba387b0","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":19,"box":{"x":265,"y":724,"width":613,"height":12}},{"id":"1b83104a-e46d-4291-9248-d9a68ed706af","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":19,"box":{"x":265,"y":739,"width":563,"height":12}},{"id":"dee63997-1138-4911-8d34-36b14f9dd91b","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":19,"box":{"x":265,"y":755,"width":607,"height":11}},{"id":"cfa72825-1866-4726-95f7-bd60544342a8","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":19,"box":{"x":265,"y":770,"width":638,"height":11}},{"id":"55d0bb80-fe74-4d29-92b1-0b0c510b5768","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":19,"box":{"x":265,"y":785,"width":626,"height":11}},{"id":"3edbcdf6-099e-45c1-8bab-2e3c461f7bd2","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":19,"box":{"x":265,"y":800,"width":563,"height":11}},{"id":"ee77c81d-3e43-4007-96c4-967ef9efe54a","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Directors prior to becoming an","page_number":19,"box":{"x":265,"y":815,"width":627,"height":11}},{"id":"ea5e1dea-6b2a-433f-9d2d-a2fdc06cc617","block_type":"box","text":"Independent Director. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":19,"box":{"x":265,"y":830,"width":627,"height":11}},{"id":"39b4c334-296c-49d9-ad75-f4c562da1e67","block_type":"box","text":"audit committee financial expert, as such term is defined in the applicable Commission","page_number":19,"box":{"x":265,"y":845,"width":623,"height":11}},{"id":"49f2b3c5-993b-49d5-93ad-8ca3be10f06b","block_type":"box","text":"rules.","page_number":19,"box":{"x":265,"y":861,"width":38,"height":8}},{"id":"e070ffc3-4278-4aa9-855f-7edcaddabe52","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"3d17e429-c869-4c2e-80cd-da4ddaa06862","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":19,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"09d0e1dc-3125-47b8-a136-8cb0e88ed40f","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":20,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"3308a986-b3b3-433b-958e-8e16a17bfd52","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":20,"box":{"x":70,"y":65,"width":806,"height":12}},{"id":"b71b4f62-22fb-4865-a23e-a718ee3f4b21","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":20,"box":{"x":264,"y":81,"width":584,"height":11}},{"id":"67e73242-9634-48c1-b992-15f2bdc8e809","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":20,"box":{"x":265,"y":96,"width":622,"height":11}},{"id":"c46438c4-6e72-42eb-897c-274c2ce5f79f","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":20,"box":{"x":265,"y":111,"width":638,"height":11}},{"id":"8b57335a-3361-4ce8-add0-cca6ab7a77df","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":20,"box":{"x":265,"y":126,"width":570,"height":11}},{"id":"d31851e9-505c-4b9b-82ec-cee2f02315e6","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":20,"box":{"x":265,"y":141,"width":642,"height":11}},{"id":"89ac7f88-0a07-4a09-b8c4-baadcd24ecc4","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":20,"box":{"x":265,"y":156,"width":626,"height":11}},{"id":"e2cecb3f-3ea9-4f38-b241-4f091e700278","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":20,"box":{"x":265,"y":171,"width":630,"height":12}},{"id":"8af6861a-ea94-4965-8b43-fa7e6ae1d710","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":20,"box":{"x":265,"y":186,"width":602,"height":12}},{"id":"b2cc0e1e-abc3-447a-b2bd-b7290695d230","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":20,"box":{"x":264,"y":201,"width":643,"height":12}},{"id":"5472573f-5378-42d4-83a7-278412e7f783","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":20,"box":{"x":264,"y":217,"width":639,"height":11}},{"id":"ba706998-4c76-48ba-b632-2cf9bc4840f5","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":20,"box":{"x":264,"y":232,"width":641,"height":11}},{"id":"4beb43ab-82c8-4660-b01a-4ab962f36725","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":247,"width":208,"height":11}},{"id":"8e2e507d-6632-4267-8021-cb92385b2623","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":20,"box":{"x":69,"y":269,"width":769,"height":12}},{"id":"5b550aa5-a9e7-4508-a4eb-7a63133c2a60","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":20,"box":{"x":265,"y":285,"width":621,"height":11}},{"id":"0d71adc6-0b8f-4bf8-ba81-5c71131b1087","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":20,"box":{"x":265,"y":300,"width":599,"height":11}},{"id":"424c8f7e-4dde-4712-ab05-b4e8a8d78fbc","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":20,"box":{"x":265,"y":315,"width":641,"height":11}},{"id":"bf612c88-16d1-409a-970e-01ca72ba4b13","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":20,"box":{"x":264,"y":330,"width":602,"height":11}},{"id":"2f67ac3d-3778-4393-8789-93d158aaf1d8","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":20,"box":{"x":264,"y":345,"width":617,"height":11}},{"id":"e245c1c0-8f10-4d62-83b5-b1bb607fbbe1","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":20,"box":{"x":265,"y":360,"width":629,"height":12}},{"id":"f36db215-4be1-443e-9cb1-ccd49de56e8e","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":20,"box":{"x":264,"y":375,"width":628,"height":11}},{"id":"324cdf94-5f9c-42a2-99b6-1cd55e35f939","block_type":"box","text":"articles and books on these topics.","page_number":20,"box":{"x":265,"y":391,"width":251,"height":10}},{"id":"79059d24-e431-47ad-9b80-b3d4494559e2","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":20,"box":{"x":70,"y":413,"width":764,"height":11}},{"id":"881c2603-8b25-457f-8739-3622fc0d0757","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":20,"box":{"x":265,"y":428,"width":642,"height":12}},{"id":"1718a84c-16fa-42cc-9ae0-4097673b3134","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":20,"box":{"x":264,"y":443,"width":593,"height":12}},{"id":"48d71cee-320a-4335-8fd9-6eff4e06b467","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":20,"box":{"x":265,"y":458,"width":603,"height":12}},{"id":"722b00e5-199a-41be-af9e-434468598368","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":20,"box":{"x":265,"y":474,"width":629,"height":11}},{"id":"3f5d91ea-5726-4873-b610-5603944c8aff","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":496,"width":804,"height":11}},{"id":"c7ac3ec1-f482-4c0f-971d-eb8ee6361233","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":20,"box":{"x":265,"y":511,"width":552,"height":12}},{"id":"1dedf833-ccba-40dc-858a-ea5f551b9775","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":20,"box":{"x":265,"y":526,"width":636,"height":12}},{"id":"750d1aad-bed8-49df-98d0-8cac4d224290","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":20,"box":{"x":265,"y":542,"width":639,"height":11}},{"id":"49e321d3-9582-45f9-8c3b-ceb622e43c41","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":20,"box":{"x":265,"y":557,"width":576,"height":11}},{"id":"408413cb-e078-4a9e-af40-7fd547e9e68f","block_type":"box","text":"exchanges, and other industry firms. 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More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":20,"box":{"x":265,"y":617,"width":626,"height":11}},{"id":"e811f5ed-265d-43de-9d1e-3c38cae18d88","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":20,"box":{"x":264,"y":632,"width":608,"height":12}},{"id":"4bf26ebb-cb71-4a5c-8d0f-f7495a0646f7","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":20,"box":{"x":265,"y":648,"width":575,"height":11}},{"id":"e7f08991-928e-4255-a107-cb2eb1974c57","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":20,"box":{"x":264,"y":663,"width":591,"height":11}},{"id":"47012988-eef9-4bbd-8233-8e6dbdccc8c3","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":20,"box":{"x":265,"y":678,"width":627,"height":11}},{"id":"1a90c493-edc0-4021-ad46-62d3c54325b2","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":20,"box":{"x":265,"y":693,"width":578,"height":11}},{"id":"f3d4ae8b-2ba4-4f92-b69d-839b4a242800","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":20,"box":{"x":265,"y":708,"width":607,"height":11}},{"id":"f73b36a4-7fd8-49cb-89ed-04bc0afac0c4","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":20,"box":{"x":265,"y":723,"width":615,"height":11}},{"id":"c7cfaea3-8f2b-4d48-9a96-27260bc15ad7","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. 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In addition, Ms. Richards serves as a","page_number":20,"box":{"x":265,"y":799,"width":628,"height":11}},{"id":"7305fb2b-d558-4adf-a7f2-43bce03eb4fa","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":20,"box":{"x":265,"y":814,"width":460,"height":11}},{"id":"be622851-2654-41a8-b7ac-96240ebabdf1","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"5b0b7718-fb56-4ac6-8cbd-38056a507ea8","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":20,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"355f1c20-6195-4513-ad73-59233d324135","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":21,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"d216d4c9-5118-46d6-a828-c2017f7cd7e1","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":21,"box":{"x":70,"y":65,"width":818,"height":12}},{"id":"6ce2f5af-6340-4a9f-b6c2-94ac58ee4b2c","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":21,"box":{"x":264,"y":81,"width":603,"height":11}},{"id":"898e3093-11df-4245-a7cb-def62f1ee039","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":21,"box":{"x":265,"y":96,"width":606,"height":11}},{"id":"3e04d160-642b-4bd2-a374-8667ebd9240b","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":21,"box":{"x":265,"y":111,"width":608,"height":9}},{"id":"b2e8409e-c083-4112-adf5-35dceb2bfbbd","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":21,"box":{"x":265,"y":126,"width":626,"height":11}},{"id":"61b4715c-7d14-43de-a383-647fcc6b2ce8","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":21,"box":{"x":265,"y":141,"width":591,"height":11}},{"id":"4fe23816-5c6d-4126-9e36-350fe7243c20","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":156,"width":265,"height":11}},{"id":"98b368ca-f156-4aa6-b77e-aaea02598e24","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":21,"box":{"x":70,"y":179,"width":833,"height":11}},{"id":"cb6f134e-8ac9-452e-bdc3-8becccc5af39","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":21,"box":{"x":265,"y":194,"width":638,"height":11}},{"id":"51c84a64-d797-4689-aee8-99f8716dbabc","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":21,"box":{"x":265,"y":209,"width":608,"height":11}},{"id":"34a478a2-6adf-4778-8912-20b39eb8511b","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":21,"box":{"x":264,"y":224,"width":645,"height":11}},{"id":"157be14d-e8be-42ed-b859-15e7e988be86","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":21,"box":{"x":264,"y":239,"width":639,"height":9}},{"id":"380dfebe-b3ab-4e11-b0b9-1823a9b77053","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":21,"box":{"x":264,"y":254,"width":573,"height":12}},{"id":"4b635dee-2ba3-4564-89fb-747e05f8291c","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":21,"box":{"x":265,"y":269,"width":625,"height":12}},{"id":"88af02a8-2cae-4f4e-b0ed-85ef23ec56be","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":21,"box":{"x":265,"y":285,"width":610,"height":11}},{"id":"94eaa025-4f3e-48c2-a385-4ab16e62b4dc","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":21,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"9c644fb0-9771-4e24-9381-8ed65773b900","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":21,"box":{"x":265,"y":315,"width":583,"height":11}},{"id":"ce991eee-afbb-4a50-ace4-f2638126a8ca","block_type":"box","text":"Directors prior to becoming an Independent Director.","page_number":21,"box":{"x":265,"y":330,"width":372,"height":11}},{"id":"84dae248-c66c-4e27-b8aa-e59d945fd268","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":21,"box":{"x":70,"y":353,"width":807,"height":11}},{"id":"95a7f00b-7668-45ba-b2d9-0014ea5a86ab","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":21,"box":{"x":264,"y":368,"width":641,"height":11}},{"id":"fd42220d-e56e-4fd6-a7b4-677f962b1fd4","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":21,"box":{"x":265,"y":383,"width":618,"height":11}},{"id":"7d4d73f4-fae5-4dbf-a565-a9b87f5a2d23","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":21,"box":{"x":265,"y":398,"width":594,"height":11}},{"id":"e5b11e3e-a8c1-4fe8-be6b-7574c88bcc46","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":21,"box":{"x":265,"y":413,"width":639,"height":11}},{"id":"11064ddc-83ef-47a5-88f4-75bc74d29e8c","block_type":"box","text":"be an audit committee financial expert, as such term is defined in the applicable","page_number":21,"box":{"x":265,"y":428,"width":575,"height":11}},{"id":"2f176736-d977-4e28-8c98-ad4854d310d8","block_type":"box","text":"Commission rules.","page_number":21,"box":{"x":265,"y":443,"width":131,"height":9}},{"id":"c1e10e9d-01a0-424e-8aa4-d10c8e0b50af","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":21,"box":{"x":69,"y":466,"width":808,"height":11}},{"id":"12789688-6267-4346-a9ac-2ebcb2f7cb26","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset","page_number":21,"box":{"x":265,"y":481,"width":630,"height":11}},{"id":"b235d14d-0d2d-420a-a471-436430d7c637","block_type":"box","text":"Management, LP / Steel Partners Japan Asset Management, LP from 1998 to 2015, an","page_number":21,"box":{"x":265,"y":496,"width":627,"height":12}},{"id":"f71ee80f-802d-4fe0-86b9-39f16bade359","block_type":"box","text":"investment manager that specialized in long/short non-U.S. equity investments, and was","page_number":21,"box":{"x":265,"y":512,"width":632,"height":11}},{"id":"45df61e2-ef05-43c2-bc10-05a9c0e1444d","block_type":"box","text":"an owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to","page_number":21,"box":{"x":265,"y":526,"width":615,"height":12}},{"id":"fd7a9ffe-de04-4db0-91c7-4926af9a0acb","block_type":"box","text":"2023, a firm focusing on long/short equities in global emerging and frontier markets.","page_number":21,"box":{"x":265,"y":542,"width":608,"height":11}},{"id":"2b012551-891c-4403-9937-61d485b45004","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":21,"box":{"x":264,"y":557,"width":620,"height":11}},{"id":"6c0cebcc-7d39-43bb-9d24-ef915a00a59d","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":21,"box":{"x":265,"y":572,"width":584,"height":11}},{"id":"f857cce3-9d83-44a5-9800-33d7ba517077","block_type":"box","text":"committee financial expert, as such term is defined in the applicable Commission rules.","page_number":21,"box":{"x":264,"y":587,"width":629,"height":11}},{"id":"41453ca2-8529-414c-9003-79e3a0feaeb6","block_type":"box","text":"Interested Directors","page_number":21,"box":{"x":70,"y":610,"width":140,"height":9}},{"id":"b37efc60-8026-4096-95aa-e4ecf55af1d5","block_type":"box","text":"Robert Fairbairn Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":21,"box":{"x":70,"y":625,"width":823,"height":11}},{"id":"d8caef25-43d8-4241-bd4e-8baa07f9d4f3","block_type":"box","text":"years of experience in finance and asset management. In particular, Mr. Fairbairn’s","page_number":21,"box":{"x":264,"y":640,"width":593,"height":11}},{"id":"b6c4f3ef-a744-465c-bbb5-f2edf5408bd2","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":21,"box":{"x":265,"y":655,"width":629,"height":11}},{"id":"d28beb2f-03b9-41f2-a143-9165179ec2ba","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":21,"box":{"x":265,"y":670,"width":639,"height":11}},{"id":"53dba9e1-b778-4d3f-8519-77988b5353ba","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":21,"box":{"x":265,"y":685,"width":617,"height":12}},{"id":"37b131d9-5a75-4d1f-8a76-74b8c8ab5aa1","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":21,"box":{"x":264,"y":700,"width":634,"height":12}},{"id":"b2ef4fc4-482b-4eef-b46a-8da07cc07864","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":21,"box":{"x":265,"y":715,"width":624,"height":11}},{"id":"77ef02f8-f308-4949-b9a0-2a71621b8431","block_type":"box","text":"and iShares","page_number":21,"box":{"x":265,"y":731,"width":84,"height":9}},{"id":"8703e9b4-7529-4d04-8ca9-ac5395bbcefc","block_type":"box","text":"®","page_number":21,"box":{"x":350,"y":731,"width":6,"height":4}},{"id":"19312c6b-81a8-4bea-980c-44b893e9df99","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":21,"box":{"x":362,"y":731,"width":478,"height":11}},{"id":"8028994a-32a8-4205-94be-8581b7043e02","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":21,"box":{"x":265,"y":746,"width":585,"height":11}},{"id":"da88ebe2-c304-483c-bade-d30bff6e40f5","block_type":"box","text":"Strategic Partner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":21,"box":{"x":265,"y":761,"width":620,"height":11}},{"id":"3045f010-547a-4728-b884-fd89622884af","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":21,"box":{"x":265,"y":776,"width":578,"height":11}},{"id":"2a5555e8-e921-4860-bbb8-55d9abecf38a","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"bfbbb335-c2fe-4488-8698-df59470329c5","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":21,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"303797f8-ebc8-436b-ba9d-2817b83480f8","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":22,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"6c388589-ec17-4008-9e1a-76d61f56d604","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Senior Managing Director of BlackRock, Inc. since","page_number":22,"box":{"x":69,"y":65,"width":800,"height":12}},{"id":"c60a5493-193d-454f-9912-887761066573","block_type":"box","text":"2026, Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":22,"box":{"x":265,"y":81,"width":570,"height":11}},{"id":"7634d69d-9b3d-4682-9f97-e41ad3bc4433","block_type":"box","text":"BlackRock Global Business Operations Services since 2009, and as President and Chief","page_number":22,"box":{"x":265,"y":96,"width":633,"height":11}},{"id":"0e7a0c8c-92c5-4564-a94c-8a3b6abc8bc9","block_type":"box","text":"Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":22,"box":{"x":265,"y":111,"width":542,"height":11}},{"id":"c665cd78-3a40-4e92-b22c-c8a9be77172a","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":22,"box":{"x":265,"y":126,"width":617,"height":11}},{"id":"1b3675d4-4e81-41c9-a52a-7a5fa7ee000c","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":22,"box":{"x":265,"y":141,"width":620,"height":11}},{"id":"3640f7c2-daa6-4fb8-9338-99b415a8975c","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":22,"box":{"x":265,"y":156,"width":616,"height":11}},{"id":"b3eba89e-934c-4488-881a-c3093dfaa951","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":22,"box":{"x":265,"y":171,"width":639,"height":12}},{"id":"8f19a793-efcf-4f78-8f4d-906cf7ddf8e3","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":22,"box":{"x":265,"y":186,"width":603,"height":9}},{"id":"ecf6d974-eeed-4eb1-925e-48d759cea34b","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":22,"box":{"x":265,"y":201,"width":582,"height":12}},{"id":"15c43cd5-ede6-423d-a682-aa2cb2e07ccc","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for","page_number":22,"box":{"x":265,"y":217,"width":632,"height":11}},{"id":"7959ca27-66a9-41ea-b569-8f697e87ec94","block_type":"box","text":"the funds in the BlackRock Fixed-Income Complex. Mr. Perlowski is a member of","page_number":22,"box":{"x":264,"y":232,"width":572,"height":11}},{"id":"21663e6a-d17c-4faf-b6b3-c1449093c10d","block_type":"box","text":"BlackRock’s Global Executive Committee.","page_number":22,"box":{"x":265,"y":247,"width":294,"height":9}},{"id":"1f69fe5e-910f-4243-9ffa-a4a241558e9f","block_type":"box","text":"Biographical Information","page_number":22,"box":{"x":69,"y":278,"width":178,"height":11}},{"id":"dd76b351-4c94-4117-b9e0-1ff7667410fe","block_type":"box","text":"Certain biographical and other information relating to the Directors of the Corporation is set forth below,","page_number":22,"box":{"x":102,"y":301,"width":741,"height":11}},{"id":"db1206da-543a-46be-8bc4-dd295677ce1b","block_type":"box","text":"including their address and year of birth, principal occupations for at least the last five years, length of time 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Walton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":79,"y":758,"width":476,"height":9}},{"id":"c3ad1b52-9a97-4453-a73c-0c8b3056eacc","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":614,"y":757,"width":249,"height":11}},{"id":"b35121ac-78f4-472d-958d-add26826f343","block_type":"box","text":"Interested Directors","page_number":26,"box":{"x":70,"y":773,"width":140,"height":9}},{"id":"e44b9e7e-98b3-4cb3-a21b-7924175924b5","block_type":"box","text":"Robert Fairbairn .","page_number":26,"box":{"x":79,"y":788,"width":125,"height":9}},{"id":"a94c28f9-b0da-4ee4-aeec-461b48cc5186","block_type":"box","text":"...........................................","page_number":26,"box":{"x":211,"y":795,"width":344,"height":2}},{"id":"bd97db43-6ca7-4f26-9783-2f8dce56e604","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":614,"y":787,"width":249,"height":11}},{"id":"024e7f3f-cd0b-4c06-916a-29da86b38181","block_type":"box","text":"John M. 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The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":27,"box":{"x":69,"y":233,"width":689,"height":12}},{"id":"cc88b865-6063-4ea5-b7eb-bdbc84529aad","block_type":"box","text":"The following table sets forth the compensation the Corporation paid to the Directors, on behalf of the Fund, for","page_number":27,"box":{"x":101,"y":256,"width":798,"height":12}},{"id":"28f99e53-a65e-4489-8e6a-a716cc328464","block_type":"box","text":"the fiscal year ended May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for","page_number":27,"box":{"x":68,"y":271,"width":842,"height":12}},{"id":"feaed18c-598c-4b9d-9f16-664fcda87d43","block_type":"box","text":"the calendar year ended December 31, 2025.","page_number":27,"box":{"x":68,"y":287,"width":326,"height":11}},{"id":"a94e15a5-72c7-4e7f-bd37-689a747cadad","block_type":"box","text":"Name","page_number":27,"box":{"x":69,"y":355,"width":32,"height":7}},{"id":"0c52b69d-7f81-4d8e-9f30-aa63b677ba6a","block_type":"box","text":"Compensation","page_number":27,"box":{"x":560,"y":345,"width":83,"height":9}},{"id":"4fd97567-ffcc-4c61-bedf-24717fd2191c","block_type":"box","text":"from the Fund","page_number":27,"box":{"x":561,"y":355,"width":80,"height":7}},{"id":"4678cb63-01e5-4798-b9b8-df73f65a906f","block_type":"box","text":"Estimated","page_number":27,"box":{"x":676,"y":315,"width":58,"height":7}},{"id":"d2419471-1872-43b1-a494-ebe3788d91ac","block_type":"box","text":"Annual","page_number":27,"box":{"x":685,"y":325,"width":39,"height":7}},{"id":"e7299699-452e-42db-b8c2-d626633e0e69","block_type":"box","text":"Benefits","page_number":27,"box":{"x":682,"y":335,"width":47,"height":7}},{"id":"7c3ec872-4392-406b-96f7-dd166b83c1a6","block_type":"box","text":"upon","page_number":27,"box":{"x":692,"y":347,"width":27,"height":7}},{"id":"dfec9a63-d2e6-476b-8e1b-66bb6e24e4fa","block_type":"box","text":"Retirement","page_number":27,"box":{"x":673,"y":355,"width":65,"height":7}},{"id":"176bd3a6-92a2-4b9a-a1b2-4fe077278917","block_type":"box","text":"Aggregate","page_number":27,"box":{"x":808,"y":315,"width":61,"height":9}},{"id":"36127a83-692c-470d-80bd-dd1a425b8b6b","block_type":"box","text":"Compensation","page_number":27,"box":{"x":797,"y":325,"width":82,"height":9}},{"id":"1cce6e93-b6ce-414f-90f3-71a81fe6e57a","block_type":"box","text":"from the Fund and Other","page_number":27,"box":{"x":767,"y":335,"width":142,"height":7}},{"id":"afa93571-cb4d-4bd5-b19d-37af34806e4e","block_type":"box","text":"BlackRock-Advised","page_number":27,"box":{"x":783,"y":345,"width":111,"height":7}},{"id":"462a864f-e230-4c91-9eab-c6c9ac7c2cf9","block_type":"box","text":"Funds","page_number":27,"box":{"x":820,"y":355,"width":33,"height":7}},{"id":"df6a066e-5b7f-47cb-b86f-5b1c3b589221","block_type":"box","text":"1","page_number":27,"box":{"x":854,"y":355,"width":4,"height":4}},{"id":"373882ac-0e67-4f9b-bee2-6cfabcf533f7","block_type":"box","text":"Independent Directors","page_number":27,"box":{"x":70,"y":373,"width":156,"height":11}},{"id":"7f2a21c9-9579-448b-aa1b-3c3912da788f","block_type":"box","text":"Christopher J. 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Perlowski. . .","page_number":27,"box":{"x":78,"y":615,"width":149,"height":9}},{"id":"5dbb2238-80e4-42b5-8c5a-566f14e9184b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None None None","page_number":27,"box":{"x":234,"y":615,"width":622,"height":9}},{"id":"252de60f-fef3-44e4-9d6f-849fc1b78403","block_type":"box","text":"1","page_number":27,"box":{"x":69,"y":639,"width":3,"height":4}},{"id":"123c473e-dff8-4934-b0a0-8ca833fc12ce","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation, see “Biographical Information” beginning on","page_number":27,"box":{"x":94,"y":639,"width":788,"height":9}},{"id":"d6365a6d-a4e9-4839-a2a9-47896bfa6bf6","block_type":"box","text":"page I-13.","page_number":27,"box":{"x":94,"y":649,"width":55,"height":9}},{"id":"bd8aee72-eb38-427b-984d-37d12c1d400f","block_type":"box","text":"2","page_number":27,"box":{"x":69,"y":662,"width":3,"height":3}},{"id":"17f0aed3-7e13-4075-8eed-74c81e17aee3","block_type":"box","text":"Compensation includes $314 earned as a consultant to the Independent Directors for the period April 1, 2026 to July 1, 2026.","page_number":27,"box":{"x":93,"y":661,"width":726,"height":10}},{"id":"bb50cde3-cdeb-4c06-ac65-59e5642a5e84","block_type":"box","text":"3","page_number":27,"box":{"x":69,"y":675,"width":3,"height":3}},{"id":"af7918ba-408f-491c-95a6-b9d658ebbbd6","block_type":"box","text":"Chair of the Audit Committee.","page_number":27,"box":{"x":93,"y":674,"width":168,"height":8}},{"id":"1d927299-5c2b-4712-b7bb-1f300ebedd8d","block_type":"box","text":"4","page_number":27,"box":{"x":68,"y":687,"width":4,"height":4}},{"id":"17cfc514-93b1-4244-bb57-bf371c9af93d","block_type":"box","text":"Chair of the Governance Committee.","page_number":27,"box":{"x":93,"y":687,"width":206,"height":7}},{"id":"c64a9ecc-5de1-46cf-84a4-5fc0b6093dd8","block_type":"box","text":"5","page_number":27,"box":{"x":69,"y":700,"width":3,"height":3}},{"id":"673d150c-8a24-49df-a237-2c942742ad68","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":27,"box":{"x":93,"y":700,"width":269,"height":9}},{"id":"348f0348-2583-4570-bfb7-3b6aa8efa2e0","block_type":"box","text":"6","page_number":27,"box":{"x":69,"y":712,"width":3,"height":4}},{"id":"49045e43-108c-41cc-afc3-659888c3c430","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":27,"box":{"x":93,"y":712,"width":352,"height":9}},{"id":"38f571c3-8ad6-4018-89b5-c4969734464a","block_type":"box","text":"7","page_number":27,"box":{"x":69,"y":725,"width":3,"height":3}},{"id":"8f33a8ba-1f49-40a9-8a7d-1c1b78ecd5e3","block_type":"box","text":"Chair of the Compliance Committee.","page_number":27,"box":{"x":93,"y":725,"width":205,"height":9}},{"id":"3b42b670-6b3c-48af-a325-09da73ad3d5d","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":27,"box":{"x":69,"y":753,"width":432,"height":11}},{"id":"3669ada8-d5c9-4b82-a3ed-76aaa2f4c57c","block_type":"box","text":"Management Agreement","page_number":27,"box":{"x":69,"y":784,"width":180,"height":11}},{"id":"12eee132-50b7-4c6f-9df3-331d7fa8db9c","block_type":"box","text":"The Corporation, on behalf of the Fund, has entered into a management agreement (the “Management","page_number":27,"box":{"x":101,"y":806,"width":732,"height":11}},{"id":"d02e5abd-88f7-40b7-8062-459f325ed1d6","block_type":"box","text":"Agreement”) with the Manager. Pursuant to the Management Agreement, the Manager is entitled to annual","page_number":27,"box":{"x":68,"y":822,"width":761,"height":11}},{"id":"9ddfa114-6d90-4504-a79b-a8c30eb0cc28","block_type":"box","text":"management fees.","page_number":27,"box":{"x":69,"y":836,"width":131,"height":12}},{"id":"e07a5a4c-bc96-4cbf-9f27-7d8d9a1544f1","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":27,"box":{"x":102,"y":859,"width":762,"height":11}},{"id":"fb1a6699-68db-4afa-b38f-b32a9194023f","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":27,"box":{"x":69,"y":874,"width":799,"height":12}},{"id":"ae85edca-d5a5-4d23-8b3f-d3966a36c20b","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":27,"box":{"x":68,"y":889,"width":726,"height":12}},{"id":"f2c661f9-2b88-4b03-9963-fae952e033bb","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":27,"box":{"x":69,"y":904,"width":797,"height":12}},{"id":"441783d2-56e9-4b90-a4cc-606f2ba72b37","block_type":"box","text":"I-18","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"3574891e-a672-49fb-9376-c274ca361483","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":27,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"b268b20e-4edd-45d7-b561-0aee02d9b519","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":28,"box":{"x":69,"y":45,"width":789,"height":11}},{"id":"a2b2f01d-f23d-4154-b25c-d62606caf263","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":28,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"5219c5f1-f07e-4882-a623-b88a7fd93760","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":28,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"8523dd1f-1fe8-4c82-b255-2b5d85153b1a","block_type":"box","text":"Fund.","page_number":28,"box":{"x":70,"y":90,"width":36,"height":9}},{"id":"bfd2d776-221d-478f-bb8e-1374d6cdd2e7","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":28,"box":{"x":102,"y":113,"width":773,"height":11}},{"id":"421a4314-d4db-4839-aed6-cb261c52341f","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":28,"box":{"x":68,"y":128,"width":787,"height":11}},{"id":"b181d967-9e50-40d3-8b3b-19031e680d0e","block_type":"box","text":"Expense/Stock Loan Fees, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses (as","page_number":28,"box":{"x":70,"y":143,"width":835,"height":11}},{"id":"945ec88b-d1c0-4243-baf3-fa700ba5d294","block_type":"box","text":"defined in the Fund’s Prospectuses)) as a percentage of average daily net assets to 0.90% for Investor A Shares,","page_number":28,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"c8919de9-214f-42db-9b21-541158e91b78","block_type":"box","text":"1.65% for Investor C Shares, 0.65% for Institutional Shares, 1.15% for Class R shares and 0.60% for Class K Shares","page_number":28,"box":{"x":70,"y":173,"width":836,"height":11}},{"id":"2afd4896-7131-4c6c-b5d0-33fdea660b70","block_type":"box","text":"through June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a majority of the","page_number":28,"box":{"x":68,"y":188,"width":801,"height":12}},{"id":"13fff4a8-77b7-4368-abad-e42cfcf49d93","block_type":"box","text":"Independent Directors or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":28,"box":{"x":70,"y":203,"width":682,"height":12}},{"id":"38bf9650-41a3-4d28-b9d2-62d042dda4e4","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":28,"box":{"x":102,"y":226,"width":800,"height":11}},{"id":"bb38b3e8-6052-4853-9f86-c0d61741fc14","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":28,"box":{"x":70,"y":241,"width":834,"height":11}},{"id":"53b87d5a-8aea-497a-95cf-f69b137fc570","block_type":"box","text":"to perform management services with respect to the Fund. In addition, the Manager may delegate certain of its","page_number":28,"box":{"x":68,"y":256,"width":796,"height":12}},{"id":"928b5e7c-1e05-4429-89f2-1a00401d9b77","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":28,"box":{"x":70,"y":271,"width":779,"height":12}},{"id":"5cadd78d-04ac-4bc9-8279-cd2f896882a7","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":28,"box":{"x":70,"y":287,"width":823,"height":11}},{"id":"720e0782-fc17-435e-84cc-60d244c7cec8","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":28,"box":{"x":70,"y":302,"width":508,"height":11}},{"id":"6ff260cb-6cf1-4b98-800c-26d58a9eebb6","block_type":"box","text":"BlackRock entered into a sub-advisory agreement with BlackRock International Limited (“BIL”) with respect to the","page_number":28,"box":{"x":102,"y":325,"width":806,"height":11}},{"id":"3c353eff-99e8-4b46-9b39-9f447355e06f","block_type":"box","text":"Fund pursuant to which BlackRock pays BIL for providing services with respect to that portion of the Fund for which it","page_number":28,"box":{"x":70,"y":339,"width":833,"height":12}},{"id":"71544275-c96e-4463-bd26-fd005eab34c8","block_type":"box","text":"acts as sub-adviser a monthly fee at an annual rate equal to a percentage of the management fee paid to BlackRock","page_number":28,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"a8509873-384a-4081-acaa-c52d4cad379b","block_type":"box","text":"under the Management Agreement.","page_number":28,"box":{"x":69,"y":370,"width":250,"height":11}},{"id":"397765c7-05b8-45d0-9865-245d85fd794f","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":28,"box":{"x":101,"y":392,"width":802,"height":12}},{"id":"5cbd095a-6f82-4f04-adc7-a39b9ce0e307","block_type":"box","text":"includes amounts paid by the Manager to BIL) and any amounts waived for the periods shown:","page_number":28,"box":{"x":70,"y":407,"width":670,"height":12}},{"id":"a56c030c-54de-4d98-ad07-a7051d73b53e","block_type":"box","text":"Fees Paid","page_number":28,"box":{"x":582,"y":436,"width":56,"height":7}},{"id":"77179d72-ef74-4abb-a6fa-6615cb84aac9","block_type":"box","text":"to the Manager","page_number":28,"box":{"x":565,"y":446,"width":90,"height":9}},{"id":"ed55c13e-e70c-4a03-a6f8-3c5b9bc3c42d","block_type":"box","text":"Fees Waived","page_number":28,"box":{"x":698,"y":436,"width":72,"height":7}},{"id":"9d045ec3-53bf-4d17-ac0d-ae8595f53838","block_type":"box","text":"by the Manager","page_number":28,"box":{"x":689,"y":446,"width":91,"height":9}},{"id":"4e8bc264-a62b-4cee-8f77-c3ecc6040e76","block_type":"box","text":"Fees Reimbursed","page_number":28,"box":{"x":810,"y":436,"width":99,"height":7}},{"id":"06728fda-0990-4f94-b34f-0adcdf4838fd","block_type":"box","text":"by the Manager","page_number":28,"box":{"x":814,"y":446,"width":91,"height":9}},{"id":"2f741ee9-a951-4a39-af76-63c48bdd90a0","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,836,691 $487,402 $ 830,955","page_number":28,"box":{"x":70,"y":463,"width":833,"height":12}},{"id":"9f085b94-d950-4851-9a30-e12a775ee33f","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 8,450,171 $282,272 $ 984,598","page_number":28,"box":{"x":70,"y":478,"width":833,"height":12}},{"id":"4fd6d2e0-5ab3-436d-a89c-ab8b20012691","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,113,752 $304,819 $1,392,331","page_number":28,"box":{"x":70,"y":493,"width":833,"height":12}},{"id":"9a284b26-4ea8-4cfe-8c5a-f1bfc1096acd","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":28,"box":{"x":69,"y":525,"width":335,"height":11}},{"id":"74bf434b-20e0-46ec-aabc-9c1e083637c6","block_type":"box","text":"Zeshan Azam and Wendy Agnew, CFA are the portfolio managers and are jointly and primarily responsible for the","page_number":28,"box":{"x":101,"y":548,"width":800,"height":11}},{"id":"544338ca-e345-42d6-ba3d-f38b63238d1d","block_type":"box","text":"day-to-day management of the Fund.","page_number":28,"box":{"x":69,"y":563,"width":256,"height":11}},{"id":"07a2adb8-93ad-4f78-ab74-f57513a8335f","block_type":"box","text":"Other Funds and Accounts Managed","page_number":28,"box":{"x":70,"y":593,"width":257,"height":12}},{"id":"b7325d9b-0066-4d37-940c-118ecfad6589","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":28,"box":{"x":101,"y":616,"width":806,"height":11}},{"id":"0489da31-5f55-42eb-aa96-a0b39c95eac4","block_type":"box","text":"portfolio managers are primarily responsible for the day-to-day portfolio management as of May 31, 2026.","page_number":28,"box":{"x":70,"y":631,"width":755,"height":11}},{"id":"dd87856e-5e7d-4d02-94e6-b9d900c81884","block_type":"box","text":"Number of Other Accounts Managed","page_number":28,"box":{"x":378,"y":659,"width":211,"height":9}},{"id":"cade63ec-98ba-48eb-907e-5071572f63e3","block_type":"box","text":"and Assets by Account Type","page_number":28,"box":{"x":401,"y":670,"width":165,"height":8}},{"id":"5b331d27-8bdf-4a13-ac9e-6db7de4f3ec3","block_type":"box","text":"Number of Other Accounts and Assets","page_number":28,"box":{"x":656,"y":659,"width":222,"height":8}},{"id":"74e1d4c6-ed75-49f7-8b51-cf24a506aafa","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":28,"box":{"x":634,"y":669,"width":265,"height":9}},{"id":"ce65e497-5622-4bca-9c45-38d8ff2778ce","block_type":"box","text":"Name of Portfolio Manager","page_number":28,"box":{"x":74,"y":712,"width":157,"height":9}},{"id":"83936165-00b1-489b-8b0d-2b092aa4724f","block_type":"box","text":"Other","page_number":28,"box":{"x":373,"y":682,"width":32,"height":7}},{"id":"9410bdb0-3ccb-46b7-85b8-94f000ef6dfe","block_type":"box","text":"Registered","page_number":28,"box":{"x":358,"y":692,"width":62,"height":9}},{"id":"2ecc4c01-fb80-42d3-8019-19071713da96","block_type":"box","text":"Investment","page_number":28,"box":{"x":357,"y":702,"width":64,"height":7}},{"id":"3e121462-bc6b-4614-83d8-1044f03d6bc3","block_type":"box","text":"Companies","page_number":28,"box":{"x":357,"y":712,"width":64,"height":9}},{"id":"d690915d-4893-4f8e-99b6-8b7c7d928255","block_type":"box","text":"Other Pooled","page_number":28,"box":{"x":446,"y":692,"width":74,"height":7}},{"id":"b6159f87-346b-4f26-896e-f60ed1d76987","block_type":"box","text":"Investment","page_number":28,"box":{"x":451,"y":702,"width":65,"height":7}},{"id":"23e734f9-2674-42b1-b470-7009d95e64d2","block_type":"box","text":"Vehicles","page_number":28,"box":{"x":459,"y":712,"width":48,"height":7}},{"id":"1c22e351-8981-4dea-9661-57ae7c1d921a","block_type":"box","text":"Other","page_number":28,"box":{"x":562,"y":702,"width":31,"height":7}},{"id":"c3ff7329-bc79-41d3-8c25-6c87c7aca359","block_type":"box","text":"Accounts","page_number":28,"box":{"x":550,"y":712,"width":55,"height":7}},{"id":"47696d8c-a5a4-4ba8-bf1c-c894f9e2c80b","block_type":"box","text":"Other","page_number":28,"box":{"x":653,"y":682,"width":32,"height":7}},{"id":"f4e3eef1-3365-4b94-8164-5c82fff4e11e","block_type":"box","text":"Registered","page_number":28,"box":{"x":638,"y":692,"width":62,"height":9}},{"id":"c5aaeae8-eebd-4cf0-876e-13afd5410a62","block_type":"box","text":"Investment","page_number":28,"box":{"x":637,"y":702,"width":64,"height":7}},{"id":"8d566efa-d91d-4e72-920c-347ae2959029","block_type":"box","text":"Companies","page_number":28,"box":{"x":637,"y":712,"width":63,"height":9}},{"id":"fe926733-0e17-4478-92c9-6e0de127f79f","block_type":"box","text":"Other Pooled","page_number":28,"box":{"x":725,"y":692,"width":75,"height":7}},{"id":"a362f01d-2d98-4a24-9ac6-157aa8a966f1","block_type":"box","text":"Investment","page_number":28,"box":{"x":731,"y":702,"width":64,"height":7}},{"id":"235b3060-f8f1-4b99-9018-962993565d41","block_type":"box","text":"Vehicles","page_number":28,"box":{"x":738,"y":712,"width":49,"height":7}},{"id":"918c0522-c6ab-4c8e-90f3-52ae2d82840f","block_type":"box","text":"Other","page_number":28,"box":{"x":845,"y":702,"width":32,"height":7}},{"id":"3f782603-7312-4196-81b6-7da8160747e0","block_type":"box","text":"Accounts","page_number":28,"box":{"x":833,"y":712,"width":55,"height":7}},{"id":"c2140f1f-0080-4da0-a988-abe0a090e6cf","block_type":"box","text":"Wendy Agnew, CFA 7 6 2 0 0 1","page_number":28,"box":{"x":73,"y":726,"width":791,"height":9}},{"id":"d92936ab-025c-487b-83d9-7d5c9bcc34a5","block_type":"box","text":"$3.15 Billion $2.77 Billion $1.62 Billion $0 $0 $1.54 Billion","page_number":28,"box":{"x":353,"y":738,"width":544,"height":9}},{"id":"237f136e-9998-4837-8e10-aa2c09e38418","block_type":"box","text":"Zeshan Azam 7 6 2 0 0 1","page_number":28,"box":{"x":73,"y":751,"width":791,"height":7}},{"id":"28181ac7-2c63-41bd-ac0c-620613e776a2","block_type":"box","text":"$3.15 Billion $2.77 Billion $1.62 Billion $0 $0 $1.54 Billion","page_number":28,"box":{"x":353,"y":763,"width":544,"height":9}},{"id":"3c168320-83e5-4c63-808e-897bfd14f45d","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":28,"box":{"x":69,"y":798,"width":304,"height":11}},{"id":"65f43bd8-d251-446c-b931-f8bf6db6580d","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":28,"box":{"x":101,"y":821,"width":656,"height":11}},{"id":"e52d5370-f864-4b79-8295-3f9c43bfa2a7","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":28,"box":{"x":102,"y":843,"width":774,"height":12}},{"id":"3db85d48-b932-4690-b6fc-d211f45e667b","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":28,"box":{"x":70,"y":858,"width":837,"height":12}},{"id":"7fed24d6-840f-415b-8315-bbddd2c45b10","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":28,"box":{"x":69,"y":874,"width":823,"height":11}},{"id":"520a17f4-7878-4fe3-9fd4-41df2084cb64","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":28,"box":{"x":69,"y":889,"width":799,"height":11}},{"id":"3069b608-70de-4d43-9a73-18a15c24f656","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":28,"box":{"x":70,"y":904,"width":670,"height":11}},{"id":"0aa3a6a6-7927-493e-9e97-c4948c7adb73","block_type":"box","text":"I-19","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"12e61a3c-78ba-4480-a603-59cacaf5e50e","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":28,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"af614bd3-e39b-419b-88b2-8d92ffd04f0b","block_type":"box","text":"Base Compensation.","page_number":29,"box":{"x":102,"y":45,"width":148,"height":11}},{"id":"c4455f83-776e-43d8-84fd-83aaa7dd3524","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":29,"box":{"x":257,"y":45,"width":640,"height":11}},{"id":"33a52006-7610-46d6-85ae-8283075b8b7a","block_type":"box","text":"firm.","page_number":29,"box":{"x":68,"y":60,"width":32,"height":9}},{"id":"eee927f7-2166-40b9-8ccf-8582909ae7c0","block_type":"box","text":"Discretionary Incentive Compensation","page_number":29,"box":{"x":102,"y":83,"width":277,"height":11}},{"id":"f15a8f3b-5828-4060-b7d5-3ff373287ce5","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities portfolio managers is based on a","page_number":29,"box":{"x":102,"y":105,"width":763,"height":11}},{"id":"64293ba5-2199-42e6-a471-58cfeabef022","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic portfolio manager compensation program is based on team","page_number":29,"box":{"x":68,"y":120,"width":832,"height":12}},{"id":"7a8436f0-076b-40ab-8062-69f69bd1886a","block_type":"box","text":"revenue and pre-tax investment performance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":29,"box":{"x":69,"y":135,"width":815,"height":11}},{"id":"7567df93-4d3f-4379-aed4-a6f88e3c0cea","block_type":"box","text":"performance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":29,"box":{"x":70,"y":150,"width":757,"height":11}},{"id":"7e5562cc-f224-4313-a2e8-881eca1c903b","block_type":"box","text":"benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are","page_number":29,"box":{"x":69,"y":166,"width":814,"height":11}},{"id":"5a63c7a4-8277-4cb1-80e7-df98d6bfbf9c","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":29,"box":{"x":69,"y":181,"width":780,"height":11}},{"id":"f5b154f1-38a4-42ac-b3fa-3a3f3afec75c","block_type":"box","text":"performance of the Fund and other accounts managed by each portfolio management team is compared and the","page_number":29,"box":{"x":70,"y":196,"width":802,"height":11}},{"id":"881af129-d94b-4fdf-a2c6-f76ad279e891","block_type":"box","text":"period of time over which performance is evaluated. With respect to these portfolio managers, such benchmarks for","page_number":29,"box":{"x":70,"y":211,"width":828,"height":11}},{"id":"4112332a-9ca8-428d-87a7-db663cccd9f5","block_type":"box","text":"the Fund and other accounts are: MSCI All Country World ex US Index (Net TR); MSCI All Country World Index (Net","page_number":29,"box":{"x":68,"y":226,"width":810,"height":11}},{"id":"8a93e270-3bea-49e7-9ca3-fc3499c6080c","block_type":"box","text":"Total Return); MSCI ACWI HIGH DIVIDEND YIELD - NET USD; MSCI All Country World Net TR Index - in GBP.","page_number":29,"box":{"x":68,"y":241,"width":753,"height":11}},{"id":"39c8d3ef-d622-4779-8d37-e30053fd1036","block_type":"box","text":"A smaller element of portfolio manager discretionary compensation may include consideration of: financial","page_number":29,"box":{"x":101,"y":264,"width":759,"height":11}},{"id":"416847d4-7b3c-480e-9e5e-36f056486acc","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":29,"box":{"x":69,"y":279,"width":798,"height":11}},{"id":"deabafc3-5021-448e-8e7d-06093b84575c","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":29,"box":{"x":69,"y":294,"width":814,"height":11}},{"id":"f3fb33d3-abb5-470d-9e36-36a1bad5cccc","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":29,"box":{"x":68,"y":309,"width":798,"height":11}},{"id":"1e4ee318-bd8c-475b-b676-7000cb733cd7","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":29,"box":{"x":102,"y":332,"width":389,"height":11}},{"id":"e6bb03d4-7059-4555-b1fa-7c2084c865d2","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":29,"box":{"x":499,"y":332,"width":383,"height":11}},{"id":"14c3b3cd-76d9-4099-8581-ef910c379fa9","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":29,"box":{"x":70,"y":347,"width":815,"height":11}},{"id":"28ce9f48-78de-4b19-9f07-8a34ae59a338","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":29,"box":{"x":68,"y":362,"width":522,"height":11}},{"id":"09191a1b-1ac1-49ba-a074-0f589f0615f5","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":29,"box":{"x":102,"y":385,"width":760,"height":11}},{"id":"e14213ac-6d21-422e-bb6c-c23dc602ade0","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":29,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"061616dd-da4e-4ec5-9ecb-e618f2bd2184","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":29,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"464517f5-fd22-4f43-8647-ddadd330f81f","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":29,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"27885ae2-b8cf-4d5a-9054-d4fd76b5c0df","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":29,"box":{"x":68,"y":445,"width":839,"height":12}},{"id":"0d51f41e-c611-4c4f-aa3c-d855f9c76863","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":29,"box":{"x":69,"y":460,"width":802,"height":12}},{"id":"75990db1-ac8f-46d4-bdf8-05dc2c17d028","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":29,"box":{"x":70,"y":475,"width":820,"height":12}},{"id":"26805aba-2178-456d-9e6a-09dc3526ecc5","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":29,"box":{"x":70,"y":491,"width":801,"height":11}},{"id":"91739174-d249-4e23-bbe7-828174d5bba7","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":29,"box":{"x":70,"y":506,"width":831,"height":11}},{"id":"02194c67-364b-4fbe-b24c-ac9fd4b170f0","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":29,"box":{"x":69,"y":521,"width":479,"height":11}},{"id":"96d1d742-30b2-431a-a8b8-f1fe15ca95fb","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":29,"box":{"x":102,"y":543,"width":785,"height":12}},{"id":"a96351c8-accf-4726-8b2e-c2b4d4f00fb7","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":29,"box":{"x":68,"y":559,"width":836,"height":11}},{"id":"71b38ae4-3766-40db-899a-edfe0cc6822b","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":29,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"b72323ed-396e-447e-94b2-f02ab722aa23","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":29,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"efe76e5c-9688-4ef8-8175-88fcfff42f31","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":29,"box":{"x":70,"y":604,"width":835,"height":11}},{"id":"b5612958-871e-4b0a-baab-3afcf9acf654","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":29,"box":{"x":69,"y":619,"width":414,"height":11}},{"id":"d5bec30e-1728-4b99-82e0-c5c466f51e19","block_type":"box","text":"Other Compensation Benefits.","page_number":29,"box":{"x":101,"y":642,"width":218,"height":11}},{"id":"199731fd-5f6f-4b97-8646-34158f5eca7c","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":29,"box":{"x":327,"y":642,"width":552,"height":11}},{"id":"38d3e273-9b24-4eec-9374-46cf69dcdaf6","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":29,"box":{"x":69,"y":657,"width":582,"height":11}},{"id":"e90cfdd6-5c1b-46c0-94e6-422fd8048f4a","block_type":"box","text":"Incentive Savings Plans","page_number":29,"box":{"x":102,"y":680,"width":167,"height":11}},{"id":"ca941214-c06a-4620-82f6-be3552e1b9c7","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":29,"box":{"x":274,"y":680,"width":614,"height":11}},{"id":"147fe507-1c77-43ee-b946-dfb8a65ff362","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":29,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"9bc0af98-6d04-44c6-af40-a870ca1f8f06","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":29,"box":{"x":70,"y":710,"width":785,"height":11}},{"id":"fcbdd48a-cacc-4433-b49d-e393bcc68113","block_type":"box","text":"company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a","page_number":29,"box":{"x":69,"y":724,"width":830,"height":12}},{"id":"1fc2b364-3158-4160-b507-402ff416deb3","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":29,"box":{"x":69,"y":740,"width":799,"height":11}},{"id":"a35bc093-9623-4430-b9c2-4c28b9731f16","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":29,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"920c2b6a-9617-46fb-863a-fbb4320410b7","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":29,"box":{"x":69,"y":770,"width":798,"height":12}},{"id":"0cdd45f3-8733-4647-b867-b341909e44b1","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":29,"box":{"x":70,"y":785,"width":809,"height":12}},{"id":"4c584d36-2a85-4262-bc12-77f083dc1cee","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":29,"box":{"x":68,"y":801,"width":793,"height":11}},{"id":"905b0465-2ce2-4525-b0c7-9bf964c35ed0","block_type":"box","text":"investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.","page_number":29,"box":{"x":70,"y":816,"width":832,"height":11}},{"id":"2b194c89-2299-4349-bc22-ed5d061effa6","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":29,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"b8398614-15b3-491c-8c98-3495cc57929e","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":29,"box":{"x":69,"y":845,"width":808,"height":12}},{"id":"910f0f45-fa9c-47f9-af55-a137692b98b4","block_type":"box","text":"participate in these plans.","page_number":29,"box":{"x":70,"y":861,"width":185,"height":11}},{"id":"383b4999-b7bf-4e18-94bc-f8b8ab6f1ba6","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"9f891072-fb6e-4d35-b364-5acf03d9546f","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":29,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"b21793b2-bb22-4588-a881-b01cfe810a2e","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":30,"box":{"x":69,"y":45,"width":268,"height":11}},{"id":"6db1d9ff-175b-4470-ba8c-cdeabf4874a4","block_type":"box","text":"As of May 31, 2026, the dollar range of securities beneficially owned by the portfolio managers in the Fund is","page_number":30,"box":{"x":101,"y":67,"width":782,"height":12}},{"id":"3912e204-102a-400a-8d68-719cf06b3f56","block_type":"box","text":"shown below:","page_number":30,"box":{"x":69,"y":83,"width":94,"height":8}},{"id":"e81a8157-3617-4705-90ce-700c2fdbd23e","block_type":"box","text":"Portfolio Manager","page_number":30,"box":{"x":69,"y":121,"width":105,"height":9}},{"id":"de4708f3-3222-4ead-ab0d-abefbb52e6a9","block_type":"box","text":"Dollar Range of Equity","page_number":30,"box":{"x":759,"y":111,"width":129,"height":9}},{"id":"c8beebac-d50f-48eb-be9e-c7e07ac181cc","block_type":"box","text":"Securities Beneficially Owned","page_number":30,"box":{"x":736,"y":121,"width":173,"height":9}},{"id":"f06e03e2-28e7-4161-94c6-bee1e0ab3bb7","block_type":"box","text":"Zeshan Azam","page_number":30,"box":{"x":69,"y":139,"width":94,"height":8}},{"id":"3d51dc2f-f976-4343-8da5-5927925b9acc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":30,"box":{"x":166,"y":139,"width":675,"height":8}},{"id":"6ec7533f-4272-415c-a050-6f050e24108f","block_type":"box","text":"Wendy Agnew, CFA","page_number":30,"box":{"x":68,"y":154,"width":133,"height":11}},{"id":"b0ccac4f-5e99-4c52-9d6e-c70fde527dc3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":30,"box":{"x":206,"y":154,"width":635,"height":9}},{"id":"97154cdc-320b-49cf-a61e-f97ee2cd043f","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":30,"box":{"x":69,"y":185,"width":403,"height":11}},{"id":"b8c18a68-2245-441b-aacc-032d5826ad75","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":30,"box":{"x":102,"y":208,"width":727,"height":11}},{"id":"bb9fa6de-7f88-4654-9bcd-173916961cbb","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":30,"box":{"x":70,"y":223,"width":814,"height":11}},{"id":"bc353da5-3be5-4f74-ba71-72d6f811dd44","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":30,"box":{"x":70,"y":238,"width":837,"height":11}},{"id":"20655bc7-2c25-40f7-92a8-3fc0c2a33306","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":30,"box":{"x":70,"y":253,"width":810,"height":11}},{"id":"a1b7e175-88cc-4eb2-b329-a11c74b8bce7","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":30,"box":{"x":69,"y":268,"width":782,"height":11}},{"id":"f9ed74d3-77fb-4bb8-8491-b11ae47805e3","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":30,"box":{"x":69,"y":284,"width":830,"height":11}},{"id":"ba4cdbee-0ed8-43b0-92a2-e3d1a6fce0e5","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":30,"box":{"x":69,"y":299,"width":828,"height":11}},{"id":"f566142c-4e4d-463f-a862-adeadd75f829","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":30,"box":{"x":68,"y":314,"width":834,"height":11}},{"id":"7baaf27f-a9db-4786-9258-b1a108a76e5e","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":30,"box":{"x":70,"y":329,"width":777,"height":11}},{"id":"81cdc371-4484-4777-b52e-75bd7e3a4872","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":30,"box":{"x":70,"y":344,"width":821,"height":11}},{"id":"6a862ea3-99f8-439f-b617-ecbc6781b250","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":30,"box":{"x":69,"y":359,"width":819,"height":11}},{"id":"cd756526-c3fa-4745-882d-b406d83ae24d","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":30,"box":{"x":69,"y":374,"width":832,"height":11}},{"id":"31456beb-23be-4afb-a1dd-810c49bb30c8","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":30,"box":{"x":68,"y":389,"width":804,"height":11}},{"id":"809f0dfc-d28f-4f00-b483-5a8decebc192","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":30,"box":{"x":69,"y":404,"width":760,"height":12}},{"id":"618e7c89-8258-4649-8189-a6a4a0abb381","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":30,"box":{"x":69,"y":419,"width":834,"height":12}},{"id":"e2e635cc-12cd-4d88-aa0e-f421e7368cdf","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":30,"box":{"x":69,"y":435,"width":836,"height":11}},{"id":"58ce26fa-5cd8-4c4a-880a-89b93d1ed401","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":30,"box":{"x":69,"y":450,"width":822,"height":11}},{"id":"012952b5-93b5-4811-9858-7a59fc83cacf","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":30,"box":{"x":70,"y":465,"width":835,"height":11}},{"id":"b2af9c59-70fe-401c-ac0a-5f14b554b691","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Mr. Azam and Ms. Agnew may be","page_number":30,"box":{"x":69,"y":480,"width":784,"height":11}},{"id":"58a85ce6-a29f-44a9-b4c9-e503f4cfc9c5","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":30,"box":{"x":69,"y":495,"width":811,"height":11}},{"id":"94a03ec7-c38e-47b9-a21f-e915c3cbd417","block_type":"box","text":"accounts, subject to incentive fees. Mr. Azam and Ms. Agnew may therefore be entitled to receive a portion of any","page_number":30,"box":{"x":69,"y":510,"width":814,"height":11}},{"id":"08336695-aff5-4ee4-ad0d-437ac66fc061","block_type":"box","text":"incentive fees earned on such accounts.","page_number":30,"box":{"x":70,"y":525,"width":286,"height":9}},{"id":"abb4587e-84ed-4694-a69d-aaf631cc3328","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":30,"box":{"x":101,"y":548,"width":788,"height":11}},{"id":"559ffbb2-6f5c-4c8f-8991-824ef63cd7bd","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":30,"box":{"x":70,"y":563,"width":839,"height":11}},{"id":"6d61626f-d58a-4207-a819-135fe79a8899","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":30,"box":{"x":68,"y":578,"width":823,"height":11}},{"id":"027b0e13-0dc6-4780-9d77-c53679aa56f7","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":30,"box":{"x":68,"y":593,"width":812,"height":12}},{"id":"cbac7754-bdac-43c5-aa97-dfb10131a141","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":30,"box":{"x":69,"y":608,"width":777,"height":12}},{"id":"89ae0e63-1294-41f7-910b-a79c9685092f","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":30,"box":{"x":70,"y":624,"width":826,"height":10}},{"id":"469c779b-8a91-472e-8f30-01dbaa9577a8","block_type":"box","text":"Accounting Services","page_number":30,"box":{"x":68,"y":654,"width":150,"height":11}},{"id":"6639e5dc-eb9f-4eee-aecd-54a51818a20e","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”), which has its principal place of business at 301 Bellevue Parkway,","page_number":30,"box":{"x":101,"y":676,"width":802,"height":12}},{"id":"a08d38a4-6654-4abb-92be-1ffd80825e05","block_type":"box","text":"Wilmington, Delaware 19809, serves as the accounting services agent for the Fund. BNY Mellon records investment,","page_number":30,"box":{"x":68,"y":692,"width":836,"height":11}},{"id":"f51008db-0750-48a5-baf0-b4efbfb74d90","block_type":"box","text":"capital share and income and expense activities; verifies and transmits trade tickets; maintains accounting ledgers","page_number":30,"box":{"x":69,"y":707,"width":820,"height":11}},{"id":"a8b82e1c-c1d1-4b1a-b051-fe4bb61d05ff","block_type":"box","text":"for investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; reports cash balances to","page_number":30,"box":{"x":68,"y":722,"width":812,"height":11}},{"id":"727dc2e4-24c6-442e-899c-7a4f85ce3c47","block_type":"box","text":"BlackRock; prepares certain financial statements; calculates expenses, gains, losses and income; controls","page_number":30,"box":{"x":70,"y":737,"width":765,"height":11}},{"id":"227dc6b0-7c55-4ee7-9bc9-1f6c8f052f3f","block_type":"box","text":"disbursements; works with independent pricing sources; and computes and reports net asset value. In connection","page_number":30,"box":{"x":69,"y":752,"width":815,"height":11}},{"id":"95978484-db22-4712-afe4-fd0509c53164","block_type":"box","text":"with its accounting services, BNY Mellon also provides certain administration services.","page_number":30,"box":{"x":68,"y":767,"width":621,"height":11}},{"id":"12e5d518-612a-4311-a5b6-6a64b9010db4","block_type":"box","text":"The table below shows the amounts paid by the Fund, to BNY Mellon and the Manager for accounting services","page_number":30,"box":{"x":101,"y":790,"width":787,"height":11}},{"id":"69f13894-357e-4f6b-b030-baaa15879be3","block_type":"box","text":"for the periods shown.","page_number":30,"box":{"x":68,"y":805,"width":159,"height":11}},{"id":"5331e44e-bc44-4332-bf79-328b21220621","block_type":"box","text":"Fees Paid","page_number":30,"box":{"x":720,"y":833,"width":56,"height":7}},{"id":"34d61726-d7f8-4610-813d-b11c5435d87d","block_type":"box","text":"to BNY Mellon","page_number":30,"box":{"x":706,"y":843,"width":83,"height":7}},{"id":"cf653bc9-969c-4325-836c-efa980f09880","block_type":"box","text":"Fees Paid","page_number":30,"box":{"x":837,"y":833,"width":55,"height":7}},{"id":"074812e8-946e-43be-a6fb-9293545a5a74","block_type":"box","text":"to the Manager","page_number":30,"box":{"x":819,"y":843,"width":90,"height":9}},{"id":"62de44cc-836e-4aa7-9e78-e1245b57798b","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . .","page_number":30,"box":{"x":70,"y":861,"width":254,"height":11}},{"id":"7a41b89b-4925-4f78-b0c2-c1ed011c76bf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 98,322 $0","page_number":30,"box":{"x":331,"y":860,"width":543,"height":12}},{"id":"7b4f25b3-00c3-406a-b067-41222e4429f1","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . .","page_number":30,"box":{"x":70,"y":876,"width":254,"height":11}},{"id":"2942e159-e280-430e-9487-c577f90ecbb4","block_type":"box","text":"...........................................","page_number":30,"box":{"x":331,"y":884,"width":344,"height":1}},{"id":"035d66bf-10fa-462b-aa3b-0c1a1aae1460","block_type":"box","text":"$115,155 $0","page_number":30,"box":{"x":712,"y":875,"width":162,"height":12}},{"id":"bb190d09-3142-4df4-8dc2-9ef6bb057430","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . .","page_number":30,"box":{"x":70,"y":891,"width":254,"height":11}},{"id":"2e8bc4be-9259-46c8-a419-d9e377591f11","block_type":"box","text":"...........................................","page_number":30,"box":{"x":331,"y":899,"width":344,"height":1}},{"id":"d155144a-15f8-4e92-81bc-e99d20b497bf","block_type":"box","text":"$130,572 $0","page_number":30,"box":{"x":712,"y":891,"width":162,"height":11}},{"id":"96f00c5a-eeaa-4be4-92ed-94c71388c924","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"faa306dc-e4f9-40ad-b296-7845d80b515a","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":30,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c4a741d3-98f4-437d-b347-5afe44c353bb","block_type":"box","text":"Custodian","page_number":31,"box":{"x":69,"y":45,"width":72,"height":9}},{"id":"dee962f0-ece9-4db1-be60-7311e1d3690e","block_type":"box","text":"BNY Mellon, which has its principal offices at 240 Greenwich Street, New York, New York 10286, serves as the","page_number":31,"box":{"x":102,"y":67,"width":794,"height":11}},{"id":"4ae4b6c0-f25e-45a0-b32b-a7d7fcc19227","block_type":"box","text":"custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities, maintains a custody account","page_number":31,"box":{"x":69,"y":82,"width":828,"height":12}},{"id":"7152ed2b-1e8e-437a-8d9a-1fc68a945a9a","block_type":"box","text":"or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase and upon sale or","page_number":31,"box":{"x":69,"y":98,"width":820,"height":11}},{"id":"d9a9dd92-95b3-4854-b5b1-ddda09dcce46","block_type":"box","text":"maturity, and collects and receives all income and other payments and distributions on account of the assets of the","page_number":31,"box":{"x":69,"y":113,"width":825,"height":11}},{"id":"23511a9b-f57c-4b3a-8a83-4cadedc03c37","block_type":"box","text":"Fund.","page_number":31,"box":{"x":70,"y":128,"width":36,"height":9}},{"id":"704485de-ab30-4067-9d5f-f7306bbfd701","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":31,"box":{"x":68,"y":158,"width":432,"height":11}},{"id":"05c7718f-025e-410f-926e-ce66336f8654","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. serves as the transfer agent and dividend disbursing agent for the","page_number":31,"box":{"x":102,"y":181,"width":779,"height":11}},{"id":"dfdfa11b-2b41-4fc9-b9fe-102ecb41ef9e","block_type":"box","text":"Fund.","page_number":31,"box":{"x":70,"y":196,"width":36,"height":9}},{"id":"1d01ebb7-682c-4468-9f4c-a32471abf83b","block_type":"box","text":"Pursuant to a shareholders’ administrative services agreement, BlackRock provides certain shareholder liaison","page_number":31,"box":{"x":102,"y":219,"width":793,"height":11}},{"id":"bf7fd1f9-0cdd-4da6-bf9d-7e510b8e1a7f","block_type":"box","text":"services in connection with the Fund’s investor service center. The Fund reimburses BlackRock for its costs in","page_number":31,"box":{"x":69,"y":234,"width":785,"height":9}},{"id":"5cfc3dc7-fa56-4f26-a701-6f26e9aa6dad","block_type":"box","text":"maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses and","page_number":31,"box":{"x":69,"y":249,"width":833,"height":11}},{"id":"f95d5f36-fd9e-43b2-98e2-5a98c41d9b71","block_type":"box","text":"other out-of-pocket expenses. For the periods shown, the Fund reimbursed BlackRock for shareholder liaison services","page_number":31,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"c401954c-313d-4ab5-b3b4-0904519fe127","block_type":"box","text":"pursuant to such agreement in the amounts set forth below:","page_number":31,"box":{"x":70,"y":279,"width":429,"height":11}},{"id":"aeff0c1a-12ec-4927-97d8-4d6aa3cdb1c9","block_type":"box","text":"Fees Paid","page_number":31,"box":{"x":732,"y":307,"width":56,"height":7}},{"id":"ba035f79-6a6e-4450-8b64-dc0ed7d31671","block_type":"box","text":"to BlackRock","page_number":31,"box":{"x":720,"y":317,"width":80,"height":7}},{"id":"d7751a27-de8f-46ab-b5bb-940ddd57ae3d","block_type":"box","text":"Fees Waived","page_number":31,"box":{"x":833,"y":307,"width":72,"height":7}},{"id":"d3fe489f-7fe1-43e3-93ec-16190fe18942","block_type":"box","text":"by BlackRock","page_number":31,"box":{"x":830,"y":317,"width":80,"height":9}},{"id":"e36f4938-f38e-4a44-ab0e-eafeffc72901","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":335,"width":457,"height":11}},{"id":"6ca6f33d-c46b-4fef-a21d-200093fb24bf","block_type":"box","text":"....................","page_number":31,"box":{"x":533,"y":342,"width":157,"height":2}},{"id":"07462bfb-36a2-4f3c-9e75-32751214db74","block_type":"box","text":"$12,485 $12,485","page_number":31,"box":{"x":729,"y":334,"width":171,"height":12}},{"id":"30385dc2-f5eb-4793-9213-98ba89384ae0","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":350,"width":457,"height":11}},{"id":"95d89165-5a5f-402a-9720-7810ab3cd3e6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $ 7,589 $ 7,589","page_number":31,"box":{"x":533,"y":349,"width":367,"height":12}},{"id":"f64e9ead-7b9f-4728-925f-f0bab1a378fb","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":365,"width":457,"height":11}},{"id":"5cc4251e-b0bd-48f6-b113-80ac6e4a56ec","block_type":"box","text":"....................","page_number":31,"box":{"x":533,"y":373,"width":157,"height":1}},{"id":"596d565e-fda1-43af-a96f-dcd233081584","block_type":"box","text":"$17,703 $17,703","page_number":31,"box":{"x":729,"y":365,"width":171,"height":11}},{"id":"953c1ecb-6880-4257-b138-da698e907bc0","block_type":"box","text":"Credit Agreement","page_number":31,"box":{"x":69,"y":397,"width":129,"height":11}},{"id":"ceb46db9-bb74-4334-8209-51cc5f3045b1","block_type":"box","text":"The Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”),","page_number":31,"box":{"x":101,"y":419,"width":765,"height":12}},{"id":"9c4d162c-b61a-4cbb-8693-6bcca119e88c","block_type":"box","text":"is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility terminates on","page_number":31,"box":{"x":70,"y":434,"width":748,"height":12}},{"id":"0e010d71-5bdb-403a-a9b3-8fe729cbe49e","block_type":"box","text":"April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated","page_number":31,"box":{"x":68,"y":450,"width":823,"height":11}},{"id":"03a881c4-4325-4ce1-aa7d-0d64a81dc6d9","block_type":"box","text":"for certain Participating Funds, the Participating Funds, including the Fund, can borrow up to an aggregate","page_number":31,"box":{"x":68,"y":465,"width":757,"height":11}},{"id":"abd9793d-14fd-4435-9c63-391a9418617b","block_type":"box","text":"commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as","page_number":31,"box":{"x":69,"y":479,"width":801,"height":12}},{"id":"b53f632f-2eb1-44c6-b078-64555cb6b0ad","block_type":"box","text":"specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet shareholder","page_number":31,"box":{"x":69,"y":495,"width":751,"height":11}},{"id":"200aa37a-1b5e-4674-89bd-aaa4f9629cde","block_type":"box","text":"redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit Agreement for","page_number":31,"box":{"x":69,"y":510,"width":784,"height":11}},{"id":"31683cd3-fc00-4909-b9cc-beea67bb3272","block_type":"box","text":"leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses and SAI, subject","page_number":31,"box":{"x":70,"y":525,"width":839,"height":12}},{"id":"08c849b6-cac7-4d96-b170-e3ebeda0d31b","block_type":"box","text":"to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other fees and","page_number":31,"box":{"x":68,"y":540,"width":794,"height":12}},{"id":"f318b730-e2a5-4f8a-9f1c-9f9119683766","block_type":"box","text":"expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the Fund’s","page_number":31,"box":{"x":69,"y":555,"width":809,"height":12}},{"id":"be41a86b-d46d-420d-a3a5-979cfc370eec","block_type":"box","text":"return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate commitment","page_number":31,"box":{"x":69,"y":571,"width":814,"height":11}},{"id":"915de2e3-50e1-4040-ba6f-106b2f48e503","block_type":"box","text":"amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be charged","page_number":31,"box":{"x":69,"y":586,"width":800,"height":11}},{"id":"ac8b3dcf-db14-468e-b642-dcc230d4fff2","block_type":"box","text":"interest at a variable rate.","page_number":31,"box":{"x":70,"y":601,"width":182,"height":9}},{"id":"30b3f61c-fc31-457e-ac50-839bd911c17a","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":31,"box":{"x":68,"y":631,"width":491,"height":11}},{"id":"63df005f-9aa2-455e-9fc4-2da56cccdd72","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":31,"box":{"x":102,"y":654,"width":773,"height":11}},{"id":"7f76ebf4-3dea-418e-9043-ed556741f9e4","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of BlackRock (“affiliates”) for the Fund for the periods","page_number":31,"box":{"x":69,"y":669,"width":824,"height":11}},{"id":"d7772803-1ead-4f15-ae68-2ef9083f20aa","block_type":"box","text":"shown. BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of BlackRock, acts as the Fund’s sole","page_number":31,"box":{"x":69,"y":684,"width":820,"height":11}},{"id":"d000e2c8-937f-42b1-aa38-14897f742987","block_type":"box","text":"distributor.","page_number":31,"box":{"x":69,"y":699,"width":74,"height":9}},{"id":"29f9c472-f20f-4a61-9523-949a403977db","block_type":"box","text":"Investor A Shares","page_number":31,"box":{"x":645,"y":727,"width":102,"height":8}},{"id":"a29f325a-4bc3-4f7f-9a0e-340c352ea963","block_type":"box","text":"Gross Sales","page_number":31,"box":{"x":485,"y":753,"width":68,"height":7}},{"id":"32289c79-5864-4b0d-9cdb-b1b74fea3901","block_type":"box","text":"Charges","page_number":31,"box":{"x":496,"y":763,"width":47,"height":9}},{"id":"5511048e-4992-4d06-8aaf-46c782b9febd","block_type":"box","text":"Collected","page_number":31,"box":{"x":492,"y":773,"width":54,"height":8}},{"id":"cea053b0-82a7-482f-b4d6-47426019cc47","block_type":"box","text":"Sales Charges","page_number":31,"box":{"x":585,"y":753,"width":84,"height":9}},{"id":"663c3cac-7d2f-415c-83fd-c19d700415ff","block_type":"box","text":"Retained","page_number":31,"box":{"x":602,"y":763,"width":51,"height":7}},{"id":"97116b66-7e56-4e93-a82c-86803ad72161","block_type":"box","text":"by BRIL","page_number":31,"box":{"x":606,"y":774,"width":44,"height":8}},{"id":"5e12de08-af60-4f14-ba5e-aa575dffbb9e","block_type":"box","text":"Sales Charges","page_number":31,"box":{"x":699,"y":753,"width":83,"height":9}},{"id":"9d992ac2-ebb6-4846-bca9-bac1d2434f2d","block_type":"box","text":"Paid to","page_number":31,"box":{"x":721,"y":763,"width":40,"height":7}},{"id":"74546e92-39c7-4d27-81c2-d5edac347425","block_type":"box","text":"Affiliates","page_number":31,"box":{"x":715,"y":773,"width":51,"height":8}},{"id":"4d281b45-6d4e-476a-bd06-64c45ec99b03","block_type":"box","text":"CDSCs Received","page_number":31,"box":{"x":812,"y":743,"width":97,"height":7}},{"id":"6abc1ac4-abc2-4062-8219-c89cd8949d8f","block_type":"box","text":"on Redemption","page_number":31,"box":{"x":817,"y":753,"width":87,"height":9}},{"id":"bc8546c1-9d4a-4ec6-8378-46c69863ff98","block_type":"box","text":"of Load-Waived","page_number":31,"box":{"x":817,"y":763,"width":87,"height":7}},{"id":"896d857e-cfd3-4dbb-b2c4-e9a3b220ec79","block_type":"box","text":"Shares","page_number":31,"box":{"x":841,"y":773,"width":39,"height":8}},{"id":"22a4c4b0-9606-475a-8288-2e29c2c22c08","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . $ 79,900 $6,125 $6,125 $1,094","page_number":31,"box":{"x":70,"y":790,"width":817,"height":12}},{"id":"b4f3acde-fc03-4f9a-8ff9-8441c4357839","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . $103,162 $7,840 $7,840 $5,395","page_number":31,"box":{"x":70,"y":806,"width":817,"height":11}},{"id":"bb7b8191-493b-403c-8694-2d3dc57ae2b7","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . $ 96,453 $6,619 $6,619 $1,811","page_number":31,"box":{"x":70,"y":821,"width":817,"height":11}},{"id":"920e6c3a-1562-4b57-92ec-1608ceb25a6e","block_type":"box","text":"Investor C Shares","page_number":31,"box":{"x":791,"y":851,"width":102,"height":7}},{"id":"dba5d4a0-5346-44f7-aa3d-31bf0e003ee1","block_type":"box","text":"CDSCs","page_number":31,"box":{"x":781,"y":867,"width":40,"height":7}},{"id":"07eb74aa-685b-4ba6-a77e-4f31384cc982","block_type":"box","text":"Received","page_number":31,"box":{"x":775,"y":877,"width":52,"height":7}},{"id":"da3a3470-ace5-474d-98fc-ef908e87d98a","block_type":"box","text":"by BRIL","page_number":31,"box":{"x":779,"y":887,"width":44,"height":9}},{"id":"be308fab-7732-47b4-8f46-f42cc9ed78c1","block_type":"box","text":"CDSCs","page_number":31,"box":{"x":864,"y":867,"width":39,"height":7}},{"id":"ee308ada-ce36-4853-853e-7662b91fb5ea","block_type":"box","text":"Paid to","page_number":31,"box":{"x":863,"y":877,"width":41,"height":7}},{"id":"f507d85a-0dec-4169-b1c0-dbb10245570a","block_type":"box","text":"Affiliates","page_number":31,"box":{"x":857,"y":887,"width":52,"height":7}},{"id":"b815e6f3-379f-4c0e-a041-fc487a6fc0ae","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . .","page_number":31,"box":{"x":70,"y":905,"width":258,"height":11}},{"id":"539b2f10-dbf4-40a6-8603-9187c5484b76","block_type":"box","text":"...................................................","page_number":31,"box":{"x":334,"y":912,"width":410,"height":1}},{"id":"62ef9ae6-90f6-459f-b7d8-904a08fe2d2f","block_type":"box","text":"$493 $493","page_number":31,"box":{"x":782,"y":904,"width":120,"height":10}},{"id":"42d8a992-b179-4471-9afd-9be3f19354dd","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"06524eee-bb42-41a5-8afc-c364bc77a5fe","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":31,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"cc6804e8-5f54-4c78-836e-1d293ef937f6","block_type":"box","text":"Investor C Shares","page_number":32,"box":{"x":791,"y":49,"width":102,"height":7}},{"id":"4ee9e70a-bca4-4df8-b8b9-1a9109a87a65","block_type":"box","text":"CDSCs","page_number":32,"box":{"x":781,"y":65,"width":40,"height":7}},{"id":"d1e8bd8c-3190-42ef-a0c9-441dfc608cad","block_type":"box","text":"Received","page_number":32,"box":{"x":775,"y":75,"width":52,"height":7}},{"id":"4bc9ac20-ea89-4ec2-8f47-a7fd545df97c","block_type":"box","text":"by BRIL","page_number":32,"box":{"x":779,"y":85,"width":44,"height":9}},{"id":"0d044e6d-5257-4a7f-89da-2e53942a023f","block_type":"box","text":"CDSCs","page_number":32,"box":{"x":864,"y":65,"width":39,"height":7}},{"id":"4524a1e9-9dce-4dad-9a14-f07b0aef68a7","block_type":"box","text":"Paid to","page_number":32,"box":{"x":863,"y":75,"width":41,"height":7}},{"id":"407adad9-4ac1-4cbc-9f81-3d1f72f9d3e1","block_type":"box","text":"Affiliates","page_number":32,"box":{"x":857,"y":85,"width":52,"height":7}},{"id":"8e6d83df-7a21-49e6-a247-220af6d83517","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . .","page_number":32,"box":{"x":70,"y":103,"width":258,"height":11}},{"id":"60002127-2db6-4241-b6ca-d097b2210276","block_type":"box","text":"...................................................","page_number":32,"box":{"x":334,"y":110,"width":410,"height":1}},{"id":"341a5e73-8d4d-47f6-b5b9-bb5eb33bde13","block_type":"box","text":"$252 $252","page_number":32,"box":{"x":782,"y":102,"width":120,"height":10}},{"id":"99246ee9-56b8-4e9b-8708-ecbd74155d49","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . .","page_number":32,"box":{"x":70,"y":118,"width":258,"height":11}},{"id":"d02bfd41-26a3-4bd1-978d-87657f370db3","block_type":"box","text":"...................................................","page_number":32,"box":{"x":334,"y":125,"width":410,"height":2}},{"id":"2d32ff54-5a28-4cda-8764-c4f0b67c0865","block_type":"box","text":"$626 $626","page_number":32,"box":{"x":782,"y":117,"width":120,"height":11}},{"id":"d4951009-d639-40dd-b127-2e9b61be1a5f","block_type":"box","text":"The table below sets forth information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund","page_number":32,"box":{"x":101,"y":142,"width":779,"height":11}},{"id":"cd7276f6-3ec9-461e-96ad-c83cb146b292","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":32,"box":{"x":70,"y":157,"width":823,"height":11}},{"id":"c4026439-e3a7-4f50-ace1-87f60054d08f","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution related","page_number":32,"box":{"x":69,"y":172,"width":827,"height":11}},{"id":"5acb8f0e-ab1e-4d8c-a970-257ddee4a629","block_type":"box","text":"activities and services for Investor C and Class R Shares.","page_number":32,"box":{"x":69,"y":187,"width":409,"height":9}},{"id":"abb033f5-fb1c-469b-a3a7-71d60b1e54f1","block_type":"box","text":"Class Name","page_number":32,"box":{"x":69,"y":215,"width":68,"height":7}},{"id":"93322be2-f5d6-455c-94cf-07d85c1a0005","block_type":"box","text":"Fees Paid to BRIL","page_number":32,"box":{"x":806,"y":215,"width":103,"height":7}},{"id":"6bb12636-98ea-4972-985f-b856aeab0399","block_type":"box","text":"Investor A Shares .","page_number":32,"box":{"x":70,"y":233,"width":134,"height":9}},{"id":"b7c891c4-5e3f-4a71-bb38-5d7dddab122c","block_type":"box","text":"......................................................................","page_number":32,"box":{"x":210,"y":240,"width":564,"height":2}},{"id":"7ea7d640-d935-41bd-b778-dc8e2037656b","block_type":"box","text":"$733,436","page_number":32,"box":{"x":822,"y":232,"width":71,"height":11}},{"id":"26596ac7-08ee-4097-826e-01fefd42bbd1","block_type":"box","text":"Investor C Shares . . .","page_number":32,"box":{"x":70,"y":248,"width":150,"height":9}},{"id":"4cafa347-2d1d-4bb3-bce4-70befd2b7878","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,311","page_number":32,"box":{"x":226,"y":247,"width":667,"height":12}},{"id":"ac875698-ad15-4430-83a5-e588fc460e9b","block_type":"box","text":"Class R Shares","page_number":32,"box":{"x":69,"y":263,"width":109,"height":9}},{"id":"7b94e3cb-28bf-42c7-8746-f91fbe983bed","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,744","page_number":32,"box":{"x":185,"y":263,"width":708,"height":11}},{"id":"2180e3aa-9053-4d0d-aa1b-5b744fdae55c","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":32,"box":{"x":68,"y":295,"width":318,"height":11}},{"id":"aeedc4fb-572f-491f-b635-c37f22bfebdc","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund based on the","page_number":32,"box":{"x":101,"y":317,"width":790,"height":12}},{"id":"92b2b472-7806-40b7-bae4-e6ecd6c873e0","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":32,"box":{"x":68,"y":332,"width":731,"height":12}},{"id":"1c9f042d-bdc0-427f-8b18-50a5ff46d0c5","block_type":"box","text":"May 31, 2026, is set forth below.","page_number":32,"box":{"x":70,"y":348,"width":238,"height":11}},{"id":"68befb9b-4c50-4453-b09e-5480dc5de180","block_type":"box","text":"Investor A Shares","page_number":32,"box":{"x":805,"y":376,"width":102,"height":7}},{"id":"33f7a59c-7aa6-4dae-8c8b-36f06ae8a6e2","block_type":"box","text":"Net Assets","page_number":32,"box":{"x":70,"y":394,"width":76,"height":9}},{"id":"207073b5-025f-4005-914b-6ea6435f7f9f","block_type":"box","text":".............................................................................","page_number":32,"box":{"x":150,"y":401,"width":621,"height":1}},{"id":"d5d67b27-998b-42f0-a02d-744bfa14bbb9","block_type":"box","text":"$304,092,032","page_number":32,"box":{"x":803,"y":393,"width":106,"height":11}},{"id":"85a0302c-8a11-4050-8dd9-84c63a483b44","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":32,"box":{"x":70,"y":409,"width":245,"height":11}},{"id":"13697fa0-addb-45f9-9170-c1ad2fee33b7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,","page_number":32,"box":{"x":321,"y":409,"width":524,"height":10}},{"id":"ab76f0f4-fbbe-4f4d-b743-d7684fc56f49","block_type":"box","text":"709,738","page_number":32,"box":{"x":847,"y":409,"width":62,"height":10}},{"id":"b629ad0e-8ee4-4f98-aabc-ee4b269e396b","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":32,"box":{"x":70,"y":424,"width":571,"height":11}},{"id":"13c3cfc4-8b26-4294-83b7-329bcad807b6","block_type":"box","text":"................","page_number":32,"box":{"x":647,"y":431,"width":124,"height":2}},{"id":"a82bff19-66c7-48cb-a003-74e0c3233e8b","block_type":"box","text":"$23.93","page_number":32,"box":{"x":857,"y":423,"width":52,"height":11}},{"id":"28c70e27-e6c5-405a-b08c-21c65d283c38","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":32,"box":{"x":69,"y":439,"width":534,"height":11}},{"id":"ab4d40c8-26f3-456e-afc5-2000b003a0ad","block_type":"box","text":"1","page_number":32,"box":{"x":604,"y":439,"width":4,"height":5}},{"id":"0b0a22a7-3ef8-42d6-9e8a-f48d1ebea43d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $1.32","page_number":32,"box":{"x":615,"y":438,"width":294,"height":11}},{"id":"050a33e5-6f60-4a4f-8b14-38073cf049c1","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":69,"y":458,"width":702,"height":12}},{"id":"2abf954a-d08b-478a-a5ac-fbb36129d3d3","block_type":"box","text":"$25.25","page_number":32,"box":{"x":857,"y":458,"width":52,"height":10}},{"id":"e6f7a440-d3cb-4602-b28f-8277b86f1a58","block_type":"box","text":"1","page_number":32,"box":{"x":69,"y":491,"width":3,"height":3}},{"id":"b8118acc-54a4-4c11-bb9f-a46cbc4f6424","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":32,"box":{"x":94,"y":491,"width":541,"height":9}},{"id":"23ddd795-a1dd-444d-aaff-860e36a4fd8c","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":32,"box":{"x":101,"y":511,"width":796,"height":12}},{"id":"f73c310b-63dd-4961-b90b-4f95ea8dd57b","block_type":"box","text":"set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject to","page_number":32,"box":{"x":69,"y":526,"width":833,"height":12}},{"id":"c56831d0-1678-4766-b495-1bb8fbb31dc0","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":32,"box":{"x":69,"y":542,"width":813,"height":11}},{"id":"8f86e589-36f2-47da-b0eb-94a04737e609","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":32,"box":{"x":69,"y":557,"width":377,"height":11}},{"id":"43af314e-fe37-4bc2-8a1e-53df29729b94","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":32,"box":{"x":68,"y":587,"width":302,"height":11}},{"id":"a737f23f-f833-43f2-9cd7-9f99ef8db8a5","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":32,"box":{"x":102,"y":610,"width":609,"height":11}},{"id":"84507c2c-65a0-4ea3-8e70-aede2a15d55b","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, during","page_number":32,"box":{"x":102,"y":632,"width":798,"height":12}},{"id":"280075d0-dea8-4350-b5a6-938c264fc8c1","block_type":"box","text":"the periods shown is set forth in the following table:","page_number":32,"box":{"x":68,"y":647,"width":371,"height":12}},{"id":"1531dad9-6115-4a85-85b5-b6c61dee1e0e","block_type":"box","text":"Aggregate Brokerage","page_number":32,"box":{"x":584,"y":676,"width":125,"height":9}},{"id":"aa5d2876-1876-456a-b25d-a452148a7dfa","block_type":"box","text":"Commissions Paid","page_number":32,"box":{"x":593,"y":686,"width":106,"height":7}},{"id":"5d6f047b-b0c6-4d49-8bfc-9131116e7973","block_type":"box","text":"Brokerage Commissions Paid","page_number":32,"box":{"x":739,"y":676,"width":170,"height":9}},{"id":"2fa1dc24-5b06-47c1-85b9-5915f26bedb7","block_type":"box","text":"to Affiliates","page_number":32,"box":{"x":790,"y":686,"width":68,"height":7}},{"id":"cee35336-02e1-44ba-b262-a846357ea236","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 774,018 $0","page_number":32,"box":{"x":70,"y":703,"width":763,"height":12}},{"id":"b931aac9-5a16-48a2-9212-2e7f1ebaa60f","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,053,596 $0","page_number":32,"box":{"x":70,"y":718,"width":763,"height":12}},{"id":"1ba7b719-d6e0-4b09-8ff4-e17c2a7b18e5","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,012,333 $0","page_number":32,"box":{"x":70,"y":733,"width":763,"height":12}},{"id":"4cc3f556-4123-4132-a356-1f9634e105ac","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":32,"box":{"x":102,"y":758,"width":805,"height":11}},{"id":"0e12bfd7-eb7b-487c-9af5-4b0e359ea924","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":32,"box":{"x":70,"y":773,"width":833,"height":11}},{"id":"cac1add8-4138-4058-8e48-dfa7d68f2c56","block_type":"box","text":"amended, and the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026.","page_number":32,"box":{"x":69,"y":788,"width":815,"height":11}},{"id":"73f2e5f0-c648-4fb6-b9be-748ef62290ec","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":32,"box":{"x":68,"y":803,"width":795,"height":11}},{"id":"f8cd550d-b0e4-45ac-a530-5409d66d336a","block_type":"box","text":"brokerage business with such brokers.","page_number":32,"box":{"x":69,"y":818,"width":274,"height":11}},{"id":"73590aba-fe8c-4d8a-a9c5-44da354b4a4a","block_type":"box","text":"Amount of Commissions","page_number":32,"box":{"x":318,"y":846,"width":141,"height":8}},{"id":"673e5808-0f69-420c-a751-488294329688","block_type":"box","text":"Paid to Brokers for","page_number":32,"box":{"x":335,"y":857,"width":109,"height":7}},{"id":"c7d3a075-e9f4-439d-a5f4-5cb66db34f33","block_type":"box","text":"Providing 28(e) Eligible Research Services","page_number":32,"box":{"x":265,"y":867,"width":248,"height":8}},{"id":"5f824069-38ba-43a3-8096-c78cc3cacc4c","block_type":"box","text":"Amount of Brokerage","page_number":32,"box":{"x":588,"y":857,"width":124,"height":8}},{"id":"dc407509-0c02-4afc-8066-b387e99e525f","block_type":"box","text":"Transactions Involved","page_number":32,"box":{"x":587,"y":867,"width":126,"height":7}},{"id":"141eec8c-0df6-4e29-a531-74904ce752e1","block_type":"box","text":"$0 $0","page_number":32,"box":{"x":380,"y":884,"width":280,"height":10}},{"id":"7d77eabe-22c1-4ac6-81d3-81f8c288c9d5","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"450fde26-f965-4b52-8e90-e9b28986821f","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":32,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"491cebd8-4e05-43bc-9489-0d1a27180330","block_type":"box","text":"As of May 31, 2026, the Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1 under","page_number":33,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"12dc10b3-b23d-4c10-a56e-c0bc3a417829","block_type":"box","text":"the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":33,"box":{"x":68,"y":60,"width":748,"height":11}},{"id":"ded557f2-566b-4c3b-a5f6-2e1c4763e053","block_type":"box","text":"May 31, 2026.","page_number":33,"box":{"x":70,"y":75,"width":104,"height":11}},{"id":"aa706b3f-fce0-46c6-bd8b-650d499d1e33","block_type":"box","text":"Securities Lending","page_number":33,"box":{"x":68,"y":105,"width":135,"height":11}},{"id":"f8df508f-fe11-401d-9b64-3a5ca983d242","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":33,"box":{"x":101,"y":128,"width":807,"height":11}},{"id":"89733f7b-ea2d-4f1c-89b2-bbfac7a15708","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":33,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"e63b2e95-41b6-4e5a-b803-fd18f58112bf","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":33,"box":{"x":69,"y":158,"width":813,"height":11}},{"id":"ebcbe657-73a6-41a5-8966-d35b307af769","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":33,"box":{"x":70,"y":173,"width":838,"height":11}},{"id":"ebf45cd1-a9a6-4d4a-ad6f-c6f9a8058469","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":33,"box":{"x":69,"y":188,"width":813,"height":12}},{"id":"d712e5cc-a06e-487b-a8db-b918d18f63bb","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":33,"box":{"x":70,"y":204,"width":646,"height":11}},{"id":"b4029fac-16f4-4d86-9bed-78bf6510461b","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":33,"box":{"x":101,"y":226,"width":735,"height":11}},{"id":"88f72c8b-f38d-4bcf-b74c-4a1512bdcab1","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":33,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"81d88f8f-223c-4a07-945c-a25e5059428f","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":33,"box":{"x":70,"y":256,"width":822,"height":11}},{"id":"cd2421fc-db71-4dab-9642-fb588dbbd259","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":33,"box":{"x":69,"y":271,"width":787,"height":12}},{"id":"c313de76-6693-430b-98c0-414cdc094319","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":33,"box":{"x":69,"y":286,"width":783,"height":12}},{"id":"21eb1d20-8c7a-454a-a68b-c72dfc4b20b5","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":33,"box":{"x":70,"y":302,"width":800,"height":11}},{"id":"067113d7-5c6f-428f-ba49-dd1a254ec0c6","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":33,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"98b5cec7-9198-4913-8047-155d110df277","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":33,"box":{"x":70,"y":332,"width":830,"height":11}},{"id":"ba642053-4831-49d9-85fa-3e6c74db4f20","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":33,"box":{"x":69,"y":347,"width":773,"height":11}},{"id":"473931c6-d482-4dc5-bb40-d6db89ab2565","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":33,"box":{"x":101,"y":370,"width":776,"height":11}},{"id":"ee257d9f-d01c-4e13-abf0-49658d1da85d","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":33,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"c4c12fa0-6ec5-48f5-bb66-43eabe88d0a1","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":33,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"2e3a4666-fe10-47d5-85a9-301ccc7516d4","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":33,"box":{"x":69,"y":415,"width":799,"height":11}},{"id":"ed63d381-8d9c-4aae-b9d0-8e1a0045948a","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":33,"box":{"x":68,"y":430,"width":835,"height":11}},{"id":"5e26088b-877d-4d69-8a30-45b153115a2c","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":33,"box":{"x":69,"y":445,"width":818,"height":12}},{"id":"4016b62a-c702-4ad2-bb6e-61337ae6f0bf","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":33,"box":{"x":68,"y":460,"width":789,"height":12}},{"id":"5d3903bb-e8c0-4455-982f-873c33d38090","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":33,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"87ea1ab9-92d8-4eca-a694-b6433ffdf164","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":33,"box":{"x":69,"y":491,"width":839,"height":11}},{"id":"2d70a592-3f4f-41a0-8419-3b210777e5c3","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":33,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"c4e77eae-fc53-416a-bfe5-094dc2ae4f69","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":33,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"d5ed2797-9ac9-4918-9ca2-223759ad6da3","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":33,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"3dfcfd00-2493-41bb-91a6-652aa7bdb653","block_type":"box","text":"Fund’s returns on securities lending.","page_number":33,"box":{"x":70,"y":551,"width":258,"height":11}},{"id":"951720c7-cff2-4e9a-a6c1-70a707234e25","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":33,"box":{"x":102,"y":574,"width":774,"height":11}},{"id":"2eec532d-b91e-4575-8a95-0351b0ba5dd0","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":33,"box":{"x":69,"y":589,"width":790,"height":11}},{"id":"7281c284-9bbc-4e59-8ab0-ad8f0123c86d","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":33,"box":{"x":68,"y":604,"width":809,"height":11}},{"id":"43e59bd3-32a2-46ef-aeb5-1ca86cbb81a5","block_type":"box","text":"Corporation and BIM.","page_number":33,"box":{"x":69,"y":619,"width":149,"height":11}},{"id":"dbbaef6a-c5e3-4a47-bf6b-d3e411b2b47a","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 82% of securities","page_number":33,"box":{"x":102,"y":642,"width":783,"height":11}},{"id":"90be1282-8cf3-4f1e-a03d-a3f145700b0b","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":33,"box":{"x":70,"y":657,"width":815,"height":11}},{"id":"904eb6bc-c2fd-4ae6-bc9f-8b1701885584","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":33,"box":{"x":69,"y":672,"width":463,"height":11}},{"id":"967a0acb-a098-4cf8-a9da-efc8f2a3293f","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":33,"box":{"x":102,"y":695,"width":753,"height":11}},{"id":"c6ce79d6-0b09-4d31-bece-a078b3a7efb4","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":33,"box":{"x":69,"y":710,"width":778,"height":11}},{"id":"a0f1e4e9-1fdc-4bbe-8e68-c250811778ce","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":33,"box":{"x":70,"y":725,"width":817,"height":11}},{"id":"d9d7dfff-7d5c-4011-bc75-92c2b68403a8","block_type":"box","text":"lending income as follows: (i) 85% of securities lending income (which excludes collateral investment fees); and","page_number":33,"box":{"x":70,"y":740,"width":794,"height":11}},{"id":"fe5ad343-107b-4f84-9e28-0db1c2b068f8","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":33,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"7c909711-29a2-4f68-85ee-82ed5d1c862f","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":33,"box":{"x":102,"y":778,"width":683,"height":11}},{"id":"18c498ba-1ba1-467e-9430-f217e17edf3d","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended May 31, 2026, primarily included","page_number":33,"box":{"x":101,"y":801,"width":803,"height":11}},{"id":"15477bdc-e186-4567-9094-eeb6610df24d","block_type":"box","text":"the following:","page_number":33,"box":{"x":68,"y":816,"width":93,"height":11}},{"id":"15a6e677-599d-402e-abbe-0faff5d881ce","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":33,"box":{"x":69,"y":836,"width":818,"height":11}},{"id":"39543a90-2eb2-4364-81ab-bfda0ba0bb73","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":33,"box":{"x":102,"y":851,"width":333,"height":10}},{"id":"4164b12b-edcf-4caf-85df-76e8db3447d8","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":33,"box":{"x":69,"y":871,"width":538,"height":11}},{"id":"8140a086-33d1-4367-abcb-3e7bfd33cde9","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":33,"box":{"x":69,"y":891,"width":330,"height":12}},{"id":"ce03611f-ab1e-4c7a-b839-a9853eca0054","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0e2a614d-0bb7-4470-877d-370e3b313cf9","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":33,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5d741f6b-15ac-4855-b144-8c65fc37f85c","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return","page_number":34,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"eb29ce40-e641-45b3-b539-4ee73a268d79","block_type":"box","text":"of excess collateral, as necessary;","page_number":34,"box":{"x":102,"y":60,"width":246,"height":11}},{"id":"23d7b273-4105-42a0-87cd-f3d0e12f56c2","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":34,"box":{"x":69,"y":80,"width":562,"height":11}},{"id":"569bda17-b0db-4713-a82f-09395c2fae54","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":34,"box":{"x":69,"y":100,"width":665,"height":11}},{"id":"507ef9e0-212f-4c3e-99ac-1643b74ac7e9","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":34,"box":{"x":69,"y":120,"width":822,"height":12}},{"id":"9ac93d0c-6883-49af-a431-2aa14f515dae","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":34,"box":{"x":101,"y":135,"width":803,"height":11}},{"id":"cdececaf-bb4e-45d4-bf79-de4e7e9f961b","block_type":"box","text":"of the loaned securities; and","page_number":34,"box":{"x":102,"y":150,"width":203,"height":11}},{"id":"010e468f-ab2b-4e69-a3c1-6994fb3a5d55","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":34,"box":{"x":69,"y":171,"width":808,"height":11}},{"id":"4158e501-1183-4ccb-b6c5-1d56e4147283","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":34,"box":{"x":101,"y":193,"width":805,"height":12}},{"id":"0283cbab-a888-49d5-b2d6-778ef4c5b251","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":34,"box":{"x":69,"y":208,"width":546,"height":12}},{"id":"f0e02214-971d-479f-8e52-33a530612790","block_type":"box","text":"Gross income from securities lending activities","page_number":34,"box":{"x":69,"y":236,"width":343,"height":11}},{"id":"4eb282fb-6255-45a6-ba25-02d8cd3f03e6","block_type":"box","text":"...................................................","page_number":34,"box":{"x":416,"y":244,"width":409,"height":1}},{"id":"bbcbf098-934a-4a87-aa30-f3bfca1ef3fd","block_type":"box","text":"$24,152","page_number":34,"box":{"x":847,"y":236,"width":62,"height":11}},{"id":"2f2f1ed1-c198-4b7d-9f0e-41c224d689c7","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":34,"box":{"x":70,"y":256,"width":565,"height":11}},{"id":"ab81813a-a4ec-476e-bf42-db36b1ee560a","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":34,"box":{"x":79,"y":271,"width":599,"height":11}},{"id":"538250ef-ca86-441a-90b2-217ec50fa0b4","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 374","page_number":34,"box":{"x":685,"y":270,"width":224,"height":11}},{"id":"59a8e632-cf10-469b-ab65-4d6d26c305c8","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM. .","page_number":34,"box":{"x":79,"y":286,"width":673,"height":11}},{"id":"f57543a6-fa9b-4d14-868d-7ba54a4a6fe0","block_type":"box","text":". . . . . . . . . $ 237","page_number":34,"box":{"x":758,"y":285,"width":150,"height":11}},{"id":"d6c800ca-882b-4748-82ca-eea5be8a68b6","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":34,"box":{"x":78,"y":301,"width":551,"height":11}},{"id":"50dd9069-b64f-444a-8e61-872c989cb472","block_type":"box","text":"........................ $ 0","page_number":34,"box":{"x":636,"y":300,"width":273,"height":11}},{"id":"c872325f-c057-4ed3-b677-45cc01b7dad4","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":34,"box":{"x":79,"y":316,"width":567,"height":11}},{"id":"e5650e30-0fac-41a2-be6a-9d460aa78170","block_type":"box","text":"...................... $ 0","page_number":34,"box":{"x":652,"y":315,"width":257,"height":11}},{"id":"347d422a-9bea-444e-97a9-cace678d8fee","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":34,"box":{"x":79,"y":331,"width":289,"height":11}},{"id":"edcdb2c7-f71f-4542-8ec2-26a5a30146b8","block_type":"box","text":"........................................................","page_number":34,"box":{"x":375,"y":339,"width":450,"height":1}},{"id":"1a4ea276-9fe6-4cf3-9912-abd64f45283d","block_type":"box","text":"$21,451","page_number":34,"box":{"x":847,"y":331,"width":62,"height":11}},{"id":"ecb6edc1-7d47-4a4f-8e71-039e57766c90","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":34,"box":{"x":79,"y":346,"width":542,"height":12}},{"id":"8cd42033-f039-4249-960c-c0782cb1b8c9","block_type":"box","text":"......................... $ 0","page_number":34,"box":{"x":628,"y":346,"width":281,"height":10}},{"id":"143c13d8-f586-43b4-b243-d875d90e7377","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":34,"box":{"x":68,"y":362,"width":455,"height":11}},{"id":"e7e76667-fb05-46d2-960a-50dad51415ca","block_type":"box","text":".....................................","page_number":34,"box":{"x":530,"y":369,"width":295,"height":1}},{"id":"93533e89-5c8b-4db4-8555-673052fed1bf","block_type":"box","text":"$22,062","page_number":34,"box":{"x":847,"y":361,"width":62,"height":11}},{"id":"339a1094-466e-44a6-b565-025debe18aec","block_type":"box","text":"Net income from securities lending activities","page_number":34,"box":{"x":69,"y":381,"width":327,"height":11}},{"id":"804a2736-2a6d-483d-a0f5-cae39953ad4f","block_type":"box","text":".....................................................","page_number":34,"box":{"x":399,"y":388,"width":426,"height":2}},{"id":"aa8c3e5b-3c42-4180-b8df-0c63e42affc2","block_type":"box","text":"$ 2,090","page_number":34,"box":{"x":847,"y":380,"width":62,"height":12}},{"id":"7a4fe238-e8de-43d7-8ae2-f162a9d3f9db","block_type":"box","text":"VIII. Additional Information","page_number":34,"box":{"x":68,"y":417,"width":195,"height":9}},{"id":"ab5c0cf9-b0aa-4b69-990e-a932f2d028e2","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":34,"box":{"x":102,"y":440,"width":352,"height":11}},{"id":"44ff0e98-a1e6-4438-8711-0af25fa440a4","block_type":"box","text":"Deloitte & Touche LLP, with offices at 115 Federal Street,","page_number":34,"box":{"x":461,"y":440,"width":408,"height":10}},{"id":"7676f301-e08a-410f-ac88-7c501eff0219","block_type":"box","text":"Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":34,"box":{"x":70,"y":455,"width":717,"height":11}},{"id":"e532fe78-ea4c-4518-969b-39924b9685d8","block_type":"box","text":"Counsel.","page_number":34,"box":{"x":101,"y":478,"width":62,"height":8}},{"id":"8de3499a-ee64-44cb-98ca-59afefa5f0ad","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":34,"box":{"x":170,"y":477,"width":736,"height":12}},{"id":"ca866160-1b08-4d9a-b6d0-e2dbd97cfab0","block_type":"box","text":"the Funds’ counsel.","page_number":34,"box":{"x":68,"y":493,"width":139,"height":9}},{"id":"0949684f-35f2-41eb-a1bd-6bd0ce55e5ae","block_type":"box","text":"Description of Shares","page_number":34,"box":{"x":69,"y":523,"width":156,"height":11}},{"id":"01af99b5-0b69-4a7c-93a5-b9ad5321236a","block_type":"box","text":"The Corporation is a Maryland corporation incorporated on April 24, 1998. On September 8, 2000, the","page_number":34,"box":{"x":101,"y":546,"width":733,"height":11}},{"id":"de73a654-41f1-462f-a223-ce3bf6102741","block_type":"box","text":"Corporation changed its name from Mercury Asset Management Funds, Inc. to Mercury Funds, Inc. and, on","page_number":34,"box":{"x":69,"y":561,"width":762,"height":11}},{"id":"70a6210d-3af0-4514-bbeb-9985efb1c59d","block_type":"box","text":"May 1, 2002, the Fund changed its name from Mercury International Fund to Merrill Lynch International Fund.","page_number":34,"box":{"x":70,"y":576,"width":780,"height":11}},{"id":"0fbbed00-dc77-430b-aa4b-e9132899885f","block_type":"box","text":"Effective September 29, 2006, the Corporation changed its name to BlackRock Series, Inc. and the Fund changed its","page_number":34,"box":{"x":70,"y":591,"width":836,"height":11}},{"id":"43afb734-13b9-420d-ac05-48cb1e59125d","block_type":"box","text":"name to BlackRock International Fund. The Fund is classified as a diversified open-end investment company under","page_number":34,"box":{"x":69,"y":606,"width":815,"height":11}},{"id":"aadf95d0-2e93-430b-a1a3-ea1603847529","block_type":"box","text":"the Investment Company Act. The Corporation has an authorized capital of 13,400,000,000 shares of Common","page_number":34,"box":{"x":68,"y":621,"width":797,"height":11}},{"id":"26734d10-89b3-4140-9e69-3a05072fd041","block_type":"box","text":"Stock, par value $.0001 per share, of which the Fund is currently authorized to issue 100,000,000 shares of each of","page_number":34,"box":{"x":69,"y":635,"width":839,"height":12}},{"id":"01f97131-3cea-4b13-a002-7df971a247b8","block_type":"box","text":"Investor A, Investor C and Class R Shares, 2,000,000,000 shares of Institutional Shares and 2,000,000,000 shares","page_number":34,"box":{"x":70,"y":651,"width":837,"height":11}},{"id":"0be24d85-a3c8-43e1-8b7c-240621a8f776","block_type":"box","text":"of Class K Shares. 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The 2026 Annual Financial Statements have been","page_number":36,"box":{"x":68,"y":416,"width":833,"height":11}},{"id":"ba7ab3a4-6893-4470-862d-b436449ff89c","block_type":"box","text":"audited by Deloitte & Touche LLP, the Fund’s independent registered public accounting firm. The report of Deloitte &","page_number":36,"box":{"x":69,"y":431,"width":828,"height":11}},{"id":"757892b7-9d58-4239-9f99-05376c2209b2","block_type":"box","text":"Touche LLP is incorporated herein by reference. Such 2026 Annual Financial Statements have been incorporated","page_number":36,"box":{"x":68,"y":446,"width":803,"height":11}},{"id":"4a10dfa2-e372-4b8f-b79f-5b45a928183c","block_type":"box","text":"herein in reliance upon the report of such firm given their authority as experts in accounting and auditing. Additional","page_number":36,"box":{"x":69,"y":461,"width":826,"height":11}},{"id":"46f9c646-01ac-447f-b0d1-60035568dd59","block_type":"box","text":"copies of the Fund’s Annual and Semi-Annual Reports to shareholders and the Fund’s Annual and Semi-Annual","page_number":36,"box":{"x":69,"y":476,"width":788,"height":11}},{"id":"e084f7d9-5c2f-425d-84dc-dcfb263ca387","block_type":"box","text":"Financial Statements and Additional Information may be obtained at no charge by telephoning the Distributor at the","page_number":36,"box":{"x":70,"y":491,"width":820,"height":12}},{"id":"95a3d371-2984-4fcc-9799-acdce03ad542","block_type":"box","text":"telephone number appearing on the front page of this SAI.","page_number":36,"box":{"x":68,"y":506,"width":414,"height":12}},{"id":"b98720d6-fb6c-46cb-b7de-b7ac681b5374","block_type":"box","text":"I-27","page_number":36,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"13bbdc0c-20e0-4976-8fd5-26a82fb4d5c8","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":36,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"344cf1e7-e0f5-44c9-83bb-eeab26605bc5","block_type":"box","text":"PART II","page_number":37,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"c8aae8d3-f262-4c9b-88f2-97be76c39ccc","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":37,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"f51548a4-a4ab-4ae0-90ab-abac2ad5fa8e","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to as “Municipal Funds” if","page_number":37,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"57e295f3-1c5d-4861-aac0-c7e6b651b565","block_type":"box","text":"they invest certain of their assets in municipal investments described below.","page_number":37,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"7fb57e76-bdb2-455b-bada-5a3d81180c9b","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":37,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"c2658362-d129-453f-97f0-fd61d0b2e357","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":37,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"ce0c781b-ef03-462a-a2b8-9d6ec536560e","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":37,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"8869d184-2754-4ed4-aeef-75c82145b7f4","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":37,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"6e4126ba-4b44-4d78-9764-204d8e4da72f","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":37,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"5f89833f-69c8-4fca-a087-a5e8b445887a","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":37,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"33ca8011-2372-4598-b8f8-0a0058f33439","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":37,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"29df82d1-cca8-4c2c-8db9-03dd9ddd6cde","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":37,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"9e123676-e768-4d3f-9971-a55ec8784ea6","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":37,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"3b6b5e49-54f5-40d4-a584-8a16d4b993ed","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":37,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"eb5f6058-939c-4472-b869-942323a4c3d6","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":37,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"21cb6463-e450-492a-afda-5cca600b395e","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":37,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"dae90eb7-3fd0-40ae-b890-ce3bacfc795c","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":37,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"ee9c9eee-e1e8-4f7b-86b0-7cb3ff4d3cbc","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":37,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"d8fbbdcb-f7a7-4fe8-beb0-ee8e5ccfaa4f","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":37,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"9ac0ceda-6f73-44cd-964a-fa88d7c1bbc4","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":37,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"ae3cb9d4-f97e-4010-83f1-1269bf105079","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":37,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"905d799c-72b4-4ae6-b0d7-248ad484b1e0","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":37,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"b720f6e1-ae39-4c29-afe5-2b78e87abc94","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":37,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"68623b88-ba32-4433-b1b4-81439dce50c2","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":37,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"b036281e-8334-4857-af34-cfb62f68f678","block_type":"box","text":"particular Fund.","page_number":37,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"2a84a030-dfee-4b3a-b84e-39fda4334854","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":37,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"9bf04e53-a9e1-4696-af12-045f27d8b343","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":37,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"03bf62b2-05d8-44f6-93f4-9f9a59582c2c","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":37,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"f204cf65-5d6c-4374-a229-bdd3bdeb87cd","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":37,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"75ca24d1-1758-4e7e-bd0a-29cd39b75da5","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":37,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"d5ce2bb5-30b3-4bce-9782-4a40eab0038f","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":37,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"27a0077e-220d-4fef-b6d1-bfe4314b1e96","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":37,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"2a536d7b-5bf3-486f-a4e2-622e7fbf6d14","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":37,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"26a61976-b3b6-48b0-be1e-c8ff219f9f40","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":37,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"ea84e101-ca41-42ea-9971-6148e0e5d700","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":37,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"8db528ff-cae7-42ef-9d81-3c88d762d694","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":37,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"68dd4268-b5b1-455b-96e3-3315813d73f3","block_type":"box","text":"Asset-Backed Securities.","page_number":37,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"93bfbdb1-7a05-4288-9d1c-3a0acff233a1","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":37,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"0892ce6e-5e1e-46ec-bdc1-798ef659ed96","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":37,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"d780589e-85fc-4d37-93b3-12790e0098f1","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":37,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"f875d8ea-2270-4672-9d56-27e511fc0478","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":37,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"edaa1016-bf9c-40de-a201-dee996868e91","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":37,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"705ec251-e6ab-4f2f-94a3-5db5e37bd195","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":37,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"d553b8e6-ca6e-4ccf-87e9-20dbf08b969c","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":37,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"a75c54f4-e660-46a6-a56b-3745b8ba16d8","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":37,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"8b74cda3-177f-4384-8d8c-d767cbb8ff8c","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":37,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"c1fc62a7-dd17-4876-ac24-8eb368876c0e","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":37,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"ddb63030-0522-4bc1-861b-18b115c363ac","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":37,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"95ac265f-e0e1-47b1-b72f-1f681d7c4130","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":37,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"303ae1c3-be01-4c9f-a055-130b8bf1f6d3","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":37,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"2b2281d1-10aa-4232-b092-5440de59864b","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":37,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"417e191e-8647-48ee-97d1-3f377f61355e","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":37,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"07b3461f-052d-4e8c-a4e0-6b5f2030a8a4","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":37,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"b169f9f2-78d4-4399-a629-a16b733dd01c","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":37,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"df088f5f-099b-4567-9b22-af8f6b01d316","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":37,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"7f19e05e-a4e4-48bf-9a44-7f58d15386a7","block_type":"box","text":"II-1","page_number":37,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"aaf32aec-2e1e-4028-92ad-15cb4cd24d61","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":37,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"e23f7ccc-69b9-4867-9f65-8e16c9a0e470","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":38,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"ccdd70ba-6e4a-497c-952b-0b32b66b603f","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":38,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"230911f8-cbda-42ee-bb21-18b4f3f4e69d","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":38,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"0f02f970-3240-48e6-b221-7ed60fdbc787","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":38,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"d082125b-b750-4fa4-b2d0-e956f898b67a","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":38,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"0708b1ff-789e-4e0d-ae08-db8c25be8a6a","block_type":"box","text":"Asset-Based Securities.","page_number":38,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"b44631b2-1147-4d1c-ba2b-41f69963da3f","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":38,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"470d05f5-9b7b-4042-8052-85f0d7ccaf27","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":38,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"960d8e30-59fe-4e14-82a4-edb731374d3e","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":38,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"0965935f-bb0c-4d8c-9156-d78dbee54559","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":38,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"db1ade5f-b3b1-4c9a-8e1a-77495041fbe6","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":38,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"3eecc3d4-c12a-4b3a-a154-77445f3a0eef","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":38,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"a35c1484-1a71-4bf4-86c2-bb4c75d69b0b","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":38,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"6fd03181-461a-4a98-bee0-f2bf91c89632","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":38,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"74fe3a82-5f87-4d42-97f4-6c17496785ed","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":38,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"06de7084-6d20-4ae0-b97a-bc04320894c1","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":38,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"558431cc-48d5-4125-8311-286c0e75d76a","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":38,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"b546a943-bded-4a6c-a57c-67ff33070885","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":38,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"332fd1ac-67b3-4670-8801-f7e28eb8c9c6","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":38,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"9ca81b10-77f5-4c7a-abbb-20fd44ca87f9","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":38,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"2b66b3b8-6f13-477a-95ee-890be24f3113","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":38,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"6d3f29e4-44b7-4892-b410-9f0d5d0d7319","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":38,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"1d0b5ca9-8153-41fd-9188-0a38ceb67cfe","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":38,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"0e05e533-827f-4578-8bf4-9c00659b81af","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":38,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"abf1cff1-10fc-46e8-a154-ac389427965a","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":38,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"08868f96-9cf4-4c26-b34d-fb2bbbd4f19f","block_type":"box","text":"appreciation in the underlying asset.","page_number":38,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"ae75672e-9d10-486c-ad42-f99f62bced70","block_type":"box","text":"Precious Metal-Related Securities.","page_number":38,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"3346dcfa-7f85-43e5-a2cb-92f1385c7c91","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":38,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"a2ed5f5b-72b3-4f8f-a2b1-7bd434c09214","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":38,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"784378a0-049d-4ea8-ba21-e71d19e4c206","block_type":"box","text":"e.g.","page_number":38,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"d698059d-9b0c-44c9-b5da-db346f2a9ce7","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":38,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"6d8f4e63-bb55-441f-9b7b-2dcc100e1003","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":38,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"caf94b09-81af-4b77-af8b-c2c93616cd8f","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":38,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"134cd893-b2cf-4134-ba08-9fdb2c1722bd","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":38,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"f4034a7c-3774-4ecc-889a-baaa83147fd6","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":38,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"d2ebaa04-f065-47d9-a659-30669581d9f6","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":38,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"bf49f374-d58b-45ce-9598-b350bcec84f7","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":38,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"d1e20ba3-3198-4014-9bf3-98788e352c3a","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":38,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"c0dc5f62-d40c-47ed-8671-dbddbcf21639","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":38,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"26a83471-2648-4f30-8f68-f5dd600e045d","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":38,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"6d0f4413-7679-4b1a-bd3c-13053017aabe","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":38,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"7dda30a3-9bb8-4d3d-ab36-55405f265543","block_type":"box","text":"South African gold production.","page_number":38,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"f31ce5bd-78e7-4ac5-8bba-0c5b79ca8a89","block_type":"box","text":"Borrowing and Leverage.","page_number":38,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"62ea5e95-b238-479d-9879-ed6bf613a27f","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":38,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"87f8e849-5c45-4eb4-8374-1f4a4cba63ab","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":38,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"2b8a848b-ab20-4fc9-b1ad-2c44ec83a71d","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":38,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"b6d4a218-6c14-452b-92b2-de035c579c7f","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":38,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"9ba7f0b9-a705-4de8-8432-a78829522e22","block_type":"box","text":"other securities transactions.","page_number":38,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"57fd7cc6-f312-4818-8ee7-e9b817f811a1","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":38,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"ff44e2a1-aa83-4004-8dd4-e0157b2f5cb6","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":38,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"3e6482c6-174a-41f7-b35f-7e8a2c9f2189","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":38,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"43ec9ae2-6121-4914-858f-779247448ffa","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":38,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"a5a86dd3-debe-4871-b203-fe4eb5b12b35","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":38,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"b1b2e357-3c0a-4ec0-bf2a-ea37de39d102","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":38,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"f58e3228-4840-4e96-8d92-cc7c749460e2","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":38,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"20ddd7a0-cbf5-43a5-9c9a-42e1ef2107e7","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":38,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"66d44a1d-5b1f-444c-8646-038243517ab3","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":38,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"f4803300-1537-401b-8567-8181648afb9b","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":38,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"aaea1f65-59e9-459a-a218-ea488c9a9f38","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":38,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"aa1b7ccb-0854-4113-b6fe-88de9d54dbb3","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":38,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"74e0c224-035b-44f6-bd34-021e8fb0f956","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":38,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"3c04db07-248b-415a-b4bd-c25671f9cff8","block_type":"box","text":"II-2","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"c4763ac1-9270-45eb-b399-d717ca9eed4d","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":38,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6eb82b6b-19e8-40b4-bf90-222b85bb964c","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":39,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"e4647157-25e0-4d0a-888f-c864c10d0615","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":39,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"0bef13b1-c90b-4063-bcac-d3ffdaa931cb","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":39,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"db97400d-fb3d-47c7-b52b-5b0af5774c63","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":39,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"b2b26cd5-172c-4bf1-9835-22709a38b35d","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":39,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"dc07c347-cc9e-47bb-a99a-0e19c1605807","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":39,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"914651c1-c398-4c1d-8939-7c1dbd646b1c","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":39,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"463d1872-ccca-424e-9161-2a5bed2f3f2a","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":39,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"a7fe19fc-a453-4b8e-b158-91252682ee38","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":39,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"731456d3-d9d4-488f-8273-563901da899a","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":39,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"56ee32d0-d99b-4431-beea-20841940c63f","block_type":"box","text":"Cash Management.","page_number":39,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"bf890265-270b-4c47-b489-d6bfea615a4b","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":39,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"0f0f0c55-01de-4744-9822-c8bb5abb9459","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":39,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"6dfdad35-a676-4611-96e7-11282b45fca3","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":39,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"86e3f560-4407-4eb2-afc0-08b736fb4951","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":39,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"59cf0098-fd41-4e56-949a-15ed78e9d902","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":39,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"4ffc3e46-a989-4757-bc52-00f95ba2cc12","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":39,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"322d794d-dff5-4eb2-a03d-8c333ee3e914","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":39,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"a1af4b33-c50c-4c94-8d81-42d0fa5c66c4","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":39,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"9349636f-7d5f-42c8-8b9f-56860b973e60","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":39,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"7009c098-e5a3-4c96-aa0f-81cbb6abdd77","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":39,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"314f7960-5b42-43f1-bb07-f919db97f610","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":39,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"cd00cc64-af39-4df1-9c46-f9a846068079","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":39,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"ef7880d2-c0e7-4da8-be94-f1ec684cc324","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":39,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"e416da4f-3651-4a71-ba98-1cdb6d09f522","block_type":"box","text":"Collateralized Debt Obligations.","page_number":39,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"ec38edd2-5e71-4e57-ad10-86ef2e42d29f","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":39,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"76173833-b5b4-498e-933c-cef762ddb02e","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":39,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"8d7c80a5-ad1f-491a-9451-c2d144d314f5","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":39,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"eb944605-80fe-4494-a90e-fc1f187bf132","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":39,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"4563ab4a-dfb9-4e8e-9cfb-7d318a9ce493","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":39,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"fb3f5d8d-f143-4b65-86c4-4a6333723ce4","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":39,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"7571654e-cc3e-45d6-ad67-2583ed5106ef","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":39,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"542f984b-de71-4d33-a871-a01739da4086","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":39,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"58569a7b-936a-4bc8-9053-96de86a0292e","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":39,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"4a8e8d77-437e-4732-b0be-01c7e98f0f0e","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":39,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"552bab16-0726-4455-b0f3-b0fb438957f8","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":39,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"0c90433f-9e60-4cb7-9085-3f33c34f0ce5","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":39,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"6e683b1d-78f7-48ad-b9b4-09c2ac9c01b5","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":39,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"0f2d7ab6-645e-4642-877d-53f51e7333e2","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":39,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"0376412e-3c64-4c87-8cbe-73a11ed12d5e","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":39,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"9b40123b-558b-4126-855c-14290f4454a1","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":39,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"67365fad-64a9-404f-bf4e-d3d4d53e53b8","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":39,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"2728d0b5-eecd-4b90-a6db-ed089b0ad63a","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":39,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"a7ff24cf-603b-4f90-8db7-cd1a40ddf1ed","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":39,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"11b3b26a-6db6-4a06-90d9-67ff3d748d89","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":39,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"0f4014f5-6b3c-4857-b3df-81c67d31f82c","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":39,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"90bbfc03-1a42-4c02-a2a0-ee90b1b13aa9","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":39,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"7804a666-f57f-4f93-818b-de4d78930430","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":39,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"7a96d183-29e3-4587-aafb-0063a2548143","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":39,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"77450195-7840-441e-934f-c5599b698507","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":39,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"78d9327c-edaf-4090-bd2c-7c5428656bf3","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":39,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"3960303c-5132-4544-9086-326d0f05b203","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":39,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"727949f6-e56a-440d-8bf2-7e689d55db76","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":39,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"66748d44-6901-4aef-b3a7-fa104d95117d","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":39,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"b926f005-6fb0-40c3-bde4-031cc0721c46","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":39,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"356e92cf-7996-4f0b-ae41-482e1a8188d8","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":39,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"f291e77d-8753-4d2e-9181-635afc83dd94","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":39,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"77c45df0-0b9e-43c1-8c0e-9aeddebfe733","block_type":"box","text":"II-3","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"be013dd8-f6f6-4421-9652-eaa13368ba96","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":39,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"dd7cb2ad-aa2d-4b02-be1e-ba08911097c1","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":40,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"c29bb4b9-ccc4-4cc8-8b5d-06869a026dfc","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":40,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"e1b40c44-1609-4f0a-8c65-4f545c5c2431","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":40,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"a69c32aa-faa1-4f17-88d7-cd7354a57621","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":40,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"4e545b72-f9fe-4896-bfb9-bc8b29b9e0b2","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":40,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"751152fc-0102-4ab5-9332-112a36a5a7f3","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":40,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"9884335f-f0c2-4457-9981-49d88799f006","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":40,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"aa4c2f60-5453-4617-a513-ca8060bb2424","block_type":"box","text":"Commercial Paper.","page_number":40,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"cf8a8bae-66f1-4494-b8c1-de6fd3591cca","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":40,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"a1e156e8-528f-42f7-a439-dfa3021489a9","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":40,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"6b3dae9b-0913-4665-9cb9-945c393c89d0","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":40,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"65e0532a-071a-4b18-b397-347f36ad93f8","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":40,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"b52eab20-2c6d-4b29-85e9-26512699d907","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":40,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"15b1a03c-e6d7-4332-9c39-10699e6795a6","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":40,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"6997e70e-f726-4621-ba15-2b6a5cc58466","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":40,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"49bc357d-4b6e-496b-b26b-e50d350e3923","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":40,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"0920c464-5cca-4e46-8ff4-77325bb8bac6","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":40,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"1e800b54-6aba-4528-8c1f-2f6f8e570dec","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":40,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"269f678b-39b6-4246-b49b-b63bcb6f02f8","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":40,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"6c7e15cc-b675-4e4e-bf59-6ea1bd1b08df","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":40,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"6a2f2a24-8ae3-413a-bd08-3f24f9ca33e8","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":40,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"f2639977-0f36-4e12-9857-1f02dbcbbf2c","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":40,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"9d1f8d2a-66df-4c0c-909d-fc5e9bde1b21","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":40,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"99ea68d4-5355-4383-91cc-3f7879508ab2","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":40,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"91260c59-c808-40c8-8746-7862d79d52c6","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":40,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"e3ed5d9a-993c-4cbb-958d-ed7c0ae1bd7a","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":40,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"047c3d49-6353-4126-ba85-e2a8b15c74ca","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":40,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"3a18af0e-e6ef-4969-b295-baa69f57423c","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":40,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"289aa4f6-2330-4815-9799-c78d562eb2a4","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":40,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"e7d07b83-006e-4076-aa8e-ba98e13a98d1","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":40,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"df510b14-e3bd-4edf-89e9-9afc891ed5ee","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":40,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"89c1d571-aa73-4c0f-9e7b-aec8bd66055c","block_type":"box","text":"variable.","page_number":40,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"e8d4668c-eb42-45b5-bbc1-854df4d8af55","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":40,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"342f71c4-bd83-4062-9f6c-439d9b0fbebe","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":40,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"0af1b536-92c5-4821-a5aa-f3339673f2b7","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":40,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"4a017432-4bab-4470-b1d6-88962b040f09","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":40,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"3a6d8883-71fb-457d-b173-25cbe21cbb19","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":40,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"c17266c2-5eaf-40d4-b9bf-9ed92e340322","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":40,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"81dfb254-d766-4fe0-953b-4bf99e8a6abf","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":40,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"878b18d9-287c-4773-b5f4-582f79b2b4cb","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":40,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"ae79ed48-1f4d-4ccc-9326-89d9e3164be2","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":40,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"e25ca78d-fe9f-48af-8f41-d0cc4d024ef2","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":40,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"4addbc1f-369d-47dc-b8c8-8b44b8cb266c","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":40,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"11760224-2f4c-4d95-8ece-31aedc5de956","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":40,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"d55105a0-9f1e-4a96-b7ef-4a65630b639a","block_type":"box","text":"correlation with stocks and bonds.","page_number":40,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"a41d9337-f32b-4d0a-8cb6-3ef5ba1f0b92","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":40,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"a89d8251-a218-49b4-9fc0-f18a88c12e8f","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":40,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"9b51c28b-e76b-4923-bbe8-a23e7078bbb9","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":40,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"bd7ccab0-1a28-449c-bbb5-08e6fb3dffb7","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":40,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"d82af72d-80ab-45a4-a407-0be4a5406dfb","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":40,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"bc2e8f0a-58ed-47a4-8b0d-2e22fc968aa0","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":40,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"29779ca2-bf50-4e8c-b2e7-d8445b161fbc","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":40,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"e070c1fe-5b87-487d-8848-8b67967e2b99","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":40,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"cd2abd64-4d6a-4e14-8292-d00dd0b1854d","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":40,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"6c269279-6b21-4064-a2d4-9c24f6274e64","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":40,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"f4299ca4-ff9e-460e-83d2-1735c957e0b4","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":40,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"45cba0e9-f351-4b76-a0a0-ae71b9efbd8f","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":40,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"760e95f0-c9d3-48d3-99fa-4579a9fa9838","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":40,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"c1a0369c-1bab-4142-8a87-3d1a86cf89fd","block_type":"box","text":"II-4","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f066c68d-723b-4d9f-ac17-3e00656a858c","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":40,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"831c5832-32ec-4fe9-9caa-26d4d86cfcad","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":41,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"8f07b1b9-bed6-413e-aad1-bf0a7cc0d918","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":41,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"4d922cc4-75cd-4c99-8398-06d7960951c9","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":41,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"83df7c8b-2725-44a7-9879-0be56bfa12b7","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":41,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"99ef65e3-82d8-44c2-8faf-1c8cf87c9bc0","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":41,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"8ae504f6-0830-49ff-afb2-5d8f51091ec7","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":41,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"3e3f57ea-a72b-4097-b030-d07b1062c4e5","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":41,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"22b4ce3e-f099-4b93-a07e-c6e58e3ccb62","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":41,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"58e2676d-d0f6-4789-8b50-175a332ba00e","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":41,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"afd0fb27-e186-4a2e-ab5e-88e024d28618","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":41,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"298a6c99-d91e-4f64-83fa-ac10110efe90","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":41,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"a269c829-93d3-4d5d-9ae7-f1bbb67b8644","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":41,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"084910ce-f72a-43b8-a9de-069ae42207b8","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":41,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"ab58ebdf-b50f-4d83-86bd-f7e1940c86de","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":41,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"4f5f24c1-8115-48e8-a6fd-20ff20cbc913","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":41,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"3055b88c-f5c2-4e13-9768-dbfa0a2dfea8","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":41,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"ae936aa7-dae1-4d83-be36-4bf8b9ebac4b","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":41,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"da75315d-788b-4b42-9698-69f147a0324f","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":41,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"060c2f10-92c9-4ced-988f-717f2dd85b3d","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":41,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"8dc25fd3-d828-48e5-a54a-354ada83c713","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":41,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"221aae43-343f-4f14-98ac-e5dd4f509c42","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":41,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"f556b096-0a67-4867-8d12-6dbedbea5733","block_type":"box","text":"the Manager believes are relevant.","page_number":41,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"33868a4a-213b-411b-ae4a-d396dae90993","block_type":"box","text":"Limitations on Leverage.","page_number":41,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"af7575e8-2533-45a8-9cce-7a7e6577db41","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":41,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"b83affec-9a50-436b-ae50-46ebfa0a83a6","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":41,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"d3dc0ccf-b27b-465b-b3b8-3d918332c027","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":41,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"31ab9fa7-7bca-40a6-bef3-772723dad7b4","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":41,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"45226b67-8d99-411f-9814-43752a7b6280","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":41,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"01f3281f-51be-4da7-9b17-8586eb28533f","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":41,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"5dfe264a-abc6-4061-98fd-ecbd14312ba2","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":41,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"4b3c4bd8-7a15-4a31-9d79-13a1046ad337","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":41,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"a265f905-fbfb-4d59-b6a2-c9bb45173f06","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":41,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"c195c6dd-769e-485f-9673-785293788e04","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":41,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"b52ae015-9f7c-4a9b-bafe-2d180210f1e2","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":41,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"d8d309f7-b824-4e32-a8b1-9cd19b828855","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":41,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"ccabd593-1791-440a-996f-e1d16551d29a","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":41,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"7369db91-bb36-4a21-beef-4fa7709ddef4","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":41,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"c1350bea-b43b-4bca-967b-b4cef0c2896c","block_type":"box","text":"Counterpar ty Risk.","page_number":41,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"79739ebb-cc31-445b-978c-db4f2f74e46b","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":41,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"c84d4f42-7fa7-4b06-ad58-0e5545abacb6","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":41,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"665418b0-c944-4c35-a8a1-e2e215a4f1aa","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":41,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"931279de-1125-493f-ad6a-b562d1ce2cb2","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":41,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"7bc0be21-96b6-4162-8b52-63521b424a7c","block_type":"box","text":"e.g.","page_number":41,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"5089c127-0e2d-4948-9c12-cdb895274d21","block_type":"box","text":",","page_number":41,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"475c5862-1bd1-427e-8614-f06b5b644230","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":41,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"d10dd754-04df-43d7-bbf0-c11a0a0ace73","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":41,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"05fab9a7-360a-4470-bf9a-6d318abe9109","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":41,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"aa897f67-3c3a-4968-88f6-974c6784cbf1","block_type":"box","text":"obligations under the structured note.","page_number":41,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"79c4668a-c719-4348-ab43-1a315af6b0df","block_type":"box","text":"Convertible Securities.","page_number":41,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"ea51063e-9699-4aa0-bf28-b2a3eae6a892","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":41,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"61c20a34-6717-4796-82e8-cd9d702ee126","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":41,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"6d2cc780-655e-4de5-aa9b-0bf3ed23e7e2","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":41,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"c435f3c3-bef1-4b71-bb47-6124debf96ec","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":41,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"581182aa-1885-4963-9529-8b1760be039b","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":41,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"15ed254a-1de5-4dca-ba33-c60c89f1d3b8","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":41,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"874afe52-9bed-423f-9e57-0ff682f90c70","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":41,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"19efcd0c-b47c-40fa-b928-9557876a34b2","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":41,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"e58c3542-1411-4bb3-b2d0-4cd2a3b1a6f3","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":41,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"8f5d36aa-7404-4e4f-8748-a5c3ed8bd6d3","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":41,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"2cac2671-635f-435d-b3a0-dab7f94e97d5","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":41,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"59cb0221-3c7d-4041-8e99-2a51bf9a71f3","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":41,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"b21cd881-0378-4dec-97e6-dbd23905e17e","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":41,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"d07a841e-dffb-4f7f-af9a-c4970df2c4ca","block_type":"box","text":"II-5","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1e9cd25a-bd1e-43bf-8933-5d0e1e7bac03","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":41,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"0d4070f1-cefc-4a69-82b7-6a4b08c407e3","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":42,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"07d8c09e-1dd5-41b1-9b97-44b354298822","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":42,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"f4c12c3d-2347-4f5b-8159-43f1d78a9df3","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":42,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"a9bc61ee-1bd8-4107-bc45-5d082aec60ee","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":42,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"e331ee55-aa35-499b-9ec6-6b51fcffac1e","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":42,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"64801b88-250f-4e06-b084-4dfbbac83c86","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":42,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"143d4dc1-7e2b-47bb-b3e4-59ed154558ba","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":42,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"97d697c1-35a6-4cb1-95aa-8879a3eedd36","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":42,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"b7c54d4f-3259-415d-af19-1faddbbd828e","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":42,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"892292e6-ff59-4971-ac08-99a68857a672","block_type":"box","text":"things.","page_number":42,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"1a6d7468-d012-4685-b401-f50605a9c9bb","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":42,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"524d2483-39fa-47bf-91d2-c707bb855f0c","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":42,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"02649794-02e6-4017-8c8b-33da4af5f424","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":42,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"b0ce39b1-a3b8-4147-9499-738d03319a24","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":42,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"e9a253f8-c9bb-4198-9f87-f634d4881645","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":42,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"4b2f3564-bc60-435f-bfcb-0d89498825d8","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":42,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"df1e2163-bc6d-452e-bf10-5661adcf3c4a","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":42,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"2d1eaa0d-e444-42c1-9cae-366873fa04f8","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":42,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"0c679ead-a9a7-4cde-906c-d6d62b1c4f68","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":42,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"cb40dcf7-403f-49cf-87e8-b470c2186f5b","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":42,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"7d594250-9aca-4aa5-8086-495d22e7be61","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":42,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"00715749-d6d2-4d2e-b93a-f52c087950e3","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":42,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"2cbb86b6-cfb2-47ee-a033-927f6f55cecc","block_type":"box","text":"i.e.","page_number":42,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"ebedb7e9-adb0-47b9-9fc7-6c40ec4df6ea","block_type":"box","text":", strictly on the basis of its yield) is","page_number":42,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"7c66dc59-9303-4aa3-a827-3c37cf6af417","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":42,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"71dbc6a3-5632-4991-b9f6-484a07f6bf56","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":42,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"c5ecfe49-9fbc-45ae-8343-1be8358ceebb","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":42,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"dbe2c5ba-9137-4890-8d30-ae454ce2ba38","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":42,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"5cc6387a-ac1e-4ede-ab1e-073f30e4accb","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":42,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"fc1a463f-c644-4cf8-bd14-0331108a5984","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":42,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"7db73db1-8b2f-415d-af01-a887c41b9e80","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":42,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"16d17bed-006f-4247-9ee1-18a992ae4080","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":42,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"9c9619a4-2a08-4301-a569-30b397d16f22","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":42,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"efb28e3c-3b82-4992-ba3d-f7f793cc467e","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":42,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"2e87b7b4-04a8-4641-b78d-58a10e5f754b","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":42,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"d0ab1dc6-9c30-4569-a93d-2ff75116a20d","block_type":"box","text":"than the securities’ investment value.","page_number":42,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"ebdfc410-4ae5-41be-bf71-41a9101dad65","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":42,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"ef12b6ec-b698-462f-b8cc-609462476bb1","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":42,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"1cbade42-d58f-4e41-bc7c-74c87f6116d6","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":42,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"7a22a37b-c778-4551-9d35-7f79392630bd","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":42,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"9fc6c83a-c692-4b6b-873f-42c337e88d92","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":42,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"c993ab04-3045-4579-aba2-70a5f8fa9092","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":42,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"3edb0512-6264-4d7f-8e61-2e2a8be75e37","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":42,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"5cc53e9d-6efc-4f97-be87-82a712094d4c","block_type":"box","text":"security under certain circumstances.","page_number":42,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"be88fff2-ae0b-42d7-b57e-551c7b34f1bf","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":42,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"cb0db6d2-9808-441f-9c67-044747a8f4a4","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":42,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"c004fbe3-6895-407e-98c7-d46c0604324b","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":42,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"749a4639-a8cb-415f-870a-3d419b3e381c","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":42,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"4079d447-ebb9-4132-bb37-ae031f25cecb","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":42,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"8a1a0a3a-d32f-4689-a8f2-96f233c63888","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":42,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"4dec027f-f512-41b5-b019-eef80f24b3bd","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":42,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"a9e95471-5922-4923-99b1-b3e1e63c0a0a","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":42,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"44fee65f-931b-4e23-876b-a5fcabfc0f8f","block_type":"box","text":"i.e.","page_number":42,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"460f264b-35b7-4804-a2f3-2856a15dfc6d","block_type":"box","text":", fixed-income (“fixed","page_number":42,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"7f9635d8-16a9-47f7-95ff-b0d3ad599470","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":42,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"17ae416e-e8b1-4452-9729-25cbf75dc4f7","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":42,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"d24bdf2e-a949-475e-8b2b-acdca937bbb5","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":42,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"169e36fb-fc06-4e18-8139-3d64235afaf1","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":42,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"cefac012-1f5e-43a4-bbc5-c156e12e0d4c","block_type":"box","text":"II-6","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"979bf9e8-1bcf-4db0-aae2-5a50314150fb","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":42,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"e511a166-e315-437d-a569-06e90fa615f1","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":43,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"6ab25d9e-3c03-4205-9740-b83531f0866a","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":43,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"b4969239-892b-43ae-95df-e7bd2f07acef","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":43,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"fc87c6de-fed4-4f7d-a48e-70c8a247fc51","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":43,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"5c382f5d-dab3-45f6-bc2a-ce764a9a7689","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":43,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"6874239c-53c5-472b-b163-44fe63ae62ed","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":43,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"c502db20-78cc-4eb1-a159-ecf2933bde9a","block_type":"box","text":"component.","page_number":43,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"2d81fe14-358f-4841-b7d6-d24c71fc277c","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":43,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"36cb00e8-276e-451f-aabe-89367e035554","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":43,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"0836fa1b-a358-4889-a22e-f305dd442495","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":43,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"2248a1be-27b5-433c-9076-619623f38aca","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":43,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"9f4d632f-03f0-43ac-ab1d-c99b59f44133","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":43,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"935ee2b5-40c0-4663-893e-842e24331c56","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":43,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"fac7837e-101e-41fa-8149-cc4017d18666","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":43,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"9424b0db-e222-4b73-8a4e-13956bd50450","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":43,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"317fa822-8022-4233-b10b-42ecfbcc329b","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":43,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"f4fbf0ed-3a04-47fe-920b-20edc84264ea","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":43,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"30099f8c-ae33-4888-8a17-4cbc62934455","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":43,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"51cff238-38c0-49a4-992f-c0bef91b6b4a","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":43,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"2259e9b8-828b-4602-95b1-cffc3c475854","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":43,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"5862ca9e-fbb2-4297-b3ec-b9639be0a460","block_type":"box","text":"favorable market conditions.","page_number":43,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"dfb8ab09-b8d8-4dbd-9594-dddb434c6301","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":43,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"55af705b-b9fb-46f2-93a1-4f331efac327","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":43,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"a44b795e-2539-4b1f-ae52-8d0f57236e27","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":43,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"78f776ff-94bf-4208-9767-9d94209748e8","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":43,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"fa817e7f-758f-4fd5-a115-d4237403ec2f","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":43,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"6263f51c-1034-4839-95a5-79daf182b28e","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":43,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"f415b097-f462-423d-9c1a-95e5e79dbe55","block_type":"box","text":"Corporate Loans.","page_number":43,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"c3abaa71-0ac0-4685-b8e5-319a16946831","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":43,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"694cb3fa-564f-469e-a60c-39263c949a0c","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":43,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"b805f16f-2379-4478-a781-e237d3343c2c","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":43,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"352dd80e-466a-45d7-901c-5ac42fd83e29","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":43,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"0c76535e-dbf1-44a5-ab36-6749b863f9b8","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":43,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"20b18851-c96f-4861-8df6-f7a245dddc29","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":43,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"f3d2d77f-76c6-4a1d-bc68-e5e70b26b009","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":43,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"67f10747-7029-40d9-8026-7b8a698bac0f","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":43,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"86f5e01c-052d-4031-be91-82376966dc9c","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":43,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"b315bb15-d4c4-4c05-91d7-ece5992b4120","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":43,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"7d967d25-8442-4085-9710-789d40e24774","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":43,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"fd58016e-ea2d-4d22-806d-98c0da8f2d8c","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":43,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"896c64bd-1e1d-44b3-a0aa-b327ea871cf1","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":43,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"b78c233e-ad2a-4d00-8508-858db159c56c","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":43,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"79d06704-9c00-449e-91d8-a1880715d6bc","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":43,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"52429653-c4d1-49a3-82ae-d284250e4ee1","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":43,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"9079a174-ad6c-4420-b26d-f974d07c6ce5","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":43,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"a75a1573-225f-4646-8745-ceb81461fdc1","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":43,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"14439f04-57e6-4200-9b64-f159d96ad71a","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":43,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"52ce60ae-5630-409b-b66a-ed8560c945a3","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":43,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"cc9ba56d-8069-46b1-9743-55a170111e47","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":43,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"92b2ac68-43ed-4684-8e80-4e96d2812fea","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":43,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"892b4da7-7f41-41c1-9926-89b530f7acc9","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":43,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"ec69494e-544c-426a-9cd3-d8e6eba23445","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":43,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"fad28c23-28ff-462f-b60a-59a9487ccf1c","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":43,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"b61705c3-a088-408a-af00-a7d19036d8b5","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":43,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"42248d2d-9d9e-42e8-b1c9-a7de66cbb7b1","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":43,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"4ed7eb0a-c290-4204-8a66-f932a270bc12","block_type":"box","text":"of the borrower.","page_number":43,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"1fffce3e-0e04-4671-8926-b457e6a01b8c","block_type":"box","text":"II-7","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e1a19456-48f7-40e9-a81b-c98f1a64316f","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":43,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"63f505ab-1fa6-4441-9923-8694d5020f2e","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":44,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"7d4a33fb-ef4c-4880-9060-086739ebc8e3","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":44,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"d5c8f907-ba63-4266-a648-1d2a2cc122d4","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":44,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"1c1b7e9f-1301-4a5c-af94-c8267561d581","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":44,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"c4d022da-036b-44fa-af89-f49ffde9ccfb","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":44,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"158faedf-9b5f-4bbe-8031-6b7899dc76ad","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":44,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"b0675a36-6d80-403e-b6b9-7c7543de4dfe","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":44,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"f132e35d-68b9-4c09-ad8f-b1bcbee0eb09","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":44,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"c4689803-bee4-4a11-b579-f0c2455dd9aa","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":44,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"8eec45e1-96a9-414a-afdc-9e191f525722","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":44,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"bf7e5532-bfb2-4c2b-aceb-479f088d4943","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":44,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"2e8c2e65-7386-4314-8129-83381b8a92c3","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":44,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"de5b16e0-8828-4fbb-b929-29e860239ee1","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":44,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"63bd502a-f10d-442d-aa30-fb5918c78c24","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":44,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"91a9308b-8273-4a12-98f8-2ed4e7f44bf0","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":44,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"721ab09b-1b3d-4744-a064-476d482bb9df","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":44,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"3995c771-bfed-4bc6-a848-9fc2335a32e1","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":44,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"a8b50abe-a751-4ea6-b8fc-ca7ab2f986e6","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":44,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"8e5c4b50-3a87-4c37-997d-a704db78fc13","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":44,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"7591399c-a217-4d4f-817e-61b4126345c6","block_type":"box","text":"state law.","page_number":44,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"aee112ae-fe71-4bb3-834f-c9be8fd44fcc","block_type":"box","text":"Direct Lending.","page_number":44,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"ec7217d3-9ba4-4161-bec3-17eb3f95266f","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":44,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"238cf7ab-9064-48b3-a8ef-4bbbb1b206b0","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":44,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"db261cc3-41be-4fea-83ae-321253804c3a","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":44,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"fe75a840-566e-4658-9d42-cffd77a23bd8","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":44,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"abc2c8f2-246e-41dd-a2ad-a2f6a502796c","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":44,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"af865c23-b4d0-4366-85b6-d72c7dad284c","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":44,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"9bcaa274-5e73-437e-b171-78d60a7c7c18","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":44,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"9ed1b9a4-75ba-45ea-a91c-bf37e10f7e25","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":44,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"afba7196-c4f7-483d-a2cc-8d370423b44c","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":44,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"9a1b3c1b-6db1-4d96-ac16-f81224e2bf1c","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":44,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"a88b0cb1-07f3-4676-bd4e-bf219d482095","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":44,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"fc1ec0e8-b419-4465-b979-c426788e502f","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":44,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"34525cff-46eb-45d4-8a7a-1210d7d783ed","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":44,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"d5b7bf79-7e47-46ed-949d-092ddaa6d07c","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":44,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"720cba93-bafd-4baa-b1ed-b92520fa8a90","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":44,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"d3269077-bd11-44a2-abfe-2b57121bfafe","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":44,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"4d10c9f8-f097-4fc7-b56d-c5ffed53ae9f","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":44,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"7b8c1796-7dae-4866-91ed-db12b13a26f4","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":44,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"925d8e80-f1f8-48a2-8afd-99af1a765667","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":44,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"5297269c-6c96-4e03-8ab2-9c021a8050fb","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":44,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"d6366875-8dc7-4185-8e3d-5c5305b524d0","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":44,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"0d46cb6c-78c6-475e-9d9c-5e8c8229563a","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":44,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"a4c9d8f2-3bdb-4535-8183-61991c870736","block_type":"box","text":"Credit Linked Securities.","page_number":44,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"54cc2c5f-eece-46e0-b758-74653fc3446a","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":44,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"94af5b66-b6cb-48cb-9675-bbda203036bb","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":44,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"d836d212-c16c-4ffa-ba28-72fadc7039ee","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":44,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"9ead3b64-7e9b-414f-a694-09dc83bcb68d","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":44,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"1d341790-d70a-4cb3-8d9a-977ccb59e63c","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":44,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"c0fe3556-c48b-470d-9a71-39992092632b","block_type":"box","text":"traditional income producing securities are not available.","page_number":44,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"92e673b3-beef-43d4-b1b0-8dff72db0666","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":44,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"387112ab-933f-4d43-9b9b-b755f8767e47","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":44,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"d90111ff-438e-46eb-9424-32626659e8d6","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":44,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"29761b00-046d-4639-acff-d3e05c31c612","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":44,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"413ba0b9-696a-4654-a6b9-a6ae4752a3f2","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":44,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"9e83bac2-faf1-4c6f-bf5f-d2e6d489cdb4","block_type":"box","text":"II-8","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"fa8eea7c-b043-41d6-91c6-89e263813da1","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":44,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"85ff642f-7433-4ae1-85d3-987e9e342e7e","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":45,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"34315790-1c7f-459d-90c6-ab2091c712da","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":45,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"9e0f7de6-d01a-4fb6-8ac6-b2efdd5f0f45","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":45,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"fd919dc3-2afe-47c7-ba84-e88ae8459da1","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":45,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"adf47be9-234b-417e-a1f7-eb76bced9725","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":45,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"e766a0cf-fdf7-4f9b-bf65-8c8f50a6b0fe","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":45,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"965102cd-55f7-4785-a46e-9f48ce18b697","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":45,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"a1a5ddf2-a9f2-4fb4-9bd1-6b27e2e206b9","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":45,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"963fbfb8-0ccf-4e45-9c4b-022e03a0d8f0","block_type":"box","text":"investments.","page_number":45,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"50007d6a-5819-49d7-9ceb-0267f9abf4ea","block_type":"box","text":"Debt Securities.","page_number":45,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"6aa3acc7-346d-408f-a51c-14148435d6b0","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":45,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"77288142-d8dd-4854-b328-6ac9cac2249b","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":45,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"67be28a5-ad51-4c19-a060-cda256e7c86a","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":45,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"154c1eab-7c6e-4dfd-9f52-ed64d4fcf9ac","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":45,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"51c0300c-a438-449c-9751-bf58b79a6318","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":45,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"3638ea5e-952c-45ab-bd87-a8dde3432170","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":45,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"ff1ff3e5-82b1-4c9c-9477-220d8aa68463","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":45,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"e37b0681-8af6-4713-9196-71cea8a2c87c","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":45,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"5b7247bf-c40a-4556-b783-9fbf0c98b27d","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":45,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"fbd2b8fa-a02e-483e-947a-647d4f07de32","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":45,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"e0bc78d1-ebf6-4384-a0aa-61eaa1c50e52","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":45,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"b12febf3-d15d-4212-83d2-39a1b573f83f","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":45,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"49ddfb08-ce33-4825-86cb-2836a0a6cd1a","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":45,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"192c8440-2cec-4cd7-95cf-3132de313043","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":45,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"66bef93d-23b8-4d2f-bc2a-581963c90a8e","block_type":"box","text":"lose value. This is known as extension risk.","page_number":45,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"ff9bf742-f241-411e-b7ff-067951a3b1e4","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":45,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"89223323-8780-4399-85bb-a9621b78d108","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":45,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"d32a4e98-5698-4f62-8caf-02b06ffa51e5","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":45,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"9cda65ac-01bd-4b2f-9a95-7afc24cf346b","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":45,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"fc23f94b-ae11-40bf-baff-e75cc6e42fe8","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":45,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"4a893beb-36e2-4c8d-ba9c-a4772fe1e379","block_type":"box","text":"Floating and Variable Rate Securities","page_number":45,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"de993667-6a1a-484a-b0c9-c982eb021bd3","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":45,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"77ffe2d2-76de-4159-83b2-4d794be3cb4c","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":45,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"d52e6e90-a0f1-4354-ac83-b0f43224952f","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":45,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"a8f562c1-2562-4ece-ba9c-25ac6250420a","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":45,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"c10acf74-a23c-4b4a-9c7a-a744c068d03f","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":45,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"7bd61970-3d18-452f-95a0-f58fcb1bf10f","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":45,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"5d3035ac-2644-4c1c-86c9-008d79554a46","block_type":"box","text":"market interest rates.","page_number":45,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"c7c8cd44-0b99-4a73-b73e-62c2ff7bae7c","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":45,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"516f08a4-e9df-48f7-b7b0-3a499bd6097b","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":45,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"9334b2c3-9c09-4862-bd1f-4fd81e489ad9","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":45,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"4cbc3d81-876c-47c0-9cb7-57481f7db7d8","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":45,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"d2a2c6a3-dc17-47a0-ad14-a5175012ba44","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":45,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"4e06051b-0a4c-4d9d-92a4-291a5a31b402","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":45,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"cde115fe-e092-4ee3-b464-bd99b9ef709d","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":45,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"f10952e5-6b4d-42e9-9415-d36601ad02f7","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":45,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"5743071d-488a-4d92-a08d-4c17de92c697","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":45,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"491a7eb6-d6c7-4151-8104-e15af414a406","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":45,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"8e411f59-4ec3-48c9-a343-22109287c4d6","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":45,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"9e72aead-666a-4303-8211-495370dca942","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":45,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"a44b05bc-908e-4000-8ae3-956d7114daf7","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":45,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"16b93d07-7e06-4895-9eb6-c28ec118c17a","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":45,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"9c508380-1ebf-4768-b543-091bd6d35e0b","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":45,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"02083985-95b7-4f81-94b6-6363cb8b9c2c","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":45,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"9245b5a5-2dc3-43a0-b6ca-b3dec729c424","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":45,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"8579f568-e856-4b1e-bc1e-b5082c332bdf","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":45,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"2b346953-f652-4a53-9018-9c006511c064","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":45,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"dbec1701-9e71-4140-a5ad-ae84187361fe","block_type":"box","text":"II-9","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"35496111-9766-4cd1-8336-debbb04cb6c4","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":45,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c9748c5e-924a-4971-b9bf-a681a13368cc","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":46,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"f686f5fc-9ffd-4464-8f6e-c1388e3622bf","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":46,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"7d67224d-2391-476e-807e-bcb7cddc7511","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":46,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"79d53f23-f745-4c25-a595-d1a5526aab3e","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":46,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"04f1d9e0-1a86-465d-94a8-a6e49ea573f1","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":46,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"60aae5ec-fe78-4b7f-b96c-3c09e8968f3b","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":46,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"5bf4c2cc-a4a0-429a-b686-aa20625f7ed5","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":46,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"a593f04d-c3eb-487b-b777-1456dfd5d6f8","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":46,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"8a26faa4-8d3c-44dd-bb00-1128b37e1e6f","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":46,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"db849d84-5f69-4781-8be0-01d6510f0e9a","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":46,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"26672865-d8ac-40f8-bad3-d074641bd6c6","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":46,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"0e4cda2b-ac9a-47d0-aec7-dc5760578150","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":46,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"84503e9e-5add-47c7-b820-8ef946949bab","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":46,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"d723c0d9-334a-44d7-86c7-6dfe4472256d","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":46,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"3243b2f6-aa84-4524-9640-07ce179b9dd8","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":46,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"fc22c36b-41aa-4024-994b-a704ca869148","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":46,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"a3153188-b710-44a9-8afc-d4ed4cc3852c","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":46,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"cbea7dcc-ffc5-4d0b-9e54-e9c4e0d052f5","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":46,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"1fb738e2-c89f-44cc-bdfb-e3da3aae68d9","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":46,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"19da4119-86f7-456e-81d9-a5e9c0e547b1","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":46,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"4c03eb5c-74bd-4c9f-bbca-7b2ae118d26d","block_type":"box","text":"United States.","page_number":46,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"338cdb39-0b4b-41aa-ae45-11b6d01551a3","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":46,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"fc6907de-0fda-4475-9c63-2e92642b0a2a","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":46,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"015bb3bb-6ace-4cab-a329-13807126ad4b","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":46,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"94eee1f9-9f48-4020-9c88-a52932b581b9","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":46,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"793838e9-c840-4060-9a33-8768ad3f2833","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":46,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"b23e6673-2785-42d7-b51e-29b4abe292c8","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":46,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"513c45fa-8fab-4361-be60-1e64f879464b","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":46,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"0426997c-0808-43a2-a816-b4763519c2e2","block_type":"box","text":"i.e.","page_number":46,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"e05357b5-b151-4d09-9cc6-ab2002f488fa","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":46,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"0cb25a11-aa5f-4ec5-ba0e-f183217d096c","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":46,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"27937cdc-083c-47b6-9b12-951ba6333e80","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":46,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"5c8c73e4-4d16-469c-919a-540931142324","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":46,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"f4421d44-676d-46d3-9f3a-639f8f91eed6","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":46,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"66971d96-e80d-4980-9686-1073f713b5f2","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":46,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"16c38c7f-493f-4f9c-b4f9-c328d1fdb864","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":46,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"8e2af596-2628-4b28-b938-528aebaaa50a","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":46,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"b3b01f25-8199-49a1-8ba8-8e829b23adcd","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":46,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"b2090776-31c7-49b1-9e92-ac82b871d16d","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":46,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"bf387b27-8604-4e00-a031-0daab2518440","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":46,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"f1736eb2-dc37-4afe-954b-e3020dd1c6c5","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":46,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"b28bd797-8f63-4906-a2b6-7b710c524392","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":46,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"0f4b0b88-6976-4d78-aba5-6ec0e26b6563","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":46,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"6123b180-2e88-4da4-a10d-f8a1da3278ae","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":46,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"cf3d30d1-6846-4539-b6c4-5a90b904a395","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":46,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"5fa5658b-0e09-425a-a457-0dd28bb0a74d","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":46,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"35f953f1-7f22-4a16-86f3-980df94d774f","block_type":"box","text":"risk than higher rated securities.","page_number":46,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"b60dc797-a8d9-4e93-bb9e-9768b34fe1b1","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":46,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"676b69cc-d462-43c6-83ff-3e706858a589","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"57f50bea-9269-4f6f-b058-9cd675444bbf","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":46,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"65de47ff-cf95-4be0-84f4-cf2703389748","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":46,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"94ce44e7-7599-403f-9c21-10a7460b86db","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":46,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"53bd8529-5fea-48b2-9adc-e770ba964f75","block_type":"box","text":"unavailability of additional financing.","page_number":46,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"56d9374b-5cd1-407c-9dcc-24dc02e73d0f","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"611dd179-0f23-4b2c-a285-007f54ed8e4b","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":46,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"a20d45e8-1fbd-4391-8e0a-665cf4b8e179","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":46,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"5947655e-fe39-44a6-ad93-b127b3171767","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":46,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"547b8c5f-0e6e-4a5b-900f-4be98b18e722","block_type":"box","text":"II-10","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5c6b7f65-e106-4983-bc80-94c5707423a3","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":46,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"35bccf27-722f-43eb-a689-0fbf02b19288","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":47,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"1d0166a6-9fbb-4236-8d96-d54f08c5a783","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":47,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"c2f993a7-4325-4fc8-94c0-c4ad6f2fc180","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"bdaa91f8-06ac-43ea-aff3-ab652b9956fd","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":47,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"f3e12dc7-c1b8-4d2d-9dc4-b9baa3419d9b","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":47,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"8a0a6882-2f8f-4c71-bb29-3d7b2539aab5","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":47,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"a6d9542e-3163-49e5-8411-82ebda012d54","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":47,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"cec12afa-e81c-4803-aaf0-413d662f48ea","block_type":"box","text":"investors in higher rated securities.","page_number":47,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"d04fae70-c7ba-4ad3-8dc1-7adca00e33f0","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"0c674713-0284-4a4d-9d16-629378e6a07c","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":47,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"d023f373-c784-4f4d-a509-b506857f8598","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":47,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"0968f8ed-7c4f-4e63-8dab-b83ea8ce9289","block_type":"box","text":"lower yields and may lose income.","page_number":47,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"5b7fa095-9893-4960-a76c-ccf39638ee0e","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"59fdddea-55de-4da5-a282-74f5a960e6e4","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":47,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"17cb18ea-5e39-41c7-bd4b-d0a4ad6c82e2","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":47,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"05d7b154-58b0-4ec8-88e5-aee5a8d106a9","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"a6b452e7-7d1f-410f-bd57-a97710e54363","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":47,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"378c0e78-2d03-403b-9a0e-a59e1fa22239","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":47,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"6a4c3401-9085-46f3-88a1-1461f360f43b","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":47,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"5034c249-5cec-4666-a8f6-718e6a3cb8df","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":47,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"1d7dcad8-0ac5-4027-a4fd-67e01ab0f763","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":47,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"871ef093-c1ce-4287-a06f-56a578603e08","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":47,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"d1af3f94-d726-4ff5-ae9a-377b91147308","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":47,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"2a6585cb-5d7c-4bbe-8c74-4af42f6dcc88","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"32287e20-02e4-4257-9f86-5ffc5465e977","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":47,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"2328129e-c408-4d64-b9f9-7116bbcb29ee","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":47,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"cdd16b54-d159-49ed-8570-fb4f057ef05b","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":47,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"747db406-ef03-42ce-af71-57cef4e3d2f2","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":47,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"a9d706ca-f122-45be-8311-21459d4265f1","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":47,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"79116c3e-9123-4cdd-ab63-3d394fccb370","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":47,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"3eb8108f-e866-4dd8-836b-4c278e9aef8f","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":47,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"c51c278a-3b94-4357-a143-c09ec59332a2","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":47,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"3e501f22-836b-4330-b647-2048247636da","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":47,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"315bdc3b-25cd-47ce-9085-ce429d89d72f","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":47,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"f95feb3a-6f24-423e-99f8-59a9ed976e72","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":47,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"ed16ed44-c17d-44f8-9506-e145e56c0380","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":47,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"29fa4635-4bec-4a43-8398-487ebce11527","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":47,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"26803168-a768-449d-b765-d953d72383f3","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":47,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"ba29f77a-bb54-4636-bb73-8d78e210700f","block_type":"box","text":"role in determining such valuations.","page_number":47,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"339ca673-a9d3-40c5-9492-ddb6aa99d69c","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"c7d4baf6-5a14-4e1e-93b4-d41106aced29","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":47,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"d87045dd-3d25-4714-8645-a81928cfd274","block_type":"box","text":"a defaulting issuer.","page_number":47,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"b606176a-756d-4eeb-87f8-e9c4c3f79d82","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"6e8a1ac0-806c-4816-b670-420bcffadc38","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":47,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"679aaeca-eff7-45a8-be93-f77e7a5b6372","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":47,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"7d87d243-1c8a-4f80-be1c-be84550844d4","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":47,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"5350a874-3c00-431b-bd78-e33ec7347ca8","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":47,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"dd62585e-4000-49ef-947d-527e854b8351","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":47,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"fa7749a8-39bf-4c9d-b0ba-914e772f1723","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":47,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"a0b2c9fb-9097-405d-b341-2512bd750db1","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":47,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"ff026335-c00a-486e-9051-c59ce93f8ebe","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":47,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"67e9d71c-bc10-4722-a144-3e31a80fd226","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"ab2f9880-de96-46ce-9814-76196f36aff2","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":47,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"8f7bcd03-47d0-4376-a9d3-be136b8661ba","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":47,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"a0986ff6-898c-4f12-91fe-0159f758eb14","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":47,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"b4b1598c-7cc0-4f8b-8320-28612305480e","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":47,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"49ced84d-9533-40dd-bc35-da4d34aeb7b2","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":47,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"61138e4a-2420-4994-b105-092a3c158bc8","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":47,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"29587f5d-5a1a-4a28-aa9c-43f959fee5f4","block_type":"box","text":"higher-rated securities.","page_number":47,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"b865b3bc-3fbd-4f7b-adf3-e2ababb7c76f","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":47,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"cbf77663-ac11-4f2f-b7ee-d205a61e217b","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":47,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"70f95926-ea72-4739-b3fd-2234015eb828","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":47,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"b87b89fc-895e-424c-830b-8f5be7b5901b","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":47,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"f20d4e6b-0d18-423d-bc69-d82bfcf821ac","block_type":"box","text":"II-11","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0e7eb080-adb5-4b4b-96cd-23b41b7f5653","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":47,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f7e35e75-19e5-464b-bce4-97ceb59b45a3","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":48,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"566f2606-1f2b-4213-af1e-e27665b6c797","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":48,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"b3b8266c-0cd6-4615-9628-9c4d3a376bd0","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":48,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"4db5dbcf-3915-446e-8bf1-8e75a8280eea","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":48,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"a11f3d58-5e03-47ee-aae4-73adc021aebc","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":48,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"60008b07-d695-4418-86ca-76b512242e59","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":48,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"ae73f8e9-a071-4967-bf41-182bcbe9bd69","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":48,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"3cb91a43-2baf-46d9-b56e-0c9dd130a3f3","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":48,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"bfb0716e-e0a5-4138-b818-c3188afa933a","block_type":"box","text":"Mezzanine Investments.","page_number":48,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"8b05e660-7f82-47b7-87a2-ebaaface362c","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":48,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"88519539-8664-4818-901e-9bad090417b7","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":48,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"e7140127-318e-40a2-adc4-e6749633a69a","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":48,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"bbb4facb-f12f-4925-8937-1f6cd536fecc","block_type":"box","text":"e.g.","page_number":48,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"f2ee2655-8414-4538-bbe1-fd68890d6357","block_type":"box","text":", with","page_number":48,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"35e25f48-c7ea-46f9-8d98-95b8cf685052","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":48,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"fc64e190-ebaf-494b-a8af-533bdd8c68a8","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":48,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"7c17d34c-61d9-43a5-ab6b-58caab8d5601","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":48,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"c9e375c1-cea6-44e0-8228-fd79a7fb91b4","block_type":"box","text":"other obligations of the issuer.","page_number":48,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"7c843b6b-c0f7-4ee4-9cae-cc3f56b9821e","block_type":"box","text":"Pay-in-kind Bonds.","page_number":48,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"d378cd52-c18a-47aa-87f1-d9018d87effc","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":48,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"fc290b46-7da0-4247-9926-b20ce456f2c9","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":48,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"a8465eb7-8378-4c66-82c5-e1d3610d4edb","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":48,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"3999b5ae-c213-40ac-b829-eef2ae55a1de","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":48,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"57c4daea-5375-44b7-b943-eeaa2a68cf78","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":48,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"bac4c0c3-b545-4557-aae1-668a5210a3b5","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":48,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"384095bf-571f-416c-a43a-c48ab1ea402e","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":48,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"d99f93bc-ea9a-47dd-b4b5-6e6546b5bd1d","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":48,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"4b4ed4ae-416d-43a9-8f9d-655cbe683292","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":48,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"702ca681-8c30-4a04-990c-43fce3da26d7","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":48,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"282c11d1-e23f-425e-95eb-9accbdd625ba","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":48,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"40eca016-21b5-42b5-b2a4-5eee89d817ac","block_type":"box","text":"Supranational Entities.","page_number":48,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"7196ee44-0c50-4dc2-8939-68a1bcb8c7f2","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":48,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"aae1751c-df5d-478f-a994-beeda96831b3","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":48,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"2cf98890-78be-45aa-830a-3f75db3b639f","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":48,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"700eaccf-fe16-4b85-b3fd-c88283dd6cc1","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":48,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"6f0f564c-8d82-49b1-bae2-49c729c9abad","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":48,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"94ec7740-c5b9-4051-9251-c2d850901249","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":48,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"2154bf6b-8944-4a96-becb-11af6ccba782","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":48,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"78e4282d-8cce-40e8-b479-1d4fb40e5742","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":48,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"2155d359-831b-4cc8-92ec-ec2b9f86f5e9","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":48,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"79338d36-6245-40ad-8199-bba7ae660e63","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":48,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"6ddcc711-3f4c-4485-86a6-95bdadb4c9eb","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":48,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"e4f60237-f0fc-4787-9f64-afb093dbf8dc","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":48,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"00846cac-cf74-4444-bdf7-a9d1a1ea5bc1","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":48,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"df444e6e-01dd-4111-98fc-7814d00e8243","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":48,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"9f06d5a3-5a06-419d-96fc-83d325af8279","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":48,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"292756e0-ff55-4d8e-94fb-31b9a7473810","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":48,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"64e55f50-33fc-4a7b-8a8f-3e9304fcaf19","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":48,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"fc703383-4fbb-421d-b770-10871361d6ba","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":48,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"4f59611a-9a95-4030-98ca-8e2e98f1fcf4","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":48,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"ecf27fcf-556c-4be2-84c6-655e806e6604","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":48,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"b3d63182-b638-4c8a-b611-90f6c554cc9b","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":48,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"9e49df79-f1f9-45c1-a461-ab00f3af9ce9","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":48,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"1e88774f-2f28-4e26-9141-e8d70fc3098b","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":48,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"6c7fb84f-7f5b-4831-b98c-e0c02a02d7ad","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":48,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"efa80439-f2a5-4c8c-b063-af4e08080918","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":48,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"1492e93b-546c-46cd-93c2-2941b2ffc05a","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":48,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"79362168-f9f8-4f3c-84aa-13d25c42422b","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":48,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"f5bc294a-7128-4055-bb8a-ea2849c97248","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":48,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"92d59023-e0ab-49c2-aeaf-fb8c2a073862","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":48,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"9458e55d-e02d-46f5-91c3-371e7a685821","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":48,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"0bad1937-147f-4ae2-9b28-5a6663023433","block_type":"box","text":"II-12","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76f3bdf2-2465-4368-b913-759fef9c18c0","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":48,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"705f3175-4d4d-4bf1-8d4d-f91000637568","block_type":"box","text":"Derivatives.","page_number":49,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"d20caaeb-0819-4b64-a25e-e4f3423ea542","block_type":"box","text":"General.","page_number":49,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"4af0e980-7ed4-41a2-9ff6-08fd2f6d0d8a","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":49,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"79d4196d-120f-4f57-9557-f5ff122df7dd","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":49,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"fb0e6307-651e-4818-9640-dd8ccf74cc77","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":49,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"d2edd6b2-999e-4ad7-b8d3-473b5aacedfe","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":49,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"fb3b5641-ec77-4625-b826-8917daf374b3","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":49,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"7df48efd-a9ce-45fc-8ae1-7638244f5729","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":49,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"aecd9a52-cad0-43f2-bd2a-570ab6d0de31","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":49,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"85fa3c04-098e-47cf-be22-6eb63332f3d4","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":49,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"46822bf9-568e-4ecd-b465-fc82af8eb501","block_type":"box","text":"i.e.","page_number":49,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"6abf0e22-fe4e-40c7-b7b2-44478bbd38ee","block_type":"box","text":", the payment","page_number":49,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"0b48205b-4874-4288-a07f-7be75197ca33","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":49,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"1426f938-0849-41c4-8b2b-ec7d8f206446","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":49,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"ac69e42b-8d69-4c63-b7aa-9efad6d07d83","block_type":"box","text":"Hedging.","page_number":49,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"aadb7289-d92f-47a2-869b-5a5a66c68b7a","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":49,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"7b0c1955-9154-4795-82a3-b7f9837720f2","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":49,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"163dfaa5-328d-47b0-9903-6efb2c0af366","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":49,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"24c337da-8d90-417e-a564-bec80b3b0f23","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":49,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"37abd9d3-6b77-4435-8558-0a7d0ce3b9a3","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":49,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"cc69f42d-bfac-49af-8c71-d68368830870","block_type":"box","text":"correlation risk,","page_number":49,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"e0cc79f6-0520-458f-950f-c5bf813b1d6f","block_type":"box","text":"i.e.","page_number":49,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"14f10676-791c-4db4-8024-cca9584440e6","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":49,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"f3e3726e-73cf-4da7-a8a7-396a117bec70","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":49,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"f5423195-c512-427e-84a9-1f0c97907401","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":49,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"c766b879-80eb-4d45-8811-55e888bf66be","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":49,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"0f56e364-37b5-4716-8af1-e598a31cfcdf","block_type":"box","text":"Speculation.","page_number":49,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"e58a8888-ba7f-45fe-97db-68883031e3bf","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":49,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"193cb526-ecf3-4df9-9322-0fc13749cda4","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":49,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"a753d7c3-491e-45a9-bd29-019b131bafc8","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":49,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"2f710176-1e36-4572-9908-57a0f8d0b329","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":49,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"2ca582a7-7195-4e7e-9cce-a690e3f9e6f6","block_type":"box","text":"in certain cases may be unlimited.","page_number":49,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"edfd67e4-ef5a-458c-b009-a64c4b708efd","block_type":"box","text":"Regulation of Derivatives.","page_number":49,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"d47437fb-5ebc-4fab-88ff-3ffde975af3d","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":49,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"d26c80c9-9e65-414f-847c-9d80a960f86f","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":49,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"0fa2c67d-0573-4547-b3f3-d23f04f289c8","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":49,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"eeab8dac-da95-45f3-af79-c0e40c89a9b4","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":49,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"f377411c-1503-4409-9e10-7e4d853124f7","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":49,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"d3cd34c1-bae2-4b84-a16d-35c0ab372bab","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":49,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"5e84dff5-72a2-4c3c-a80a-3922b0d53c96","block_type":"box","text":"coverage”).","page_number":49,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"8494c130-0211-4d8b-9544-cc2d1818b48c","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":49,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"133c29c6-40b8-451a-9f1b-f0c87c0f0fe2","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":49,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"92f75c41-d332-4809-b8f5-619ddc50b87e","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":49,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"8e30c5ec-a333-45a6-ac6f-e9db9cd75c6c","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":49,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"1b6d694b-4289-4caf-abf3-e1757916f05d","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":49,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"c65a4397-ccc6-4055-bfbc-f92e219f6701","block_type":"box","text":"financing transactions (","page_number":49,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"36e7ee93-c8ea-4834-a2ae-a0890d15c6a2","block_type":"box","text":"e.g.","page_number":49,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"5fbbaeb8-236f-424a-ac50-fbebe8b5ee85","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":49,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"c2121e3f-55a3-4d74-a82d-1ad9d8c726af","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":49,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"7474f821-ee1c-4907-a071-4b22ade95efe","block_type":"box","text":"securities (","page_number":49,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"02ed825e-235e-47d8-9f33-0b550a05e858","block_type":"box","text":"e.g.","page_number":49,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"510a3a01-ef19-46a5-be2c-b86b76f245de","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":49,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"ace93c36-065a-4f6e-a64c-771c6c526d4e","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":49,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"d085cdd4-6833-43f9-b582-db21c07b6e50","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":49,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"881f2978-5d72-4448-a811-57da22f9bd44","block_type":"box","text":"Commitments”).","page_number":49,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"a4dfc3a8-814d-41c6-bee5-8c8a56dd700f","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":49,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"6c9fb16a-9539-42be-8891-4c4b827a4d7c","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":49,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"5d560b13-dd3b-4a80-9fb7-855c29d169cb","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":49,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"ae4381fe-cbb4-452d-94c5-b7533e448156","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":49,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"d304d541-18e8-48a5-913e-a00669847618","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":49,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"986d5fc3-a8a9-497b-9e60-cf89e3f4e2cd","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":49,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"09fc772a-2300-4cad-941f-fa0833ecbacd","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":49,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"589d367e-682f-49a7-a8a4-3a2e7f0875d8","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":49,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"85da0330-8c6f-46ff-a562-b3601ab013e2","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":49,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"ffba952e-c931-49ac-aa65-063d8bedebce","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":49,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"5499be64-8d2a-4964-89cd-b5d093a6f959","block_type":"box","text":"II-13","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d947a65-63a7-49a5-8c2e-15e3a0f84b31","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":49,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"e0a50757-69dd-4b5b-8937-7f2650dd083d","block_type":"box","text":"Dodd-Frank Regulations.","page_number":50,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"3c6f83aa-7306-4f39-afe1-6421fc53284b","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":50,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"5595c3c3-792c-4685-b395-5ca51a5d2023","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":50,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"cb9afe7e-d8c0-46f6-9080-8f45d347d7a5","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":50,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"abb2ec35-742a-4d02-870d-32ac446485a8","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":50,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"3b4d45b0-6489-4427-82cb-9ac5c1958357","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":50,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"652566ad-0a14-4b1a-a95a-642179fb1576","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":50,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"e8be3d39-e61b-4dab-8740-0a78c88e5233","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":50,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"2efc1c58-409f-40d6-ab2f-23ea8b8b706e","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":50,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"5e38e965-ca3d-4347-9135-e4f3cb79596f","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":50,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"e859434a-dd83-478a-923b-8576a7efec9f","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":50,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"e1698e98-8000-4ba7-9e69-0856a5bd3d00","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":50,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"857c533f-e677-44d5-82c4-91fea1a84662","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":50,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"5a8d7354-81d7-4f39-bd4a-3dda7de0537a","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":50,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"0bfbb49a-59a9-4797-8b3e-9fddec8d23fa","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":50,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"18fb6099-8055-419b-b12b-aa361ea59f9a","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":50,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"04fc62de-8386-4d3f-bec4-f0d13cbee99d","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":50,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"506b9f9e-6eb1-4cc9-8af7-60b941662106","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":50,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"57d2df93-0ec3-40ce-90a5-c8d67869a75d","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":50,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"83e8b183-6cfe-41be-9754-57cb16943db3","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":50,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"4f339f53-2c86-4ab8-86ed-aa1f3dc2f1f7","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":50,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"26a0daf3-abbb-4c1f-9421-6350a636ab5d","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":50,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"84716402-36a7-4600-b28b-75bdef2fd2be","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":50,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"51e86872-736b-4e5f-b974-4adb5221854e","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":50,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"390c3b4e-273f-4c58-bbc9-bf6460b0cb69","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":50,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"6af3179b-1193-4dfb-b63e-ba95ab698083","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":50,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"d7956b2d-1712-4bc5-ad55-b6e4e8b3ff78","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":50,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"96d1e04c-7a68-49b3-9ca4-9228c4fd6fd4","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":50,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"cf44515d-71ab-4687-9558-231050a76bbc","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":50,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"9234a453-e63f-4265-9fb5-023d9cd9558b","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":50,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"b057eaee-8a39-47f7-a873-275d5140f734","block_type":"box","text":"member.","page_number":50,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"95d32ae7-eab9-4d4a-9ffe-cb478aebf518","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":50,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"4fd8a245-e7c6-4b64-84c3-f812ede5b8ba","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":50,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"cbbccc81-9d34-4ab8-a83b-ab8a9f6a8a30","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":50,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"3fbee55d-9697-4224-a684-a6f0cb2caedb","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":50,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"cf37dce4-7968-47d8-a7e8-159dab2bfae1","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":50,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"cf4aef39-a31a-412b-8675-8b6919029694","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":50,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"14db1e03-c7f3-4f92-8b05-86505b36f93e","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":50,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"43d3e0f6-e272-4a42-a40f-b28c78d50f33","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":50,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"eb968aaa-3b14-4c44-8a0b-7bdbb5f36441","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":50,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"45ca952d-6102-44b4-ae0b-759ac9086538","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":50,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"0b395ba2-b544-4d29-9b36-84490226b6bf","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":50,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"b6847fa7-7f50-4a18-9a42-ab7e27c3289f","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":50,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"bcc59b6a-abfc-4c5a-81f3-df2922e85af2","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":50,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"c443d968-000a-4e03-bbef-c60dc8117251","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":50,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"385d16c9-0dfc-4ae0-85de-b3d214cb32c4","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":50,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"788bc2c0-6e56-401e-b695-873a35889a2a","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":50,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"bf3e2037-7702-4c4d-9d97-f593f9247599","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":50,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"74634278-1c36-48a4-9c29-ff0c67d0d6b5","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":50,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"be1155ac-412d-4e86-b57a-5764da01a653","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":50,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"36f931d9-649b-44c6-ae01-14bd545a9f2d","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":50,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"f830622b-8a15-44f8-a4ce-25422a8f45fa","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":50,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"75c913d7-9341-4ac6-ae0c-e1a4d20c30ff","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":50,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"307257f6-344f-4dd2-8c60-3e8582b09e14","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":50,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"d0e565cc-080e-4e70-89de-083de23fb2bd","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":50,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"5a3c3e95-3c8c-4a29-8c12-c18d2dac3301","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":50,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"7a9b6f50-c2a3-4b63-adcb-a616fdbfc30d","block_type":"box","text":"II-14","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"751282ae-9d8e-45cf-a714-a2a10653ab11","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":50,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"8dc8f9de-5a34-41e1-b4a1-5a5ded414936","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":51,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"986711ac-f8d1-45bb-b87c-02311851bc85","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":51,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"6a10f498-f29d-4e9a-aa5f-305607578f81","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":51,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"42fe0173-894d-4fea-83cd-b3999cb08ee7","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":51,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"f7b75bf4-cde0-44e9-8bc1-780f7bc06b06","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":51,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"64dbd1d9-a1fd-4f34-9da8-a8359c389cdc","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":51,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"7bdf08c5-f26f-44b1-b7e9-29aac6c4a27d","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":51,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"09a492ad-dee9-46f0-858b-32737b0a972c","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":51,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"925a7292-b7fe-4d23-87c0-3f83a2ae07f2","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":51,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"75d50cf6-55ae-439a-9369-75ed0f13f4f1","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":51,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"8abeb42a-0c80-4ef9-b175-54954139c48b","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":51,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"6e5c9232-b67b-4aeb-aa84-9981b5dc534c","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":51,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"a05521a2-5ed5-4fb0-ace7-bc301205ff7f","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":51,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"399f54f0-b2ba-48fa-8e0f-4e7797287769","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":51,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"cba23c82-7c6f-4f16-881d-478223c2b587","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":51,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"b595b545-2172-4280-9723-ca6787ffd634","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":51,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"c39b00e6-f5a0-48d0-ba89-84aca1e8f28e","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":51,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"79e19deb-39bb-418a-8ffb-ff11545cf09b","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":51,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"1a8abfed-ecc5-4ed5-9a51-29a5cc4206cd","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":51,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"df80dc29-555f-4ed5-ada8-5807e3d8905a","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":51,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"ee28e488-fb78-4684-b02e-807696585eab","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":51,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"aab2effe-2610-4d51-823d-ec02d6fc1660","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":51,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"f358bb03-3c00-43c1-92ca-514d20568266","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":51,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"8c2e2438-6148-47a9-8e7b-2e9265ae377a","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":51,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"a1505096-8f2b-4dac-a046-8d50decba4fa","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":51,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"a9bd9fa7-5c93-45b6-a8fe-a11321b09416","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":51,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"9284f56f-d667-4e61-bc3f-adbd58a58bde","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":51,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"6920b53e-e3e2-4e42-95d0-6892de901f88","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":51,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"d858f771-b09c-42c5-8320-2a7d98b1d9df","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":51,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"8a633760-32b5-4560-8410-0db503ad9256","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":51,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"4becd9f5-b22f-4074-a558-2445315dbbe8","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":51,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"d0b20cdb-9933-4adf-bb0c-8bfe78127ecd","block_type":"box","text":"collateral received under such contracts.","page_number":51,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"158fe262-d8ed-4755-885e-8859cd251409","block_type":"box","text":"Risk Factors in Derivatives.","page_number":51,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"05a620c3-75dc-400e-90fc-967d709d2848","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":51,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"ff41984a-8457-4764-b42c-fb5860dd8072","block_type":"box","text":"Correlation Risk","page_number":51,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"b7947dc7-5b8f-4db3-9b53-9bba40453ce2","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":51,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"77e65184-eef5-4d9d-8a23-6b3841085923","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":51,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"92ca8618-3b13-424a-ac55-1ec670cd5a0e","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":51,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"123b6455-0d1e-42ac-b292-cc4a364c6b84","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":51,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"caa7818a-d795-46fa-aa67-de189ab19486","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":51,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"eccb92a5-fb23-4288-8a14-f4acaf1b2dcd","block_type":"box","text":"Counterpar ty Risk","page_number":51,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"b77b3db6-92b2-4093-ba77-480e4b61b61d","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":51,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"53c989a4-534f-4115-b963-db077be51472","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":51,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"7b3fb84e-43e4-4e41-9077-141c7a776076","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":51,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"6ab1d775-cb19-4d88-840c-60e50fc7bf22","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":51,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"eafe7d49-60d0-4704-9580-3caa3c251cc3","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":51,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"0f43d0d3-f509-49e4-97ab-267b0d478e5f","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":51,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"c8a8216e-fca4-40f6-9de3-3d15339456bc","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":51,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"385da97d-6d5f-44f9-b8ac-2927dcd838f7","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":51,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"06ccf80d-42cc-495b-8a46-7ee8d57bde12","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":51,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"a962187e-5431-4703-920c-1110ead8b0c1","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":51,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"95947230-339f-4121-8b72-bcfa7f0e1f8d","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":51,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"bd10c2b6-c547-4a9d-bcbb-855429143abc","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":51,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"8168d7e3-16a2-4d1e-8876-047678ff2522","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":51,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"acef4df4-38a6-44e0-868b-57d00abe2c1b","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":51,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"e839a41f-2fa4-4ed4-abec-72d5b5d96642","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":51,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"75598c98-91a8-4e4a-a7d2-6e3bcdcbb9b7","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":51,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"cc7f13f6-930c-4404-90b6-72696245520d","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":51,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"dc0b6c1e-8bec-48c2-b1e3-c3c4d1efca08","block_type":"box","text":"II-15","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"711b2091-1974-403a-a2b2-58d7dc39866b","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":51,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"605eaec3-9edb-4051-b483-32a81826e44a","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":52,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"ca6e0065-9dc5-40c1-9292-7de022b59628","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":52,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"b76bb563-b11b-4849-8f61-1d6cecbdd0ed","block_type":"box","text":"by the clearing member.","page_number":52,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"3d8d5508-e1bb-4cf2-bd7c-3592b832e326","block_type":"box","text":"Credit Risk","page_number":52,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"e913605b-476f-473a-a42c-a87335581a0b","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":52,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"9ba52bf3-ea2c-4ec7-a473-26ac173ca36b","block_type":"box","text":"honor its financial obligations.","page_number":52,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"c0aeab62-7f91-4914-8849-52f02d8765f0","block_type":"box","text":"Currency Risk","page_number":52,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"729a5f86-1129-4795-b4c1-f2757612e273","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":52,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"933c722d-53e5-460c-a689-385a99dba8f7","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":52,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"ab2b960a-0132-4244-bcc8-56dae881c29a","block_type":"box","text":"Illiquidity Risk","page_number":52,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"aa56ae9d-3037-4411-896b-81c6aa7989d0","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":52,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"5db7588c-134e-44a7-ac00-06f64f2e459b","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":52,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"6e2a5868-9b18-4ae0-a67d-dc76cee9b726","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":52,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"aef57cd0-b5a0-4056-b25a-bf2daccf5254","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":52,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"323988db-44f8-4f2f-903f-661d15a8334c","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":52,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"1c4390b9-c5c3-4e5e-91e9-eccc3b1d533a","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":52,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"f70d8d9b-95d1-4130-bd23-0906cd60fa56","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":52,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"53becf62-89e0-4bd3-8c11-66abd7fd8d3c","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":52,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"f92d37cb-cfc7-4bed-b700-1717092a5953","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":52,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"8d094804-da9c-4aef-a4e6-af47ea8354a1","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":52,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"1fcfb48c-e891-4079-b500-b97b4a7819ee","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":52,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"cfe7e0e1-05d3-4379-aa4a-082d91e1b891","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":52,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"26e34014-a41e-414d-bb92-b48995d958e5","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":52,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"c36f0b0f-bc7d-428a-b3c3-08998b11e28f","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":52,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"5437566f-4190-4971-bc81-80e9fa4b2616","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":52,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"ecbe26f4-12aa-4ba9-9872-35a386443f09","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":52,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"c176e211-deca-439f-b2cb-0778fec8e1c4","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":52,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"0a390683-4034-4b4d-aa26-ae740a908c46","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":52,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"729c92e8-9407-4b82-a48f-60e57df573e7","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":52,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"553072f2-1902-4f6d-927e-f30e923a8e51","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":52,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"7fa1c718-5f5b-41bf-bfa6-49f2c2674a77","block_type":"box","text":"may be disadvantageous to do so.","page_number":52,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"a08fb4f4-a062-4ab6-bb9b-94f287af2885","block_type":"box","text":"Index Risk","page_number":52,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"bd095dd2-8ffa-4fe7-996b-f086f48a0ad9","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":52,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"99c8ce87-dfd9-4c15-94d7-4330a2424bef","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":52,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"54ee5d48-38db-42f6-86cc-af0f5c786b89","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":52,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"5c30e93c-84f5-4b12-9c78-79bd8c945c3a","block_type":"box","text":"Legal Risk","page_number":52,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"4a2415f5-2c2b-4d3e-b057-5d18f4116d0f","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":52,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"6c87c722-1c31-4342-b99a-0716300fe921","block_type":"box","text":"or enforceability of a contract.","page_number":52,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"04733e05-cb90-4399-a6e8-1e6fcc2a953c","block_type":"box","text":"Leverage Risk","page_number":52,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"39ed0c8a-9a0b-4443-9f42-ff4ca27a49c3","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":52,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"059e1534-7a92-4429-8d5e-5c0ee41c291a","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":52,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"e1d43f30-d490-4e25-87c8-80e2f33df720","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":52,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"547abf70-1efc-4d2f-ab89-85744c49ecb2","block_type":"box","text":"Market Risk","page_number":52,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"0db4219f-e3ea-4fb5-a8a1-613d507aea88","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":52,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"422cf6fc-9f8d-4a7c-a1e1-08e1c2501d6c","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":52,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"da8f6784-dd75-4f18-b340-c52f66926d0f","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":52,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"43261b25-aaf1-4bee-956d-81e458ab3c09","block_type":"box","text":"affected.","page_number":52,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"3543b95c-a9af-4973-9e7f-7baaecd6453a","block_type":"box","text":"Operational Risk","page_number":52,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"dec814bc-21ef-4936-b427-35972ea74bb4","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":52,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"9c80a790-613b-4951-a4bd-bc25d2644776","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":52,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"8c5fe8cb-34c2-47a3-8451-2678dbb498ed","block_type":"box","text":"Valuation Risk","page_number":52,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"cf0c7823-700f-473e-a100-266f266647f4","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":52,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"f47a334e-66a7-4c68-9273-286e53693990","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":52,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"22e557d2-6312-4e94-b80c-1900d492d612","block_type":"box","text":"complex instruments or quote prices for them.","page_number":52,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"536351de-4613-4ae6-809b-a78a67bb1077","block_type":"box","text":"Volatility Risk","page_number":52,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"4685444b-3ff2-42bd-92ec-85c340e6e457","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":52,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"5b49ea9b-6d25-41ec-81bc-344a3b6c27b5","block_type":"box","text":"Types of Derivatives Transactions.","page_number":52,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"4e9ee44b-8c4a-4653-b82d-9bcc4f59737b","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":52,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"fd01d40b-a938-4628-af35-37a675e17381","block_type":"box","text":"including the following:","page_number":52,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"1dfd493c-7f51-476d-b384-f4e37b02069a","block_type":"box","text":"Futures.","page_number":52,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"fdd70094-4885-45fb-be2c-18e8314e1e28","block_type":"box","text":"II-16","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"96edd997-5728-4cbc-a38e-bc68e49318f9","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":52,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"442f6346-4d70-460b-9243-5648c26ac0d1","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":53,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"e56eeba3-dff1-40a6-913c-8b112859cd2b","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":53,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"71f2c2b6-ce90-4c9f-b28c-c81d3e95e494","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":53,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"8e9efbe2-075a-4b67-9bc8-e6bc69743bfb","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":53,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"8b990c33-ab4d-4b14-8e59-60af4562239a","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":53,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"b513cf31-9db1-4f38-b6a9-8ca3bc7f93e1","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":53,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"39657e6b-9616-4e33-aea2-2bfdd495bf24","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":53,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"1471d768-8a43-42d3-93ea-cf1e69c07b3e","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":53,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"a925f168-5c5e-4c0e-b3c3-6e94d9b25c79","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":53,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"9d44b45f-8790-4a37-9abd-d3924b727674","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":53,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"661fa1c5-ac06-4276-b423-86972f93bad8","block_type":"box","text":"of the futures contract.","page_number":53,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"2c89e93a-bece-462a-b7a9-70b5f371850d","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":53,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"b4b065d3-685b-4941-a6d6-09c9f121eb3b","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":53,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"d7c62a64-a7ca-46b7-885b-010a3d3ea83f","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":53,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"05b2c12d-10c9-4b9a-b6ce-cc173fbb1b30","block_type":"box","text":"relating to the futures position.","page_number":53,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"4fea9dc2-89d2-491a-8284-92a152503ede","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":53,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"fc1937d8-339a-4c38-9cb7-1ddc20370532","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":53,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"e00b2d8c-b010-462a-adcd-a193a86056d1","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":53,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"5ce173c6-6f3e-439b-ab9c-2325bc65dfa4","block_type":"box","text":"Regulations” above.","page_number":53,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"4f7e9642-29d1-4187-a5a2-ef454b62f243","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":53,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"5ae7656f-91d0-47dd-921e-10fe852371fd","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":53,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"9337ed83-f6a2-4a9b-99c4-849a0fb6e29c","block_type":"box","text":"(","page_number":53,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"dcdc0cb4-554c-401a-8bfe-3d466010951e","block_type":"box","text":"i.e.","page_number":53,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"f2db800d-fe47-4d6b-9182-b730983f261a","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":53,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"02edf42b-5f2e-4630-8aa6-97d4f17716fb","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":53,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"5540355a-86cd-4c5a-b39c-62d11d4505f7","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":53,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"4aa7d3ee-a2af-4d6c-baa2-f8c8ba8a0c14","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":53,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"cc107f42-8573-4cec-854a-3bdea553d1f4","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":53,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"55e96512-fd6b-45c0-b4c3-033774014f8f","block_type":"box","text":"Fund intends to purchase.","page_number":53,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"dea30aaf-8f34-4da3-993f-dfe037759f2d","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":53,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"363bb482-82b1-48dc-a3f4-81edbbd9a336","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":53,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"ef291ff4-a9fd-4cc4-8b37-74099f439aff","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":53,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"480e94f9-5391-4243-b162-c50b2dc1097a","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":53,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"8156deb7-ae25-4679-9d9c-47161cd5e20a","block_type":"box","text":"illiquidity.","page_number":53,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"ea8ac0d8-80f0-4bad-a249-e4daf031adbc","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":53,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"2234095a-9067-481d-9a56-8efbf2924818","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":53,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"b5e6de11-c5c9-43a5-ac16-abd199bd74bb","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":53,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"39a7d15a-07e2-45bb-8e08-725445303ed2","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":53,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"540d15b4-54c0-47da-867f-8c377a96104b","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":53,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"bcf5fe5f-0f94-4667-b5c8-d717a7781b59","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":53,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"0b540aed-6ed8-4f4a-aa15-4c4b719af891","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":53,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"082f1efb-1ff7-4cdf-9074-cb6bee8b06f8","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":53,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"257c978f-2ed6-4d95-87bc-e4c913db80ee","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":53,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"0519fb9a-ca16-42e7-baaf-cc1b9500c04c","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":53,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"d1eb9c95-bc93-42a5-bd7e-9846ad1fa829","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":53,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"02c964ec-136f-4418-87a9-9f4e3ffdafc1","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":53,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"fcfd2168-703a-4416-94cb-ca3756b88925","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":53,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"ea83a13a-9386-4281-ad04-226fc3d7bf3d","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":53,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"cdbd9831-5a0e-42b1-b6a1-e24b578f80f5","block_type":"box","text":"Swap Agreements.","page_number":53,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"cddc9dba-9c91-4ed2-be9b-ea8bb767ecd9","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":53,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"85dec9e3-a552-47fd-bad2-a72efc14fe02","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":53,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"7d25fa26-0e53-48b2-9a2a-56ee7a937567","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":53,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"40a0d75a-a4b9-40a2-b7ca-710d8ac4fd54","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":53,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"dc136fd7-97ed-4f1b-9d2d-cd36b30fe314","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":53,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"10ec1d47-1c91-498f-8eda-4c493d0b0a1d","block_type":"box","text":"a “notional amount,”","page_number":53,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"802ecdac-41e1-49dc-aeb7-0c8f0f4c240d","block_type":"box","text":"e.g.","page_number":53,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"dfa796dc-febd-4371-8f95-28f80fe8e979","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":53,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"72fe7c24-ed41-4b32-9e5d-7444674b6872","block_type":"box","text":"II-17","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8ea346cc-0992-4bf9-8c05-f6282ca1a304","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":53,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"dfc3615b-b5f3-4a45-a2d9-1abdfc59c214","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":54,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"1229ae99-5204-45fd-a20d-6c99c87ba631","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":54,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"767bb020-e4a6-4858-8d72-53f76e39af84","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":54,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"49f1710c-73d4-4902-8434-7d1fac46eb63","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":54,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"b247e10a-9c7d-4b39-b1b7-6ab7041ae76c","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":54,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"9932761f-a286-43aa-932c-b18769f46e56","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":54,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"5718b4e5-cb9b-46a0-a768-0d71d4d95711","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":54,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"cb7379bd-a0aa-4d0e-a36c-c31c694a1483","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":54,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"3c70871d-b2e0-42d6-a3be-e5a373bedfed","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":54,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"4a5f0a09-ac25-43bd-b746-275408a446dc","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":54,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"fe648ac1-6570-4539-8263-4f4276937dd8","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":54,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"2f993930-295f-429e-8964-2f8e06a31156","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":54,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"1e419ade-cfe8-4aa0-80d1-471e68c95d97","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":54,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"0e8fc54b-1fe7-4057-b7c8-233cb76690cc","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":54,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"5d6eff8c-c7a5-4668-8bbb-cce657f39902","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":54,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"9ea20cc8-85e3-44fe-8a4c-d6c743096db1","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":54,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"04d5d01e-6d07-460f-af21-d6ad41b082d9","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":54,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"ab076d3b-5250-41f0-8d8e-20ae411517df","block_type":"box","text":"index CDS.","page_number":54,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"842f7d10-080b-4658-94dd-aba7e4a85d27","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":54,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"452062e5-fb8f-47ed-a82d-72c5c1355b9a","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":54,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"0f80ec5a-33e9-462e-834c-75fa1c23dab5","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":54,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"b1fba88a-6d2e-42b1-a032-d1c90d84261d","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":54,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"81347fc5-d603-4528-9eaf-aca2b5975edb","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":54,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"f9cdf2fe-05f8-491e-8e25-5281a17566ce","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":54,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"531a1eb2-ffa4-4004-8bfe-433293e8f56d","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":54,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"0c99ab72-8db5-48b1-b561-d8231ca5af44","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":54,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"163148da-2261-4231-bc60-40cd94851ac3","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":54,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"e197f2d1-6ff1-4240-bae4-e1d24f75ab9a","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":54,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"5fdf93d1-31fe-4576-a8fa-c766aed677a7","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":54,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"84ee89d9-a735-4421-8082-a45873f34999","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":54,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"e95401ec-37b6-49c3-8ef9-3e95660fd118","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":54,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"2529fc3d-d27f-4c4f-92b2-6c4e02df3ebf","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":54,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"2a46fecd-9a7f-4cfd-8483-1184aae01746","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":54,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"186454e0-a071-4780-918b-1d81dc76e80b","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":54,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"488c492a-b26c-4675-b477-a7fe3dbb0e05","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":54,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"f814380e-45e7-404d-9eb7-21eb827d3872","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":54,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"52cf6b4b-0f8c-4113-bd50-c3c8183f79e4","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":54,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"172f0824-7cbb-4016-89da-85ccd325be56","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":54,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"83197daf-6a82-4ffd-91e1-0b8ba7636c55","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":54,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"9ed050d5-c9ef-4143-9840-62a68910419e","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":54,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"0adb2900-055b-458a-82a8-8ce88a8c7d71","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":54,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"8492350e-fbb7-4685-b46b-70425fbb820a","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":54,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"560ee3a7-d22b-447d-9cf3-a5bc657c959e","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":54,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"5789f66f-34d2-4384-a363-a4a924958f46","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":54,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"3ad0abb4-ed15-4810-8144-5516df293713","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":54,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"47826d3c-577c-4e85-8c0b-a8a10cd7d3eb","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":54,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"184a141b-b1c3-480b-bbe3-5ebdd83c42b0","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":54,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"7bb3fb6e-1ef2-4f74-bbb3-aaa891332d6b","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":54,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"97c15564-eb56-41b1-988b-9b4309cc76b0","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":54,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"934abca3-165b-4b57-9e42-40d706c41425","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":54,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"a0a1ba1e-23ab-4a09-b67e-1f8ff3dd042a","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":54,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"37bde4ac-c14f-4347-bfb4-109752c066bc","block_type":"box","text":"conditions.","page_number":54,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"3ba8c94c-1573-48e7-bba3-6a5b15545dc3","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":54,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"01c351ee-a0ab-4ac0-8d39-bd73006288f5","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":54,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"33779c19-9948-4252-9c1f-3355fd06ce6b","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":54,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"ad5a3f97-d00a-4a7b-8877-c7b3eb6a6035","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":54,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"0fdaee9a-5a7a-4515-85aa-6b27f856b2be","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":54,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"95a8ef04-6f0e-49cd-815e-a208500ffe95","block_type":"box","text":"II-18","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"acd02132-9ba4-4337-ae37-307a3d3ae9c7","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":54,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"deedf527-4f2d-4677-afec-481da5f6da25","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":55,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"da51e598-218c-4c94-a3f5-e2c48a0bbeff","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":55,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"92b0cdfc-e966-4006-8db5-ebf580709530","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":55,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"ee618597-dc28-4a3b-9b72-8f02154db912","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":55,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"a9ce9d84-da9a-4603-989b-f73e132bffb6","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":55,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"d773e448-f0db-4bb4-9c43-0db13757e0a2","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":55,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"b0abe168-5ef8-4005-9833-22f61fb222b1","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":55,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"3d936143-d506-4497-ac65-ddd217688de5","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":55,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"5d086db8-008d-4e8c-b376-29f77bdcc982","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":55,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"094c3ea5-9b88-49f1-9b6d-1f8e3d07f6f4","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":55,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"870a71ee-8ab6-4519-b3b0-a4a4e1919fb8","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":55,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"73d45858-424a-49d4-a212-4464561b0f28","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":55,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"b6f299a5-55e2-48bc-9261-ca6611fbb046","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":55,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"4cd5dbe8-ef99-422f-91bd-a3c052f8d675","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":55,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"0f5ffcde-2a1c-4a3f-950d-828266b5babe","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"87ee7356-66ff-448d-84d0-44bffed636f2","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":55,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"fecae058-d95f-48da-b435-1fa1c568a648","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":55,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"4ff0ba90-1672-44d8-8f1b-376a9e2c654b","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":55,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"5a8b03d2-20aa-4704-ad21-4a3bc2270c94","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":55,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"666d16a2-ac56-42a7-b9ab-a9a39236e289","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":55,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"e333b664-b947-4507-9829-06d68bd1f86c","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":55,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"89546117-3d17-42e1-9820-921ffdfa02b5","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":55,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"b5a5b565-2122-4b8b-bb92-24d87b4b04a9","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":55,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"78d85cc7-ef0e-49b2-a4ab-b00d2188d3ea","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":55,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"fc56cb0a-84ec-411e-966b-5f84abe4858e","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":55,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"49ba9873-e2e2-4cfa-9b72-1c9600c4db9b","block_type":"box","text":"cleared interest rate swaps.","page_number":55,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"2467e6d3-4d34-45da-97ff-fef5f75506af","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":55,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"062bd285-303a-4f9b-b2e5-5c6695083016","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":55,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"324ef643-3108-4cc1-8dfd-0eabc9d27991","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":55,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"b83d593f-e7cd-42c2-8884-a6575ac0d48d","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":55,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"db8cac9d-a15e-4085-8418-37756f7aef1c","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":55,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"2e46e645-5cdd-4479-bad4-f30248c38a47","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":55,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"0ab9b0ad-aa31-4f85-a99a-4fa1129f5e6f","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":55,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"f8ae2f67-2991-469c-9950-cbadc5b71175","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":55,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"8878a7ee-cc20-430b-97f2-1e513c7f65be","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":55,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"1da3c777-b2c0-4216-beeb-8bad4902f858","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":55,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"2adade2b-2473-4440-a1cc-90e6c7f379f4","block_type":"box","text":"or variable interest rate, index or asset.","page_number":55,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"afd0d11b-1749-47ff-aec5-3a9bf92e7271","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":55,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"a1e2f5d2-1aa5-4803-9232-be37f32222e3","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":55,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"2268c7d3-18a8-4049-9bff-1fc211188a60","block_type":"box","text":"such interest rate floor.","page_number":55,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"9757f396-966e-4e45-8ffb-e0a4c02af071","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":55,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"ce41ef94-3b72-4407-beb4-fde4af930d90","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":55,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"a0112326-7f57-47f5-b8b9-b25073da9447","block_type":"box","text":"such interest rate cap.","page_number":55,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"4e806525-8a96-4f3d-bc3a-f119493c9d6c","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":55,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"8bb99376-cb8d-4943-8935-94efdc94e768","block_type":"box","text":"commitments to pay or receive interest,","page_number":55,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"8b2c3570-490d-4900-a6f0-013c1809042e","block_type":"box","text":"e.g.","page_number":55,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"962c99e3-4295-4c14-9c97-b615c5a490f2","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":55,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"8b863fb4-d208-4333-a7d7-0f493025f28d","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":55,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"d7cda251-bd54-42a4-b448-e49121b5499b","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":55,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"1df42a57-6c19-4c1d-85e2-2e7a486f2f24","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":55,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"ab95292b-998a-42bd-beb6-eda70e0f6170","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":55,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"73ea21ef-9819-4c84-8fcb-4c5c5f9679a7","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":55,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"703911aa-a115-4723-a8c1-bb963a7def04","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":55,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"0b1fcffe-d43f-4f40-a7be-7547c056eb98","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":55,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"b5650cf4-6850-4a09-a92f-2460895a412c","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":55,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"1e5249a6-6dcb-4a2d-a006-770f3b7e642a","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":55,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"6737b23a-debd-4f69-929e-03c6dcd5d8f6","block_type":"box","text":"II-19","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7e17646b-ae26-43a6-898c-b1702fa8cea6","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":55,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"0b565cd2-9f22-48d9-ae83-5f38a5076939","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":56,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"780d3a55-d6ec-4130-85a6-eb9cf68533c6","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":56,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"9b2608d7-a9ca-4b3f-a5c4-fea5ff7c36f5","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":56,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"381fd6df-3dc2-4062-be6f-63ee6a359375","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":56,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"8d7b1926-2095-41b4-bd19-71d52863394f","block_type":"box","text":"Total Return Swaps.","page_number":56,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"1e45335d-eb2a-4784-b6ec-4b4d75f06867","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":56,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"32527351-78c1-4e75-a531-114de93a4b65","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":56,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"eca7ba23-e919-43d4-bdd9-82d99b357a7c","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":56,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"9a875cf0-8960-42e4-970e-5c2db9942745","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":56,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"57fc6c31-a1d0-4115-875c-3448338a7471","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":56,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"7b9348a3-a76c-4876-9429-45ca8589d1d5","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":56,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"fcc8d713-e7a4-4d5c-8ed7-747c0dc94c23","block_type":"box","text":"“contracts for difference.”","page_number":56,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"c2820b9c-697f-448c-b3f3-8268f6b53ca2","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":56,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"e09b39ee-ad0c-4e72-8684-5530092316ce","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":56,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"50516c2e-c144-4dc6-9d9a-19250a8b240b","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":56,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"ec3aedf5-ced6-4495-bf0c-0f7ff5e134d3","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":56,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"94504d01-9047-4164-9a8e-aeba7b277e5d","block_type":"box","text":"the notional amount of the swap.","page_number":56,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"da792950-b2f2-401e-8753-620cba84ed11","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":56,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"1027700c-a65f-486b-9bd7-8841f2ab253e","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":56,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"612208a5-2e01-416d-b21c-06fa035811d5","block_type":"box","text":"Options.","page_number":56,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"ee4e6c7d-a7bb-49b8-a763-ab0a4a281d77","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":56,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"6990e2f6-3293-4969-ad0d-978937c721ee","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":56,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"e77961b8-1e4a-4828-b645-39d796bc6392","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":56,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"d637ff99-603f-40ca-acf2-8a0e59582b55","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":56,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"b6f0f05f-bdc4-4376-ac1a-d2a9288a93cb","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":56,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"ccaaaaf1-6741-43a5-bc46-18ab13427890","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":56,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"b7aebd44-7945-4e9b-8625-36b77d49ade4","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":56,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"493ff8ff-ee63-4374-a2a8-299a7c8f0290","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":56,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"5861ba83-b541-4d9f-813b-eee94af5a7cf","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":56,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"4227726b-75bf-4be7-93a4-5d3489388691","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":56,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"492bdf9d-01af-42b8-966e-1997c78ed5c6","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":56,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"879599dc-0737-48b5-b447-6a92843dfe99","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":56,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"34af1a56-1e71-464f-b4dc-2cd21bb3b06f","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":56,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"917ac912-3b0d-415e-9bf6-477f4691835b","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":56,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"1578d22a-dc94-4404-8005-ed622816de54","block_type":"box","text":"OTC markets.","page_number":56,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"b9b0f06a-bd1b-4a0a-b658-33ec33eaa826","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":56,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"8deba7da-437c-4874-9c91-1599eba312a4","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":56,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"6e93563a-0717-476e-88a0-54185b0e4c92","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":56,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"5243a1ea-1a15-4154-ba7d-4cdf6dabe0f0","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":56,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"c6de08c5-29eb-426a-befb-27c279b190df","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":56,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"411d2f98-a333-4a54-b6ab-8962f10be1b7","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":56,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"bcd99342-7d28-486f-833d-1c0204923137","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":56,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"5704279e-fece-4401-b47e-07e9823c4543","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":56,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"b7c1fe3d-8218-4aa0-ad2e-ee6ed1479ff6","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":56,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"b6fb90bf-21c3-48c0-a86f-29aef17137c3","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":56,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"91453dbf-ca6a-443d-b359-c1052009a7b8","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":56,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"9d87edc9-4757-4d4d-946f-543024b1a986","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":56,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"47937d80-96f7-464e-a9c1-2efc378212a7","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":56,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"62f014f4-7ea5-46bc-b550-450c97b4a5d4","block_type":"box","text":"terms.","page_number":56,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"fe4a7ab5-1e15-48b5-b5a8-a1a76a54f24a","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":56,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"36ab9a59-a7c4-4318-84d0-15bbfa2208e0","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":56,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"f1d637f6-4458-4ed1-ae09-095c982eea09","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":56,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"5502f2a2-266b-4966-b4e1-49b162a4dfdf","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":56,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"abdcb14d-f873-4f06-aaee-68e1245626b6","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":56,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"5c8dc357-01cc-4a84-9948-bdbcfb0a0386","block_type":"box","text":"II-20","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ce56b8ac-b929-4ed0-8f79-1cbecb66180a","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":56,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"05edbb8d-448b-42f7-be84-47da8f17427a","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":57,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"8d967a6d-4657-41e8-adcb-f1e680f6f667","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":57,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"fc1fa825-9da0-4430-90e2-663dc590a565","block_type":"box","text":"Call Options.","page_number":57,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"cf8b2757-4b29-4d07-94bb-5b8696ae38f8","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":57,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"47b2203b-1ade-41d8-a7c3-60ecf1e6ccb7","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":57,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"e0ebed67-01c7-4388-b0ab-c0fd424c9825","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":57,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"6a18d2fe-17bd-4c6e-8b74-1da1301614ef","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":57,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"c740b5a0-18d3-4faf-9e27-a7910766e7da","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":57,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"bf28c55f-5e58-4e52-b0bf-b2f120f7ab05","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":57,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"2f26ffcd-3647-4d16-be69-1dc59f2b4096","block_type":"box","text":"of the option.","page_number":57,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"091fbb00-2046-4ae8-9b9f-8b7407069d49","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":57,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"de628bed-abce-4964-ae5a-fc708402fb78","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":57,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"0b482a3c-043d-46e4-968f-c989b08c9c0c","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":57,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"86fe5539-89ea-469c-9275-7551684985a6","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":57,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"fd2dadb8-e7de-4048-a556-7f6c4daf119e","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":57,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"7e3e4bb9-1ce4-4a05-b209-4e7b00241505","block_type":"box","text":"A Fund may write (","page_number":57,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"8cb57112-3111-45ab-9c7c-c3ef843af946","block_type":"box","text":"i.e.","page_number":57,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"b89ea802-779d-4e33-88f3-6f6931452851","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":57,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"96a3fe01-a6d9-4a66-94d4-a9c13e99299f","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":57,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"1c07eff6-8014-4bff-9845-1baeb59ccac3","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":57,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"9797c9a5-7a9d-4583-a685-8c31d960e2cf","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":57,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"d58fbc2a-8beb-4b57-88b1-07fe05a5c814","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":57,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"2fd0d0aa-2707-4581-8e85-fe17b81700f5","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":57,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"1f4cf913-754a-4613-8692-60861a82440c","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":57,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"d05b3a3e-93aa-4def-b4ab-a2cd3d387cf7","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":57,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"456ad7e8-a4b6-44d5-a3de-fb7d5902b8c3","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":57,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"4b0ddee2-ff1f-47eb-ab8f-29b1c2739e8d","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":57,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"210f16af-e64f-4c69-9b45-41d64d84575b","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":57,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"deaa5c61-610c-49a6-ab06-9238e1a78dfe","block_type":"box","text":"A Fund may write","page_number":57,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"5d0acc05-a38a-4161-ac7d-208dd0dd813e","block_type":"box","text":"(i.e.","page_number":57,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"e2030ee4-9f2e-4c12-8d34-10fc233e596f","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":57,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"b08d3d2e-a3e4-4dd4-86c8-82f8c7335417","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":57,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"341d78b6-84ef-4d5b-8d67-6de22ca4d8d7","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":57,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"b5e8d2a6-af9c-4f40-9ac5-9d046fc2e328","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":57,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"6c0c06e7-1fb3-4cb9-b503-5b12ffb33f76","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":57,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"abb0c7c2-e1e7-49f9-88b3-ed80730435ae","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":57,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"1b3c6b79-0607-4141-895f-797d2f227eae","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":57,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"cf62a0c8-762b-4fea-b213-cc9422d2c075","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":57,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"99c7db84-7d34-4f8a-bf12-700b14d7d0db","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":57,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"e911e09f-4070-4324-889c-5b30b627f2b3","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":57,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"64d8bf21-bc53-43f0-a836-5eb6e6a520db","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":57,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"ec3d495f-2a0e-4de4-b291-7ca122ba2f9a","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":57,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"1dfedaac-0b71-4e70-844f-8fc9d962d09a","block_type":"box","text":"Put Options.","page_number":57,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"4f65551a-723d-462c-9902-43a165e1a24e","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":57,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"f2b9b9f5-e197-4d9a-b5a3-202927900c3a","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":57,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"e3b1e9e9-1257-4943-b2c3-ccac5d886174","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":57,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"090826d2-818d-4262-a169-790d1bf84390","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":57,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"8b18078c-1dc2-49e3-a5ac-856c4ebc2fb7","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":57,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"cf5cf779-a85d-438d-8fc3-333e886f9ac4","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":57,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"b30716e8-b8de-4d5d-b830-089bccce6351","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":57,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"829d0aa7-1e01-4ea1-8816-8fd19cd03639","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":57,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"f920e006-5aff-4d74-a6fc-0843eaf01530","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":57,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"484500df-4435-4a26-8510-1c16a4970816","block_type":"box","text":"purchase uncovered put options.","page_number":57,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"4f89c9d5-7783-447c-abc0-8ea28cba9054","block_type":"box","text":"A Fund also may write (","page_number":57,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"3e35f844-54ab-4f39-b591-35f14531bb8f","block_type":"box","text":"i.e.","page_number":57,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"7379babf-3609-46e3-b57a-a43c0cc3d6f7","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":57,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"7b3fad0b-7a10-4c99-8acf-6afb879bd70f","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":57,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"dbef24c8-a64e-4a04-82b7-fd00e0630224","block_type":"box","text":"A Fund also may write (","page_number":57,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"b5822b29-788e-48e0-8a14-89df43d04f7d","block_type":"box","text":"i.e.","page_number":57,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"6c87a532-65a4-4807-8d33-55f93cd8a52b","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":57,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"7fea11f0-3044-4ceb-8b67-9b17e95d78b9","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":57,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"5c5e8f2f-6d3b-448f-a35c-f207ed3edcea","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":57,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"5a63e76a-87af-4f35-8240-ef88cb8a50d4","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":57,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"bfef2115-ce00-45fe-ac7c-32785b784110","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":57,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"78bf24f3-9868-4b8c-ae64-be9f7d0b47bb","block_type":"box","text":"II-21","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"acae32cc-4cde-4750-b973-150583a3b92a","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":57,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5ce16e57-f0be-416d-9891-8647162149c2","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":58,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"6c28f913-b301-441c-8249-c35bb093a573","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":58,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"a1ac746c-73b8-40b0-b139-34308874d8d5","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":58,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"905b3ed1-8bf1-4d31-8a2d-65579cd63ab9","block_type":"box","text":"the exercise price.","page_number":58,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"9794241c-a044-44bf-a698-c19641bf2bc7","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":58,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"544bcdc9-f8f9-45be-bf29-777db53f1459","block_type":"box","text":"The following information relates","page_number":58,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"0a7e0cb5-f9e6-4557-ae6e-95d74d61819d","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":58,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"80904f25-6aa1-4be3-8473-a28666a0fac8","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":58,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"c6493d01-65be-4003-ab06-11f74e59b05b","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":58,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"d4dfc01d-4805-46c8-8d14-b10f64a1e915","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":58,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"690255c6-4ba6-4bca-b674-f273465629b7","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":58,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"31582653-832d-44bc-a76d-9d543595dd78","block_type":"box","text":"market in order to maintain its “cover.”","page_number":58,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"1b6d8b51-c950-4442-b3bf-0d80e81c5f2b","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":58,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"116d87f9-ce50-464f-a67b-ebc0808b3a51","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":58,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"147cfa33-93bb-4b78-851a-2eadec486412","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":58,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"8feb0889-eff7-4cea-91e1-9e7d4a021d0d","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":58,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"6da01b3c-a4a2-4c43-a3eb-c6c7f3bc7a81","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":58,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"cc5c68ea-31aa-4125-95a3-41b0a083ca51","block_type":"box","text":"and incur transaction costs.","page_number":58,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"4f424583-3e01-420c-bdb6-f237ea00bf42","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":58,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"b790c5b5-4b2a-4697-8537-6c5769b5ce20","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":58,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"8d051f4d-887d-4635-a1b7-9301f157c527","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":58,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"5244fad6-821b-4217-96ba-c9326ef5e43f","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":58,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"dd96ed31-5fcf-4e0b-9796-a98862948d8c","block_type":"box","text":"i.e.","page_number":58,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"d6b18e02-c58a-471b-b206-bdec1a46a7b0","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":58,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"925b6091-332d-48f1-8cbe-fb57a52367fa","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":58,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"20dc6b8f-6ebe-40e3-9894-83111dcbfd16","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":58,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"d6645fa1-2d62-4e0c-836e-0a860e8edc9d","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":58,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"f8ddeaaf-0106-46c0-bcfd-f61153b0eb72","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":58,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"2002a468-2d18-42a1-a322-02853d66cad7","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":58,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"a378a19f-ea0b-47f9-ae42-c120bcd832fb","block_type":"box","text":"required, to be cleared.","page_number":58,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"b5b0798d-3c57-47f2-92cc-ed1c1d87572d","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":58,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"89d291b5-c2f3-4385-9da8-84604461bf15","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":58,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"c76e0977-684f-482b-b0ab-5dc98f4c2898","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":58,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"549a8c57-7477-4ae3-bba4-09fed1672d9a","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":58,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"fe06e723-b61c-4e4b-a257-23db8facc068","block_type":"box","text":"Derivatives” above.","page_number":58,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"bb475a69-e781-457f-a182-f4d3d3789520","block_type":"box","text":"FLEX Options.","page_number":58,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"493fa6a0-46f8-4d00-a6bc-dd3ffcef4faf","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":58,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"b60e10d3-a802-4af9-933d-d44736115c02","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":58,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"07224fd6-49b1-4490-bfe8-ab999ee54b0e","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":58,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"e4cd80fc-a013-4cc2-8e2c-0063ae035607","block_type":"box","text":"exercise prices, exercise styles (","page_number":58,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"55c8eb99-c430-4fdd-afea-7487d23b0ff8","block_type":"box","text":"i.e.","page_number":58,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"65783ee7-5aca-4232-a12a-f1d7832da74f","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":58,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"3e024e43-d17d-4278-9faa-6ca7c1822c28","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":58,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"2a31c22e-36fe-4b1e-ac33-e708dd2c1292","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":58,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"82b214ed-3dc0-4adf-a671-7b596bad4ddc","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":58,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"c6aeaa07-7e87-45b0-8113-7a3f4cb9b54d","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":58,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"09b60548-47aa-4a1e-8b1c-377299dccd91","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":58,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"32a82472-5773-4954-bf85-70621270f6de","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":58,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"1559da89-2ecf-4498-829d-b35ad25b7809","block_type":"box","text":"FLEX Option’s expiration date.","page_number":58,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"60f9362a-2b15-4784-8185-22da58a82036","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":58,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"51eb69c4-ed52-44ba-80ac-547b41ca8d46","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":58,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"73bb46ad-4310-46c8-8865-1a5ce20067c8","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":58,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"0fbc62e1-59b0-49c7-9a51-dc59b9b60c42","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":58,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"9e917833-a41c-4c6d-9db9-bfbe7fc638f2","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":58,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"94ddf758-77cb-4769-b763-015fee533464","block_type":"box","text":"FLEX Options contracts.","page_number":58,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"7a86e5d1-371d-41e5-b793-8347628d3ba3","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":58,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"3aadf31e-781c-4ab2-aa22-c7e1b73b03ff","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":58,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"00f3e419-d442-41d7-a42e-84bad44576ff","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":58,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"4da6d1a3-d558-4b47-8397-76d160bcf40a","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":58,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"92db1ccb-5e9b-4b05-a054-e2a5be4aee80","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":58,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"825e1c70-8802-4d56-9613-47dc168fb09e","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":58,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"9950fee4-5334-4bb0-b1c9-2b2746732f24","block_type":"box","text":"II-22","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"72b398bb-5abd-4962-a9b6-9f3b4350883f","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":58,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"34407b56-3fb7-440f-ba1d-dd4639a67561","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":59,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"ed8db9c8-925a-4df1-ab21-ccb9c8f712d1","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":59,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"5fbb328d-3f6b-40ba-8502-6f19349a2c8b","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":59,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"00f51ee4-5cdc-401e-957d-bd6fb136d211","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":59,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"63ed281d-df8e-4f36-8f37-9eaf69698f99","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":59,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"3979195c-8870-4df2-b4be-a0a539dea273","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":59,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"7a710356-7c78-430a-a05c-0a7752eb42a1","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":59,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"5cbbba4b-4292-41b3-858a-e1a4109c7be9","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":59,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"ce1614aa-e20f-4b35-90d7-cb31f105b325","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":59,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"3090650e-d455-42c0-a69c-08e699f2102a","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":59,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"0a6eb000-d348-4318-9230-9732003ba4ae","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":59,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"2c038f36-9b75-4e90-bf8e-75229c38c489","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":59,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"dafaafa4-8da5-482b-b719-3c4a3b17154f","block_type":"box","text":"expire unexercised have no value.","page_number":59,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"3d454202-69a3-4e79-8124-f456c22834b6","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":59,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"d98c4ae8-dec4-4377-8da8-dba2c093c2dc","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":59,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"2212d8c0-38dd-4d0c-89f5-31d212d5ec65","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":59,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"a005f83b-984b-4743-857a-15c6e255a125","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":59,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"0a1e41b9-be1b-4516-8ff9-d526e38f1525","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":59,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"5932ad42-123b-4a2d-8bf2-b3351ceca8fb","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":59,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"e40eb797-eff1-4583-99b5-3b29fcccafea","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":59,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"cc8089d9-58c1-4f8b-8aa2-950d212659f7","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":59,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"6d9ddf98-00f3-4fee-af34-d23495800852","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":59,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"fe387751-7fc4-466e-85c8-f25c601b37d2","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":59,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"26f1fb94-5765-4333-9848-a061773b4fc8","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":59,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"4ed29d10-f7a2-4c66-a33f-32d6d7cab877","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":59,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"cd9e5784-d0b6-402d-ae3c-1f56059c4215","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":59,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"25580519-dbb8-49f2-a129-ef94b5c7d05e","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":59,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"2407f71b-233a-4015-8823-22eb9c343caa","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":59,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"48b0d950-da2f-42bb-8985-bc85ae5d242d","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":59,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"59713a29-ebc5-456f-93c8-86de3cac7125","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":59,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"3bdc2f63-335e-4065-b6f4-1fa59169eef3","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":59,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"812bf8be-cd49-4f90-9bef-cfb7a0363020","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":59,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"28912fc0-f70c-4224-9240-7d1b1c121cda","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":59,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"173ef307-8268-4b17-b2aa-6ebe6f5e9bb8","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":59,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"edd4837d-f365-4830-b8b9-9e87f8b65b4a","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":59,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"66a658f5-c0e4-4c79-832c-2a6fbaaab3ca","block_type":"box","text":"Foreign Exchange Transactions.","page_number":59,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"62689d02-f0b3-4b76-bc09-1dd80fdb7ef7","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":59,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"085f4d10-94b1-4254-92c0-206a642cae0d","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":59,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"8d0bf0a2-82db-4aa3-8606-21ebbdf0399c","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":59,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"ea4bb7bb-f692-442b-96e7-220a12b4c2e2","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":59,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"ab7782ea-1722-41e0-9400-62dabe9211fe","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":59,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"bff945f4-fd22-4468-9404-752712b20449","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":59,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"4325d0a9-05fd-431f-b747-ba4f810b8197","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":59,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"099cb9ab-00c7-4a85-94dd-f5fb2fd094e8","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":59,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"ac59d93a-c40c-437c-8d33-a7a22144b439","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":59,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"2d7cd049-f4bd-4c48-9470-ba25f6087685","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":59,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"daefcbe0-caeb-4976-a0c0-387fc2a39094","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":59,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"544e577a-56a0-447c-8c60-a555f4226245","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":59,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"a31abfaa-2069-4e8a-b1e8-107cecd19553","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":59,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"a8a4e742-80f0-41a5-b8dd-d4b9d5897eee","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":59,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"74e67519-322a-4ebb-85ec-83c6748206a0","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":59,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"b540e68c-37dc-46e5-b3ef-9b9113505086","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":59,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"a38bde24-3003-4c9a-8dbc-8fb0a7bc0838","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":59,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"ce7e9ac6-1162-45d8-9981-08439eadac4f","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":59,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"12e775e7-281b-45b3-b214-9909b63e5ad7","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":59,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"c19a465c-5f2f-40a1-bc33-02782afcbc1b","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":59,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"8a1ae384-3e30-416a-ab41-22698021e914","block_type":"box","text":"II-23","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a8c0cdcd-882b-41e0-abab-c43b4f308530","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":59,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"95493851-544e-4480-8747-44b1ebe3fa63","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":60,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"bc6ec23c-efec-4aa3-ad93-4983bdbcdd8a","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":60,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"77ef5571-ed2c-4231-90ea-c6adae955707","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":60,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"38dc6610-3b7f-4a99-97e3-375ed794f6bd","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":60,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"089e2c7c-c27e-4018-b448-70f5865000ab","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":60,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"95852cda-4798-4cce-bd53-c72d58c6f674","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":60,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"d951c7fb-2b79-4a97-8859-45f581a29ce4","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":60,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"08fdbdf4-bb23-4799-b902-aef2460f22a2","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":60,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"04b90aef-72fe-4cfe-9472-217ae4ce4b03","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":60,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"681b846f-e034-4f94-85d7-5649a1034bd1","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":60,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"e42f6dd3-75b3-4298-adf1-6c595411bb64","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":60,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"5871f15c-a76b-4601-b32c-79f2c7419d2f","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":60,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"8a7a2ee8-4b9e-4e89-ae21-9fde73324f60","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":60,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"b32f8f4c-4336-489b-810f-2561d9a9b1e7","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":60,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"946f6e1d-76c2-4fb7-a556-201c885c70d3","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":60,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"2a533b85-ad54-4f41-aaa2-cff59d4f6f7b","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":60,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"2de93e42-0406-42e6-ac2e-15f90c992d51","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":60,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"a6135ea7-cdb9-482f-8918-4ecee840f995","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":60,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"dc96288b-167d-4fc5-853e-53686260b932","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":60,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"c060135e-8a59-4468-97b4-da5772503c3c","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":60,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"784dc621-6f28-4737-ba56-da40db385095","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":60,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"de2e23ea-ee59-4228-9b5a-4e6e2382be81","block_type":"box","text":"involved.","page_number":60,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"113b2c39-8bd7-42a8-a22c-c862d3638692","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":60,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"4306dba1-0073-4719-9165-020d983f080c","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":60,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"3f0fb51e-0cdd-472b-9b9c-275e34651595","block_type":"box","text":"denominated in such currency.","page_number":60,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"906e54ad-f787-41b7-9f14-23b3e4d6999e","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":60,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"04d21dc4-effd-4ce4-bd92-9aa38309d8ef","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":60,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"659a346d-4b4e-47d4-a8ab-3f9f6d32bdbd","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":60,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"e2002332-6323-4461-b0aa-863b0f069444","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":60,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"7ae15888-8bab-41b3-9199-15b4782653b6","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":60,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"bf8c220a-5f9e-4365-9fe3-500adc12830c","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":60,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"1284d813-66a4-4eac-8781-77ca2f7621fd","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":60,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"e81447ec-8757-4659-99ab-66747203e5d2","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":60,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"c4c54701-3cff-428c-9ff4-61df20a9ecb3","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":60,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"5ed40425-d294-4a27-b78b-01e973dff0d2","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":60,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"4597eb91-7c5c-413a-a26e-3865ffcf5e51","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":60,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"29cdf998-8b0d-42db-bfd0-db635b2c7d66","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":60,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"e09d3a2f-ea9d-4be7-83bb-21f775f93b01","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":60,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"965d243a-f96d-4659-8f92-41eaca8104ac","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":60,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"89bab38b-55f9-418d-81b0-8f99248c993b","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":60,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"0ce3d56f-3ceb-4232-95ee-02f2194dac5a","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":60,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"b78d9892-6073-424a-ad85-650f65356d5e","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":60,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"1130e4b4-ad24-4d19-ad2b-edc50991530c","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":60,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"e396b73a-7eaa-45c6-8615-b5436f1b4727","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":60,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"eda5a6f6-06e8-4b65-8663-a1e606161df3","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":60,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"5f4955c1-8529-4bdd-9363-08c039bcee36","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":60,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"2088db70-4808-412d-a398-ceb4c9c88e19","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":60,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"252513f2-3fde-4ffe-b09b-7dadeedc1e39","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":60,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"0ba229c5-f299-46d4-b853-20d9981a64cc","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":60,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"de1f1aa0-e1cb-4aa5-a44e-27ca859a0932","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":60,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"064a122c-9f9a-4334-ae43-b24db73f1c3f","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":60,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"b09413f4-81ff-41c8-ab91-4db61d086b48","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":60,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"39d199dd-aa19-4d4f-83b4-0b8fed942f00","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":60,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"005c8961-4abd-4b04-94d8-4391c36acba8","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":60,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"9e6428bd-31c9-4932-ae01-20cfad46f484","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":60,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"45a36de0-71b8-44dd-9af9-5659bef80be3","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":60,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"040bb31c-764d-4ea5-b6db-325b6ba792fa","block_type":"box","text":"II-24","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6ab4f333-1fc7-4233-bc11-83c04ee7db28","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":60,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"fd6665d8-284f-4252-b2e0-a226ccd87054","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":61,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"436a7cc8-8413-4443-815d-30fa51001521","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":61,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"48c1d859-15a5-45d9-bd5e-da23d16d3625","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":61,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"5e2b3666-9bba-4bf4-b7fb-345dd75e25ea","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":61,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"07aa3608-e0a7-4a1e-885d-d9c4078b2966","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":61,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"eba8a141-e0e1-47c9-9343-8103d87d257b","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":61,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"3a21755a-874c-4ea8-bf21-5c94ddcf2018","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":61,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"3e8ebce5-99bc-4920-9d78-e7ce59758cc3","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":61,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"8b19f320-79d3-4231-8763-df2f110c0363","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":61,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"8cec6bf9-3381-4f98-8786-1d9ce388a5d2","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":61,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"6d8244f0-1a8d-49b4-8d08-50d0f5874cf1","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":61,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"b5231ab6-62aa-43e7-ab91-e03fb91fd281","block_type":"box","text":"traded.","page_number":61,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"12e7797a-54ae-4a95-9774-0535fca64ed3","block_type":"box","text":"Currency Futures.","page_number":61,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"18449f54-cd9d-4437-af7b-e4fc8d9afbbf","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":61,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"686137e5-59b4-4719-a864-f0ec7cb2f6f2","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":61,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"9a7381a4-01ef-44b6-aad4-d9442d9f452c","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":61,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"6ea68212-ba6d-4d1b-89b0-9d5e6af2c9d7","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":61,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"bab391f4-3419-4678-8b8c-0247f5e84575","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":61,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"f14a7d3c-fc4d-4ace-a01f-6ec3c8f4e5a8","block_type":"box","text":"Currency Options.","page_number":61,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"94937fc1-9702-4805-aed9-84e3d0c0f51b","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":61,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"c7e55ac3-68de-47ad-8608-5cc8b45b4c11","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":61,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"8600d1b7-43ef-48c7-a9c0-1acdba9f9ea4","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":61,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"ad47b2c3-43eb-4e37-a8d2-432388c44ec6","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":61,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"d3825bf3-9fd7-4514-b90f-e07f2dcc5cd4","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":61,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"a46371eb-281b-401a-92d7-15680b423656","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":61,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"c9ba1f29-0b25-4a69-9b47-aefe7b309261","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":61,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"ed755fdc-36cb-41ec-965d-c11fc2938b02","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":61,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"b47a4650-1cab-4ea4-a23f-6131dda32462","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":61,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"22f56b5d-bc48-453f-8885-3e1816b05c66","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":61,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"f7d03e97-d4b1-4ed1-bbeb-ef688e1f0ba6","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":61,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"edc03d81-385c-4cae-9e42-fcdc14b1acd6","block_type":"box","text":"Currency Swaps.","page_number":61,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"81132931-5531-4215-98a3-3e2ecdf7dcbe","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":61,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"fcfd4e4e-df06-4be5-978e-79d340cb1f81","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":61,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"f2b34362-3686-4278-bb7f-183b7c70693b","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":61,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"7b62bed9-aa1b-444e-9c1e-efd4812b5948","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":61,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"1b46a253-687b-412f-8bc2-26116d446050","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":61,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"b9d519ce-c00a-4ac1-b115-e570dda5e59e","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":61,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"bbb0218d-56aa-43d1-a898-fbcefda26140","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":61,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"cb2cfefa-ec7c-4926-bdc3-d7332794b59a","block_type":"box","text":"Distressed Securities.","page_number":61,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"eab6e3c2-70ca-4aa1-9232-914f1980be58","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":61,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"51244716-d5d6-4f11-bc36-868c22f781e0","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":61,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"97909b4a-a5f0-4911-a23c-f81be632acbe","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":61,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"a6ff03b8-08d3-4e86-bd7a-9edd3dcca1e3","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":61,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"282b4d90-a47f-41c6-b4f9-75e005bf05f1","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":61,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"97245d2f-ba57-44b8-81c8-b811fba244b4","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":61,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"f4c4dcf4-cc50-44bd-82e3-3347d94db178","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":61,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"22f281a8-bcf8-4f21-8668-c11ee35d900f","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":61,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"40d639f2-84c1-4e0c-8a5e-540fe94061fd","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":61,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"fb468e01-17a3-43ed-a10c-3966205ed45f","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":61,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"58d82577-8fe3-431b-b639-d1b9fb35fc80","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":61,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"082d540d-3a76-406e-8356-02e77f226f4b","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":61,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"af080649-8b24-4ac8-9623-6d7fef95226e","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":61,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"205d1dc0-1c48-4c18-8682-25b8f540437d","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":61,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"207e14d3-2dd4-445e-8bb9-f01264d42b30","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":61,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"f0fd5cfd-41f6-467b-8363-6510b02d885f","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":61,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"afa66dc5-fed9-47b3-b192-4d2f471b4d48","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":61,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"2be4761f-caa2-4c74-bccf-fd81b7d9f376","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":61,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"7e755a86-08da-46ac-8f9b-d0b529b07e3d","block_type":"box","text":"satisfied (","page_number":61,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"3b4e974e-0797-4d9f-b0dd-56f14fade0cf","block_type":"box","text":"e.g.","page_number":61,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"2cf7bea9-1fcf-43f1-bd81-8737b5ab2e80","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":61,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"e8c27332-d68b-4d1f-8067-e6f5043fb53b","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":61,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"8874caf0-42dd-4362-a2f0-a4d9091a9294","block_type":"box","text":"II-25","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"02d6c279-8185-4d66-b9d2-b65a901b004c","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":61,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"78105455-7fc5-49d6-b4ef-6ffdfc43822e","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":62,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"8c48254e-8ad7-4a20-9654-e1dc291a8552","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":62,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"cf8e639d-53ee-4c7c-babc-1f9f626447cb","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":62,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"499e38c7-88f6-48da-aa72-7cad280cfb50","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":62,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"c4aa7db9-7ade-4919-b5ef-ad8a1f1d9653","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":62,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"f543f8b5-fbbc-44fd-ac72-a66cf45bde16","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":62,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"fc1a903c-e7b1-44f3-b6d7-0706e2e8e59b","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":62,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"7d555869-d866-41f6-8a37-b5c80e10a55f","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":62,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"5386331a-c3f4-427f-aaa8-fd1e8d0aa411","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":62,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"73062109-d9e4-4aea-98e9-8927a74bee60","block_type":"box","text":"affairs.","page_number":62,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"c217c6f4-f933-4762-9aab-2a878d18adaf","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":62,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"8a27b3f9-3c23-4528-b82d-d4e9a0d4474e","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":62,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"6e49cd7e-d9a3-4a14-92c4-83d6405b7b2c","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":62,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"8cbc5368-d209-4fcb-8464-98dba857ed94","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":62,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"92b46bf9-7373-42ee-9d67-cb97af2cb5b2","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":62,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"47e19db7-5dd6-421f-9666-c5944432c57f","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":62,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"e0a21baa-d82f-4e4d-ae03-fa048a3f434a","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":62,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"64ccd9f7-455a-4803-8974-da834ec2f287","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":62,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"3b959e9b-51cc-481c-a1e7-8db3c0ece773","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":62,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"e2870531-d711-41a4-94e3-dc56ce0db7c0","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":62,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"325d4076-eb00-4991-9327-9aad529c1b59","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":62,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"7383bdf5-b19e-4a3c-8b4e-5b3f22b1526e","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":62,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"d8c565bf-7f3b-4ab6-80b8-5cdd63016732","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":62,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"3da0fe05-693b-4c8e-a9dc-0f95c9ff7f72","block_type":"box","text":"Equity Securities.","page_number":62,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"9cf971ac-07d1-472d-bc5b-2e991a6fe5d1","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":62,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"9f46ca4a-991f-40e9-9ace-f82d1d945f32","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":62,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"0c362d27-14ad-4abd-912b-9c5dfc7fd5b7","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":62,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"5dc63ce5-820c-4668-89c2-5ba2862c89f5","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":62,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"39651e7e-0533-441d-8bbf-c15793a9aa4c","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":62,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"c6d83659-d2c0-4621-8dce-94e2aedb30c9","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":62,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"26414c90-3a3f-44fb-afca-c999fe3f4072","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":62,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"40bb5c9b-2c55-4818-a228-aa96b50435b6","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":62,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"2f11a596-8358-477e-b892-737224047a1d","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":62,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"1499fbd9-ace6-4874-a72b-4bbbd49f1546","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":62,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"d748ce61-2429-4623-beb8-cc48c2f9af28","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":62,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"1d787e8c-3576-4588-b063-bf8f5621d71c","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":62,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"8b8a3cca-3d88-4287-a04d-c607b46b9e91","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":62,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"528803a2-a19e-42f4-a497-7ebf605126fc","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":62,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"d45c40f3-9345-4417-a5a9-55c090abbdc6","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":62,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"d1f0e9df-5db7-429d-96ca-61f6263a8075","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":62,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"39560355-52f3-477b-9a3d-350ecece96cc","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":62,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"13470a7d-8f22-48c7-9fac-214da4fa4545","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":62,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"53847e74-9fed-467e-ae4b-4f3b31a85d43","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":62,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"04a91a97-2667-4e9f-8d20-355f87bd6a23","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":62,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"dce00e5b-698b-4e25-877e-514e0595c4c4","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":62,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"dbb78a96-b80f-44bb-856a-ca82e4307404","block_type":"box","text":"initial public offering.","page_number":62,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"624ed27c-3519-45a5-bd0e-3ef300437a1b","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":62,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"ab6bfd55-a171-49c1-8bf1-b1b0ae7102a1","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":62,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"0983e24a-6306-4a64-a3de-27c3ea51c359","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":62,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"f9272d13-cf39-4be2-8cfc-0518f539919f","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":62,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"ff92f414-e309-4475-951d-acf043e45872","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":62,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"a2645674-d2bc-4b34-9068-991679993b34","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":62,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"cf9ee79d-f0d2-4778-8796-91af46187ad1","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":62,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"0be2df38-0abb-453a-ab4c-9d22fb6f48b0","block_type":"box","text":"more established companies.","page_number":62,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"ba799358-e47c-4689-a3d7-cd855bca2e60","block_type":"box","text":"II-26","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8bd32cf3-985c-43a1-bf2a-5a531c329620","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":62,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"dd3990e9-0b77-4115-a68e-fef86e9c5155","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":63,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"751020cc-238c-4a1d-b70b-7d0adbf9d469","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":63,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"f414de5f-5d83-407b-96f5-6cd906194056","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":63,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"cadbc606-485e-4fe0-9fae-0390e9c496d4","block_type":"box","text":"below.","page_number":63,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"e6383486-e757-48bb-b359-8e4e3ccd7301","block_type":"box","text":"Real Estate-Related Securities.","page_number":63,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"af986f7f-1731-4f2b-9f6d-c8994bf32d86","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":63,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"a0b1a955-5dfa-4432-be80-850da00777ce","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":63,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"7be6799c-e170-483d-875d-5497cc6a88da","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":63,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"2569edfe-19dc-4343-9f90-b72fe4ef3c02","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":63,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"838d04a3-9390-445f-872a-8247caf0e06c","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":63,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"e89b171a-faae-4f41-985c-479af2380e1f","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":63,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"08cfb219-3022-462a-904f-c2aadbbefa21","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":63,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"aec54d68-a355-4d92-8b52-bb23894fe257","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":63,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"dae385a8-6e71-44cc-ac78-f527ab0b153c","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":63,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"ae74fd67-c347-4ff9-98fd-a165e3719f10","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":63,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"edb544f3-8a31-4970-a95d-f2b41df1d7fa","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":63,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"673d5092-1af0-4986-9210-2ece7aba43c8","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":63,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"6d70a18c-c6f9-42b3-9857-002b53f1b245","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":63,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"3f5cc9a1-c1df-4299-b31d-b7d83e6d7600","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":63,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"6a9c7619-aada-45b2-b7f1-79388e03bb46","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":63,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"4d6dce79-ea97-46aa-952f-b228f8bd5995","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":63,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"a6f54c61-e2d6-4961-af4d-55892ad34e30","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":63,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"c5b8d40d-e495-401c-8c95-7a061968e478","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":63,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"c517f781-fb30-4af9-965e-14ac8242ebd5","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":63,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"b6092cb0-8208-441c-b0bf-4b307502db66","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":63,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"727400be-ee49-43f6-bf57-ee1ef3effff2","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":63,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"99468c72-bdf1-438b-9370-252b24540f4b","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":63,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"fb2ff99b-2346-426a-bf2f-c4c5749839d8","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":63,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"f8f95493-5d90-4ae4-b93f-0cb48550e524","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":63,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"f5140fd8-e39b-4dc8-8519-2351103a49a5","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":63,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"299f0fa6-261d-4d92-8347-898dd5035356","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":63,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"4eacf6bc-1733-47b8-a652-9c844aa356db","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":63,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"fbfb758c-a24e-42c4-8eec-25591b6879ba","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":63,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"b3a9cf49-c2d6-403f-8e56-b382550d47d8","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":63,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"9f32e290-2517-487d-83d4-9a985e1a2ae8","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":63,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"9f3bca93-eb3d-4bae-921f-8fdd62f043b8","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":63,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"dae223b7-6799-49aa-b3e8-80b7478fa4d6","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":63,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"7c672f4e-d23c-4821-965e-2eaa2a16b3a5","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":63,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"2d192659-1254-4d89-8119-080b92146841","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":63,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"1a35853c-3f3f-44a0-adf3-38e9dc86ec43","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":63,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"f96c45be-5124-4753-bd7c-64192088368b","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":63,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"25d54e20-9e75-4df3-a2ee-4979110b49bc","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":63,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"c8425219-db32-437b-ba81-d70d9c266577","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":63,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"d12ea891-7d34-4ec5-9edd-6da25d053ea6","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":63,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"44dae2f4-b2fb-4762-920b-7f404c8f826f","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":63,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"6b4dda55-5d61-470d-b76e-74546fdf3cee","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":63,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"447902f0-8e68-41e3-8b1a-cf4edd25cabc","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":63,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"f04056d8-9b6d-4569-bc1f-4cebd2b63554","block_type":"box","text":"cycles.","page_number":63,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"1572abe4-181c-41ee-94e1-85d5f886ddb4","block_type":"box","text":"Tracking Stocks","page_number":63,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"71bd9776-6652-4c52-9b60-110ce7749863","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":63,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"34a79198-4dc4-4436-a916-84244726617c","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":63,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"2a071da9-272e-414d-98a3-0cb7101b4d52","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":63,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"b6eec76b-cba6-4590-867f-16644af173e0","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":63,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"05ba99bc-c62f-4d92-84e5-76d5b1a43d72","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":63,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"17c6a0c6-55b0-4466-9054-f73854ad431a","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":63,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"8f0cff7c-2795-4319-a3c8-c2d6f8b28177","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":63,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"841e075a-5ee9-4c0d-8f35-37addcd6ebca","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":63,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"d8a9b2cb-b38f-46bc-b682-b8fc825970bd","block_type":"box","text":"II-27","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"194c9d40-4854-4145-82b0-dc869ceb23df","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":63,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"231f00ce-8380-4a07-b82f-9f69a9606a84","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":64,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"c7af7bd4-2d21-442d-aba7-90b4256867b4","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":64,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"64312f87-6b40-4071-aba9-87aad0e1751f","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":64,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"aa012f45-8a56-48d4-a109-1ccd199fac64","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":64,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"79c898bd-b962-4923-8288-63ed44b1792e","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":64,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"c1436dd7-06d8-4a5d-8729-ed1cb40de547","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":64,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"d85365d6-eda4-4328-9225-7ba018d6da1f","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":64,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"d925162b-7984-46fa-85e8-7a3d59b76685","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":64,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"172cb468-e09c-404b-8af8-329a8c0fcf32","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":64,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"be346e29-a68d-4037-99ab-094d74792133","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":64,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"d7ba2b9d-a3cb-441d-9afb-35fb2f9092ea","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":64,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"a49b4a28-e084-4fc4-98ba-1720b8954269","block_type":"box","text":"ETN.","page_number":64,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"389db45a-8199-4ffb-987f-78f756cc665d","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":64,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"947786fa-fa5a-4cba-aa7c-f0f8dc81feb9","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":64,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"c170bb94-f3d5-4ae4-9902-031fdbe3e077","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":64,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"1bc73284-bb40-4e64-9257-074ae841457a","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":64,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"5ba8f50f-de44-4dab-813b-bfe5b387bad7","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":64,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"888bf73b-e212-477b-bcba-db99855db80e","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":64,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"2d3fa702-a20a-434c-8649-b49a66dcba95","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":64,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"bcd95c97-5eaf-447e-8177-90e9029e59e9","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":64,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"ef0e34d3-8314-4944-8a93-a332db985dbe","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":64,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"100d0c5d-4c0f-4efb-8513-ef1b06126fc3","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":64,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"3438cec9-a25d-45a8-992c-2bbc14ed88b5","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":64,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"f1b6583d-cb4e-4a03-98b7-67897d37308c","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":64,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"a189491b-fda8-43c5-9cfa-ef42f646b373","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":64,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"7a27441b-0152-4200-b4f4-e67358eddb37","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":64,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"683eedf1-a183-4d87-a009-85a423f0780b","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":64,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"260a96f7-2801-48fd-8906-72f288e18d03","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":64,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"0ecd3816-1472-4736-8265-9bcb6866d0fd","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":64,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"e08e2ed5-630d-44be-b0f9-219aab93af80","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":64,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"f7404bb8-982c-4687-8c98-e32251c1a73f","block_type":"box","text":"Foreign Investments.","page_number":64,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"66f233f9-7e07-4b52-b534-7327180afb77","block_type":"box","text":"Foreign Investment Risks.","page_number":64,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"aaccf19d-f994-44da-ba53-390622419d53","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":64,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"3309172f-5f90-4e07-90e6-7462c9bcedaa","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":64,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"603cc2e4-3b78-4580-8ea9-5764eafbfa18","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":64,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"f0869efb-03bd-4616-ba49-2c6bc4c6aad6","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":64,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"5f52047f-ac15-4c11-884c-ee39559e89e5","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":64,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"da71e0fd-09ea-4643-a4b5-2200a895c7c4","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":64,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"28d0d9a8-459b-4b87-aa77-3de3e74d0b21","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":64,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"69254799-ba48-48f5-a487-aab25bcdba62","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":64,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"a00c9121-aaa7-416f-a493-4c1efc7ff308","block_type":"box","text":"benchmark index.","page_number":64,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"5d3cb98e-e932-4440-a631-bb15d7eed1fc","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":64,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"f08c928a-f407-4532-a444-7fd97f7d8169","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":64,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"1e0132dc-72d9-4c46-984b-54f8a8cfc9b4","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":64,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"901244ad-e663-473b-ac5f-d5062f09046d","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":64,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"dfab68fc-9581-4e6b-b6c4-5c46e95cacc4","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":64,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"2f48f177-ca07-4c12-9dfd-50facfadb26e","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":64,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"e22d30eb-7520-4af2-a5d4-efae93fe7b46","block_type":"box","text":"securities and zero-coupon securities.","page_number":64,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"2d22515f-724a-44e3-b1a5-134a87bac3b4","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":64,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"3d4aaa2b-f80c-45ea-93c6-14f52ce977c0","block_type":"box","text":"taxes.","page_number":64,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"212f9416-2372-49e3-9ceb-39214f6d0bd7","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":64,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"0bf839e3-e331-4ac5-ad51-33b736ca9f4f","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":64,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"b945a41c-f6e8-4e0e-9dc5-68071dc07ef6","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":64,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"83768d25-7a4c-4591-89e5-69210ba529c2","block_type":"box","text":"II-28","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fadca4ea-a381-4b45-8858-73d10124a39e","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":64,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a7d2ef06-4c36-418d-86af-d50d344d3e9d","block_type":"box","text":"underlying security (","page_number":65,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"9fe98acc-bdb7-488a-9a0b-cba3587d93f4","block_type":"box","text":"i.e.","page_number":65,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"175bb199-5006-4a67-8f1e-07fd1b05df72","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":65,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"f43b7823-ef54-4469-beb6-7b628419eca9","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":65,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"26c49795-a28c-4b87-b7a5-e22ea40ffb57","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":65,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"87e6877f-68c1-4edf-995d-6a3f1e5a9d4a","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":65,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"c86d0aff-6c2b-4d67-b18c-c229d019b638","block_type":"box","text":"Foreign Market Risk.","page_number":65,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"927a4435-685e-4e8e-881b-759d44fdf7c4","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":65,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"acf136b7-bc5c-47c6-a458-ebd6d0575dcd","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":65,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"dda95e54-11f2-40c1-a71c-ec5e8e43e133","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":65,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"24584afc-81ac-44fd-8123-b7a84823fbc5","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":65,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"c835d8be-8231-407a-bf37-6f7322e12095","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":65,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"4fc94b73-07ce-4443-82f9-f0f05be79dfc","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":65,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"db1d62a5-40a5-409f-991a-72cf2e15f177","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":65,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"95cb922b-eb4e-4204-a85c-20ad60e3c4f6","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":65,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"56461db3-0ff8-40fc-b130-275a269bba66","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":65,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"89d5e34f-580d-462e-a141-902cb785b0d5","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":65,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"d7d74d2a-8175-4f03-8197-fd47875de929","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":65,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"43ee88a0-78e0-4bae-8eaf-8feffafd6810","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":65,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"927c55b6-2a0e-4b5f-ad35-a0429d681e64","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":65,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"c8a1051d-d85e-4056-aac1-c88dfc1be776","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":65,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"7a0716e7-a2dc-4dbc-aa61-7588d16e14d4","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":65,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"2d189974-aca5-4246-bdf5-6d566a384a43","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":65,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"d4094ad1-3624-463f-92c2-623146c8116e","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":65,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"4c86edab-8dc5-4996-a129-10590e8e7e78","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":65,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"695b49fa-3456-4c4c-be68-d6eb92547d3e","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":65,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"a9f78185-96b5-4147-9423-029d4f3160f3","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":65,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"551b39a7-dc36-42ab-ad85-8a251adfce98","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":65,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"9245e557-003c-46c3-ab02-cc20155eebc9","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":65,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"66ef0569-e578-4a10-a22f-6d54c7c84862","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":65,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"44e733b7-be77-4472-8a70-68c6d4f06008","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":65,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"5e2c8cc9-5c70-4ea2-ae45-21fbd96fcb72","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":65,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"4a104ad6-d26e-4391-9de7-40e1580c9ab5","block_type":"box","text":"Fund’s operations.","page_number":65,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"1a571116-1c93-4035-bae1-fbe70600d06e","block_type":"box","text":"Foreign Economy Risk.","page_number":65,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"0190e35c-ba44-4282-b15d-099a61491f46","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":65,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"9d706960-c751-4305-8810-c0ba60138218","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":65,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"63535898-f5ec-4b34-b926-3d6634306d68","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":65,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"affd6d64-f555-4566-a0d9-847f8e64f799","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":65,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"56843c6d-6bfa-4671-a85b-4e5ea2e07355","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":65,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"8218495d-29d6-4309-bc2b-89086b032e89","block_type":"box","text":"measures.","page_number":65,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"2dd43d6d-442e-42f5-9ea5-e60206197b73","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":65,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"97668c54-47f7-42f6-9c1d-25fb20cee080","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":65,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"f726671d-1dc3-4186-8510-5282448595c7","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":65,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"c1780f59-bec3-4561-8cd2-0896d59d3b6d","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":65,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"890933b1-57f3-449d-a8de-82789cfb0eac","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":65,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"d887bccb-6d5e-472e-8302-d78a469c8262","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":65,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"60d70f31-7ec3-4740-a786-192f62245a9f","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":65,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"3474d5a5-a032-486a-b17d-62ddb5b832b8","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":65,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"efadc1cd-bd5a-4f00-b5ea-b128ea097ff3","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":65,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"42628c45-72f6-4f8f-a999-68fdfd6142e1","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":65,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"5b9d6a9f-0eb3-4396-9a74-73d78dc50709","block_type":"box","text":"United States or abroad.","page_number":65,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"4c5253ba-1d6c-428f-9a94-e66e6793354e","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":65,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"da538ac6-796d-44da-bd33-15fef50ab25b","block_type":"box","text":"Many foreign governments supervise and","page_number":65,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"d3017a5a-43ca-4c2c-bd69-6eb3ceae297c","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":65,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"8890a3fd-eacf-407d-bf98-5bc682a15b5a","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":65,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"48e79b08-2dce-4340-bc44-0ee43d295d9e","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":65,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"68d2729d-e9be-45bb-92c6-73a27744c17f","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":65,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"c65412c6-1e71-4351-a9f0-18826c5c7e46","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":65,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"c81d4c3d-9d06-466d-a57c-5b5b5d8d752b","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":65,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"07fe72a5-b435-4f77-afa9-e3fd98f2c75f","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":65,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"6280144f-1832-46c4-bff3-96f75c0f7987","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":65,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"13e16bb9-e869-4079-bf99-556fa9484a15","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":65,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"332e3b39-4cae-46e8-bfe0-612239e01636","block_type":"box","text":"II-29","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5f36a34a-4cac-469b-828f-47b338910c5e","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":65,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"cf898e8d-d55e-4a0d-b7d5-ffda74715241","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":66,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"0cf2d754-b704-4508-9d0e-897135b8264f","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":66,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"27e17775-abb0-4f99-8490-531d0f9aa15a","block_type":"box","text":"investments.","page_number":66,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"33c8c3e0-71ae-4bd2-aa4e-7a6e765f9019","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":66,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"b39cd56c-557c-42c1-8ecd-9f214d52ce63","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":66,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"3a3c122e-9725-4150-8df4-c8d2a1418861","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":66,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"939dcc87-02b7-458c-95a8-269920b8ece9","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":66,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"ca95bb49-a312-4c2d-a733-baa39efa814c","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":66,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"ecabb16c-44e3-4c56-8e66-518bfc08d220","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":66,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"96d2826e-b034-42e6-8767-fdeb60647050","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":66,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"d25ce173-dbe8-4936-a796-a8000efeca4e","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":66,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"c555974a-e61c-4bd1-9182-9089975356e5","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":66,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"df01581a-7080-4de9-aff4-3a90676fc704","block_type":"box","text":"States.","page_number":66,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"09903559-093c-45c1-9656-9da1451fc6aa","block_type":"box","text":"Publicly Available Information.","page_number":66,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"38669f3d-28f6-4d91-a4b7-139ae045feec","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":66,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"efb54227-b1bf-4612-bf2e-49eaae130107","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":66,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"ad26b7d7-2af8-4995-acef-cbd948c923cb","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":66,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"42fafb8c-7b49-4b44-a45e-ae626cd4226f","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":66,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"7c9807fc-7e6f-4ebb-9714-82fd93f6caf3","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":66,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"93e39dc5-0328-48e1-917e-57a4e76847f4","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":66,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"12fcf1ad-9dd3-424e-aef5-7b617678b83b","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":66,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"55f6f5ff-1f61-4fe3-b040-5f3dd517d824","block_type":"box","text":"United States.","page_number":66,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"e756d781-2ef9-4ed1-8290-58d8b8e3695c","block_type":"box","text":"Settlement Risk.","page_number":66,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"b65cbe6c-c516-471a-a3b3-79a625af7493","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":66,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"0180882d-da24-400f-b41a-e3c20ba615d4","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":66,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"0e95ce47-0542-4094-8d79-e84dd70a1d83","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":66,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"0bd3708d-9e40-49ef-beb7-5e64fa020412","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":66,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"88e1b32a-b358-428d-b214-418edc812d79","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":66,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"565a690f-32e9-4eba-b793-a0ffdc333c9d","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":66,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"bda7a79a-3f74-47eb-a61f-c07259f0fa0f","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":66,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"c1c35d0b-fcc1-461e-a877-8085876d4420","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":66,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"6afd2539-4524-494a-857f-8cd4ebeb8eb7","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":66,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"1424077d-eea5-4a52-86d6-57dc0f740342","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":66,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"4001c830-5f4f-4ab8-b1eb-99b446d2cabc","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":66,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"274d1314-c30d-4209-b440-ac541fd331cb","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":66,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"bd49793c-34be-49d0-ba7d-5a9efebd0ff5","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":66,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"09ad7fcf-5914-4ec5-8b70-b5146823dba0","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":66,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"2ba2ba98-ed75-4448-b6af-2b4c1f4841c2","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":66,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"3b229c1c-47ed-4cd5-907b-abbac69a5929","block_type":"box","text":"Sovereign Debt.","page_number":66,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"3998e2ca-ba83-41c7-8e6b-016b497fa97c","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":66,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"35f51a85-4e41-4e1f-875f-ba0b3581125c","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":66,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"d12aac60-e62e-4213-8ab3-3a349c71de56","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":66,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"b471d495-d0ec-43a8-bf1c-497ea148b267","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":66,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"1e8f6e82-3522-4f24-a28c-7e3f0c7f3606","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":66,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"9b9a956c-4143-4542-80cc-fe94167e12c1","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":66,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"5d2410b8-ac41-4377-98e5-5f842fd11fe2","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":66,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"95bb450b-ee7f-4d20-bdab-448a983f648a","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":66,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"892624ff-0810-46a1-b517-95129bedb261","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":66,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"2534b06d-942a-40fb-859a-d7997f44300a","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":66,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"c99d57ea-f137-4b26-8f79-5d7cf4daada4","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":66,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"e53e6595-0f62-4e5a-8e1e-ba216213baa6","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":66,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"96590906-84ce-4056-9b5e-214f0376e26d","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":66,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"5074c4e3-5be3-4a45-beec-91edf399cef3","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":66,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"20052026-18fb-4a31-b448-93d2af545010","block_type":"box","text":"debt.","page_number":66,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"adc5b495-e866-4da0-bdcd-384a5ecd8432","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":66,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"3751c808-6d2e-47ee-a41d-2f26d070e342","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":66,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"5b15a12f-ed6a-42ef-aaef-1636a09d6f67","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":66,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"b9134774-c122-4c79-a2e6-cf64efa80ae2","block_type":"box","text":"II-30","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b8779cd5-0065-4a6e-a2c4-ec3c2ca0984c","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":66,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"842eefd1-a563-41ad-8bb9-7aa06dbf03fa","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":67,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"1b84d1df-db62-47ee-826a-51721dcbb130","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":67,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"ae49353f-e22b-4992-9905-ecddfcfeb831","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":67,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"10904f7e-34cc-470f-b09c-10c879604741","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":67,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"3f437ea9-3af8-4067-9c31-2b2d5bf26cd1","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":67,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"d7f4cc47-ca4d-40be-9160-46bf4c24300f","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":67,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"13061221-8802-4c23-9d8b-7472399ba912","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":67,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"42e3465e-b402-43fe-9647-6fdd6c1bf5f5","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":67,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"30a3ee25-f63d-4c23-9b5e-23db9be2d7b3","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":67,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"178585bd-77dd-4f16-b95c-f701b81261ff","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":67,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"7e8106c6-fb2e-4b75-9fee-0a4a6d2b2636","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":67,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"8e617123-855c-4437-8c34-4ed07a9133ec","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":67,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"ddde8b8c-dd22-4ebb-87bf-242118d1f2b4","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":67,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"471eb157-91a2-4639-9b04-bdc32cfc82e4","block_type":"box","text":"in the Fund’s net asset value.","page_number":67,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"0a00d6d0-fcde-4653-a505-3c7eb5e8be2f","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":67,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"c3ae4004-ad8a-4f24-a661-5c5a0b38b778","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":67,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"1ec5c71d-50d3-44ab-adf9-44dbe58d8bab","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":67,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"373a1f39-1b14-4741-aa91-cb69ed22280c","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":67,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"bd2ebc6e-7b93-4e6f-b8c0-18e0c08cf266","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":67,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"bab091a1-e1c6-42a9-8ea9-7bfa78e9246a","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":67,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"e2170bcf-b8c3-4650-9913-ec317b2515f1","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":67,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"5776a811-3ccb-461e-a67e-6d4dbb10c5b4","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":67,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"d316257c-4963-4d65-bf83-1b5a2d74a733","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":67,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"eaf1adc6-af30-43b5-bf13-34895f55705f","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":67,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"ab2c57aa-2a8b-4755-85a7-8d2f8eb5ef6e","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":67,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"b9fa8d11-d130-4506-8683-e0575b499538","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":67,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"94ec138b-6826-439c-8d31-8c38d0b1f4b3","block_type":"box","text":"United States for trade. 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There can be","page_number":67,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"eb01b010-6f93-40b7-88ce-f31991f64614","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":67,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"6232f5ff-f767-4e9b-8f69-956361e23e4c","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":67,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"5a65565b-96e8-4f8b-9ebc-0ff70740e49e","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. 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If illiquid","page_number":67,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"1bcb5da8-0aaf-4d35-ad31-2d9ea6bb0954","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":67,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"10d8ab50-d7ef-4bcd-9dce-794ccfadfb3d","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":67,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"c3f0312b-e353-4a8b-aeb6-23a0a2b4c306","block_type":"box","text":"comparable liquid investments. 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The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":68,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"53a75b48-9c7b-4396-8f9c-e69fd45e5546","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. 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A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":68,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"e113990e-db98-4d2e-9fcd-049c99623dd9","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":68,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"1c29c670-ea73-4f91-b06e-d3199d4b010e","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":68,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"8f1d58ad-97e0-4af5-991c-17ee25913a3e","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":68,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"39ecfa12-470e-49e6-bca7-55ea47c4ad01","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":68,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"92e93ad9-9c02-4ece-be3a-fffa2f248c98","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":68,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"9eedbb17-de9e-4c14-800d-38b90c84445c","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":68,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"3c1e07c5-8af0-48b5-85c8-c9997a4a472f","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":68,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"12af96b2-0cfa-4a52-8017-04deb2b529d1","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":68,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"ba2bf206-e47b-4989-a536-daa01f034f65","block_type":"box","text":"increased market volatility or other unusual market conditions. 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If the securities continue to be included in the index, the Manager may underweight or","page_number":68,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"334212aa-b3f8-4f81-a5be-d4a4ac45f616","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":68,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"7db6db1b-f609-4642-91cb-490eec4d5363","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":70,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"f974d3fe-594e-4718-a0e6-302ccd1739e7","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":70,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"5d3810e7-c534-4480-bf6d-a49c3f030b17","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":70,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"d9468f3a-207b-405d-a405-b88c97189d29","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":70,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"20ffadba-6ba0-44f2-b110-187cb443c434","block_type":"box","text":"completeness, or otherwise.","page_number":70,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"e53543ed-25eb-4263-9de7-bef3486ae651","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":70,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"0238e600-49d7-4915-99dd-45eeee4c1aba","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":70,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"808922dc-6e59-420d-ad86-5a84ac9bce21","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":70,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"ccf488e2-1c8d-4321-8631-d28d83329c70","block_type":"box","text":"Indexed and Inverse Securities.","page_number":70,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"65139a6d-8acb-4e5d-89e2-530561ddd06d","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":70,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"444aac97-5845-42cf-92cf-d3e022fb6768","block_type":"box","text":"particular index of value or interest rates. 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To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":70,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"02db43d9-dda2-415c-8bac-d55b5df7d49b","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":70,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"346377f8-c287-4e44-a886-1ca5ad8671d6","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":70,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"828f6299-8f37-4150-b732-2bdec1e44db0","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":70,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"a6a56927-85da-48c6-ab65-8ba759dcd352","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":70,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"317f0e34-73a9-4f4f-ae4b-c879eb4bd672","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":70,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"692f6872-d356-4796-bbe6-f1805bf88182","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":70,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"793dec5e-1c6d-4827-83c2-e576d3df46d1","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":70,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"63bdf312-f87e-4ae9-9a8c-01d4635b64a0","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":70,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"90c447f2-07ef-48f2-9a9e-2ff7353a6c74","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":70,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"9173f67d-f16f-4e8a-89f5-d5ee19651026","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":70,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"f9ca6466-8b48-4655-a0ec-85fd49aa73d6","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":70,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"3282b73a-114d-4ac0-b578-fcfaf9451195","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":70,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"a1cded17-f7d3-46f1-9a93-fa619463d270","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":70,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"d103a03d-060e-402d-8d2a-346b2ddee468","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":70,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"764d8fea-52b4-4efd-b8d9-9d0c8199fc09","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":70,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"c257e296-b756-4466-bee9-3af56b85e715","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":70,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"51db7710-2a1c-4910-bc53-e2d2719f4327","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":70,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"5d7bc2b6-6d3a-4e7f-8f44-e974a3d3d279","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":70,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"a9b390ed-e7ea-4ffb-9dbb-0ae78d0549e6","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":70,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"312ef893-c7fa-408f-864a-8035e3166519","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":70,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"40056ba9-c989-4793-8f7c-1364fca207be","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":70,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"7a32849b-5bf0-48df-9f41-0a00a175d48d","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":70,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"d1640406-2493-452a-bbed-46b69ef31325","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":70,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"005ae33f-a196-4406-9020-39b5b904fb70","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":70,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"77f20231-aed0-472d-8205-028fcfa96934","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":70,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"650f7af7-2a24-4fca-8311-cce922139c75","block_type":"box","text":"Inflation Risk.","page_number":70,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"2c34e71b-4e55-4f00-b466-3a4b39a49398","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":70,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"91936389-3202-42d7-8c1b-e0c5e1e16cd7","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":70,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"26aa2099-08c6-4c3e-ba2f-393ed9692c80","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":70,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"88911b70-0a8f-48da-a6e4-fddcf0b6ee5a","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":70,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"0f1f48df-a38b-4155-81ca-f9ead300377c","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":70,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"6ed58779-7511-4ada-889d-28594564d3dd","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":70,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"47fd4527-58f5-4a67-a18f-137d853451c8","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":70,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"e0c029bc-2dc5-46cc-81a7-fbc505c7a20a","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":70,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"617c2a66-74b5-4101-9517-581346f68740","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":70,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"c71e8c8e-8acb-460a-b2e7-32ed7d2752bc","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":70,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"9fcc45a2-6ac9-419f-8126-3687d15dade7","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":70,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"41a72688-7cbd-4ee0-a6fc-5985c6c092ed","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":70,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"cad95e24-9fea-4fdb-b7d1-fe3dcb581d33","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":70,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"be361a52-161e-4e58-ab76-9cd0e3112c26","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":70,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"32ce7043-27f8-4a43-bb10-fd7a7a9cde92","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":70,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"aa75754b-536c-46e0-9f07-2e5f8944ba90","block_type":"box","text":"II-34","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"088f4bc1-0e12-4624-9304-d554ce4d3e44","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":70,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"3cf2d3da-2c36-4c0f-b8e4-dfa657cfdbbd","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":71,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"a0c4c806-d2d4-4623-8edc-757ebfd65ebe","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":71,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"c9639be4-0f47-4ee1-8e43-ad9d9e70ed82","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":71,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"0d0a671d-17a0-4548-8a21-14e9bbb102e0","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":71,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"97ed4c1f-c5b2-49dc-9f8d-f248c011b457","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":71,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"304dd66e-da33-4893-95a4-5a5f7955e949","block_type":"box","text":"be available for very limited periods.","page_number":71,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"994ba65b-680d-4ff0-9707-7c0ad151359e","block_type":"box","text":"Investment in Emerging Markets.","page_number":71,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"fd85bfe2-0c3f-49e7-bd87-035ced1eafb9","block_type":"box","text":"General.","page_number":71,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"4d42c715-bf6d-4801-9e86-5e6e6bf4d319","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":71,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"ddca212e-fa66-4fb7-ae45-3b3246af1f59","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":71,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"3af827e6-de2b-46cc-8f27-79577c24f863","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":71,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"15030236-23b6-4a7a-bfec-8c98bc3b97ad","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":71,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"2a6b524b-a97b-4fd7-ae48-c900e63308d9","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":71,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"459cc2e7-1e93-497a-818f-dec02d251b76","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":71,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"33da6a2d-3692-42a5-838c-d308c63e00e2","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":71,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"734b9a13-c525-4c3b-991e-34cba5c27df4","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":71,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"90f975ae-8534-4dfc-b979-fa8389f9efb4","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":71,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"9ce3e721-be9f-40e3-ab07-abad10fae422","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":71,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"49a7b428-55d2-4aa3-a392-3fbd3cfffee4","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":71,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"773a43a8-bff7-424a-a8bf-583c073c2219","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":71,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"9d067386-007b-434d-944b-1d94df1ff03e","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":71,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"888a7a2c-f0ff-40f9-a0ec-a1f4056896db","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":71,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"a7c7431f-a101-4e56-8cf4-cb490069a6c6","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":71,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"98ca0160-fd42-41a0-927c-d099e10816da","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":71,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"8f366d41-06fe-4f05-b8cc-3544e3e463b6","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":71,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"13652b55-d833-4726-98f5-d163fc47a96e","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":71,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"8eb2dd98-5687-40b6-bc0f-486cb77da9e8","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":71,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"d8ae4a07-2deb-4cf1-9a6a-fae2a3251c37","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":71,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"699361ff-23dc-4ad2-85cd-96e1656209a0","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":71,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"3248b931-db45-44fd-8592-7f4757d4bc99","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":71,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"c179bd3c-1474-4243-861a-28360eed8fe2","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":71,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"bfa46291-4c08-4101-8b4a-5fe4d84817e9","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":71,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"25a06bb1-40fc-4137-9548-2903757d3f69","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":71,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"9d5e017e-edee-486d-bf69-1e202cba3ef3","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":71,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"c5131673-976f-46c4-afda-21f3196b0098","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":71,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"25cd7bbe-0f18-47b0-a4b1-47f8b1b11ef6","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":71,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"e956ab99-9dd1-438f-a1ab-1913382a3e25","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":71,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"1aecfeb1-8142-4c0b-80a6-36571cd56a8a","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":71,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"ea577a02-1c51-4978-ac05-12afadf34197","block_type":"box","text":"volatile than investments in more established markets.","page_number":71,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"b1d7d69d-242a-4499-a4d4-0e5ea50a1200","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":71,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"0068c45a-b2b5-4e08-bdc9-f247c6ec6bf4","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":71,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"7ad3b6b6-8d3f-4859-8178-b96f57864bd7","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":71,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"c8d0bcb0-97a3-4a78-ab8d-9b66b8d41909","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":71,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"96c48f43-b5fa-4bd3-8301-32d9ec60f6b4","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":71,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"be30a9cc-5483-46cb-be69-db5504cd8222","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":71,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"1dd24bdc-d0bf-498a-9aba-b2d92c4b5437","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":71,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"5d3c56fc-5aa3-4f56-ad9e-30ef08afcf01","block_type":"box","text":"acquisition or disposal of securities.","page_number":71,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"ad3bd0ec-75d8-44cd-a9fa-b324e6d74c83","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":71,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"35440ba7-6b58-432d-a130-0f2b82b7426b","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":71,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"4a96d0ea-4696-4bb9-9ea3-172f16551e62","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":71,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"eb02515d-acd1-4314-a89a-3337bfd13982","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":71,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"866d054a-839a-4aba-aa1b-3151927bfc7b","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":71,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"5d7f8cf8-f4b6-4f75-b821-9abd1572a73d","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":71,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"1d2607f9-c46a-4526-948e-fd9d3e605982","block_type":"box","text":"II-35","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"49eb74e3-76c8-4076-9084-e2813d5cd4d4","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":71,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"9cfc4762-7101-4b6e-953f-7d877e7fd394","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":72,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"666d891a-6d01-4e05-82af-f48dc48096d2","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":72,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"6608a888-32c5-4386-bd9b-dd46171a8130","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":72,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"f8fae75c-dd0f-46fd-acd2-65443c9e06fb","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":72,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"86fd65e4-6243-43ac-a05c-f04f6b95229f","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":72,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"0653b0c4-b597-4011-9e87-db02cd149ab5","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":72,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"bb55b02d-40be-4d95-8110-b5465c95a812","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":72,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"4fcff176-f3f0-4a62-99c0-5969a5c0a041","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":72,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"df36069c-f9ef-4db4-887b-ad81f515ea1a","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":72,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"205ac5a5-b974-4649-811a-958a56bf9e86","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":72,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"6b047316-038a-4b03-a77a-49c40b58bc41","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":72,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"e6cb214a-4de6-4e1c-b627-037a541e8c6a","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":72,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"2b187ee2-2bed-4238-b303-d49ea9d62736","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":72,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"0779cf95-e701-4d76-aef5-b1a10de01c1a","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":72,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"de809c4c-975b-49a7-9ca0-7e272b1d1ac5","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":72,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"9b59fea3-e700-44e3-a83b-ea7be652ec91","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":72,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"2f412c95-fd42-4c52-9e98-5534cffd46f6","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":72,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"271a9ee8-0682-4767-9573-90f71f40f64c","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":72,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"13c97662-6cd5-4aee-8fe7-97742de328ee","block_type":"box","text":"performance of the Fund.","page_number":72,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"a38d0e2e-8660-4efd-bd53-8404c8106afb","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":72,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"5d9dd7ec-8c89-4053-b041-e64465e10e17","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":72,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"1b4e8a14-b092-4116-80aa-f30ef4c2d434","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":72,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"95dafeac-494a-4bfd-b91c-61aff45f838d","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":72,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"3a5c8f18-b1af-4a2d-8bb5-993d5d16ff00","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":72,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"45d94245-afde-47af-b19b-0b412d25741b","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":72,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"6006f0a8-ae4d-456d-8aaa-189f29119eee","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":72,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"20328d33-8f10-4828-9979-657cdcdfd1d9","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":72,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"a43dc6cb-be2d-45ab-a929-2724804d8167","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":72,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"5131b72f-8a78-4670-a78c-9157f2e04770","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":72,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"ac37dd07-a943-4607-8b0c-ec30c882d2d9","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":72,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"5f06d311-4caa-486d-94b6-83b1d3cf01b1","block_type":"box","text":"affected by a variety of factors.","page_number":72,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"e29d5f1d-891b-498b-bb1a-99e64f963d90","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":72,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"e3d929ed-4c82-41e4-bf65-c9c01f1b7eb6","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":72,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"5d1acbcf-999c-4edd-85e7-3939f1723f25","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":72,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"5fdfc941-fb11-497c-91b9-c5d88aeb187f","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":72,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"4d72e5d7-1b97-4d8d-9be0-34124c2e784c","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":72,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"401122b0-1106-4c58-97bb-af3099644c22","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":72,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"80f82b7b-aa60-473d-99dd-9075148463ed","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":72,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"b264532c-0f36-408b-b970-261a921c85bd","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":72,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"9db2a658-2ccf-4267-acef-420ebb99cb4f","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":72,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"4dda7be4-7131-4128-a547-931b2edbd811","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":72,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"449c2363-26c7-48fa-8924-f460fdb74d9a","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":72,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"53e4e20f-6850-46dd-9f9e-93c1359e3c67","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":72,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"5ea52065-901c-4b9e-9bcb-59d3db124405","block_type":"box","text":"nations.","page_number":72,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"8cd0fc47-71fb-41ad-b5e8-30de8eeed437","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":72,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"ccd6957b-e7bb-4d22-82b2-e39057874afe","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":72,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"b073c472-7a83-433d-9c26-d7069c978452","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":72,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"6bd897a8-e548-4be0-8daa-89a9bc4493a2","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":72,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"3e02c7a3-a62b-4ff0-9f40-b76897922415","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":72,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"44d7eaea-8ed0-4ed5-8c07-8f591c5e1da5","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":72,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"0f48edb4-d016-4891-bb1b-90eb91075a77","block_type":"box","text":"market Asia-Pacific companies.","page_number":72,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"9f2c58bc-869d-4a67-8c98-dd05394a7f59","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":72,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"32071c9c-192c-4bb7-8ae8-93f5b1e978e7","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":72,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"cc7de40f-ede2-437c-964a-ce42352b4a34","block_type":"box","text":"services for such securities outside such countries.","page_number":72,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"cc38c836-d395-4f6b-9a47-4e1aab00be2d","block_type":"box","text":"II-36","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bf2c7746-efbb-442c-b74c-de74e90d62cd","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":72,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"41ae608d-75d3-498d-929c-f77ed7c1a85a","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":73,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"dc39021d-0fcf-46cd-b547-e2e5ca51a8e3","block_type":"box","text":"to commercial banks and foreign governments.","page_number":73,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"7cc195a4-f112-4b68-bad0-82427d9bd957","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":73,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"c8846528-2fd2-4d07-a509-52c767274546","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":73,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"7ba7249e-3909-406d-9906-5b647e6cf469","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":73,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"07fb1cc7-9f10-4ab6-9d25-cf7adc7dafd4","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":73,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"40e3ac3d-a524-465c-b4bb-4e671beb9e9c","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":73,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"4d532334-e207-40bb-b7ae-1a92aaf9cb19","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":73,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"de75a96c-6ae3-4dc9-a59d-85dd51da18e2","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":73,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"e1b4e8c1-3994-4f4f-9eeb-a5f1834ac6ef","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":73,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"eb7d10d3-81a0-43e5-be75-a5a9112f1e4f","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":73,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"a028618b-c654-40b1-a8f3-8a6790604c83","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":73,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"36975b7d-5ca6-4b74-8845-06e463f90089","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":73,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"e0a1be4a-cd90-48f8-b8ae-9ab4c1ed02d5","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":73,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"48099101-8208-4267-b582-400ea04327c6","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":73,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"88b2ff10-325b-402c-a324-3b40b6f9f115","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":73,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"5cc1d6af-757c-4c74-b9a0-da6533021d07","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":73,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"8802f76a-69ad-4087-9e65-49fa53e3f70a","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":73,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"1b4ff875-5989-4464-b367-e919c8145a58","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":73,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"5c5ab6a9-5dd1-489e-b504-b24ee9bf40e2","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":73,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"784e97e9-10be-4338-a207-ae90a900f0f2","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":73,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"a420c413-03fe-47b8-b7f1-be2c9b2635b3","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":73,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"db80a3a2-dab2-4586-973d-eae5ee35d93d","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":73,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"beabb9ac-e3ee-47f8-b71b-925fbc7eea5b","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":73,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"a93d1505-f128-41c2-8548-f2057cd22879","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":73,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"fea32ee6-9c45-4113-ad90-39c6f3f758d2","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":73,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"da8040d2-ca07-4032-8ba1-0a83cbfd1cea","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":73,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"b4b160ed-93b2-4d0e-bbd4-88d3e8ef3b63","block_type":"box","text":"investment at that time.","page_number":73,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"704fa94e-1a57-47d2-b89b-7dea0b72afa5","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":73,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"e57e329c-df88-4e52-9f10-50bcd1d2ffdc","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":73,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"1f65de49-0f63-4a67-aab2-e0637d537f1c","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":73,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"ecf89c5e-9ff9-4ad3-8349-39024dfd11fd","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":73,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"81927d72-a40d-464c-9fad-36c5623f2795","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":73,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"097a027f-1308-440b-9380-1a0be8818407","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":73,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"d499e5bf-2b0b-42db-9da9-9f5d24c94651","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":73,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"3d8d8207-f0a0-4752-9cdd-b1bbb2557b0f","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":73,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"723f07f0-e4b3-4d4f-9c7f-6582396caec6","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":73,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"1dd43a97-e71e-453d-a4ba-542d0d844522","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":73,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"b3ee8062-7d42-40be-af80-51fe566c7435","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":73,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"a8811cf6-3677-4378-bfd5-370cbf34b006","block_type":"box","text":"government).","page_number":73,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"464b0365-0c7f-4af3-842f-f2d335b29fa7","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":73,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"e48f5a31-9131-4af6-b996-8602cb3d4ff0","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":73,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"6cf4f650-2971-4932-8372-84c28f1e68fe","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":73,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"aa6303fc-7741-422f-8731-d05984a91efb","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":73,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"577bd279-4506-4fad-a992-50fddf7c2207","block_type":"box","text":"foreign banks and other financial institutions.","page_number":73,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"286d01b1-bab7-4fd6-bed7-987236043843","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":73,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"d0b2dada-b4a8-49cc-ba1a-e33c91d0878c","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":73,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"32c5fc0f-16b5-4bfe-99ce-87357039d485","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":73,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"a3053c2f-11a5-43c2-9def-15a8d82380d4","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":73,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"48247ec3-6876-4921-ad79-d7fe807d0f6a","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":73,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"58378bbc-ac68-4da3-9de3-d17677d72ea7","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":73,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"a9360928-677b-40d7-bf88-9a461067318c","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":73,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"a0e3e40b-f98f-4cbb-9199-215f78b71849","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":73,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"667a81d4-316a-4aa8-b9f0-c1957f0092bc","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":73,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"fb84af6a-45fc-4477-b041-596449c22fe7","block_type":"box","text":"II-37","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2e957482-3a06-4736-b577-20b029fd84ba","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":73,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"06d63a14-1b6e-4b91-bc0c-31f1c798ed70","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":74,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"248df2b2-8127-4a46-9740-134f2bce1192","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":74,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"5ee31fb0-6b76-464f-9cca-5f1a5443dae7","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":74,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"5328e0af-781f-4119-8921-57184b72667b","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":74,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"19f4d94e-d34f-4e6a-93cb-86fe4fffb1c7","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":74,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"cc1d624d-e6bd-4ce1-ba81-0440888f1deb","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":74,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"25eedbbb-ca68-4bb6-b3d4-d38b4e34a09d","block_type":"box","text":"foreign securities.","page_number":74,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"1fb9e9ab-e883-4c5e-87d0-006db37dddd5","block_type":"box","text":"Risks of Investments in Russia.","page_number":74,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"f333f18a-7438-406f-8bfd-04d8f9680d42","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":74,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"89748b61-125c-434c-9adb-02f6ee9d1c2f","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":74,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"b45e156d-af81-4d3a-833a-8ea8cedea935","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":74,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"d96847e9-f978-448a-aec1-7d0cf20b7536","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":74,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"bcf0e38b-58c4-481a-8a82-3bf41690b6eb","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":74,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"75313ce9-e8fa-459e-93d1-de35ad9e55ce","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":74,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"222837f3-1c7d-4f7b-8f9d-87cf894b0a99","block_type":"box","text":"developed markets.","page_number":74,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"b2d26526-8d45-4f5a-bc52-589727251c9e","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":74,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"303c7981-7bf3-4db4-8e6e-211ff133d8d1","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":74,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"778bec85-02d6-4a2a-a463-f8a4ade34846","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":74,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"276bd5d5-191e-438a-ae28-e7f3f0dbefbd","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":74,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"34c393be-2ce0-421e-849d-4b3d3da69993","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":74,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"57874252-bdf3-4cee-b432-dc729dec30f8","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":74,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"396c1a08-a14e-46d4-8247-9dee2c5bd57d","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":74,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"fee53ebf-385d-4ac6-86ca-666d823d4dc9","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":74,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"01c77015-5d63-4faf-bd83-b085e22ec0ce","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":74,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"74cada24-54ea-418d-a0a4-fc250cdc55e0","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":74,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"09f7feeb-5436-47ee-9825-c3eeee5801c0","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":74,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"e4bc5919-3c1e-496c-bbb5-857b9d01b0ab","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":74,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"919308ea-8608-4db1-a862-3b25cb2f0be1","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":74,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"d3ae18e2-dd6e-45c7-9079-39fe74b710a7","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":74,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"07483acf-4f17-4184-8bb7-5256e93e9203","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":74,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"a70b6a9e-6284-4228-befe-990ba731845f","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":74,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"9d1079e2-5c89-4957-8bea-ccc7e987436a","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":74,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"2d4f1f53-724b-4c36-a115-0fd5cfc340e2","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":74,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"026b3288-4572-4535-934d-0ce367b9df6b","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":74,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"6c9f9d82-ada1-4ee2-8c9d-5eb40a14ea72","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":74,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"072bb277-2457-47a3-b2a4-112e4a5774b9","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":74,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"88029ee3-caff-4c3c-9d4b-e26cdd69cee8","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":74,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"3667168a-a548-4b4c-984a-730e6c972a8d","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":74,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"06a32a46-719c-41da-a426-92bc4cc02823","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":74,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"7515c8d5-4e8e-4d89-ae29-1ab21ccb2d97","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":74,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"9b5a80a9-c219-4ba9-b9e6-84c18045fd6b","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":74,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"ab5edcc7-e65d-4414-93b4-53212ca5bbf6","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":74,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"713dbf0d-ba9c-4792-b134-1221c6d28046","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":74,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"0844c487-4db8-4536-97a8-fab6524153ed","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":74,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"475344ac-f39e-48c1-a9e7-871cef9ec4a7","block_type":"box","text":"sectors globally.","page_number":74,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"75ac1047-d769-421b-b019-1406d87df891","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":74,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"f3ae6290-e7c5-4ddc-9f14-2e8712edcf3c","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":74,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"4a613e72-38e7-4f7d-9741-4c3cbb6de41a","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":74,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"85d476a2-b290-42b0-b7b2-a49ab317be3e","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":74,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"415971b5-767a-4a92-8a4b-a09d26b662fd","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":74,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"4494b47f-66db-4f9c-9c60-aa784e6a21a3","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":74,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"548ebc55-d6ec-4082-a502-a26cbb61e1b7","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":74,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"1d18f0f7-04f2-4d43-9b9c-a4908603ffe9","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":74,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"f53face2-831a-4c96-846b-a26a4aff92b0","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":74,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"5ef9accc-72f3-43d9-8406-333c4c696b39","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":74,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"cd6a9aa9-f01f-4d47-a7d7-3d765abb104a","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":74,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"2cf4fa07-7522-4455-831b-47cfcae94ad5","block_type":"box","text":"II-38","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"31fd7b7e-aa78-4d54-a918-2f61ed98c86a","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":74,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"20e587c3-ff31-40a3-a317-eb6eddfc35a4","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":75,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"b56093d6-5fca-4a26-9ee7-5d89b9a8245e","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":75,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"a288932c-e6b2-4193-a398-54aefbc7808d","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":75,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"16c11d09-a993-443a-b1df-348d179f9c15","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":75,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"d8d5efe7-29bd-4f4d-bedc-cf024f93c343","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":75,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"37a8cb03-05ae-4b21-93ab-9b431d71a55f","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":75,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"eb2b0c48-298b-48fe-b61a-3d8cfd623d4b","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":75,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"09afb539-c9bc-4f40-b619-dacd4ee0f617","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":75,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"2478b457-084c-49b2-b196-2ff01d6e255d","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":75,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"b96b7ee5-bf51-4c3f-b26e-e74d65b1a150","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":75,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"14c4dcb0-ec9f-4338-8435-72a0c9e958e5","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":75,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"7e2d2a7c-96ae-443f-85eb-145f6c23004e","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":75,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"98da8426-588c-482d-b268-0729a2d463a8","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":75,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"cb8e46bb-b37c-4465-8690-df75f3d34f01","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":75,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"27eefd16-65ab-42b5-bf21-607ae5e18926","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":75,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"f84c0b30-62c0-4b77-bda8-b6d79b8a4485","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":75,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"78c6bf42-c0ce-436a-b0fe-692083115913","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":75,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"06b59a9b-44a6-4999-af5b-c47ec6c7ef06","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":75,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"5522315f-cbee-4148-a6c7-38724c1ac6a9","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":75,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"d65a5866-bfef-4a7d-ad06-d2e9e2669bcc","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":75,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"e6c43679-b5f6-424d-a3fb-09efa9c7cf6c","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":75,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"c9f82e7f-4492-4460-8603-fe879f72b2f0","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":75,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"703aa9ac-4b07-4b7a-b837-2bde6a03947d","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":75,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"79273d40-5c07-428a-b46b-c6d1255fb42b","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":75,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"affd2075-b6ab-432d-bf8a-f6ca7e95e862","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":75,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"0ff4985c-e998-4190-93fe-90025203a664","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":75,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"8bb6fb90-b8fc-479e-a443-e3ec6cefb85e","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":75,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"18d57fda-cb1c-491e-a4a2-5722f02d1c19","block_type":"box","text":"impacted.","page_number":75,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"9990b885-7f06-4a47-b7cd-704b99213951","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":75,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"25599672-e658-401b-b60b-76197b1ed336","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":75,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"86e09745-c8fa-4cb9-bed3-09f83775da99","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":75,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"0216754e-d875-4fb6-91b9-461e7a3bd7d1","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":75,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"b0874aa0-dd27-41f3-ac4a-9729cdaa6d16","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":75,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"742b36c1-c2c1-43e4-8c78-d5c10c32ac5b","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":75,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"1c0a7905-f0ed-4d89-a8c4-fe616a0b50bb","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":75,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"8671e35d-f248-42b5-9d4f-b18fa8b390e0","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":75,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"f2e83fea-bd21-4f41-af38-805939bab34d","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":75,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"c47a5d8a-2b70-4838-b927-5f87c73b6b5d","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":75,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"10131e25-9621-41e1-b9a2-ff33d12e1a03","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":75,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"850249cc-2867-403b-ba7d-ab36f86a0332","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":75,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"fee89903-bdad-40c5-9df1-87fc1643825b","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":75,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"d30e6c51-6ffd-4627-a513-6c32a5a68ef1","block_type":"box","text":"economy.","page_number":75,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"57d8f5f2-5a9c-4bf8-99b1-87562321ca89","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":75,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"ec9ecb15-81c5-4a33-b019-74b5f0ebfbfc","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":75,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"8bc534b8-4741-4e26-bcb6-bca7825e9b86","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":75,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"ae8d35c2-6710-49fa-abd8-e29e8e045aa1","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":75,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"7ab84719-ee6f-4258-b61e-9880ed4f4fdb","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":75,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"7a54998d-aadc-472a-9b83-9b75bca68aef","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":75,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"8a907406-56a5-4cb9-a044-2c8008c8d941","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":75,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"e62e7334-61de-433a-828f-4a658f7112be","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":75,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"e66c668f-3b09-4e82-a821-d5465664bec3","block_type":"box","text":"typically the case for investment managers.","page_number":75,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"88aef1d7-5bce-45da-8204-58f876e2a49b","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":75,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"6fa68cf6-17ab-443a-b1ec-25a326935348","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":75,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"4f6f6117-8d36-4ca0-9e1f-da15b605036a","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":75,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"23374f88-0d02-4a9d-bfb0-953f191540a1","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":75,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"1a784d8a-f7d1-4a30-963f-9d1898518a43","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":75,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"ccb8eac7-8695-49e3-9210-39c32071bdb0","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":75,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"49593dc9-0b8b-49bb-b200-4b3a7d80efd7","block_type":"box","text":"II-39","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f74836bd-e977-4677-8abf-7527119c00f9","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":75,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"907ddd5a-a6ce-46d1-b373-77f5e3fd011c","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":76,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"ee9ff7e8-f235-40d4-bf85-fc14df4c36f2","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":76,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"4466b5ad-5a46-4c6d-aaa8-4d9f5b078f2d","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":76,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"d24cfc5d-3bac-4b75-a2eb-aa68cf6cde20","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":76,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"5f16b18f-1a1a-4cca-bcac-347ed035f520","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":76,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"478c577b-056f-453a-8aac-579c4068f261","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":76,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"0a365980-fbcc-4ad1-ba39-ad8b87a84dea","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":76,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"1afd64be-6288-4ba4-957f-70adda21d6e6","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":76,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"12d8dc84-9988-4aae-8270-3853939ee8bc","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":76,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"1b3fba08-4619-48ea-a204-f633a8b9e68f","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":76,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"519f5a51-7a2c-448d-892a-733be04109be","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":76,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"5f30c08f-7303-4bda-9c84-03c475f4178e","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":76,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"ab951194-d4b0-436b-9ef4-4f35c14a07a0","block_type":"box","text":"will be indirectly subject to those risks.","page_number":76,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"6d068766-4793-4ebe-acd4-cee2b4ef2d68","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":76,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"33ae73dd-a0b2-4a66-904a-d9fb7c9e3aac","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":76,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"73e8be0a-5aad-48d6-a8e3-01564ab44618","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":76,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"44347153-ca7c-4fe1-a05d-137be21e2c1b","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":76,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"43fc5d60-957c-4936-9469-9f48ad485185","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":76,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"886e9001-8e4a-4774-b0af-a361d8405b62","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":76,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"543a6c65-743b-4953-ab46-d90fe4b5457c","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":76,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"30443851-5097-48b9-b244-6339b1969c98","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":76,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"3927f2fd-e107-4563-85ce-b9fae7c96d43","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":76,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"bdb41339-d6f6-472e-9d86-2c61057ec706","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":76,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"f2025e98-03af-43ca-968a-b6998fef64ac","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":76,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"b78a0e29-b581-4b4d-848d-fcf3fd7bc35b","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":76,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"8cacfa3b-584f-4f95-a327-dadb0251a628","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":76,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"c7d82d6d-a853-4da4-9643-beda1167e1ee","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":76,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"01b53576-87c9-4118-89ef-4d890d09d0e6","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":76,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"6ea32bff-90f6-4977-9717-fe48e1eb5c1b","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":76,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"13fcdee7-1f3b-4038-af99-7290e7406642","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":76,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"900b6d4d-cbb7-47f4-9bb9-3e7f282cd447","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":76,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"dde8f341-f803-46e7-94f1-20aa53bc0fa2","block_type":"box","text":"impact on a Fund’s investments.","page_number":76,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"ed5a3d62-de57-4925-ac87-6c403ea577a7","block_type":"box","text":"Brady Bonds.","page_number":76,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"5048ec55-4c94-41b5-a520-d75ed57547bf","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":76,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"08c25727-74f6-46b4-b1fc-8c71ad0456d3","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":76,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"37f5d101-85c9-460c-967f-ee71335882d5","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":76,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"9b227610-6acd-469d-a0f4-e175c39c3877","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":76,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"95700af9-483c-4dfe-9926-32d4c4421ce0","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":76,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"19b18d1a-edb8-4c11-8a9e-63931ecc39f1","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":76,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"5d1d08b2-6c96-4c1e-8a07-dd25699cd98d","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":76,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"92137420-7810-4720-83fd-864a0559020b","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":76,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"8e18a850-412f-47a0-9f87-0095fe3a5ba5","block_type":"box","text":"Venezuela.","page_number":76,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"d5199568-c4a7-4687-b0d8-6bcc817bc6e1","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":76,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"62d261bd-9713-489e-9ffd-ee3d87ae5775","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":76,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"3a5c8a90-c689-4d95-98c2-123efc94dd0e","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":76,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"ce417345-c42c-481f-b25d-fef71185ea4a","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":76,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"7526cb70-ecae-4e9b-a661-74f20f8e5a5c","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":76,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"0665458f-64ba-4ae2-8dec-00021d91e5ef","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":76,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"cfb95dab-6e3c-4e0a-90b3-904190f8f6b7","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":76,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"c5ddd8c7-22ae-488b-aa4a-aea01dccdcd9","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":76,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"66d46cf8-1f9b-4b80-ae1b-e2bbcaa889cf","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":76,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"6e4ef10f-984e-4efa-86f9-de641843f67d","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":76,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"d476902f-3da1-47f2-9998-50841586aecc","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":76,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"f6e5cf15-57d7-4577-a7f1-fef239e031f4","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":76,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"9f814dc9-d6cd-4a6a-8331-9f87d213d77f","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":76,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"4635cc85-926e-4d9e-9e48-8dd37ff47bb4","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":76,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"572d342b-1f63-4409-aaad-10689358b19c","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":76,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"27416688-2b75-4289-9dcb-9e5a5bf1bc3a","block_type":"box","text":"II-40","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f0d73490-f702-4ec5-984c-d8172e80c7e7","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":76,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"fa839db6-37a5-4065-aded-9b0bdfcda3c0","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":77,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"1f714afb-9bef-41ae-b819-76b4f8a1bfb4","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":77,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"d2fdadfa-67be-4dcb-ad47-ed2a8dccc576","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":77,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"f499dc44-dd36-42c8-b456-2948b12aa930","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":77,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"29313170-d3ea-430f-9db4-8bd52a051de5","block_type":"box","text":"China Investments Risk.","page_number":77,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"d85c59ce-f6d5-42e5-98a5-345be1bb8cc3","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":77,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"5bc6dabe-f65d-4a44-96a2-bd3e6de93fe9","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":77,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"f265a3b7-7e68-44eb-a9e0-61b0844cbb3a","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":77,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"29e452be-ff86-4b2a-a992-76d53aeabc5f","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":77,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"356b6fc5-6896-437d-9677-f022802c713e","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":77,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"103bbb7a-0fc3-4c28-bbc1-d801e85fe03d","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":77,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"4146bf36-9636-486c-9fee-6122b0d8700e","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":77,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"f633c09e-0445-4a13-af37-b2dd2e397302","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":77,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"67884797-2d44-4250-b1bb-2f90b18fb384","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":77,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"490c118e-0606-4e73-b1d5-7d48363b2f77","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":77,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"7befe71e-7cbb-4f1d-8d6f-1ffb3cc8f7cd","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":77,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"f55c11bf-dc6a-41d7-8e02-9eb612de5669","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":77,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"ecaf1c53-1642-4345-8e2c-114efa380d33","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":77,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"3a094d5c-3616-46c6-96e8-b535a9d56004","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":77,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"72a84df3-594d-4453-8469-cb58c4689938","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":77,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"94789b07-0594-4d0e-b2c0-c9af7c917fb6","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":77,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"3314be9a-8f7a-43a7-8531-a3e16f578391","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":77,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"39834631-a0cc-4079-99ff-ef3037b93d53","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":77,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"9ae8d967-1ec4-4b82-af1a-543c85ef51c7","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":77,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"bc732a4d-a143-4aae-a505-7622bfe9d453","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":77,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"20f517b8-12e0-4dca-85fe-e988076b4eb3","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":77,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"77d62636-4d9a-4f57-a2a0-319590cfdeae","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":77,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"f44476d5-a195-4a46-8859-da94e921ed18","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":77,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"a7b3e018-4016-4ce2-b96d-8e95f2e60502","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":77,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"b4471f52-5939-4b71-9ab7-4edcaa0e546d","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":77,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"12b625dd-1f34-49dc-96ad-85f8bc43bf60","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":77,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"0daecbbb-4fd9-4b35-8847-de81ce9a535b","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":77,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"0450fd70-1e5a-41d8-9bdc-157fc1b5c82e","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":77,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"78b38d66-1893-4572-9cbb-45b747659414","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":77,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"7286c9de-2237-4efa-9521-f7536ecc8fd5","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":77,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"10dc4dbd-9544-4166-94f4-15b3e7c60b1c","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":77,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"604cf6fc-a843-479b-9c18-d666d08617ad","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":77,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"3bc836a4-cd49-4b6b-857d-f886532c2f96","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":77,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"41c13d88-4384-4b20-95e6-82ef59703390","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":77,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"611f0ac4-d0e1-4a79-94ac-0ccf50a8fb45","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":77,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"42f01c57-1bb4-4b0d-8934-a75b6a53053b","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":77,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"68f6a6f1-470a-415e-ab43-09c1d0c054d6","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":77,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"d9cd78bf-a373-4456-a62d-ab294cb2e862","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":77,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"2d961c4b-f07c-40f4-bac1-79cbae233950","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":77,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"ea476e4f-cb49-4559-9ebf-215e540c8b18","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":77,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"f6291076-3118-4b3c-846e-4bd0cbc96d25","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":77,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"3556d696-e5b8-4bfe-936e-652d3287929d","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":77,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"c21ddbab-e459-4eee-8234-299d959d7b93","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":77,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"e6c1d1da-4485-4429-9635-d11d3161d65e","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":77,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"9d98c987-d793-45e9-a287-f7dcf84c9f7c","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":77,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"07e1cf3f-3001-41f8-a85a-0eaeddae530a","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":77,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"b10b05b1-3c2a-4124-a80e-e8406f59d6dc","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":77,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"2f3db15f-cc69-4ff2-8f3f-2885be5fc7e5","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":77,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"af1c1418-6277-4a33-b968-cf099d870c79","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":77,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"d2093cd4-07e0-4d21-969d-9108400826d3","block_type":"box","text":"sub-custodian.","page_number":77,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"b0434ebb-717e-43fa-bf3c-a0acdfe2b1f9","block_type":"box","text":"II-41","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2eba9bac-ecaf-46f5-8917-9f1522f866e0","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":77,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"cbe59ce4-b0df-423b-b77b-c852aa5e657b","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":78,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"1dde8f1f-48b7-4327-8c07-4f4dde543344","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":78,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"dd15562f-4c27-41d6-a567-1eb9f0cd3978","block_type":"box","text":"on investor protection considerations.","page_number":78,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"955f0f7d-d0c2-4efa-8f1d-dafd41ac7781","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":78,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"92bd9668-4bba-478d-b69d-adbfbc648f2a","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":78,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"545cbd37-6ff2-458d-a165-fdb7e0463652","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":78,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"50e0c4b0-1e33-440a-8799-edfa2be1bcb4","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":78,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"8848c5f8-322a-4237-bc0a-217de9dcb058","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":78,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"1c7f2a7c-0407-4cff-b9cf-2b00d1e241b9","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":78,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"1489bbb4-51ba-4e5b-b5e3-ad89e0d4bc5b","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":78,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"18ee8498-acd6-4814-866f-23eae821d1f2","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":78,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"fe647d04-1ce2-498f-96c8-541e49bc80b8","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":78,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"6ca90a61-306c-438b-92ce-ffdf0db7924a","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":78,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"bdb7668a-1135-45f0-98e9-b1162bfc468d","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":78,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"91a5b244-ef1f-464f-84f8-7b3437ab0df2","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":78,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"5a48e54f-be3e-4a54-98fe-0f30fb46329f","block_type":"box","text":"accounting firm.","page_number":78,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"c79df099-59f3-4d8e-8e64-9c2957791fcd","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":78,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"53d35882-d07e-4f71-a0a9-c709de43b1ab","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":78,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"2c67c8dd-e6f9-46b2-8d01-00505c8b660b","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":78,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"94f859f1-9810-4ae6-b774-5ac9a35b533d","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":78,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"2206dc48-8c02-4a12-a05d-a98f27771bd0","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":78,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"6665a9b1-bac4-4d44-a50a-b0db6f8207ee","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":78,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"182d4484-51db-44b0-aa23-da3ffd2190f5","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":78,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"6d2f6363-7daa-4f38-abe9-a6fed92d2593","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":78,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"facfc3b7-bd93-464d-b853-8f3fd1d8fed5","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":78,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"5412a4fc-e09c-43ea-8216-3a065b53f084","block_type":"box","text":"RMB (“CNH”).","page_number":78,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"8e2d898f-6e6f-4185-b844-af46ad5d1ca7","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":78,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"57a94b7a-03ca-4c2a-9b90-ddd45637fa16","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":78,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"713b433b-8f37-4ef2-8bdd-2ec1cd38fe95","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":78,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"677a7e99-5108-4c24-b9b7-49d6e4853cee","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":78,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"aed77db9-f3be-4f65-bfc9-9ada213ec1a2","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":78,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"b848d584-1364-4188-bdd7-81d0fbf10794","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":78,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"577f526c-770d-4bf1-99fa-25d5c1edb666","block_type":"box","text":"represent equity ownership in the operating company.","page_number":78,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"af78f6be-6985-41f6-b543-89505862bce3","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":78,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"a55c8cf0-4145-40df-84a9-8d75a4cd341b","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":78,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"e1a12db1-c3af-4674-8073-f8a047e24457","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":78,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"417b051e-0b45-4d3e-9179-08f725528086","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":78,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"9c76441c-6c6f-4a2b-9079-f57597395d8f","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":78,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"83179aeb-041e-4493-a3b3-6396d1b09baf","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":78,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"252f246e-8418-447a-b5bc-3945355acc2b","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":78,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"3e974cb3-be79-40dd-8add-8fb2b0762d83","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":78,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"0c78d7a3-b723-44d9-b910-4438f282cc70","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":78,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"63d601a5-9811-4255-9f06-2d7568e8fe21","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":78,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"ae17d459-d26a-4c07-81c2-f3ab987c41db","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":78,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"ae0085f1-cab0-493a-841d-32419dce2dce","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":78,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"8463f180-be6f-4ed5-b128-26862115b73e","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":78,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"e444fa8c-d02c-4923-a8b1-d274b5e3ee5f","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":78,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"bac81b4c-c68f-454c-aa47-13290da88db4","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":78,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"96e663f0-cf0a-4aa1-af10-bc720dd9b010","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":78,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"8bfb5c7e-2129-4e24-8338-9ce10c9730ba","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":78,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"a87cf20a-33ea-42fe-8076-4a9f769f6610","block_type":"box","text":"losses to a Fund.","page_number":78,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"d8836121-1fb0-43eb-ad3b-bc40d861e91a","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":78,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"542ea4c7-855a-4bfc-9f0a-5496593f8422","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":78,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"4788e0bd-8f2e-4f01-8954-a64b5267bcf6","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":78,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"470f923f-b248-4880-8959-e55067dc49f5","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":78,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"de2da10c-2207-4812-ae4b-9d7303bb7720","block_type":"box","text":"II-42","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1433944f-60e3-44d4-a482-6fd571d989ae","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":78,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5f736429-5db4-44c0-8ec5-5f16ccc2e678","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":79,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"2bb5fcab-6658-4b04-bf4d-5491a816faa9","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":79,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"0ae83c14-a7eb-449d-a423-f501f2380962","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":79,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"47ba2476-7d3b-41ff-9940-91899429793f","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":79,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"e80e3647-f3bc-4eb2-8e4e-7ec14dfe757c","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":79,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"7c629ed6-4838-4582-a36d-e780d27a7db7","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":79,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"16e3a9a3-0d5b-4d5a-b89b-e9c006808994","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":79,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"0c6e9f90-6aad-42a9-95ef-a33b9ed27b83","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":79,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"c43d1351-73b8-4d54-8102-3bac5710f079","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":79,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"d4f40bbf-cb22-4c0b-8818-9f018a566246","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":79,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"2777f27d-3c06-457b-b473-c5401be3924a","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":79,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"142df0ea-b7a7-42dc-8734-4749bdca1f73","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":79,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"ba86d483-11b1-4a20-828f-2169e8d34976","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":79,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"49a68d38-61ca-4a32-b7e2-2855ac7e8028","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":79,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"0c58b795-4629-416f-8aff-73bbc6eb787b","block_type":"box","text":"such companies.","page_number":79,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"08d975ef-cf67-4e09-9d77-1a7d1f21413b","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":79,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"b8331db8-8ee1-499f-9136-5b1e792d1b7c","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":79,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"8764f421-4003-4a1f-90bd-c80e2915fbfb","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":79,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"a622460b-b988-4696-913f-736051922f3b","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":79,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"71e4fdbd-cf1b-49a5-bbdb-5836df0a4d9d","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":79,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"1223c2e1-5adc-44fb-9598-5f12cee7ec6a","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":79,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"0c07abd0-e0a6-47fe-bcca-5012ed07b4d8","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":79,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"095970a9-33df-4c0d-b02b-1b3316e49928","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":79,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"c3e8af50-15e9-4f53-bbeb-810ae964a64f","block_type":"box","text":"standards.","page_number":79,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"d3bb61bd-94f2-4696-8372-6f8553a4c21e","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":79,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"f60f5417-660c-4c9f-b513-5e97191ce283","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":79,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"eebf842a-804a-4d79-ab70-fc611d3542f5","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":79,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"d0defd19-e7b8-444d-b46c-42b04cd02dfe","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":79,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"332b578c-5dce-4b0d-82b9-a5fe16ae60ac","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":79,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"2df4d10c-72fc-4997-ba89-1ac09cbf441b","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":79,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"b7894b32-7329-40de-98e5-40f502216e49","block_type":"box","text":"General","page_number":79,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"f794f7a9-e88d-4807-ad43-444b29aa36d8","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":79,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"67bea703-ba04-48cb-8aef-1678a8a8ca81","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":79,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"93ba0ecf-8cc2-4737-aa6c-606764a1a2e9","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":79,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"fead101a-7f09-455e-b104-8b6f5cf36fc7","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":79,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"9b24bd37-cc63-46f7-ae2f-bf887afb3238","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":79,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"57893798-19be-46d6-a1fd-e34dedcedf59","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":79,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"d96487d4-28b1-41cd-b77d-45fc55b154bc","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":79,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"4dd0e85e-312c-40c1-a632-b77ef973c88c","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":79,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"4d2736d7-ffa9-4298-af73-8611b417896e","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":79,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"4166dbe3-7894-428b-980c-f18690226d35","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":79,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"ef2f98ec-ba5e-4abf-a639-10aa30a3f421","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":79,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"6e9047f3-d1dc-4cd5-865f-41cdecafc523","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":79,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"13bbdb66-6f4a-4822-bdf0-d59f0d8a165d","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":79,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"237f7b92-cbe8-4bc6-8618-19270cae44c5","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":79,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"eaaa22ab-b17e-493b-a609-b89d3b7d13f5","block_type":"box","text":"company established by SEHK.","page_number":79,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"07839baa-c3ac-463a-9ca7-168904819989","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":79,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"a1a35cd0-0a35-47e5-9217-643d56301de9","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":79,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"bfb96bd3-e1ce-44da-9d1b-28d47e64cdfe","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":79,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"44cb145f-9c2a-4ed5-a56a-41bc160aa464","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":79,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"0aa9a101-ff1d-4151-bce9-07fa8868f261","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":79,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"7925dbc9-e57b-4e97-b9bd-bacfde0f3e58","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":79,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"2538698d-301a-4161-860b-c19dcf54b361","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":79,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"721cbf60-871a-4d9d-b845-7fff48ea025c","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":79,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"6e754032-d824-408f-be96-98306ae7a946","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":79,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"3d270c8f-5bca-4172-9cc7-10e5208d6791","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":79,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"58b99598-4c7d-4f95-aff7-9eb123925f70","block_type":"box","text":"II-43","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d79d493d-4aa1-48e2-bec0-8f93e65d84e7","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":79,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"87039839-ed33-4780-b9bf-6313a77a39cf","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":80,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"cf876bf7-0101-4ad4-9a2f-1b5b2bb90ff0","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":80,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"ccf974ca-1792-49d3-a8cb-6846165db224","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":80,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"3be81ad9-2445-4888-a654-3dcdbdb88c5a","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":80,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"907c5e63-89a9-49da-a399-5d5c37a3a017","block_type":"box","text":"i.e.","page_number":80,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"e0c9c72b-14f4-41ca-b8c7-849d4af0087d","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":80,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"2fda195b-1a66-4143-9a05-c4d49537a64d","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":80,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"f6dfd008-c0ad-4ddb-862e-34d02719f3d2","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":80,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"b91f6a74-615a-42a0-88e8-3bddab0628ef","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":80,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"bbd5e695-f6ce-43af-ba9d-769eef3af291","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":80,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"3ff5711f-14fe-4159-8291-eefd4cfdc24a","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":80,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"af295fdb-7756-4867-bb75-83cffcfd3a05","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":80,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"e19e086a-17dd-494b-beb9-40c037ec6a85","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":80,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"f0915bd0-3676-4e1d-a75f-402f4de16f4b","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":80,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"6ec751dd-c266-4cd6-ab51-61b79468634e","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":80,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"7c246e75-2a64-4ec2-8775-34685db477b8","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":80,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"ea3a719e-615d-4e39-a401-559c46335614","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":80,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"73d4ad5a-e0c4-4647-a679-13ddf1d4e16a","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":80,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"986d3482-9c09-4ada-95ef-26f9431dd36c","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":80,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"3739a0a8-5a9e-43fa-a95d-245b1c796769","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":80,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"4339786b-93b0-4147-acd0-d33a56690534","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":80,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"c2d9ccb6-aecd-40b6-be74-795fd8776ab8","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":80,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"09d32fd0-3f88-4e6f-8db8-065a7c3333f0","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":80,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"9dbba396-da66-4c63-a7ac-50589713e788","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":80,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"e0dc369e-da34-442d-9a0d-1380211a4f46","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":80,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"e9fe0641-7f63-4c2a-b5da-15c7650bad8d","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":80,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"26693c88-35fe-45aa-94b7-7785827ba3c5","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":80,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"c47f02d5-bd8f-4f0e-8529-275cae9950b1","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":80,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"ee66606c-6a80-4964-b57a-57bd2f9bafb1","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":80,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"b86c2a67-7cf6-4642-81da-0fec15f48e2f","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":80,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"69cb4809-fa03-49ed-9847-9ad1c839a5fb","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":80,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"3173f3a6-470c-4a32-a0ab-5c995a34cc7c","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":80,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"d60a7ea8-2568-43dc-a674-6df8838c383c","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":80,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"710748fb-f8f2-4777-87a9-0bdd4b18b5e7","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":80,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"7988c913-364d-4bcd-adf7-64843956946f","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":80,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"841711cb-6ca7-42d4-9bca-48b0d14db572","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":80,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"54addeba-0379-49b5-a9df-1a24d5021ad3","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":80,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"85b70aa3-66f4-479a-9763-43ae5348c273","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":80,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"4bdcb6f2-d06d-4558-aa6b-b8becb18e362","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":80,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"08de5d6d-e43d-4fb6-af99-29f17b263bff","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":80,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"9360c5e6-e3db-48d4-b6e1-9c912cd4a29c","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":80,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"5d9d45a7-89a4-4aff-8110-dae2193075fe","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":80,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"024e621d-53c2-46f3-a5b5-5aa900db2aa5","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":80,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"733016bd-97df-408e-8b32-92c0c2cfbc02","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":80,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"71137c16-9026-49bd-87e3-87905bffba8c","block_type":"box","text":"PRC.","page_number":80,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"c40d4692-97af-488a-863f-f3e72272e584","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":80,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"f0d20ae2-3659-422c-b8e6-1e549d493608","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":80,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"99b1e2b6-d5e0-40e4-add6-86af164e5183","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":80,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"5069b27a-f314-4545-9d2b-58f1dd8fba82","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":80,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"fe973a1b-4966-41c6-be05-e3784b10ae47","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":80,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"f6e619f4-1271-4511-8ea7-41e3bf98c448","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":80,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"82c9ca8b-ea69-468d-b38a-b50de76dcaaa","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":80,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"a71ca256-91df-42de-bffa-52459bd5d2b1","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":80,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"e25aa062-8cfa-4846-921c-2f9248a9698c","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":80,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"1d414bda-8652-4606-9ebd-59a8e9e1f8e8","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":80,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"5630ce57-d790-4f89-a9d5-5a4662794930","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":80,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"e11b67cb-6731-4eb4-9fa5-cd32c45b0b07","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":80,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"3abbf435-1e5d-4a71-88a8-31234823cd1d","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":80,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"3a9b46fb-698c-4664-829e-acfa5bfef59a","block_type":"box","text":"II-44","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1c05eecb-320f-4a61-b03a-1ee9ecab35d0","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":80,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"b87aebff-3131-47f1-91ae-4573e4dbba22","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":81,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"c1392532-c51a-487b-87d1-90eaaf255727","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":81,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"f08dfae6-48e1-4e02-b5b9-8f775924c1e9","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":81,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"4a9d9365-56c1-442e-b982-284d0077501b","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":81,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"1ad72970-bdeb-42e1-92d2-413bfb6706b6","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":81,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"5aef27d1-cf29-4e64-9a54-1cee9208922b","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":81,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"7508e4f9-5caf-4964-a165-53528b52366e","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":81,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"dc982ec8-d3c8-409f-b9f5-cb8333998933","block_type":"box","text":"Suspension Risk.","page_number":81,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"5b74e8c7-fae2-45c0-b7c6-ee63069ccf04","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":81,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"19268b76-72f6-4daf-846f-314d49075cea","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":81,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"1df623dd-9e4e-45b3-9cb6-8e633de07fbf","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":81,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"0cdf542c-adf7-41de-a3ea-6fb62e592da7","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":81,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"63c0901a-a955-4c14-a41d-44ab9ec6992a","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":81,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"02088ee8-8328-4343-a008-16dc5c338453","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":81,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"84ce052a-1873-4e4d-9daa-75d2c1e3ba20","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":81,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"9c2cd0b0-c13b-43e9-b80a-ed9095d7425e","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":81,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"4c240383-a81f-4a23-b992-9025441d4088","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":81,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"584d574f-482f-4599-b185-96876bd5019d","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":81,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"6928e7f6-627e-4dae-9f03-a5ef741996b3","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":81,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"2b99854d-23c3-4474-8200-f155a5d20414","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":81,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"96624740-ab3d-461f-a575-2cb73890417f","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":81,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"d36c2f4c-5cc1-454e-9f2e-02e9d47c33ab","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":81,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"3262ae87-3cb0-463e-8e4e-b7d2b81b26b0","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":81,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"b402cb4f-4da8-4338-bc64-a15db08cba79","block_type":"box","text":"A Fund may invest directly in the","page_number":81,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"0bf29373-35b6-4b59-8492-977a681574d6","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":81,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"e167adfb-0373-48b3-a9db-1d5640b512a3","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":81,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"f5d9cc0d-ef82-4bbd-9160-f7b1ff735a6e","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":81,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"7a30820e-fe2a-43d4-80e3-f50446b0cc08","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":81,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"f32b127d-46ad-4719-8066-f68168afb5e1","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":81,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"554e01a2-1f18-4f51-8b1e-fc6bc05df705","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":81,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"26f96ccc-07be-43c8-946e-43a78b8a15c1","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":81,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"ba1b9505-af4f-4457-9e69-cd4ffdb6a784","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":81,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"46b69348-81fb-4d3d-a299-88f74513162d","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":81,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"43ab0534-2838-4405-a033-7c27815ad373","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":81,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"4fe1ff57-17d5-4df3-b5b3-15a4a6b3964e","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":81,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"c17892de-656e-4bb2-ace6-3d8e11177bbb","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":81,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"1050393a-d105-4077-be56-9e2a69a1afb2","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":81,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"864f71f8-abcd-4da0-bf66-28ffd91948fb","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":81,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"5f4fb900-376e-4f1f-b282-16ba099f4f90","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":81,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"ed934356-ec71-4608-b572-1cbd4f490224","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":81,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"b383a880-07dc-47ec-ac41-49f81e463d8a","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":81,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"2fd6adaa-ca75-4173-9caf-f11128382388","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":81,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"4d0749b9-0692-45b2-b8ef-d4ff36150e31","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":81,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"d3245b0e-3a63-41a8-951e-aed2c2121c84","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":81,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"f240b496-c2dc-4321-9973-5a8f7371fd43","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":81,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"f3b033e4-5e54-4b5b-a3ea-0b212dd6b65e","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":81,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"2612ca4c-1759-4579-9480-b10ab6e35a74","block_type":"box","text":"i.e.","page_number":81,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"8555333b-fa4e-4f07-b024-45f85a741c15","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":81,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"26520210-33c9-46b8-bb65-46d4a4c71eab","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":81,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"b6550ad4-1190-4974-b7d7-95195533897e","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":81,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"ea0b5b8b-d71c-47ef-823d-d1dca9402146","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":81,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"9d0b5c5b-5e3c-4610-8770-a567ab0b3a95","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":81,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"7c3da24f-1105-4de6-90ba-f5562d7c87eb","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":81,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"46c545a4-2ace-4927-91f9-6d12764898a3","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":81,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"43f2696a-9c95-415e-8183-228d989a936f","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":81,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"c6e044ee-a99d-4246-b582-330e6cf31d1d","block_type":"box","text":"parties.","page_number":81,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"1f4d7630-9ada-4767-bb2d-85f18b48c76b","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":81,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"247239f6-6e53-4a6d-95e2-85278eace63b","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":81,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"7f80e5f9-c2ae-4f2c-939f-e85d9e1868a6","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":81,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"d5263f4b-6f0f-4de9-94fb-fa5d6a9d283c","block_type":"box","text":"II-45","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6e187b1d-dd98-40a0-94b6-48eced05d3b1","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":81,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5cee7402-e04b-4aa6-9643-3e6bcc3aed0d","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":82,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"9823ec54-537a-40ba-9e91-786de4e9cbdb","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":82,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"3395efcf-0985-47ee-982f-7f82e7980b14","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":82,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"37a03329-6727-4ba4-a312-2bd8018262d0","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":82,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"90baf578-d658-4f0c-bfee-bd70c75c7620","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":82,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"4519c87f-8fc0-4998-813b-d9813ccb2223","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":82,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"7a819e40-f0c7-4b95-989a-226a10c01f5f","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":82,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"1253f89f-36f2-477f-8e95-8a7f14496224","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":82,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"4e6c5cfa-deb8-4ca4-bd17-2989cc4280b6","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":82,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"644e456f-d129-436e-8838-2fdcb3c856b0","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":82,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"cdd6ce55-f84e-4205-92cb-89ecbabb9c26","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":82,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"e6e24886-9fd3-4d7a-9f65-104068d9dde9","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":82,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"df44a553-96f6-4804-aacc-962f0c27eaa7","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":82,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"a914643f-1f70-4fa2-9958-fc29ee5fd040","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":82,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"03bb1596-35d7-4acb-8e1c-365ab8802f7f","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":82,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"4de8bdad-9baf-4bf7-a881-d797f4cc64b9","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":82,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"6e0a673b-a221-47e5-b6cc-b85a968e6fc8","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":82,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"94aa404c-fa48-4ee9-927a-88ca5c877ec9","block_type":"box","text":"performance.","page_number":82,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"2c796625-abd1-45ee-b55c-07e8dc86431e","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":82,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"4cb8b0f7-b04a-4f9d-a985-7bd0d27136e7","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":82,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"a7825dbf-d08c-45f8-9782-daa5a91ed07f","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":82,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"a729d674-e980-4a28-a83d-cbb4bf3fef83","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":82,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"b2517aee-a79e-4da9-866f-75c5f287e577","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":82,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"66ecaace-e3b2-4fe1-b637-242e7135741c","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":82,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"b6d7b8cb-ba81-4997-88f1-a115b004fd5a","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":82,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"5c625fdd-7e33-4a4d-9e46-7f97e2c0caa5","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":82,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"2b5a170f-593f-47d0-be50-0e65924e89c8","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":82,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"305b5fec-ad17-475f-8789-e87b50e39ae6","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":82,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"fec54c55-8123-493a-880a-4ee69f7b7a13","block_type":"box","text":".","page_number":82,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"43a37c81-377a-4fd7-b0fc-5b2c08009737","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":82,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"109394ef-4528-4104-a4ce-325eb02c4b3f","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":82,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"6190102e-c219-454f-9aec-96d2e3946c7d","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":82,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"7ce578e8-bcd0-42ed-956b-f18f460f4661","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":82,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"e4f13c89-8171-4421-b738-550d1ebd6037","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":82,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"399c1a7c-9927-4483-8dbc-07d6ba0b1f42","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":82,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"ebe9554f-276f-4d0a-bb94-5eb638b3635f","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":82,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"9d6a9123-ed74-4c98-a573-0e5795239970","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":82,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"01648c24-91d5-4d50-9189-d986aabb1925","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":82,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"740d3014-9cef-459d-ae54-509ba3471ac8","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":82,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"0b9d5db5-3f90-4892-875b-e19821a66241","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":82,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"542e2dc9-c848-4e6b-b594-41147ccbb37d","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":82,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"538d6403-29d8-425a-8719-8e830c3abc37","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":82,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"b9cd5ea0-c4ef-4790-bf92-712fe1ce2169","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":82,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"bcc3cbf0-335d-4062-8e69-1914fa157954","block_type":"box","text":"without notice.","page_number":82,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"46b2bc44-668d-48b4-a885-cb2d71e70ed1","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":82,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"16f089ba-4592-4206-b233-bf5ac8bc9e5f","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":82,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"f12002d5-48c9-4eeb-bdbb-3e980017b4c9","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":82,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"112c2c19-d0bc-43d3-864a-226ba1146644","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":82,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"1358567c-c4eb-4248-8684-2e79b25c35ec","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":82,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"3cb1295d-5c4d-433a-bab7-a1a423317eb3","block_type":"box","text":"December 31, 2027.","page_number":82,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"b7970075-7dca-4f60-980a-43d8f8fad07b","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":82,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"6105eda1-9951-4726-81a9-2bd0069748ce","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":82,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"bf7e238f-9651-43cb-9f14-7598f15aa25e","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":82,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"f9ba559f-ba73-46af-84f5-c849f86efeaf","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":82,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"79f55b16-a7d0-499c-be67-bb7a9aebc230","block_type":"box","text":"II-46","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6cb21658-5545-4fe3-a3aa-9e09d3a4cd0b","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":82,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"fa8fd513-b986-49ca-bb78-e6f25a6ffc4b","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":83,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"f8194da8-9a60-4d34-9785-665366c57ddc","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":83,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"b0c9c97d-ea3c-4cbd-8915-05e378836ecb","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":83,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"055e7a52-512b-4dc0-b958-5eb6c77427e2","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":83,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"f3e6f36d-74f9-474d-ad3f-b449da615d36","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":83,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"79a87c39-d5f5-4971-8782-e6588c81bcbb","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":83,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"ca39c56f-d86b-4b80-974c-a7498e44b492","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":83,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"5db47b7a-b195-4e41-948a-934d32975cf0","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":83,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"e69723b4-7f2c-45a7-8014-56f0538494cb","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":83,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"89003b6b-ac93-4db4-83a5-1e35e7586545","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":83,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"fcd23772-b7e3-4147-928a-f1a2be640ea1","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":83,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"6a1feb36-aa76-47dc-bf18-22cfd06a402d","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":83,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"95aefff5-46b8-4484-9c16-db290dbc45ec","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":83,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"5460956e-f1e4-4670-9aec-a69a623b3706","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":83,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"8c628b6f-6436-44f0-9412-6f30ca3521e9","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":83,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"f500bb6c-d125-431d-a22b-49ffaff531e4","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":83,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"683fa530-19f1-4fca-8145-7d0bfbbab5fb","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":83,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"ee02b634-f01c-4774-ac8b-84031ca312c8","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":83,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"6c079baa-45ee-44a8-8606-7d0f8002d6c1","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":83,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"39a8f6ff-97c4-4256-a02e-c717bd1e1206","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":83,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"7f1ef49e-0916-467c-bfad-ce04aa3d56c7","block_type":"box","text":"the PRC in notifications.","page_number":83,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"930d8e02-1b0d-4597-ba79-289dc7ed305a","block_type":"box","text":"Investment in Other Investment Companies.","page_number":83,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"071330a8-0847-43a7-8aa6-3854c1b1a7c3","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":83,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"ef1e5977-a2bf-4bcb-9506-7d584663022c","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":83,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"3b84d22a-323a-40df-acba-00303eb9294e","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":83,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"059256ba-fb86-40e3-ae9a-62f3d6ef34b5","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":83,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"802d2f95-a822-4eb1-a4c5-5859ee302df0","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":83,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"5fabbd50-2ff4-4c5f-8ec2-a883e060a425","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":83,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"9ce9a886-d65d-4677-8646-01f26f1c71ee","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":83,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"efba7bb2-fe24-4918-b1aa-a03cd9c7cbb3","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":83,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"5953966a-0b01-4f1e-ae0b-e85a1e4bdce8","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":83,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"be5765a4-dbca-49fb-8656-339a2da2741e","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":83,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"1ab53ffe-f1cc-4165-a9b2-b8e6fd8940ca","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":83,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"920127e5-e799-47fa-a187-f86092278c14","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":83,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"4519b631-8d97-4728-86fe-2646c50fd290","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":83,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"183b9518-a911-4716-a8e0-775ccacede25","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":83,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"90a12714-af57-4b4e-97f2-6cefdac15b0e","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":83,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"3aee397c-8e29-4102-a416-e831864ebbc8","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":83,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"8dbd5d05-941d-4f01-976c-c600e8017551","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":83,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"3c5af455-aeda-4c8a-ad12-6fcde5f8e05e","block_type":"box","text":"subject to certain conditions.","page_number":83,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"b0884ced-76cb-487e-ba77-78ac4f87116a","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":83,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"1bad7467-096d-4795-96a6-ff457727835d","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":83,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"6b6c0fd9-f8be-4ece-b3a0-5f194ef9464d","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":83,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"cd2142f0-afeb-4982-96a6-094a4d79d8e1","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":83,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"54aeef0d-bd06-4887-b0e7-407c8dd76780","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":83,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"cfb6118b-068b-421d-9bee-aabc7cdc1802","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":83,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"c06ba1ed-ff62-432d-b506-384d5bbdf289","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":83,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"6d810782-6190-4d9c-8890-5664bef35825","block_type":"box","text":"loss.","page_number":83,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"29fd2279-2cc8-45d5-b47c-693f2a2dd8c0","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":83,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"35b25879-d329-4030-95f3-ce6001f837ea","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":83,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"a8ef72bf-cd86-4614-a72d-c5ad6f507a8a","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":83,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"a1052747-b293-454d-8203-ee6730137e29","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":83,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"25916d50-4831-44b8-ab63-3a72bb384698","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":83,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"75b72d70-e5b5-4b2b-baea-3d527d6d9d52","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":83,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"88832c46-11fe-471d-9e43-f547cfed878b","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":83,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"c603ac66-2f58-4a67-a4a5-5fd246ef7bcb","block_type":"box","text":"II-47","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"984e9b41-7b0b-4315-868b-e24db74657c5","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":83,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"8fadc569-1804-4552-99eb-453900c8b465","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":84,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"9c038310-a482-483f-9c85-e95337581730","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":84,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"03ff0f37-33e2-4a4e-a0e4-af47c4655f17","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":84,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"022e32d2-801b-47cb-86db-6711d71db273","block_type":"box","text":"assets.","page_number":84,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"53673c5d-a8e0-4e91-b655-94ffbd5b05ae","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":84,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"5d009de4-6ef1-4e21-ae1f-35f6a5d02241","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":84,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"5ee02f6b-3349-4ba7-b362-799988cc134f","block_type":"box","text":"e.g.","page_number":84,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"a0320f94-b52e-4ecf-ad4b-f120eb011515","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":84,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"e8e00148-4555-41f5-9062-a9364a9d6b50","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":84,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"d9747989-6788-4858-85ce-004cd026e8cc","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":84,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"3e3c6928-8718-411f-88a3-de4d9cf8b21a","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":84,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"6e16cec2-1267-45c6-a97f-27361c38ba5d","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":84,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"6dc9c742-0c19-4544-a513-31a2dfee20a0","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":84,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"cb55a395-42e3-4b3d-90ad-29cee4bb4517","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":84,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"98ddef7d-cdeb-4afe-823e-063597b87e97","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":84,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"8d1d4323-398d-4b1d-8056-c7cb07953277","block_type":"box","text":"countries.","page_number":84,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"0fc34368-d72c-424c-ac75-aed06b9218a6","block_type":"box","text":"Issuer Insolvency Risk.","page_number":84,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"2a932c4d-b744-49f2-a9f2-1753baaaa54b","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":84,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"8c4e2d79-a584-4726-82f8-bfc58beee9be","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":84,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"621a7955-b9de-44da-b1f9-cbf148e4a619","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":84,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"9c38d71c-daa2-4ea9-a49a-ae904ed637f4","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":84,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"b89c5b9d-e7ba-4715-b1b9-145b63a1b3a7","block_type":"box","text":"issuer uncertain.","page_number":84,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"2e53be79-e95e-4ee7-8883-1084fa90d18c","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":84,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"ca7ef7e7-f0cc-4ab9-9dae-b881f1221915","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":84,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"5bb72239-c2f1-4861-80a1-46aae44ea6d3","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":84,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"dd05a600-69f5-4177-a0ae-b3adf119d90a","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":84,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"ba135fa1-be77-4363-b2d5-3d7092c314f6","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":84,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"caf77ee5-ba59-4c2a-baa3-aac346271bc3","block_type":"box","text":"eventually be satisfied.","page_number":84,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"3d185ddb-d46f-41d1-a7bc-7829d9aba396","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":84,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"24afd219-17cd-4a62-b07c-0ca0cf6e890c","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":84,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"20f50d66-f949-46b7-b678-b517a3bb3a77","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":84,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"b85c49da-a30f-4334-9438-8f9cbd88206b","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":84,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"62944900-eb4e-4434-8cc7-b05f9933ab74","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":84,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"d61ee5b7-7829-4390-939c-61cdec293563","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":84,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"a663be4c-62cc-443d-9205-7773ccb646e9","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":84,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"8eb9564d-a435-4e18-a894-3beea6a3a20e","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":84,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"6c253234-589b-4802-b574-f8f9ffd91e55","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":84,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"71eb1f94-29c1-4129-bdb9-7efceccd672a","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":84,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"bc66bb22-5ac3-40e1-84f4-c60f66f7d8a8","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":84,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"9189dd6f-37dc-456f-b7c9-297e423b5fdc","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":84,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"ec6577a3-65b1-4f40-b598-82a3c37f05bb","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":84,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"1908c1b8-97fb-4c7d-9e9d-6aa7a357f0cc","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":84,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"da6dac24-aaa7-4f0e-b1c8-52c4e5981a29","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":84,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"a364077f-c194-4a05-8094-e7052624b562","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":84,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"e4b6ef83-73fe-4d98-9bcb-ee2bccc65f55","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":84,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"72afe23c-97bc-4fe8-bbaf-92c72ecb5c49","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":84,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"1ea23fb1-9a18-439e-b92a-01c9df3e3fe2","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":84,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"f456b0bd-214f-4e2d-b04e-88b224b9f0c6","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":84,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"b3f14204-22d8-4391-a03b-e30736d22382","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":84,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"2d330452-5646-4c8b-a911-b538619ca723","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":84,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"1c44da15-9ea9-4394-aa85-e21396478499","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":84,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"79f16fc1-60e6-4510-b940-43f036cb09eb","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":84,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"8e85bb1f-d386-4cdf-8594-53ede76e95f5","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":84,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"2bd98b2c-7d05-4965-aad9-9f5778a51a79","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":84,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"be2b8a6b-2167-44bd-8368-bc30ce836f02","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":84,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"06b39c08-f423-4f01-a2ef-3e822e83f80a","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":84,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"87f536b8-8f78-49ae-80be-74236ed4911b","block_type":"box","text":"that assumed generally by an investor.","page_number":84,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"fa327041-addb-43c5-a8d0-843d15d5d69d","block_type":"box","text":"II-48","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eb57ca2e-1165-4835-99bf-411f18afc690","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":84,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6ee645bb-3302-4863-8eae-566a3aa56824","block_type":"box","text":"Lease Obligations.","page_number":85,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"82e91fa4-3051-4a38-acfc-3db4244ccc57","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":85,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"7fe3ca8c-ee15-4a12-b0ef-ab225dbb4727","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":85,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"9279756a-5db6-44b6-ac27-9f399c9cc3c1","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":85,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"ee5cec10-be00-43b1-a8be-1f8b4981125f","block_type":"box","text":"Life Settlement Investments.","page_number":85,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"0c83d7d3-e74c-412f-b35c-1f22c98e4c72","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":85,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"bb68ebae-8d77-43a7-b6e7-358f4fd7df85","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":85,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"6e3ed726-dbec-4bb6-b8dd-e1dcddadae05","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":85,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"2ddd3734-98b8-49fb-b860-80ec898c4d11","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":85,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"767c2274-deee-4a86-bab0-ca700c7e08ba","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":85,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"75a129f6-12aa-4e2d-8879-bd1c93fa5346","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":85,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"bdf78dd1-c7e3-4435-9f03-d606301acd70","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":85,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"fd3a7268-47b6-4139-93ab-85d930865a00","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":85,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"9af2eb0a-8d56-4516-bf15-cf48ca95e9d3","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":85,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"e353dc7e-e979-40a7-ac95-d9c2ec59fa8d","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":85,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"e240f44f-c9d6-471c-ba7f-dd4c872bf64d","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":85,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"30e6e68a-ab75-46a8-9117-8540441470af","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":85,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"7bc95a46-69f4-4de0-b70f-dbe6abfa27e2","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":85,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"bffa9f57-1708-4d96-89ac-11ae40cb6f97","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":85,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"083c5334-0f4f-46ef-a910-d66e17e4c91c","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":85,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"fc632e31-d709-4cad-aa12-1330e21e8279","block_type":"box","text":"Liquidity Risk Management.","page_number":85,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"6ba04eb6-ff9c-4b4e-baec-391f38e050d3","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":85,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"cc2ec8e6-004b-43f9-91fb-15224ccf30ba","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":85,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"b6ca3f72-1c10-4e80-b57c-85b23bd4572a","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":85,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"6fb295ca-786a-40dc-a3f1-8a79b4d0d9a5","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":85,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"2f5c4e26-51ee-4792-9cee-cfbd36ec9630","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":85,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"3b5fc0d9-69ea-4855-8470-4075ab72f97d","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":85,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"14875256-697b-4ecb-9d4b-a272cf60bf24","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":85,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"4e98d629-f366-45e8-9fcf-c0ce87cec6d5","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":85,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"e5a315c5-d9c1-409a-8c51-9296b229e2d5","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":85,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"bb2e92c2-7621-4438-b8d5-ded6afca41b4","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":85,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"eddd3902-19c8-4649-9dad-b4c0469947ae","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":85,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"0edeb33e-063a-4d6d-8c65-fc80bc6d88be","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":85,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"e34fde1c-98ee-414a-a645-4ee67f024a36","block_type":"box","text":"Master Limited Partnerships.","page_number":85,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"9196f4f2-6356-4de5-9812-b0fde611fac6","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":85,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"f530c73c-5a40-4a59-bd55-de7d1d08fcc6","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":85,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"cf643094-ef5a-48c9-866f-4743c053da4a","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":85,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"d3e79d97-f49b-4bd2-9c50-c9b1902a4a46","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":85,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"1defc34a-2aa9-4ffc-81dc-adf2c26b1be2","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":85,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"a32904c8-cbed-463a-a50b-b0d5380adf78","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":85,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"5181403d-1620-45e0-b5bd-1e7a53a9f1c6","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":85,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"e91fc875-1c37-4b9a-9356-6f5b51047386","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":85,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"26af77c3-bcd6-4b1c-aadc-55adf5018332","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":85,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"4af91212-76e4-4225-aab5-38fa02e442d3","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":85,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"a1935b11-272c-4880-bb57-aec309e33d81","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":85,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"2e1181a8-984f-48ae-8995-8fdfb1b3ab9c","block_type":"box","text":"in the partnership’s operations and management.","page_number":85,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"02e4c5a8-0cbb-470b-a74d-a728443b0ded","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":85,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"3c63ab15-b8aa-4d19-9135-711fe4ef8280","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":85,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"7634d3b1-3d95-43e8-9cf8-00c25ba2ac6f","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":85,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"34c222d8-639b-46e4-a4fc-52783927e7ec","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":85,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"f6a7e322-9103-4c87-a8f5-ab3630800d44","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":85,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"7741e487-4015-4afb-bfb2-0a73e36d3534","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":85,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"20bb13f9-0952-4db5-b295-385462dcdc8c","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":85,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"33141a2c-435e-4e7f-960c-d7107356110e","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":85,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"cf8ebe48-7d78-48d0-a178-d9c956c4f531","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":85,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"0d135260-0bff-4a51-8749-7f1e608f03c1","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":85,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"a6d80c6f-a27c-42f5-b1b1-7feb04749a8e","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":85,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"c5605c41-d36f-4d03-8d97-adc37c08b1ca","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":85,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"2c8b02e2-cf7a-4b92-9d19-98dd96cf8462","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":85,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"1036c7e2-2a4b-488e-8dea-2c3444032b04","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":85,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"cd7d6ff7-c06e-4d67-a82b-c19446229ee7","block_type":"box","text":"II-49","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f212c1a0-cad6-4be7-a56c-059cecf2bf54","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":85,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f2268ead-ddee-4831-a6d4-c06fbfcdde59","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":86,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"d011f323-a317-40a9-b822-356832181212","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":86,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"14fcce74-bac7-4463-8cb7-793287dfc79d","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":86,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"ac467b95-8f89-4e3c-88fe-17148b2833cf","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":86,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"079afb6c-50de-4634-b8f8-b61f8cacd5de","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":86,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"5a6bc071-fc77-43c7-b9fa-fe9cd7239381","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":86,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"ff9ac61c-acff-4828-8287-a029e7071420","block_type":"box","text":"Merger Transaction Risk.","page_number":86,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"3b5740e4-dff0-4996-97f8-ed7ba0cf6caa","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":86,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"f54c61fb-d218-48a9-8a24-e1357ceee543","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":86,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"b8e85caa-de49-47b3-b8b0-1771bbadafa5","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":86,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"55101d55-2041-40fc-9aa2-1fb1b3c7431e","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":86,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"07e551c1-f28f-45d3-b7aa-6566076208a6","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":86,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"8a5d91a6-1d69-4352-887b-503e1115138b","block_type":"box","text":"the Fund and may lose significant value.","page_number":86,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"4a777127-5f3b-435d-b99d-55dbe875a09d","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":86,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"e61a7015-e1b8-41ae-bd45-8229276d8d4b","block_type":"box","text":"Certain","page_number":86,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"b5858610-adc2-4b5c-bfac-79a239d10553","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":86,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"bc0eca9b-24d4-40dd-a9f9-af4bfde0a22e","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":86,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"9631127b-a884-4454-9008-af05b541c38a","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":86,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"24bb0576-09b6-49c1-b7a9-bca2396a6316","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":86,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"1e6b6fbb-16cb-423f-9412-6f6a110c077a","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":86,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"bdabaea2-0a4c-41f3-9076-5c7919ccf5e3","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":86,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"3a847717-e021-4355-a62e-93d512859fb2","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":86,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"0aeb99f9-1c15-4b01-81bc-668c6be84ca7","block_type":"box","text":"branches of domestic banks.","page_number":86,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"1ab8f22b-e4fb-4657-adc4-1a42972915f2","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":86,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"d056dd1c-7760-48ec-a1fa-83978ddd9c33","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":86,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"6c2a66aa-2f6d-4706-ba04-07778ceb8572","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":86,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"b2cb26d5-dd51-4736-95db-9c82995cee53","block_type":"box","text":"paper of a foreign issuer.","page_number":86,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"2a9b8076-22e6-4cb6-9613-64a3eae403aa","block_type":"box","text":"Money Market Securities.","page_number":86,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"0c9229d1-0042-4815-8f91-d1fdeaea4031","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":86,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"35f6ded1-97d9-4c13-9a04-347d1ab069d3","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":86,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"240538c4-5db3-40dd-8a8e-8326562200ea","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":86,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"8b80afe8-0e55-4da4-9adb-fdd41469330e","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":86,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"7f5efc53-16fb-4cf6-a09b-73ff3bcdd524","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":86,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"afe427c7-f181-464b-8ad1-e073a28806b6","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":86,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"639fa3c9-f30a-4382-b7bb-bb7502fb6717","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":86,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"0ff4cacb-4284-4f65-98fd-ef7510b65ef5","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":86,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"9a20cee5-2ff3-4f24-8dfb-a6a90f184830","block_type":"box","text":"agencies;","page_number":86,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"12ef6122-b1cc-4839-9503-4fcbe4381b12","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":86,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"24626c53-c19b-4a82-9909-eaac46f77a26","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":86,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"769245e8-e336-450f-98b8-0f57ca2a6913","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":86,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"ffc85d32-2fe4-4126-b79b-fd99093e5683","block_type":"box","text":"obligations and credit card receivables);","page_number":86,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"450987ae-856c-48b4-87ba-aa4faebcf6fe","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":86,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"77350c7c-d2f4-432a-b4ec-793563c074a9","block_type":"box","text":"authorities and related custodial receipts;","page_number":86,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"05fa39fa-b68e-485c-97e7-5453865007b5","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":86,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"7ed3c024-a2ac-4c18-a039-346cd6f7d1f0","block_type":"box","text":"agencies or authorities;","page_number":86,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"a28fc8d8-7052-44d1-be05-dcab31d83f96","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":86,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"d96d58f0-64aa-405f-92ba-30d8498ee342","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":86,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"1198adc6-2382-4c78-a00e-c81b1a656389","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":86,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"9c6e1243-cdec-4551-a2f0-20043d3fe175","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":86,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"094571f1-53f9-48ad-97a5-02006336b789","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":86,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"69378fff-0973-465d-a499-48afc49b9865","block_type":"box","text":"States;","page_number":86,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"41db5b4a-61cc-4aaa-a52a-593d17080c9f","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":86,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"7456db53-670c-4d5c-9fa7-fae5d8d838fd","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":86,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"5c50374d-aef0-4fa5-a8af-618ef2c7c15e","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":86,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"f24cdcd6-a838-4386-ac69-f4de70d4e9e0","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":86,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"da9605a3-5c19-470b-bd4a-51d4cdf1befe","block_type":"box","text":"II-50","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8dd250d8-8470-425e-925f-8f63dcc16cc3","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":86,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4ab3124b-d7a5-4a0c-b0d4-9c0ff7a7291f","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":87,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"077e812f-f89b-409e-b99d-35110a1b826a","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":87,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"8e6e6e2d-b8cf-49d2-a9f9-288c49f6e621","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":87,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"3f2cf054-d465-4f27-901b-bb5b06a145fe","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":87,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"833acb82-7e9f-4c72-9efb-7a0afe5693bc","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":87,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"a15b1ae6-4a5f-438e-9bf1-331aaaca2179","block_type":"box","text":"States.","page_number":87,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"6908ece1-fad9-4ed5-932d-f15ffa51bd91","block_type":"box","text":"Mortgage-Related Securities.","page_number":87,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"633f7e80-3a76-4727-9359-086d179fc020","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":87,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"aa049913-5b2d-409f-b60b-d04703216f39","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":87,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"44a20f40-947f-4d24-aa2e-2b4f4a15f47d","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":87,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"457b70f1-b56d-4197-a21a-2f831310eed1","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":87,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"8f25d285-4617-409e-b28c-a4df97986afb","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":87,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"f357c5a7-16a0-4a5f-9787-d51e7d28dd75","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":87,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"8cfa21da-8766-4e1b-82f9-10b81d833a1b","block_type":"box","text":"maturity or specified call dates.","page_number":87,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"ba64c3d9-c485-42d7-ac1e-c8b2951d9b79","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":87,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"5fc2a944-b1c0-4d4d-acfa-7e3d29dcadca","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":87,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"e36755a2-e820-49be-b662-738dd976efc1","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":87,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"8cf6c239-821e-4da8-a7a2-b2b002d77f5c","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":87,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"a5661f25-564a-4c7a-bde6-87a46bfb5065","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":87,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"9e53600e-d08b-43af-8a62-838793adc97a","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":87,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"3ff02bdf-098f-4a79-bf18-6eafa6f93b29","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":87,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"7fa2cf36-7b99-490b-a131-09e03891de54","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":87,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"9b725aa3-495a-4f47-b50d-c9af6f70aaec","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":87,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"12e08c7e-69c3-4f7b-bb73-2f2cd8707922","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":87,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"514d0fe6-f6b4-4461-88f3-5fe0665da739","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":87,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"f3e42a3b-4af5-4dd6-b78e-770144641175","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":87,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"a7d122e3-e1be-41e9-9e29-72021dec97a6","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":87,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"b4d93052-c704-4947-9145-3ba110b49027","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":87,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"591689b6-9350-4c17-8b70-036f86b83dd0","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":87,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"df9f40cd-2857-490d-8de2-485bc476f964","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":87,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"8424b7d3-0c4f-4a83-bb83-243671304c95","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":87,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"cbc94330-53f4-4b64-bef7-671ac93cecd3","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":87,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"11cc976e-ef6e-4d36-a663-e46c244f65dd","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":87,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"bb186d8a-df0e-4897-92cc-b198c352196a","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":87,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"dec15dd4-f34e-47c3-8291-9c81d7e7bc89","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":87,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"889ff2d8-943a-4a88-8818-6b65cce57bee","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":87,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"cdc0c304-b47f-4bb0-8b67-633f5e3b1f49","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":87,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"9186a0d2-9506-4ae0-bb4f-3b3bcf09881d","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":87,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"11542b1f-a341-4fa9-b741-536847fc07e8","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":87,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"da26c483-86e4-407a-afde-a636751d4828","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":87,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"e5d93923-0394-481c-a1e9-35d0dec37061","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":87,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"d726bdc7-41b3-4a8e-b73f-8d25cde26596","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":87,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"9e27828f-0b8a-4a44-89ef-9504f2f6c0f8","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":87,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"80e24b3a-a796-47e9-a09b-5b766286d384","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":87,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"0443c6bf-34a5-46fd-956d-367cdb8683f6","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":87,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"62cc7387-eef6-4a06-98f9-c6bf71e85097","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":87,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"b900fb5f-4d8b-42a9-937e-76f481b3b34b","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":87,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"3d1d0540-0d16-4af4-8d8d-132e6bfd14b4","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":87,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"5b279604-636d-4217-9502-d0f94273e905","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":87,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"137a4c65-2fe2-4656-aa30-0f4726fda027","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":87,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"d1247abf-6373-4fee-b62a-7af71493587c","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":87,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"49077b75-4641-4376-b6b0-008f423745bd","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":87,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"ab6e4f68-36d0-4977-aa82-23137865ed33","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":87,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"6cef40b5-af16-4494-af7d-ad9c4060767c","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":87,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"bd48368b-ce22-4022-8c46-a20c3d564a49","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":87,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"6369a8a1-94a8-4ad1-91d9-01b8ec8c4dc0","block_type":"box","text":"II-51","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6a4ee72c-5a91-4832-9c14-dca01c566797","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":87,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f3e786b9-4b1c-4b35-9000-db3bd6467c44","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":88,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"3a0bd5c6-3edd-46ce-ae31-9a72084ace3e","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":88,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"8c3bd4c7-c3f8-422e-a490-5a804b7c5392","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":88,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"5bf6637d-cda1-4ff3-b920-222975d0f6b9","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":88,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"4f4a943f-43ec-4246-95bc-74cb6a7c6722","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":88,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"6615d4fb-1b40-4906-9b61-8f3442ddbba1","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":88,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"bb92f21b-9fbe-4951-98b5-2828789cb0d3","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":88,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"455e2845-aa01-48f4-8c63-c8b2cf5c618d","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":88,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"c3777c15-6605-4476-b648-9512217f39c4","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":88,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"3818bd39-7378-435a-9d5e-26386ea4ebda","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":88,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"ebba3d0f-1b63-4b5c-8abb-19accfb9c2e1","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":88,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"5a7b04e0-d2f0-4cc9-884d-be624e3186b3","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":88,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"ed919a1c-3226-4bc2-81ab-e27e73f29a0f","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":88,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"1b6500d4-c315-4cad-9eba-1a685ef1acb8","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":88,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"ae030c35-c489-4e35-bd89-5114757353c7","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":88,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"643e3ae7-17df-4984-a183-b9eea3750e4a","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":88,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"93554a12-1b3f-4f59-b7d2-3fe682bdfecd","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":88,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"e2f2ebeb-84f3-4c72-aebe-8c974f270a75","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":88,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"c49b3260-145c-49f3-bc6b-83f721f8239d","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":88,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"493fed9c-6158-4d48-980f-79ba9248a73c","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":88,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"95eba2a8-9ed4-493a-964b-4976020be3cf","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":88,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"07e2e6cf-08bb-4284-ac34-2a4249b4e64c","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":88,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"9ca24ca3-a715-4f03-a51d-6cb97edad620","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":88,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"fc051b45-604f-4d79-a279-99775f269080","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":88,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"93c0a318-c63b-4cae-bd2a-d626e922b6ad","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":88,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"bb466e3e-3e29-4959-a5c2-43f20b7673e6","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":88,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"fec2f25f-3cf3-47f7-8a77-57d270888d66","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":88,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"a340d459-be30-40ff-ad51-e80fc8501031","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":88,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"9942ccc3-c57b-420c-a45a-5a189c5a7291","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":88,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"dd0cb31e-8fc0-40fe-a0db-7a97056bae1b","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":88,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"9f68657f-fb4e-42f8-b338-3b1a0745810a","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":88,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"8221cf3d-050a-4d30-a0f6-f2d3dee39a0d","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":88,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"e3c3817b-b76e-4d4e-b099-15f819632fc7","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":88,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"1179b6b1-5456-44f6-9f23-57f9e2e22002","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":88,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"695dbec2-6a8f-4fd6-9fc7-cf8ed3cbcfcf","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":88,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"e667ad55-9bf8-4a1e-b46b-c4416ff07005","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":88,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"c8e21196-ec40-42bf-86a1-db499e9eec72","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":88,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"4a6a6a83-55a9-4fd4-ac7a-13c93f71c7d3","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":88,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"efa4b490-0e8a-42e1-bf92-8b7ca5db819a","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":88,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"585962b2-45c1-482f-9548-d7b55573d070","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":88,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"4487023f-6878-46f6-9707-0024b6ce3252","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":88,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"7d77bb1d-1407-49fa-b4d9-0d895734949c","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":88,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"2aa27bad-2f18-4d8a-8654-3289fe37fa2f","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":88,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"7d084a5e-0c20-4802-8236-48445957c127","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":88,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"f003dfc3-8016-4997-8b5d-7321511145b4","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":88,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"551e6582-4cbf-4d46-bd48-3b6fde68f2ec","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":88,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"80bff0ad-a49f-495b-997e-60a8ac7bff6e","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":88,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"470073e7-b172-4386-8bd5-bf63f5e7d4f6","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":88,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"3540c071-cc97-4fe5-9cff-737785fcae83","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":88,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"b30be1d7-c5e4-491a-8f39-79c10f2708b5","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":88,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"71f5cdbb-9089-4be0-8e04-3aa4476b2be5","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":88,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"6e68a9ee-ced5-42ec-9ebe-965b592b4be5","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":88,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"50c839d2-48bc-4e30-982a-b309f335daa5","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":88,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"afca013a-19e2-4c65-acb0-fca7d4343c34","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":88,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"34847424-4ff8-4759-9a7f-e4ff14e9ec68","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":88,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"1669c06b-9dde-4ff2-a9fb-32d8eddcc047","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":88,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"cd00ca21-7d18-4b0e-bcf4-78d84a265659","block_type":"box","text":"II-52","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aadb0dc8-63f0-4052-a951-3158928e0b06","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":88,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"aeedc2fb-153a-460d-a15e-66464229b5ac","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":89,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"6e7efec1-9e2d-40bf-b329-7be2a9632ecf","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":89,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"ef2a046f-238d-4bb2-a8a7-0028ffa12ed9","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":89,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"85a55219-f6a0-4ec9-a666-7aa89adcd035","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":89,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"5f29ce0b-6ae2-4c38-acb5-5a0e8cb3a3aa","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":89,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"82b0ad77-01ea-4651-86f5-56d65e7e047b","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":89,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"be60d4c8-4ebb-4b30-8228-73e24fc63c2c","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":89,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"ebd0c873-1abe-4ff7-8070-c092fe34987f","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":89,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"61783601-a2a4-4446-be62-8ad1a49528d7","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":89,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"35e496d5-41d2-4d4a-a2a6-12cd4f09d86f","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":89,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"87a11fef-936e-4def-9257-127dcdf13427","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":89,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"b7cc2292-58d2-44e7-ba73-91bbe2914414","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":89,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"3c137431-8536-4e93-ac6b-3ef40fc4fda4","block_type":"box","text":"of principal because of the sequential payments.","page_number":89,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"e9adcf73-e53a-4329-a0d1-ecf2aa9d21eb","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":89,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"87f9c2cc-f4bb-4074-8978-de5b462d6f76","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":89,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"202642e1-fe18-4fa0-9172-978337e88ca1","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":89,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"f9928802-f7a3-443a-a935-8a3a3508dcfc","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":89,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"9553778d-d35a-47a6-a129-7c2309f91e14","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":89,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"fc06dc9f-000f-43b2-9483-ad3d25abb6f8","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":89,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"4abdb5a0-50e8-40ef-9655-620d68f25315","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":89,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"64a24f6f-9fbf-4ef4-bcef-b98bb2ae22af","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":89,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"1b1890a1-b614-440b-be21-fbe0df171c2e","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":89,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"9a8549aa-7c9f-4e87-a2d1-4d42b099d28e","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":89,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"39b8024d-e193-4592-a8ef-e4c743e07388","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":89,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"078dbe61-82b7-44c8-8b5a-326624b4c58b","block_type":"box","text":"securities of any single such entity.","page_number":89,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"cf5563fb-25f1-4645-8962-73397613896d","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":89,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"9e5a0fff-d6e4-4c3a-be9b-1c6802dcb8c8","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":89,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"204ca4ba-533d-4a51-a92b-4bf0f0822128","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":89,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"fd9750b2-17a2-41ee-9e50-8c55f51fdd61","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":89,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"e13e015d-d65d-4f43-8b2d-7b2b88af8228","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":89,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"a6718b5d-4307-41f5-bae4-cf04c58e2801","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":89,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"2b7019d1-c16f-42ae-9d6b-3e45704701d4","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":89,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"95ead17b-c47d-405f-9b29-9dbdee4ba587","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":89,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"40765445-5b21-468e-aa05-16a52835c3ef","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":89,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"01535e91-0d69-41ac-9613-d560cef3cd2a","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":89,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"eb03a0ff-5bbe-4c66-925c-72641c3f25dc","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":89,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"fe4b3be4-8c96-488e-8191-c98737ef6519","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":89,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"5f7282f2-7044-4e4e-bcfb-03e805d315b0","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":89,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"640a67c5-d239-4450-9020-6c306a51a593","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":89,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"f85401db-2323-4ac2-a438-08645d352e3a","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":89,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"f2f300b3-0822-4089-b720-02e4a999422c","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":89,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"c1ec5738-be8d-4e87-85c9-10ebbff5eb45","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":89,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"ce228a95-f5f2-47c7-a0d9-44b563cca755","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":89,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"a7227709-7448-4457-a178-d811ed5216cf","block_type":"box","text":"classes.","page_number":89,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"d178fe03-f37b-43ff-a4b0-f8a648bdc8f3","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":89,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"d1968d36-f001-46f6-aebc-591c9b431d85","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":89,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"32d5e24b-abab-4b5f-b022-acddcb78aed8","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":89,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"94593ac0-6f96-465f-960f-4aec24c7411e","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":89,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"ce3b8693-9050-4f62-9e3e-8b8e27268bf4","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":89,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"a474775a-f57d-4783-8829-0de10f2489f7","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":89,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"5a6ab59b-2653-4456-b34f-d298521b5ced","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":89,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"e71f05f6-5524-438e-b297-b91dc5d3fa49","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":89,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"06a8bede-a94d-49ad-904e-8e72110940e4","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":89,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"471fef6f-a3e0-499d-810d-8c1d7347070c","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":89,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"0779d68f-82a2-41c6-9d54-303356e6dcd3","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":89,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"ae0740d0-e7ae-40f0-8898-ab11dea52c79","block_type":"box","text":"to a designated benchmark index.","page_number":89,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"8d5e6275-02c6-433a-abc0-d7e1b879fbef","block_type":"box","text":"II-53","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d5155be-ccdd-4ea9-9ed9-273f7c0e63a7","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":89,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"372bb218-98fe-4472-b7fa-f038a61ff9b7","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":90,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"9c707b02-4616-44bb-8998-f2e3d837e3fd","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":90,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"08435434-23f2-40e2-9fc7-eee809212bd6","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":90,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"d3b80365-dbf9-4b89-869f-b7379f8c085d","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":90,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"9e4bfc3c-7d01-4732-96b0-5a4c93b39bee","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":90,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"b2b34289-a0b5-408e-ad74-7f70060b1969","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":90,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"f2fb6870-0249-4d2a-a4fa-997918e95cc2","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":90,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"840935c3-c4e4-4e94-83e1-668fd54b2d70","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":90,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"be0e74f1-f51f-46e1-99f6-9f3927c0a233","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":90,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"25e35ed2-6bd6-4afb-8f3f-be0ff4c9d459","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":90,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"bd6b4fb3-39b3-47db-b375-84347da4a774","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":90,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"f9eeb037-67ba-4b67-946d-9c9c177de0f5","block_type":"box","text":"CMO Residuals.","page_number":90,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"b274b681-1c3d-42c3-9daa-4815f7df203c","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":90,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"4725947f-a7f5-44da-90c6-0863787c8571","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":90,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"8aea86ed-c003-4231-a51e-19615656dcc8","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":90,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"561fe01e-d1cc-4f5f-a95c-0bd7f9c45de9","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":90,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"55e0901e-c211-497b-9a76-a8da80e7e25b","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":90,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"0f4d39ca-044b-4779-9988-e7e2d5bc7ca8","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":90,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"5bd479dc-6cf9-4171-9f6b-869365ababd4","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":90,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"8cb994a7-a746-4bcd-b5cf-1fc66c2b0784","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":90,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"9baca1bf-0843-4773-b1df-894b8cfd4c21","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":90,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"b1f077f9-259e-42b0-aeb6-47eb715ff917","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":90,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"de099586-2bb3-40bd-a3af-1d754f364432","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":90,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"7ca64e00-61c7-402f-a04b-158fb57ee945","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":90,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"c600b223-4283-4dad-aa63-e799f52b4b60","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":90,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"30f9819e-2fff-42f7-8a5e-1edd8793b577","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":90,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"ec9ee60c-bebf-4e7c-818c-23d5c3e563a9","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":90,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"9ce47a1c-0242-4d9a-9758-db3c7a8cbfc7","block_type":"box","text":"a CMO residual.","page_number":90,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"c6cfea57-8f99-4d8c-9e1b-ab80a33a1695","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":90,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"6a7b3331-5d2e-4c62-b1e6-09d5d19b0ee6","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":90,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"9ce27bdb-0485-4ca0-b6a2-42d96f8ca3d3","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":90,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"e49be2c4-b15c-4e9c-8bbe-02a5da4838ae","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":90,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"334a3656-f806-4ee8-bbbb-2800426fd82f","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":90,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"8d34fe1a-2ea3-4c42-8207-e60d091af299","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":90,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"1ba07875-434a-4ce9-85a8-94c7cedd6806","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":90,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"473110e0-007a-426e-8f0c-52b392e4d585","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":90,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"9eb20a7e-23da-4ea4-aff8-00703bce898d","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":90,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"90fc49d1-8309-4e89-b2c1-18145fbb5d00","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":90,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"25b94320-84f3-4961-abcd-a60073dcbbf5","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":90,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"28d7f790-7e20-450e-8fa3-1505d1ee2166","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":90,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"1af6011b-d375-4056-b6ec-9786c505d075","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":90,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"d16e6806-94ff-4077-b282-15cbd4d51522","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":90,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"7883ed43-88ed-4718-9208-a9e054f5f5bd","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":90,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"16d8969e-54ca-484f-b4e8-ee9fb617b0d4","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":90,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"2eb3df05-7937-4e0b-acaa-c6ae2cda812e","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":90,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"9f6af3b8-28ec-46f5-9523-b72a632cc38b","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":90,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"5189ccf6-e4e1-478a-8acd-22aab15af0e5","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":90,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"db027c35-e737-4720-851a-49bbb92927b9","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":90,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"47528821-7945-4e4c-81ea-fde44e4ebe67","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":90,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"01bd011b-9e59-4191-9083-0a4f26b9f3db","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":90,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"d66831ed-4c27-49f8-a619-6f0cece1652c","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":90,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"470a5550-517c-44c5-a079-6beff3c82ddc","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":90,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"1ca68fb9-8eae-4843-8c29-b488e1bab3fd","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":90,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"aef4b41b-0bf2-4661-8e78-97129aee2032","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":90,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"eeb42164-2e2f-401d-813f-34892450856e","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":90,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"06f6323d-dfa6-4036-919c-f50203c2a059","block_type":"box","text":"Tiered Index Bonds.","page_number":90,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"13873e7e-5778-4c3a-acd7-c88acf99ce44","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":90,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"c91ba205-1abb-443f-abe4-fecc30bd59a0","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":90,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"6e83f8dc-8a47-40f7-bf7e-0f464673a305","block_type":"box","text":"II-54","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5df1ffaa-af0b-48e4-bc57-d04737f006df","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":90,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"b1b5b904-ad9b-4033-9152-0b083ca7793f","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":91,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"97a6b6ae-9aa9-4d7e-a779-2bb34b7548b2","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":91,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"03e27f06-4646-4f72-b21a-995a5a94369f","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":91,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"3754bf15-06d7-4133-ae35-11d31a3b9040","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":91,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"8b808085-3e46-420a-9bf0-4d6bb39c6314","block_type":"box","text":"that of a fixed-rate bond.","page_number":91,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"399303b0-ca6f-4590-847a-7d1c71ae45b0","block_type":"box","text":"TBA Commitments.","page_number":91,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"7ef039ff-e20a-436d-90bc-f26f74d667ab","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":91,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"d7b4fd24-cc70-43bd-bad0-0997435bc807","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":91,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"bb4b113c-e4ce-4055-8077-1dde593f2d1b","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":91,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"e8288b9d-3f80-4cac-96ef-928e2860b1c4","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":91,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"c8bc192a-4444-4d69-8f11-955dd3ba743b","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":91,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"ae6eb8fe-6ef4-44ff-b18f-d211e6750a11","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":91,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"28ef4df3-ed78-4471-8647-1d4f289fe647","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":91,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"f26a1cb4-9916-4d60-a68d-2d3a9e130bef","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":91,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"5b7b0d0b-85bd-4c01-8927-14da7889601e","block_type":"box","text":"below.","page_number":91,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"693d8622-7fce-4f12-bac6-ab717c4534ce","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":91,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"2c4abb82-c80a-469d-b425-2e916648efd4","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":91,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"c018347f-58ce-48f1-b2bd-dc848830427c","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":91,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"26da9a51-7eb3-410a-ad33-91a6c3845606","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":91,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"dbe82d0f-31f2-4d0e-bfee-bb6c33e31334","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":91,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"8bec14e7-1cb7-4f61-8c1c-a6eeaff32238","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":91,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"e01a0eb5-5ae5-4154-9e0a-a4037af0c01d","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":91,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"1db6f7b1-b40e-4ebd-bc36-996fe61cdc8c","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":91,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"1a4df19f-9181-430e-b4d2-b0d14f3aaf9b","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":91,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"668e315b-6db0-4db3-9e5f-f30330b0944e","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":91,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"7eaadc22-c4a3-4358-95a2-76c8bf9dcbf0","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":91,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"8eed253b-f327-4a79-bf25-67047b60cd8b","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":91,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"0a68c051-363d-4db5-9daa-48fe94578214","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":91,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"d02b5647-9546-4013-8e51-bd2bdfe5ee59","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":91,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"0971dc4f-6fc3-4897-ab1d-d3544b69919b","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":91,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"daa4fb66-6fae-43ec-92cb-590010665376","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":91,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"c7e0284f-baee-4aae-89c2-ddb29d99f9cf","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":91,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"642844c3-067b-424d-850e-82933705a7f5","block_type":"box","text":"securities in the forward transaction.","page_number":91,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"a9ff72bc-5376-428c-88ff-91f08c74d7dc","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":91,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"924c411b-9b07-4578-b994-196e0bc6fe17","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":91,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"223d2c1b-ff43-46e3-ac90-fbf31f096b7c","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":91,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"ae542494-a1fe-4ec4-afce-15229b3a7294","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":91,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"810853b2-11e3-4cec-9bfd-6362ad365eb9","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":91,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"fc29d644-7c99-418f-8e93-9c6b33cc490e","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":91,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"e59ee015-e536-48c2-969d-2fcb907e0f40","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":91,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"d078de62-9253-4487-90cd-e5df194ee607","block_type":"box","text":"securities (","page_number":91,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"1ddae53f-4943-4b72-98c9-f1774e85b416","block_type":"box","text":"e.g.","page_number":91,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"38d45497-491c-429e-a76c-f574121719d0","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":91,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"964ae556-8af1-4538-bc07-704f8bd30a53","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":91,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"5dcdc49d-ed74-496c-8eb3-76b54c65b5be","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":91,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"b4e283b6-17f6-4b2a-aed2-95e6c5254e73","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":91,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"94a9cc3f-17c4-485f-8b7e-84ff9693d6a1","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":91,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"de978dbb-156e-48f6-af12-33f123f06008","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":91,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"b38ffaee-1bf7-4ee2-a3cc-0d95f5416f3e","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":91,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"8fa356e4-d39b-4fab-bf55-726937be3f90","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":91,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"40b1db38-77cc-41d3-b3b0-7dabaa16250c","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":91,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"caea2761-2ea9-4b6f-b42d-17caa98e465a","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":91,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"f3934f75-8df3-4ec1-a860-3f9830132ba0","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":91,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"b31f2fb9-9dd8-4e71-9cc4-632db91cbd53","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":91,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"34cd9a72-3ed1-427c-b9e5-3491ebc158d2","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":91,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"371bc1ef-6f7d-4cc0-877a-b4711955c9bd","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":91,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"86fb7985-d687-499c-8fac-8bc5fa309f7e","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":91,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"e27e6432-cf6f-426f-8d51-45f0e3cce08a","block_type":"box","text":"Municipal Investments.","page_number":91,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"0f0cabf4-9473-448c-994e-c50cb46119ec","block_type":"box","text":"II-55","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5a919152-fac6-48b8-9ae3-384c50b8d379","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":91,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"2d45c2f6-8d81-4c63-88ae-03ebef30bd3a","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":92,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"f20e9e74-848a-42f0-b971-53ed07fd8e82","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":92,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"142c9eeb-c3df-4d1e-aa12-0a8cffbb3b9c","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":92,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"5177dfa3-125e-48f5-8de0-d1858d946010","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":92,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"98435b3e-f2be-4bd0-b7ea-23fecff77d52","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":92,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"d561836d-abcb-40fa-9c26-b5670e618143","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":92,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"6580d335-6ff3-4e3e-a8e3-f0ebc2249742","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":92,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"1c91c0af-9739-417c-a78c-86f6ba1c468d","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":92,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"523982ad-71b8-4fc0-a6a1-64597746ccf5","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":92,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"4682c865-6ec8-428c-af7b-39ac286d7f28","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":92,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"9e76607e-4a4c-4fe1-9e96-e3fd6a40c993","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":92,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"6d312f19-6380-4e1d-97d1-e8ac0825c0ae","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":92,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"ebacf6ce-4051-443a-8876-e98e81cfb49e","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":92,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"365c185f-a44d-40a7-9b29-1cf6da0bb59a","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":92,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"cc0fa741-26d4-4190-87bf-0c3619610173","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":92,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"9446e82d-04ff-482f-8b1e-98bc5981d203","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":92,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"e449dbc8-9ed8-4cec-a437-9372edeff933","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":92,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"69ad2459-cb4f-4c5e-89bd-465e0be80675","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":92,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"672bc95e-bb08-4675-9e28-577985539999","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":92,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"9e393c04-8e7b-4853-945a-57fb60f94fc0","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":92,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"e6bac948-f1f3-453a-a250-d158bc1600a8","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":92,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"84bf50cd-8e2b-4ff8-bee5-74e771595326","block_type":"box","text":"The risks and special considerations","page_number":92,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"0fd17ad7-34aa-46d6-838c-463c9acc1abd","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":92,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"e064d47f-cb4e-4e15-8762-4cdd97ee3d96","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":92,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"295e6886-cec5-43f2-b52a-c1fa17e476e1","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":92,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"53be3a71-6f6e-4971-a123-0606c321f0d4","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":92,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"1187cf7d-90db-4c98-830e-2139c9506238","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":92,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"b0b4cbf8-067b-4235-a737-1c0c86506515","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":92,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"568b84cc-02f1-49f8-9675-c855d00388d5","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":92,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"570c141a-905b-439e-8977-4ab9473db331","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":92,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"ff996800-9246-4d58-aaa1-c35881913b0d","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":92,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"31baebc6-da7b-45d5-b434-a34ad3de035a","block_type":"box","text":"II-56","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"de540f8f-87d7-44c4-8860-43ef30edc203","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":92,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d693af28-8359-4efb-bf33-e6aea6469244","block_type":"box","text":"Description of Municipal Bonds.","page_number":93,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"cec8b41e-02c3-400e-bc6d-cb760af2f1ff","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":93,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"f43bff0e-294a-4b4e-ba46-856c58625a12","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":93,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"0fc10d60-572b-4d66-936c-47a115ac3fb4","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":93,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"730a47cb-3a47-40bf-9786-45da5a8ba154","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":93,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"b2f0cd71-9a6d-4f9f-b07c-79618e4276b8","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":93,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"21eb0cfb-c956-4c50-a9e5-1217d11cdf30","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":93,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"83f46c76-d815-4d8f-a693-8a126ba73dcf","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":93,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"f4b5a47b-f642-4e39-9c4c-a65ba093379d","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":93,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"e6ffea4f-c02f-42bf-a7b1-ef9783092870","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":93,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"35c1feb6-5a7c-4f67-9a27-83b67bacbeed","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":93,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"3e3870ae-5f64-4c38-86b3-0dee528cc942","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":93,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"8f9408b5-cafa-4fc3-bda5-af5b89aa4277","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":93,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"81a1d475-18e1-4cab-8f31-1ce3327957c3","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":93,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"018e5dab-af0b-4617-91af-2a4eb4fd3b29","block_type":"box","text":"General Obligation Bonds.","page_number":93,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"46c1b56f-41d8-4923-a1b2-7364ac4b2949","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":93,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"3cb3e3fc-7997-4ff8-a09f-8fc01282f3c2","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":93,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"a9283824-e67e-4bcc-b105-a99483fc2901","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":93,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"ebe0e077-fe18-48e0-b7e9-53d40c0eb52b","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":93,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"e89c8e8d-e747-429c-a8b3-42c79582f00e","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":93,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"8722aa61-b39b-4491-8733-e6b7e8292154","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":93,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"2d4c4d34-3950-4958-858c-94823db710b4","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":93,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"5ef1cbeb-d406-4d3e-a5b2-f75d8c102fac","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":93,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"12a232bb-691b-4f03-974c-d5c96cb1a972","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":93,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"e99bc7e3-2b75-4e5d-9de6-bfa6199569c1","block_type":"box","text":"Revenue Bonds.","page_number":93,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"23653caf-c45f-4ca7-b5ea-dd6521a58cbf","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":93,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"e93decb2-79a3-4dfb-96bb-85f601ec9602","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":93,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"44b04b28-7f0a-45d3-a871-ecb6a1bc3e64","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":93,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"f8c76d06-1ec6-4054-8305-caa429d019d3","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":93,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"d471b36b-bc31-4ba0-a934-9b14dec88409","block_type":"box","text":"viability of such facility or such revenue source.","page_number":93,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"fb583f8f-e4e5-44a8-a49d-d804938747c2","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":93,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"d4cc3244-73ab-4cb3-bd94-467eaff2cfa6","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":93,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"7cc60361-dfd8-4034-a222-663362d7aea6","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":93,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"12a9ed85-58d2-4a4f-a019-c874ad089d8b","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":93,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"61e75079-ab8d-4d59-8e1f-0b66571e02a9","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":93,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"cdd4516f-caf9-44b1-8d9a-f44454cb173c","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":93,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"9a3d8243-71c9-47ef-b6aa-aefeaafb51ee","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":93,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"be62968f-5297-4e67-8daa-12ce785bc93c","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":93,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"77d3abad-fa72-4045-807b-84820a29f206","block_type":"box","text":"PABs.","page_number":93,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"01b05ef7-6577-4aa8-9915-32d4f99604ad","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":93,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"5a9d35f4-7dee-4f64-b2d5-bf0c1caf2b7f","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":93,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"674e8503-14bc-4821-8cf7-618e45730db6","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":93,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"5699c91c-00e9-4575-9588-400d563dbb68","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":93,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"49fcae4f-78af-4c9e-86cb-0a7f9e00170f","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":93,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"05b525cc-6b68-440b-b5d4-39488ef16c41","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":93,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"427a04c9-c7c0-46b4-aaf1-71de3141d767","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":93,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"c811ec7a-56cd-4542-8e7b-368c8df5f1e1","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":93,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"6de2691f-c52e-43b8-a097-19d17d43d3a0","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":93,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"649c86fd-6a4a-4f14-8d65-c54e2e8bf7bb","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":93,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"766331f1-156e-4ecb-ae1d-48cee6fbef92","block_type":"box","text":"the particular facility being financed.","page_number":93,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"3dd8edfe-e075-4921-ae2f-8d10d496a535","block_type":"box","text":"Moral Obligation Bonds.","page_number":93,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"7a589231-ff4b-4dd9-b4bf-745276b0c3b1","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":93,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"97beac5b-7dd8-48b1-b17b-8ae89fa0bc92","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":93,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"9558d211-f286-42a9-b437-898fa425bff8","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":93,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"e5159537-51e2-4143-9a69-0d13c5a4bca6","block_type":"box","text":"that issued the bonds.","page_number":93,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"1f39c23f-7b10-45b5-933f-3e5ff39d3d02","block_type":"box","text":"Municipal Notes.","page_number":93,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"0c70a5ac-d809-40b3-9bf4-9199c2268f3d","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":93,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"2cc83af6-0900-43a8-a377-f538e87c564d","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":93,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"48a192ac-e844-4d94-9e59-3425423e5b6e","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":93,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"6848434f-b330-4c49-81c2-290f9a2b600f","block_type":"box","text":"II-57","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b71d88cb-fbfc-4eba-ae95-25a0142dffd7","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":93,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"07303796-cf8e-42bd-bc75-958d53b87ee0","block_type":"box","text":"Municipal Commercial Paper.","page_number":94,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"308cca9f-3951-4830-8642-05126a2c9e89","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":94,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"3fc8faba-a29d-4639-8d4d-3673b4323913","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":94,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"b2bff42f-6924-4718-bd69-37733b1fd785","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":94,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"9195a6d0-7373-493c-b2be-9c8462a2b524","block_type":"box","text":"Municipal Lease Obligations.","page_number":94,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"6f7b99c9-2150-4e4e-b893-4c2b2a7f4b65","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":94,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"887602f4-e2b2-4e97-bb82-14c7870752d4","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":94,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"469923b7-4a17-4001-9544-b265dc33b1c8","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":94,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"5156131c-e922-452a-8c4a-2386ef70151a","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":94,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"b94be59e-9311-4b96-80c7-aeb1f65498b3","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":94,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"67ac5c41-debc-4111-83f7-da5c82c9b08c","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":94,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"1959f079-e9d6-4271-bf47-39cb38b164dd","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":94,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"2e634812-5c96-4056-8476-12c823123317","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":94,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"5b0c5a41-0b9f-47d2-8f1b-7120a89e4e40","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":94,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"ff953386-c282-4799-bdd8-5d962759af4c","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":94,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"d65b13ba-c227-4ecf-8d5f-2548658705d8","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":94,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"f09fe2d1-e8ed-435c-a815-31b9e586ccf3","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":94,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"89fbfdcd-f3b3-47b3-96af-66a346f4f824","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":94,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"2cdccc7a-fcd8-4a4d-ac7a-432709bafeb1","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":94,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"bfdd2711-7485-447c-a76d-2f2d6c0ed59e","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":94,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"34f7598d-4f8b-4a9a-a7c5-833d167a1ba4","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":94,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"1ee2ccea-ad01-45e7-b23c-fe7a2dcb2c8c","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":94,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"cb25e0ea-291d-4fb7-8923-66c42e785eb6","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":94,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"c224a273-5270-48c4-8311-d9e96c575597","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":94,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"2a10e390-01b0-4890-b1ee-2c89b2078398","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":94,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"09950ee9-2435-47a7-a71a-066127ef651d","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":94,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"75dfc8c8-1023-47ce-bd30-ef900a22b650","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":94,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"e7b5ea66-8417-4027-925d-6884262e37e1","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":94,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"3537f606-e263-4aeb-bb15-1a3536d42a45","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":94,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"9e4b6303-6830-416d-b2b3-530a294f380f","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":94,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"afb59993-63e9-453b-beaf-c61944211ce8","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":94,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"8c3cd76a-c046-4b6b-8407-ee49ce77b467","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":94,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"3c8b9a85-029d-4296-96c0-96add6ef7ca6","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":94,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"a8c6c4ba-9959-499e-aa1c-159209fa7d54","block_type":"box","text":"Tender Option Bonds.","page_number":94,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"bb13f42f-c7d8-4030-acbd-84cd4b29146e","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":94,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"046fec82-e928-45b2-a328-ad1b7736ce85","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":94,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"ed855c1c-b842-454a-8b21-987a5b770112","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":94,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"10bf5a20-3410-4290-a1d6-471f46d7928c","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":94,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"4a032b8d-ebe9-4620-b31a-ac7502ec59a6","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":94,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"bf6c3160-5f67-49e0-88f0-ac544ad8db55","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":94,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"9536fe45-baaa-4e35-8da1-8bb0abdcf082","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":94,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"0d8c4edb-dba4-41b2-af2c-c98985afa436","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":94,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"6ce95e8a-e63b-44e1-a6be-bf000f9c49e4","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":94,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"0c57be81-17cc-4132-a325-9096e245e68c","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":94,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"44870174-d282-446a-9f7a-686620a000d0","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":94,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"cfed084e-2ac8-499e-aae0-0bf30baf2a3f","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":94,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"dfd65e1f-ec41-4601-8469-c6c4701645b6","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":94,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"3eac4ffa-2a9e-49c0-a6cb-e751cfd671a4","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":94,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"353ea5c1-b9f7-4148-84e1-dc55fb433917","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":94,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"cc02c9d1-163a-43d0-9d2b-4657e4282e64","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":94,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"7e235a1f-5783-4bdb-ae48-bfaa4c44be0c","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":94,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"30831800-a2fd-483c-abef-b2612a3995e6","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":94,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"fa26e7eb-6696-4ced-94f2-ccb2dd5cf340","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":94,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"0cc7a79c-b6cc-4cc7-afed-861b1ec2c99b","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":94,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"a1f3bbdd-7e4c-4e4b-af41-d72389971b1a","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":94,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"bbe479fd-239f-4684-bc89-1d5a604488d2","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":94,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"393e048c-89b2-47bd-b85e-25a2476e8454","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":94,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"3c15adee-2af3-497a-b4e8-82c22006c3fb","block_type":"box","text":"participation in the TOB Trust.","page_number":94,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"77eec1b0-d510-4067-8848-d8b13f0cf071","block_type":"box","text":"II-58","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7a9ddd64-964b-4abf-be4b-509467971508","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":94,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"713fa1e6-df38-4359-88cd-2adfb995cf6b","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":95,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"d0b570a1-05a9-4d0c-92cf-16045a5cbb1b","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":95,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"aad33cd9-d2c4-4bec-99ba-dd653d5de186","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":95,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"0072d7a5-cf8a-442b-8365-97c67e4b4e7b","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":95,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"f2fb9f87-fffa-4158-a608-f8a846ff3b57","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":95,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"2ad5ea2d-d878-4ee8-8e5f-bcd2d0d35c0b","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":95,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"9911b57e-c21e-43c7-a5cf-08f77aa35e92","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":95,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"bcc78ac1-9579-491f-9400-4c1f2ec32d1d","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":95,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"63ccbecc-a6f8-4289-acf4-f2712337d8bd","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":95,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"71a03476-2441-4e6f-bb8c-e7bad21d2f18","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":95,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"838013e9-1389-481a-91fb-58f859435040","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":95,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"fc577bda-c250-43d3-8704-044e191a71fe","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":95,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"edd8e11b-e25f-4ca9-8507-76c9f3084a4b","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":95,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"f7a14a48-c42d-4dac-a3c3-a59d9880389c","block_type":"box","text":"issues.","page_number":95,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"e4784397-e97c-4c13-940f-aa28471913d0","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":95,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"560bc492-8494-43ec-9685-d0959c597888","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":95,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"318134a5-3b77-43e3-bfd4-b5d2b1948a48","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":95,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"0b44b52c-fd5f-4efb-855e-b2fe9b91baf8","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":95,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"4d2ad907-9b34-43cf-b5b4-b1ff6952f089","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":95,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"c34b6ac2-0580-45f1-8292-80342da8d0ce","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":95,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"4bb8b908-0b4f-4544-9ac3-14ca926dca66","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":95,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"0a2b5966-7ae8-4975-9ec5-b4c2507c0b78","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":95,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"fba7a70f-a8f3-423d-bb8a-738c1775784a","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":95,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"b330bf8e-5180-47e2-9f63-4fbb4d251c55","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":95,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"0b9077df-9b63-4436-bfc2-bb0f92dd52f0","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":95,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"50d54239-7b14-498e-af2e-e72beb9b7f48","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":95,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"1b6c470a-41a1-4faa-8a2a-04b07197b97c","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":95,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"cc1232c1-437b-4fdd-bf4c-36df41562982","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":95,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"57c7c237-57d4-432d-a982-fe180cdc9702","block_type":"box","text":"i.e.","page_number":95,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"52c858d5-8f3b-4dc7-8722-08c3e5bbf0e9","block_type":"box","text":", the Fund). In contrast, in the","page_number":95,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"2e7b2653-4ef8-45c9-a24d-ee4ee1dc17eb","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":95,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"41d28eb9-2651-496f-bd37-7c8412bc3925","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":95,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"702df8f2-2e67-4fb9-882d-064040b496cf","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":95,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"2ef4dace-5562-4ac1-a446-282d91a2ee16","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":95,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"be954758-5793-4fce-95e6-87fa1b3e8acd","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":95,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"25695301-5110-4d20-bc0a-88b9a928241e","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":95,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"988900b9-2abc-4910-8ec7-bff83a8ab4ae","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":95,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"97538dbf-3cf7-406a-b8b1-d49549d0babd","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":95,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"b0fc8830-29c9-4df0-aac5-6a566c11c594","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":95,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"5e9571b2-2445-423c-bb07-f401902703ed","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":95,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"75684378-c79e-4f29-9f93-29b38d6fa6fb","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":95,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"57b79d73-9db4-4d44-b946-14ba3462a1c8","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":95,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"eceb6a67-44ee-4bfe-8815-262d5ed76da6","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":95,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"929ec188-1de7-4fce-a9c6-e9685b962bbc","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":95,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"5592b876-fc23-463b-94a7-4d88ad671789","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":95,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"a169f01a-4828-40ce-8650-546204919576","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":95,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"95646046-bdb2-44e9-9958-994a3df380af","block_type":"box","text":"Trust.","page_number":95,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"188ffa83-d3e1-4fbe-8a15-f7131fdf35cb","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":95,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"0ffca633-f5eb-454c-beec-ae1133d51c75","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":95,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"12f796e2-7cf8-4048-a2bb-24c82a4aff9e","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":95,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"4973fd09-a362-42f3-849e-df1cb3093798","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":95,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"e0ebcdd7-3d54-4778-843d-dcfc417ab608","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":95,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"fff7d3e9-3d1f-48b7-9211-395fce6434fb","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":95,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"d5fa3cb6-d09d-48c7-a862-4779de730205","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":95,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"d59bde94-3762-4a6f-bf0a-e916e5ea9e52","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":95,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"f5c73425-f185-4832-86b0-14811afe4597","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":95,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"0aed0a8c-f41e-4287-b57b-a6f10d72670a","block_type":"box","text":"II-59","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d744f8b7-2339-451f-a065-121ba5805274","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":95,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"57a95f1a-65e2-4590-b647-56f5f0ceb094","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":96,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"244d59a5-09de-46f5-b437-e5034c8cc869","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":96,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"9e7beb57-fd56-4c3d-bde8-dfdb1d3a4e05","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":96,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"7fba8e43-a2bd-46f7-8eac-27fd75f9b0d6","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":96,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"a1c89524-1c73-43e1-bf15-83d91d36da7f","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":96,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"a4625cd5-91d2-4bc6-b504-71e3b73a88a8","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":96,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"f8024059-6b61-4408-97dc-b1420508d349","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":96,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"73759496-ebce-4cfe-866d-0449cc2589fe","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":96,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"c106d003-4129-4492-8517-0e6b2c067cc6","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":96,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"0d084132-fa99-480d-8d15-1747dc49c644","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":96,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"0ae1a5a9-716b-481a-9450-410a86a89458","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":96,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"6891df30-b804-499d-88fc-ae6e6df277c1","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":96,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"b02288a2-303c-4c39-abe9-f621bdd5451c","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":96,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"e9636434-60c4-4519-8578-0bcbcb3fd8ef","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":96,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"3fa01769-fda4-4436-96be-71bdda3d1397","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":96,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"d555f212-5cc0-43a8-afa3-f8ad8e1d66f4","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":96,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"e65d74c1-d38d-4d4c-b5c5-1e919724fab3","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":96,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"2ee5827c-0676-402b-a436-d4855db24cf5","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":96,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"d242c383-3de4-497d-90dd-2514d43357d9","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":96,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"3af0d801-36f2-42de-b0aa-396331918f9b","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":96,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"a1006026-fb4c-4e7e-8b69-173e650d5bc3","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":96,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"5c68be32-a818-46ee-aaec-b2be1210d4e7","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":96,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"2aef5863-42c1-4381-9e8f-e8c4f5ad3657","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":96,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"04d15611-19fc-4d21-97f3-f42201290a00","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":96,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"65dcd4fd-b3df-4244-8c3e-f24bf63fca5b","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":96,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"44234725-03d1-44f1-b8a9-a789f3698652","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":96,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"8ddd23a4-debb-4424-9a17-b52017d07fd3","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":96,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"3b1b6d2b-25eb-4d7f-be45-c9f6f85adc8b","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":96,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"0a7f4165-5809-4d6e-86e7-9360b57af153","block_type":"box","text":"i.e.","page_number":96,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"85f605dd-59cb-47ef-9ce8-e643f10b3bba","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":96,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"0e2ccf76-b07b-4299-b03a-3cf349ebdaeb","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":96,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"1f9bcef5-97ca-4ecd-b991-120439290f13","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":96,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"972fa39c-033a-4eab-9b0f-0dc75d0d27e1","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":96,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"7c502b6a-e5a6-4ba7-a68a-d91b688b05ca","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":96,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"b97d7e94-6811-4d07-8aa4-79e7f9376379","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":96,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"a98436c9-1f79-4fde-a5da-35520f66e338","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":96,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"6971b0ec-9bc2-416a-b982-5973c50f134d","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":96,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"4e05fd5f-5f03-41d2-82af-022756a7e9b0","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":96,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"f871c923-8170-466c-9d09-3e7e8a6e6c6c","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":96,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"28aa001b-533b-441f-ba96-e50cc34855dc","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":96,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"46e68b65-3c3d-4cfb-b0f4-cc71241420e7","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":96,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"ea4ee118-524a-4d0d-88a0-64ae1d5b33cc","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":96,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"a8de4f71-245c-424c-b8ff-1e23dd4df7cc","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":96,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"c3a2efe2-6f6d-4dbb-be62-8c1d0ae07f9e","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":96,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"e8467618-3f5d-418f-be91-58d2f49e4d6a","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":96,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"5c0c5a1d-fc2c-4099-82cc-e9451f906b61","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":96,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"e0852251-fc1e-4dee-a725-2e5cad12410f","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":96,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"09c48894-cd5f-4d1b-b1d7-ca83996ffd4c","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":96,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"5561e368-5b2f-4b16-81f2-bbff942c8075","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":96,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"145a7e09-711f-4c06-80db-4f6ff2b80f5c","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":96,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"d06c97ce-59fb-4df0-8e74-18547a053bcc","block_type":"box","text":"market is not yet certain.","page_number":96,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"a67a363b-1821-470f-a649-281bbc7cf5e7","block_type":"box","text":"Yields.","page_number":96,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"adebb2ad-6cf9-45c7-aecc-80f8b1108b63","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":96,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"4eb3ff98-efdc-4aa5-ad6b-980822c01a85","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":96,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"b890d371-8e68-4221-bf00-56d762079ef2","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":96,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"a6f3d531-730c-4c6d-bf07-897be5c0fff2","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":96,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"12bf0c5c-e8f3-4bfd-85ff-cf233995a523","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":96,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"e1542222-6fe1-42c6-a885-c91f50595002","block_type":"box","text":"II-60","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bf4c2888-8590-47d9-bafe-edb8f06d68df","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":96,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c731f601-4bac-4e70-8f7d-cf2895816060","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":97,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"4bdce480-f505-4a04-ba33-e39ce43948b1","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":97,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"b5f2567e-a0e8-4e66-90e5-1744b50bf9e0","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":97,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"164c2f77-a793-465e-8cec-aef74d817096","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":97,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"034c44c1-d578-4026-8516-10aca913567e","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":97,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"9a54d6df-2a6d-4cf7-af5a-84c58e083a8f","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":97,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"6413f23f-9e58-4b34-90e1-69e1df0b30d3","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":97,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"45577f46-c249-40f2-a67f-7bd9a2f06f90","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":97,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"ecfab5f4-4268-46ac-8e76-955d1b06af3b","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":97,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"425c76dc-f034-412d-8588-d8075830c7eb","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":97,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"feb8ab43-e6fd-4109-882d-cfd12c556c3d","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":97,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"c951f43c-dfe9-47ea-99f1-0359cfe5e746","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":97,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"738242d4-d0a6-4b49-b2f6-baa67296ee32","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":97,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"26717310-9d21-4ac5-a413-4e0e83cc73f4","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":97,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"e1555a50-28b8-43f7-9a1e-e6dd1f385d51","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":97,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"75481379-3170-47a9-bb6f-0b684d031c7e","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":97,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"21a05c51-cc07-4b31-a470-304464d826f8","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":97,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"2f9ecc1f-a051-477d-b9f5-32534649553d","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":97,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"7a133573-42df-4d1a-bfcf-dacc2f422b1e","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":97,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"493705f7-fb64-4f0a-8082-d98d7cab6472","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":97,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"72db751b-6e21-419a-ab5b-67ba4e6ac8b6","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":97,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"354097b4-e9e6-4075-9be3-cc33b7adecd1","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":97,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"b911c251-d642-4871-82bf-f7200615a7cf","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":97,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"38f80a94-579f-4262-9efc-2e64953718aa","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":97,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"193b2560-bc0f-4fb0-8166-54c5c42845dc","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":97,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"6c5f9ea6-3cde-4da5-8ff2-f8f0db0ddb58","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":97,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"b39dafb5-eea9-4026-b79d-a3e1d955ce54","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":97,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"4afaeac9-519f-460a-996c-7f52bd67527c","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":97,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"5b4ef134-939a-4de7-a824-6ae61677dafc","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":97,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"6fe13b7e-1667-4c79-848b-cf86e772eaf0","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":97,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"26972a14-30fc-4000-a8e7-55686116e6a6","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":97,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"3d0f991d-3266-45ba-8e73-cb4477e60a05","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":97,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"f478dd27-3853-4a2e-ac4c-f83e25980e9f","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":97,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"db2ea744-6812-4491-bdfe-23ea55d20567","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":97,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"929377e2-ddf3-4c09-a5da-c9e18b73549a","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":97,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"7ef28712-7917-4ff3-bb2f-1b05e1f157d0","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":97,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"9e05eeef-141f-46d5-85f1-c5e5ba77cf32","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":97,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"22044b9b-f7f8-40b4-b5c1-a0abe904fa99","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":97,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"1653fa57-6268-4287-8f00-2086413066d3","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":97,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"189201c8-396c-4687-afc5-426c389c4c8e","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":97,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"06dce6e5-cd25-41d5-8e4c-4477e92e29f5","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":97,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"a9c2e91b-55f8-4f69-acb5-d0da57f2ddb0","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":97,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"7c46e465-1819-4250-a600-eb2333360c66","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":97,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"22cdbb48-91b1-46e5-aa84-7545334782c7","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":97,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"5ddb84aa-07ef-4773-9fd8-98d5c59a7e98","block_type":"box","text":"Call Rights.","page_number":97,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"2f16c6dd-2f47-403d-b8d5-4fa524fea801","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":97,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"58af5126-f9e8-4cbf-8ddf-a1fc58bd218a","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":97,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"7da18436-94fa-4840-a8cf-4de67ef58a20","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":97,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"b5e58a80-02ba-40f4-a41f-63996e668942","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":97,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"71108e15-c146-4512-a58e-c58a52c3f1fe","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":97,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"4171c8cf-6051-4171-a2d4-9f7b2abff01f","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":97,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"9f7856f1-37a8-451f-97b0-8250d68b6897","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":97,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"c58ea762-19c4-4412-8130-047576b99cc4","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":97,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"48d91283-f465-4d59-ad7c-fa8767aad830","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":97,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"dea44f13-feea-48a3-b46c-1be2be7c77ac","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":97,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"ec988999-38f9-4123-9a4c-0ed76b064e88","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":97,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"0612a303-5452-4503-8624-03f80345f8d8","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":97,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"e30e6996-f701-40ed-894b-b09b420112cd","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":97,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"087dd92e-d99f-4f5a-bfe9-8f7a9a31bfbd","block_type":"box","text":"II-61","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fd5e1fd6-dce5-4047-b17c-7bae4778d49c","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":97,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"11ac8290-91d9-4ec6-9ce2-05247b09b7c8","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":98,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"21db127c-7558-4208-9a00-703de5d47622","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":98,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"54688555-3c55-445b-8ecb-f852f3514e90","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":98,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"72aefb74-edcc-4b58-8f73-8eeeeecbfd05","block_type":"box","text":"i.e.","page_number":98,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"0407840f-6d68-44ce-a974-baef18b47b1e","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":98,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"f9eebe52-29ce-484a-85e3-fccf14256674","block_type":"box","text":"rates).","page_number":98,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"1e0e13ea-97ea-4727-a7ce-c9f8ce1a890b","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":98,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"109f4ecb-3652-4b52-ad89-f7dec99da9aa","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":98,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"80c00eca-4be3-41d8-a891-1d99453dabe1","block_type":"box","text":"e.g.","page_number":98,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"ca0028aa-5a1d-4db6-bc66-b1e15eed0810","block_type":"box","text":", an exchange of fixed rate payments for","page_number":98,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"713c014c-6946-4b91-b1e5-3c1d15a966dc","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":98,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"75c4d3c0-a99a-4b6b-8d71-b80a4b38a702","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":98,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"dcdeb77d-0b79-42aa-9012-9c8b53d7e0c0","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":98,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"008dde0f-5d4a-4ea3-a7d7-085a72d7ea84","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":98,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"317c001b-40fe-44cd-9b6c-3335f7ff64a2","block_type":"box","text":"with the same attributes as the swap (","page_number":98,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"6c2bd401-842f-4ef6-9d19-b66bbf463df7","block_type":"box","text":"e.g.","page_number":98,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"6d57598c-3453-4729-8d2d-be574ef8f4a0","block_type":"box","text":", coupon, maturity, call feature).","page_number":98,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"5e8bc4a5-45c2-4b40-8461-a78890738705","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":98,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"9e246770-054d-444d-98e9-4d4c94d3aac9","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":98,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"464cb942-e867-417d-a3e7-13448e0fadfc","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":98,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"8b86fb53-bf1d-483d-b8e3-00d28186f165","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":98,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"4a071ad2-5a29-4e51-a71c-ea31262b4efb","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":98,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"35bd8ec5-12c0-42d5-a25c-13e5688c2f07","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":98,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"6d8f6f5a-a44b-4c37-b404-f082f662cd0a","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":98,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"feac6660-4987-4779-9aa3-b53ef7249e75","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":98,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"a0e7c695-cd7c-4d7d-b1a9-7518a3ab7522","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":98,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"c2ca6852-2ea4-42ec-b838-5022a10fc94d","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":98,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"41c35a84-4876-4a2b-af73-218c5bc7a2dd","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":98,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"bc14cb76-c47d-4c29-b890-e17470b1d191","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":98,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"2934fd10-ae66-436b-b780-9af40becb526","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":98,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"806c4b73-c838-4f24-8ab4-f541cfdbc0fe","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":98,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"9fa258de-154e-4de9-8f33-a72c27d53960","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":98,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"2bb37a34-2774-4054-81cd-c4c20a4490a8","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":98,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"98bb80dd-9061-4d06-b4c4-1977f0c841b3","block_type":"box","text":"Insured Municipal Bonds.","page_number":98,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"a360c2a1-2cd7-41eb-99a3-cf9ce40db783","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":98,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"4c35c21d-a5b4-433a-b960-9a0661111ff9","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":98,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"749bbe65-cf02-4531-851d-f1678993f22e","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":98,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"c0212b6e-7168-425c-8b46-658fb5b94e2e","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":98,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"608b2a82-1ea0-4ecf-a049-ad8ea1e193f0","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":98,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"58b8c663-df2a-486e-99be-6e7a628db537","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":98,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"003dc22a-4507-4a1b-97a2-a59ca78ad780","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":98,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"7cb6a0b9-45c8-4a04-95a1-78e6acece7aa","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":98,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"68a2c38e-d539-4d6b-93ae-65af9034addf","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":98,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"9868f995-03e2-486e-b9bd-be17e7617c27","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":98,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"4bacaf6a-f62c-407e-a60b-d67e5892ae36","block_type":"box","text":"bond could drop.","page_number":98,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"4174aed3-9905-4b15-a1ec-65f15a806d36","block_type":"box","text":"Build America Bonds.","page_number":98,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"a982ccbd-1fac-424b-aa2d-e07c62915931","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":98,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"0ad61039-3f42-4e3d-8835-dec737d82e3c","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":98,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"20d4a8d3-1184-436b-87ed-27a755cbca58","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":98,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"5b1c8c7a-eff0-42fe-82da-aab6e4065a13","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":98,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"b1ae1623-f6ba-476d-91c2-c9ed356f9589","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":98,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"ace9f09d-4671-48d3-9356-04a199e42fb9","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":98,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"300412ed-a3dc-4c86-b800-047764bb9a2e","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":98,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"0a6bf064-4f96-430f-bcdb-55b0c26aa783","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":98,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"2ffd8e4b-2b24-4a68-be7b-c6579a438ba6","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":98,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"1fa8e5c3-41f7-452c-9784-3c28770a2ed4","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":98,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"c17fb120-64f9-4776-babb-880a4372e449","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":98,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"16f0a9fb-c0bb-4634-99a8-353fa537342d","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":98,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"d0c2f3a6-e169-4073-a298-a1ef88d134cf","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":98,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"1b5451da-eabd-4b63-8e6f-cdbc847590d0","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":98,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"d3780321-3e13-464e-9c3c-ea3c48ff0b55","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":98,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"63855857-3187-4886-8b2e-324c2bf26bc6","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":98,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"0deee7bc-d835-42f8-a3ba-909396b4bda1","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":98,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"f889aed3-8685-4acc-a7c9-b169035fdaf8","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":98,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"58c7dfd1-a556-426b-9c33-e6eeba29aaff","block_type":"box","text":"II-62","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"53b9a6c6-d460-4cae-8d24-3d18ce41262e","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":98,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"2adfb776-d329-42a2-9b60-4f8645de249a","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":99,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"baa806d0-03a4-4cf5-9af7-ca6857ed32ad","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":99,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"88019ab3-9eb3-48ce-ae01-2a3c53054ba3","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":99,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"d7961104-71d1-4d96-9e37-87d5e33f4be2","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":99,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"f0aca078-2ba5-4d42-bfc7-3be95b89b0ae","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":99,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"22c13189-b056-434b-900d-4889873f8eea","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":99,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"9435f20b-b162-4fe6-baed-2f22adbb64ea","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":99,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"00029095-10de-41ff-8598-fb7f3defa751","block_type":"box","text":"their face value to the sponsor (","page_number":99,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"3167a47c-785b-4827-abee-e94601b408e3","block_type":"box","text":"e.g.","page_number":99,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"9a2f3f42-a9cb-45d6-b320-89256b5255bf","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":99,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"b5c3243a-919f-4a28-870c-24c026391990","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":99,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"24c60537-321c-4e68-9978-88cb06fe3b29","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":99,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"c8ed16f9-2ad2-4d32-9106-6611e8f5375a","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":99,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"21b35ab8-b8d5-4661-829c-73b69cf5e594","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":99,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"562728c4-7c10-4257-ace7-3d4f4722d388","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":99,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"730cb8d2-c84e-4bfa-8efd-381ca83a5d69","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":99,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"71ff2b29-f550-41b6-b9b5-4dcec304954f","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":99,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"4bd48384-f066-4880-9089-588d0170cc36","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":99,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"8dfcc04f-7de7-4056-935c-20223989502a","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":99,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"cebd993f-733e-4592-a063-48bbe21aff56","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":99,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"c025b618-15f1-416f-980b-fb0b362e9676","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":99,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"cfea8460-35a3-4a6f-8f7b-03521a11aeb6","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":99,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"0601dee9-ca29-48f6-9e59-1235e14509ce","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":99,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"71c4c03f-8791-429a-a580-0d588f28481c","block_type":"box","text":"such opinions.","page_number":99,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"4584ecc8-04ec-4b21-aab2-63aee26e8bb9","block_type":"box","text":"Operational and Technology Risks.","page_number":99,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"6ef268dc-6075-4a36-bc5e-b74a48c0bffc","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":99,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"7ff6024a-c37f-441b-a6c0-2adbe68ba32a","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":99,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"cce52e97-b60d-4842-a3ba-35debd3a1bcc","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":99,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"2ba3b95c-8754-4ec9-a8e7-8e83e6bad597","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":99,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"38fa0432-7df3-4ae3-809b-f46f9c2a9560","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":99,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"647a4511-0a4a-4ec2-aa5e-8508d6e3ff8a","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":99,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"a330d866-57bd-437c-9129-afbcbf6b9d83","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":99,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"d6a84b71-eca7-450d-a10f-ccb730a57030","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":99,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"b5dfe3ef-d868-4285-9733-75d3d8a5abc7","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":99,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"1bbb7817-a94b-4887-a852-d5b7383a741d","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":99,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"978da6d7-22fe-4173-89b7-a40795ab3642","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":99,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"452c0d1c-ffb9-452b-887e-5b0382508f8f","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":99,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"2d37a1d1-2c0a-42c7-a7d9-13e9a2135117","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":99,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"fab6d827-8277-401e-8936-09a2fae7f834","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":99,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"487bfb7f-2134-4d19-a3a7-897c4bda125e","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":99,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"0aa28f88-9a9b-446f-82f3-26d0062d9ecd","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":99,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"4f21a2ad-a143-4161-af4f-74abfcdd79ad","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":99,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"5b8a2440-622d-4f61-9433-0147da696e0a","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":99,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"fde0fd76-a208-4d15-a601-70bdd66e6811","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":99,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"145198fc-c10a-41a4-a922-2861ac32dcbe","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":99,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"1af1247a-c9bd-4929-9017-829bf37a5c10","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":99,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"14143ce3-b259-4731-8d83-b1557a98d0df","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":99,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"862224e9-71cb-4d7c-81a3-1dc15aaf1c5d","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":99,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"6c527e45-1123-4aa1-aa25-0a57dcd61e2a","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":99,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"9002491e-585a-4fae-b444-98dc3a2819c7","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":99,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"596eac8f-3cb5-4172-8349-6f4bcb81e0fe","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":99,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"24db8f94-2ffb-45f8-94d9-2f38898ffd9c","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":99,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"86b132bd-80a6-4620-b870-33b2c1f5cf89","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":99,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"d703eabb-1b52-4292-9305-7c3f582cf19c","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":99,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"61ef57f0-1442-42ea-a891-21af458dc74e","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":99,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"b1183c97-f05a-4e0f-8e5a-d9762c0d852f","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":99,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"e3943b38-b220-40fe-8d2f-ab04735758bb","block_type":"box","text":"infrastructure assets.","page_number":99,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"99d6c177-0d1a-49bb-a35d-73cd56475b14","block_type":"box","text":"II-63","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c148ecab-d96d-4d7f-baa8-c18baf73a64d","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":99,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"97c6c2eb-449b-4824-9a55-ad64dca7f64c","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":100,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"162a2215-2844-49eb-8ff5-ea76aa21d549","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":100,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"33acff59-51fb-479e-bc06-a344772c6cf2","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":100,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"1ad52fa5-6220-40a3-8218-ed7ce1fbe424","block_type":"box","text":"or services.","page_number":100,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"4c62956f-4cd6-435e-a6cd-dda614151476","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":100,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"d9a329c2-53be-4673-a213-a79ebf1f5693","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":100,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"0f65bce8-73f9-4287-afb9-a0240ddc5c62","block_type":"box","text":"other third-party AI technology applications and users.","page_number":100,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"db4fba6b-c32f-4950-866d-47781279d6e3","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":100,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"3d859643-8279-4286-a518-d9269d03e111","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":100,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"f83ece97-96eb-4b0e-a110-d8ca0d0ecaf7","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":100,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"c5741edc-fde9-4b13-8731-de9948d3b3fc","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":100,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"a9cd8ba4-a98c-4a53-9914-d0508ba76e95","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":100,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"a918b134-b066-455d-ae4a-83356479dbd2","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":100,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"10a9d208-3f44-4b20-8c00-c5898c7453d9","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":100,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"c5f04ae7-e56d-4e2e-aabf-502c2d57fc21","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":100,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"56840fa1-b005-483d-926d-8d1fb5760c5b","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":100,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"6a0fe103-ce81-4cf7-b2cd-7125480ca704","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":100,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"63fad7ab-9b7d-41b0-8604-c3733fe1a97b","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":100,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"9fc23245-7386-4d68-853b-614181c80ada","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":100,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"c3841c13-c7aa-4736-a7e1-7a15ef3caad5","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":100,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"93d675a5-f4bd-45f2-adae-29e58ca4a56b","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":100,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"38393cc0-56c2-4f63-b922-f76a63442e87","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":100,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"cb94204e-cf61-45f9-9cb9-5c4294834258","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":100,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"9f9abed6-6173-40bf-8a66-85dd69f1fa68","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":100,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"7d55bb34-c786-4eda-aee8-97ab412ddc93","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":100,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"e9b8e0cd-8f68-4299-b7cd-77109aece21e","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":100,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"412c2a54-2dd3-49d9-b3b2-cd890c39963c","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":100,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"8c0c1c33-98b7-4381-b668-3a0bf0590d6a","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":100,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"049d5a41-ba0d-42c9-9436-09f2943e778e","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":100,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"268a3e65-d186-48b4-8a46-9c2ff4a9e491","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":100,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"d5927b54-dca6-4ec2-8ef3-56ea2c591324","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":100,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"d6fe2c70-8239-44fd-9983-8e3b90745a15","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":100,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"fc3e6a61-7f48-4917-acf5-02e084c8cf40","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":100,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"5b16a26b-92d5-421b-9f8b-8eebb99d342d","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":100,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"a3a5406c-09bf-4770-bfad-3b58a010f525","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":100,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"cb9eeccf-e30d-4f3d-bcf1-71d60f4904e8","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":100,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"ef7ccd46-761b-4c0d-b41f-d1acbdbec65c","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":100,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"4ae498f9-b6f0-4d23-94a7-d3ef4cc5e50d","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":100,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"29dec017-30fa-4cae-b131-11fd1951beca","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":100,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"03897b58-2742-4be9-8bc0-2045cc3c8d2f","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":100,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"f2b85c7a-818e-4a7e-bf46-4a3dabc0f9a3","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":100,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"de1ddd60-8f80-4c8b-962f-35c3d7df5044","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":100,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"5e07709e-12a5-47ed-a988-89d2d24edc66","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":100,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"3821c0a7-d1a6-43f8-ac96-346810c4f147","block_type":"box","text":"resources to monitor and implement required changes.","page_number":100,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"72ea3e14-b24f-4c28-a960-751677f1ed23","block_type":"box","text":"Participation Notes.","page_number":100,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"7be5cca4-4b89-4f4b-b7aa-b91a533ec19f","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":100,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"5dc60377-07ca-4bcd-850c-5043f74c5c4c","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":100,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"fa7ec9b8-8b2a-4486-ad1f-98a3ffd036a8","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":100,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"fdcab334-7a05-45b5-b5e5-fc3dc1cc5f4e","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":100,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"f5d1e281-fdcd-4437-a444-71922a7ff928","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":100,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"ca6aac65-9af0-4f3b-9b2b-118ce73f4231","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":100,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"3279c6ef-c30b-4923-8c14-c526c381541d","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":100,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"97653c86-f812-403e-898e-40ca41a8db39","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":100,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"2fcece18-bb07-4cb5-af10-1f0bce517288","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":100,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"dd3c3408-cc0a-4b6f-9894-3e190f403ba9","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":100,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"7aef6979-62bc-4680-b77c-ea348dd61a68","block_type":"box","text":"II-64","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cedac577-85ec-4451-a10c-7fb28836bcab","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":100,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"84346502-fe16-4fb3-8394-0f389ab97928","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":101,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"18e72f47-8ad1-4ff1-b64b-bd8667d3fec8","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":101,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"41c636de-cef1-4eb9-8b2d-29abcb544ce6","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":101,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"0a6b15d7-ee2e-4ba7-9759-df66278be589","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":101,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"c5b339b4-197f-4778-b494-eeec59ef63c9","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":101,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"62f83cfc-0d41-4a2b-ba51-3e9797187a76","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":101,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"7ea943e6-04c7-42a1-97d2-b31df9b817c0","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":101,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"e585509c-78d2-48a4-ae61-208a2d03cd9f","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":101,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"4c67c481-9f2a-467e-b172-ddb2ee76572a","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":101,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"e44431a0-76bf-47a9-8931-362d2dd35e30","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":101,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"514d3e56-191f-4abe-bc9a-37b655790e2b","block_type":"box","text":"Portfolio Turnover Rates.","page_number":101,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"0b2eba58-9774-4828-9bd6-96fae5babbf0","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":101,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"35446408-0168-4019-b81e-d0ff6824e070","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":101,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"73e8f253-b15a-4ae0-983c-d50907e4db19","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":101,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"b3c82625-d52a-4566-b3ef-7239c684b301","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":101,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"6c20caa3-aab9-44ca-9674-c926f3d1c28f","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":101,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"299313ab-ec55-4449-b3bb-b3beffd8eadb","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":101,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"f0bef4b2-02fc-4ac0-899e-197c7d4d216f","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":101,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"49041ca3-3628-4862-b674-a0d43a8c0a36","block_type":"box","text":"i.e.","page_number":101,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"c127f892-afe8-40fd-a2d2-763429e03a61","block_type":"box","text":", 100% or more) may result in","page_number":101,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"e9a56ae1-f3ee-4051-8614-44fe75d0d186","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":101,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"6369442e-32c6-4541-a41e-50b7eae2b713","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":101,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"750a0dab-199a-40d7-aefa-a7a38b46506f","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":101,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"9a880af1-9594-49fa-a95f-ef9b4a68fdf8","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":101,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"732b503b-73c0-4983-b2a5-faf1ed4d4363","block_type":"box","text":"Preferred Stock.","page_number":101,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"f4233cd1-915e-432f-9a2e-92cbc803521a","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":101,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"ebc17226-25c2-448b-ad09-10aba7c32c9b","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":101,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"c0ac4fb4-86e1-4377-ab68-d860a0af2177","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":101,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"5987060c-e1c1-424a-b162-5ba5a2f2cedd","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":101,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"49f65964-b131-4c89-a913-0a78e737585c","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":101,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"04d3b012-926a-4c20-908a-56a8a82fc759","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":101,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"0f735b01-f034-4214-b30c-071e596ed578","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":101,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"5b770101-b54e-471b-a027-b7b7f2f67ca4","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":101,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"acde5a90-a0a1-43d6-95d0-ae166109d4b5","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":101,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"cce7687e-7ec4-4fb2-986d-06932e1adecd","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":101,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"ca7a14b5-4527-42b6-b241-9a6e2afb8541","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":101,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"6cfca5f6-1449-4684-a4a0-a4423c636be5","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":101,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"364cb2c8-9f47-4119-b5dc-4092a09a9755","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":101,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"016344ac-07ac-4ac2-ae36-21cc6aad159f","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":101,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"419767f4-02a0-49cc-8016-757eb864f2bd","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":101,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"07238b68-b074-4507-b70f-d3eafd3d88bc","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":101,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"c78759f8-127c-46c1-a0e6-31879406d1ed","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":101,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"e031f60e-dc32-4bd5-93b7-a75aee1eb3b5","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":101,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"d5eedae1-3fcf-44b6-a377-2a93f2407355","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":101,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"42222150-49e0-4a2d-963b-6d902f090fc8","block_type":"box","text":"Trust Preferred Securities.","page_number":101,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"bd3e793a-e568-434b-aea3-bb2e5281438b","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":101,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"49aae330-ffc0-443f-9a3d-27cdfe439936","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":101,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"dc2f1a66-74ce-49fa-ac98-390c252397da","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":101,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"d2eb05c3-3929-4210-b27b-f261fae0f997","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":101,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"3d94df44-fda0-4ca8-b593-d5bdb839f468","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":101,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"32a49a61-f3db-431d-a833-644c5eb4f005","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":101,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"a91da0b6-e712-487e-a0cb-9683f9c5429e","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":101,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"9aa3ea27-1450-4627-bb32-38db9ad9d814","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":101,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"4b7d2815-e562-4ae0-841d-21aa54a7a0e6","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":101,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"e78d0f5c-b0f7-4aa6-ac01-a75c6739360c","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":101,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"d48dfce7-bb55-4e20-9484-f6c7fbdb7b2c","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":101,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"d33e297b-e4d6-417c-8ffd-6c7ac2f138d8","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":101,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"b11c3153-1d56-40c2-876f-49406b43a64a","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":101,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"fe2d1eb7-838c-45a5-b3cf-cee303c4618f","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":101,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"2cf410ad-be4c-4bc2-9574-58fcd8b6c0e8","block_type":"box","text":"®","page_number":101,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"cef7d067-9a85-4914-a7bb-fabc6039e762","block_type":"box","text":"”); monthly","page_number":101,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"2e58ff11-5cc9-440b-a998-23a25aa5d1e8","block_type":"box","text":"income preferred securities (“MIPS","page_number":101,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"a78f1a61-e353-425b-a7c0-ccfe2ead840d","block_type":"box","text":"®","page_number":101,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"cb68aa39-5c2a-488f-98fb-7c84229bdaa6","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":101,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"ab2c860e-4c1c-41d6-8f9e-e91bff091507","block_type":"box","text":"®","page_number":101,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"9e5902c0-03de-46e5-b8e0-96b4d1cc03cf","block_type":"box","text":"” ); quarterly income debt securities","page_number":101,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"f3786527-5ec8-4a46-ae71-ffb3ef344936","block_type":"box","text":"II-65","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fb5c740b-333a-47fa-8766-9d08cd45a364","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":101,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"9fa93bfb-d381-4573-aed6-60a5ac666458","block_type":"box","text":"(“QUIDS","page_number":102,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"9716667f-5ab0-4a39-80a8-525f96b01a1d","block_type":"box","text":"®","page_number":102,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"55f83401-870f-4321-a344-afb3b7e79ce9","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":102,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"f6b207e7-1ec3-45a5-9220-6ec254d62b00","block_type":"box","text":"SM","page_number":102,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"5da9c75f-cb14-4ee7-af61-fd000c967cff","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":102,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"e2cd954d-07a1-499f-92dc-6b4cd086ae6c","block_type":"box","text":"®","page_number":102,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"2fc62bd1-b780-4609-9f07-f2ff72451fc9","block_type":"box","text":"”); public income","page_number":102,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"c11a55e9-aa6d-43ac-b36b-447d16dadf7f","block_type":"box","text":"notes (“PINES","page_number":102,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"318d6f44-f610-47a3-b7eb-2f4835f69c61","block_type":"box","text":"®","page_number":102,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"b4594617-5cfd-4f1c-9adb-ac64e3e5c11c","block_type":"box","text":"”); and other trust preferred securities.","page_number":102,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"70f84cb0-c1dc-4fcc-9704-16b4ebc21fc0","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":102,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"5493fea5-9ea0-40ef-92b0-54e084000f5f","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":102,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"a57b90c2-3dda-4f21-9e93-ba8ea14011ec","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":102,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"54697485-ae69-4540-aa06-fc636174357f","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":102,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"a3b5b3cb-60bb-48aa-a5c7-bec758694af9","block_type":"box","text":"regard to whether all payments have been paid.","page_number":102,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"ab8e7ba0-c221-4438-82f4-10e56acac05c","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":102,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"ff60ec1a-407c-4f82-be4a-63ddf5d84629","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":102,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"0bedda30-1585-4e05-b303-0da02bedf3e8","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":102,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"1a42063e-f63a-42b7-929c-6b1da91649e1","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":102,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"486a194c-6a89-46c0-8f0b-da7b5a0503ed","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":102,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"ef3daa38-ebbe-4a42-960a-2ad8077f0eb5","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":102,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"9ef3d241-4d29-4398-8896-a0ad07b2b6c5","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":102,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"e01e6518-d11c-4c8d-b98a-34036be2a77c","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":102,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"3d18399d-ebe0-465d-b175-cf0af679eca4","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":102,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"4a3715e3-5a3a-49e0-8059-42a2f72a87e7","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":102,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"7e814470-87fb-4667-8c86-56bb2e6e31fd","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":102,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"137f5581-7122-44ec-a67c-d3990187e12a","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":102,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"c9b166c9-8d99-437c-a30a-8df0596709ab","block_type":"box","text":"debt securities.","page_number":102,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"1c6f3b84-b8f2-4ede-8527-028568c44728","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":102,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"6fd78cbc-d66c-4e4a-8500-c9aa0ff28bcd","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":102,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"e6deae5f-aab8-4b52-8910-3128d8f6219a","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":102,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"a023b484-ba67-4f5e-a494-0fc57b611fbb","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":102,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"afa6e88c-5743-445e-852a-bcbdfd24927c","block_type":"box","text":"geographic areas or in specific property types,","page_number":102,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"78e7368a-a1c6-40a7-b4bb-03e57ed582da","block_type":"box","text":"i.e.","page_number":102,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"3cb84703-87ca-418a-b60c-adea4d5b82ee","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":102,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"2df9c6ac-00dd-4352-a14f-931de32310f1","block_type":"box","text":"buildings.","page_number":102,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"4b7c3f5c-b4d4-4bac-ba00-e503996a0c4e","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":102,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"2ee3a2a7-6c37-4713-9ffb-b1b6e5dbd996","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":102,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"f7c439b0-ca10-47e3-ad8d-95c25d4a5d1c","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":102,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"d30b267c-04d5-4024-aaff-ed17852d2106","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":102,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"bb450afc-7e02-490e-b54a-d3a62c962649","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":102,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"beb3a626-a966-4b90-b04e-d765f9828fd7","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":102,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"4b8961b9-fe62-4b93-b266-5d24847c91fa","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":102,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"0b0b8d5f-446f-4d73-8536-68e3ec18f42e","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":102,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"1159651d-2729-40fd-a726-0c94d7771d4d","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":102,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"de0e51e2-3544-4367-ad98-5e33b80db82b","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":102,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"f709628b-d7eb-4916-9747-10d2cba47f8e","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":102,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"091c0edf-6c73-4d84-aa4b-6091d2aa5371","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":102,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"be1b4ed6-e634-402a-9523-186dd84c6b73","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":102,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"d80de3f6-93c3-4283-9821-555661882a57","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":102,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"856b95d0-dc8b-4c90-aabd-e7ad67253812","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":102,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"cab02a51-fe8a-45ca-b131-89349075ab21","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":102,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"e3df9177-68f5-4e21-b5af-4ab125f25317","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":102,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"868f63a2-dc07-4ee0-aab1-4dbf68900786","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":102,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"e8813ddd-d96f-4342-81ef-fff1d8524f94","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":102,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"ce132a2c-87b5-4bf5-896f-240b049dd611","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":102,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"bde9ac50-c0fd-48ca-b6dc-046780689e07","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":102,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"32b88ac6-1d74-4670-8631-e51aba14ec8f","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":102,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"5f3ead5f-14ab-4dc3-9393-a8653b7fa49e","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":102,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"93506744-9b8d-407b-aceb-db964d694a7e","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":102,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"f9318a9b-e4aa-48c6-90d4-9c2dcae6b78a","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":102,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"fa748534-26c9-447a-a4ea-f09727249793","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":102,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"ce7069de-2d32-4ada-ad10-ef6e30eed73e","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":102,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"a7bfd393-3b11-469b-9c35-88ec7602adcb","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":102,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"cbf9b55e-fd40-4307-943a-94858def83b1","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":102,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"e207db76-8f2c-4645-8afd-49fdbe120834","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":102,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"58aab92d-0598-4cd8-95e0-7ab87e31c20e","block_type":"box","text":"II-66","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"46c81da3-1f79-4f4f-ab5f-c6183cdde353","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":102,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"33f3f9c6-fb00-44ee-84fb-0b78df21bde5","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":103,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"63ac8ad4-0cc7-4e61-9839-3ee31b4a5068","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":103,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"a9cd0b4c-eeb6-4112-a13e-3f01aa03e3a2","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":103,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"32958d50-ce88-4b5e-8573-0f0798cb7df3","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":103,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"4884e7a5-9ff4-49c2-bcfc-0da169f48a85","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":103,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"76aa757e-2c4a-4cc6-b297-bc0359c6cb65","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":103,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"cd65d46f-d0f2-45e2-b22d-255529f80eb5","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":103,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"69f12a03-41be-43f2-b69a-4cb7980ac06c","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":103,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"50c7e55e-7093-43d5-acd8-701e20469328","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":103,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"a3d8dcc6-7ba4-420b-8ced-097419dc6df5","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":103,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"0490021a-7d5b-4d90-80bd-c7d74e8214d9","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":103,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"63d3697d-c82c-47db-9eca-1dd2af13bfb9","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":103,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"1119fe36-b9b9-465a-9a50-41a0b7647c03","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":103,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"df787a3d-7901-45e3-8628-42d8442dfb5d","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":103,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"c9040634-4993-4c01-9614-8364c595657a","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":103,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"5a6e914c-22ae-4aef-b65a-4afa2955ce84","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":103,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"cf6cad84-e4d7-40eb-b55f-61f2bad63ec8","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":103,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"5efed159-fadf-4fd8-b37f-4ab1e650d640","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":103,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"da6f9e7e-9e20-41b0-ad25-2dc1617470c6","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":103,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"9dbf4c01-605f-40b6-a316-e6eed6eb2cbb","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":103,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"36852bb3-15e7-4215-834e-2132855d674d","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":103,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"cf8e2f71-75b9-40d7-9643-6c09c32844af","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":103,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"a0f6282f-b90d-4339-8bd4-dd85333a543f","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":103,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"5a67537f-8824-4442-b21d-40be8078b4c4","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":103,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"ceb9e37a-1faa-4f8c-b0ca-1f201bb353d7","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":103,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"1c85327a-8092-454e-a622-442dd7a761a6","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":103,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"55bec88e-1451-455e-9ed1-6afb76b6cfa8","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":103,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"2e5bc9ee-772d-46a4-982c-699d3d6b9438","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":103,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"9667dafe-74bb-492b-ab93-589b337b1504","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":103,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"36a1b26d-2a25-48ef-ad76-ca66e7604c01","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":103,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"93cdb49d-c93b-497e-8acd-da5d267396c4","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":103,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"6170facd-6cb8-4fe3-b1bf-d05ec359b41b","block_type":"box","text":"conditions.","page_number":103,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"0fbfead6-534e-4a27-9d95-0ad0e42c72e2","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":103,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"323b4359-4e47-4493-ab74-39f2b1092ed8","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":103,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"8f27b708-3b7b-45c0-ac81-6d81da3e5107","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":103,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"6b56893c-438f-4e0c-a0d2-93576f7f4cc0","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":103,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"17550d37-cdc5-40e9-b7c0-cc0b3642ddaa","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":103,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"8b1ed442-c6a7-421e-82b0-6b7051e4a27c","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":103,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"d949dce7-fc2b-44af-9a71-9ef23cbefa8e","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":103,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"bbf8acf0-044f-472e-b2cb-a8d6dcf314cf","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":103,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"12d312f3-3199-411b-a35d-07819e5a2c17","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":103,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"09270539-4c45-4918-8e5a-611369daf17f","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":103,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"d02f0d6a-08f8-4835-a9a9-e66c5ffdd362","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":103,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"69221c97-be75-4a6b-9d48-3df90f2f9d79","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":103,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"4e159410-80b2-46e8-bf37-931fe4a9becc","block_type":"box","text":"affected by such events.","page_number":103,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"e548602e-55e3-4aac-8755-42ec4f67a398","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":103,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"c3a682ac-b139-45e1-875d-f4f3dc31e647","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":103,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"61ea4aa2-8bce-4a5a-be16-d15c2a00713f","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":103,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"e25868c0-6ad9-41ee-99c3-5ba8c1308e9f","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":103,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"4b302b1b-66ef-4800-852b-f1b322d9f669","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":103,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"131eb7bc-7565-43b4-84b5-803602d13e65","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":103,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"7eb50e87-cb6b-4cdb-8e7c-3b6bce08572a","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":103,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"5b39bfe4-ef8b-46e3-a24b-beaf95992d3d","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":103,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"80539e79-0bbf-4a3d-b28c-c4f9a5d98ccd","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":103,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"a6e75f09-1bb1-4046-aa0f-02e9072c525f","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":103,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"6f3e6a10-473b-45f8-923d-dcd92a66b376","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":103,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"0b00b8f3-1307-4416-8839-17ccdbb7eddc","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":103,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"5cf7f0dc-089c-408b-86a2-89e56286b19f","block_type":"box","text":"II-67","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f64f8f4-3039-4b9b-a424-824eb592b31a","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":103,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"69351f3a-8d9e-43c8-9350-c94a51346288","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":104,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"925d63fa-d67e-4d6f-9622-408f566a6cf6","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":104,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"d37cf242-3cb8-4328-a7d1-5079cc73f36a","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":104,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"03d091ee-27db-4120-8a70-e8ec73302e3d","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":104,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"b142f5d0-3849-463e-8521-515da4906832","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":104,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"21da4914-c173-4be0-89d6-53e4d065a4e6","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":104,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"57656da1-301b-4725-8dae-ea825a62b251","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":104,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"18761ed9-0157-4eae-a2bf-1c3ffe979187","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":104,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"65e84734-dbf4-474b-b007-d670bab9782d","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":104,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"f44b356b-6985-4f76-9f4e-c53185290c74","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":104,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"2cf5dbcd-35b3-423e-8de7-2dc268bd8884","block_type":"box","text":"investments.","page_number":104,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"06f7fc83-f0d1-4a3f-8fc9-c2286fde23ce","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":104,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"31219da3-eb90-4f67-96b3-7092f0feb000","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":104,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"5a60fd0a-b719-4f13-8cbd-8fb79d9ef068","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":104,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"fd27368a-077d-4707-a74e-818976c69778","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":104,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"3281951e-0da6-4c82-852a-a697e9228967","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":104,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"b3cc5ede-b88c-4843-888f-f1d1a14927f1","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":104,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"012e4bb4-a86f-4ae1-89e9-88c79e1c4522","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":104,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"32371182-9aa0-44e6-b039-c7fc33c9b464","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":104,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"1b23a75c-bd56-4ce6-86bf-866b0229ea8e","block_type":"box","text":"Legal and Regulatory Risks.","page_number":104,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"ce2e2f35-ccf7-4ed2-84a7-858fe80aafb4","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":104,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"a38c4395-0cb8-4401-b116-750d4b4a35a5","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":104,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"9ea5d4fb-a3cc-4778-ac62-1563b0373104","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":104,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"8f5bbfe4-bc5f-4161-ae3d-98c9a6ff2b22","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":104,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"2d91d3a1-d310-49b0-9ac1-f09f4136d8da","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":104,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"798a147f-cdfb-4514-ac53-b6387194aff1","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":104,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"f7ace9a3-7c93-4af1-b36f-73ceec19c4a2","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":104,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"6bd79a6e-a686-493d-bb73-7e9cc9b6ed77","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":104,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"8ebade77-dfc4-406c-befd-017104a00efb","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":104,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"afdcfe81-ac46-4c36-80d4-58aabcdac085","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":104,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"44577daa-070c-4fd6-8d36-79820dee6f09","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":104,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"23f4e061-3821-4bd6-a626-0a81e70acdac","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":104,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"3fb6349c-9813-494a-a5c9-95f3cddf1864","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":104,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"161a3514-9495-432c-b6b2-05b581842faa","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":104,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"5e8ed313-81a5-42bf-b5a5-1a48dea64ac8","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":104,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"20d7216c-b4f4-438a-b8e9-da5f9388611d","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":104,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"548d3911-16b0-4568-83d5-2a1dab0568d2","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":104,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"a9d456d7-2669-46e6-a8e7-273c48923a80","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":104,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"effeb31c-7d95-4a55-8d06-40ecc490d48b","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":104,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"99eb30f8-55f9-4120-960f-3129b7be2284","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":104,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"f6dfd209-ea4b-4786-96c1-f8375ae557d9","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":104,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"3e70e48d-8ca0-462b-a452-ceb0dbd3a1ad","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":104,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"fbf0b649-5abf-4809-9de4-a10e31bb8972","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":104,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"a50c4383-6a76-4703-b735-83a3f19ee8c1","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":104,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"b78acbe4-af99-40c2-be95-47daf5115b53","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":104,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"d84990db-5c24-458f-8c0c-97326039e39f","block_type":"box","text":"Geographic Risks","page_number":104,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"a4dcad22-759d-46f0-bc37-d4c1c0162d0c","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":104,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"84cdbc23-c9cc-4804-ba3e-af35e6d8d5d7","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":104,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"641376db-3423-4c0c-947c-05c56a1830da","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":104,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"026440d6-e558-4e14-a709-7200cd19baa3","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":104,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"b9e7b4db-08b4-4466-8c54-394277c532ef","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":104,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"c7539d99-91a1-48ea-a896-a1873413a74e","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":104,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"8cc2af44-5c9e-4323-bf77-5141034f2bc7","block_type":"box","text":"Fund.","page_number":104,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"cec97195-80a4-4be9-b4cf-00a5415e7f36","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":104,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"2db01e40-2610-41d7-b89e-feabb8c29fca","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":104,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"17624da8-ec6f-4f9b-af00-6309cf92319a","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":104,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"5d8df18c-0780-4451-960e-ec39cf8769a2","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":104,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"70c2ca61-3f02-412e-b6ac-cf1fc9876cda","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":104,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"1cdc8c99-618f-4e1a-8518-172912b8e659","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":104,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"8b8fc6fb-cbf6-42db-a186-ace265c43a77","block_type":"box","text":"II-68","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"09ddae82-faac-4cd5-8773-fa017d709ca6","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":104,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"fba34fc5-f124-4b89-ae14-2f292f2d5d66","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":105,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"dd185e2b-29fd-4b97-805e-d6b1d55e5b6d","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":105,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"e1bdf7bf-8c4a-4c87-bec9-f12ff2699a03","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":105,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"cc6ba235-c38b-4977-a72b-57fab7dfbc56","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":105,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"29226c1d-8640-4b98-94e3-2f4bfa9a2d3f","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":105,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"57c73353-9b11-43c9-8c8e-3c9ea5451628","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":105,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"c877e4cc-fde2-4b60-bd44-78604a44d9dc","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":105,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"e659c0ad-34fa-4b53-94d1-738d971d7d8d","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":105,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"2e278d5f-d48c-4e98-95fd-6b1457695de1","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":105,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"f07fae5e-d045-4e02-8e5b-2ba262285d9f","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":105,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"919a6f5c-d793-44e0-9d59-5c354fa72d0a","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":105,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"91429737-d9d1-4a1d-88b7-f0503803e1a7","block_type":"box","text":"e.g.","page_number":105,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"548b643e-45a2-46c9-8a74-d6d407eb1436","block_type":"box","text":", SOFR for","page_number":105,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"efdf6d79-aa24-49df-afe8-21eea5041484","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":105,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"4b43529c-26db-4b4c-a148-8a954a648444","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":105,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"8ba1ea39-e768-4e53-9112-d53ad2288de1","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":105,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"6061b75f-dbf7-4a8d-95f0-0bf698894d5e","block_type":"box","text":"determined.","page_number":105,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"6430914f-12ac-4578-b244-fdca2820ea68","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":105,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"5ab55ddd-fb4f-4230-84fd-a4d223644f09","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":105,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"4e5869d4-c784-4bc3-8311-3da343a64c20","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":105,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"091438f0-d8eb-497a-b862-b5963ee8d313","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":105,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"b5573303-d3e9-4931-8f65-925717dd6f80","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":105,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"06ecc8d4-afa5-40cc-8046-ae919e169a0d","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":105,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"25d6cdbe-d648-4f85-a39c-59977ea21090","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":105,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"be47ff69-e568-4141-883b-034984b80e52","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":105,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"8689a14c-0472-48aa-b565-59904dfb46a5","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":105,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"5c46dcb9-7de5-4ee0-b154-93e344e9cfa2","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":105,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"a5e0fb1c-34ef-4e67-9b91-b50b4cf6fa4c","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":105,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"d5cb8663-47b8-4ef9-9bdb-4bbeb1bb5348","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":105,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"d7679ee1-38d2-40e3-9933-6fa6c2fcd000","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":105,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"daae8d3b-ceea-44fc-9ea5-1755aa05c381","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":105,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"e5877eb1-b7ce-4da3-a198-f3facac93489","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":105,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"ebdc43c5-0ab6-4157-8958-c1c62034fb20","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":105,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"91b2c10a-9abd-4ca4-92cf-37b3441b3484","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":105,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"53d26faa-6a7f-4040-80b9-7bc4e847f209","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":105,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"5dbc9313-76ca-4eef-992c-3fde10b3a7f6","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":105,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"22fa7e95-86e5-4511-b865-fe2a398d3547","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":105,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"39d947c3-aafa-4a87-b85e-5ed2ea205683","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":105,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"c124007b-9774-4022-9615-a2fc3bab64ca","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":105,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"ce71dc0d-1a9c-4cc7-a964-3643eae9441b","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":105,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"2171e0bd-f1c2-4c19-8ee7-30d71914f67b","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":105,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"b5829843-2b65-4927-b2d0-8d136c9c0175","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":105,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"54b0c8ea-397b-418b-963f-044a002aee17","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":105,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"9f947eda-64f9-4b5e-bbe2-6c9a9a206fdd","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":105,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"bb34b301-30f0-4f49-96be-579548493a14","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":105,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"e7eb133d-cd91-40f5-9dc6-8dada451dd9c","block_type":"box","text":"consequences which cannot be predicted.","page_number":105,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"3ec8f3bc-193b-4438-bfeb-678026692c21","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":105,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"2d9ac9aa-7dc6-4c3e-9479-7ed80026365d","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":105,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"69e60568-4460-4237-8b9f-d766d5e2a2ab","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":105,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"3d459572-14e4-48dd-bb41-8ee0e7e6aa21","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":105,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"807fc338-86af-44fa-bf51-7c2dc68c986a","block_type":"box","text":"term of the agreement.","page_number":105,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"30c4e591-d439-4310-b3b2-826dfc334dd1","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":105,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"5131fad6-79ef-4d1b-b7e4-010f2f011140","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":105,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"6d86ca4f-2e38-4311-a8d1-7eb85e5d5411","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":105,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"122e5ce3-356d-462c-a986-178003437173","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":105,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"34d40d4c-6ef2-4e13-8a7e-5e2c114474b0","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":105,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"293872f6-1c4a-4bd7-bd37-8e4dd08743e6","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":105,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"93fbf70d-e0ea-47ee-bf3b-2f2d43c87811","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":105,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"8260785e-386c-4ec0-b581-284ed426530c","block_type":"box","text":"II-69","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"16502e9b-6c59-477f-80d0-265a5cea8276","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":105,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c1742341-e4fd-4af7-95ea-358823cc3574","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":106,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"7b7232d2-f98c-42b6-af2e-bf5762ffebd6","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":106,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"70f9af34-62aa-4574-a236-19c58087e0a3","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":106,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"bdb6ec75-6927-4785-9d81-94f944bdecff","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":106,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"82e7a420-6ecb-4fae-8a45-3ab3d2010a52","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":106,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"22b84119-4ff4-4ed7-8a41-dbac41e172ab","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":106,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"948bc629-4fb9-44a4-81af-65405d80a95d","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":106,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"42673ca5-b8c1-4195-86b1-aa6ddec9125e","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":106,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"d2b223e4-4cd0-4f7f-88d0-e9879a13a167","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":106,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"115fbd5b-cfd6-4253-93f4-602101b7f66d","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":106,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"28ed4852-902c-424d-a3f7-654b877fd5df","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":106,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"ef178282-cea9-4f6d-9333-9b240ee0ca1d","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":106,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"22ac599e-be10-44f6-ba92-02dc16c369d4","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":106,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"d34037f6-8a25-4912-892a-7ca73911c48a","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":106,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"8be6aa26-d61b-419d-97e5-dd6e5d106d8a","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":106,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"d3f48b67-013c-4e26-bffc-f2e4d2a09134","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":106,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"e72aad37-6f8c-4cb8-8b9f-0a2a509a3175","block_type":"box","text":"or by another authorized securities depository.","page_number":106,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"a349c917-430d-420d-8451-356a894d8d82","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":106,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"41d64a78-ee6e-4f83-adf5-3bff1ba17605","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":106,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"e026d0aa-cf10-4623-a107-2682d64f2c66","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":106,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"5406fa58-98f7-4e1e-a318-906baaee8380","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":106,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"e0bcf6a8-9392-443c-85fd-7aca6c285f34","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":106,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"cfc42d39-7f6c-4553-bec5-343e7fee283c","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":106,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"771a6f41-dcc9-4136-a7fd-ddfb0a4861df","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":106,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"48601762-9728-42e4-a23b-ad1a76449de9","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":106,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"4b9da56a-9c56-45d8-879f-3d32c7673ed1","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":106,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"7abac612-9fa4-4b33-8f61-9eb4177b1e68","block_type":"box","text":"the repurchase price.","page_number":106,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"d9470652-a4e0-4281-84c8-0587afff2d82","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":106,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"c1a6d75e-acdf-4c91-b448-07cb58a8b4d7","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":106,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"11a04720-2fc4-4aee-a179-690d441499fe","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":106,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"554d33a4-f837-4e35-a411-0b356742dfdc","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":106,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"33e937fe-70bd-446f-9ae6-becea07a030f","block_type":"box","text":"strategies without the repurchase obligation.","page_number":106,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"541370f8-fa8b-4f4e-a520-bcf36d300a9e","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":106,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"4d16bf01-0278-44e9-8bdb-7f6c4f228d44","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":106,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"d172ebca-2b80-4101-a273-87c362ae2fb8","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":106,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"9b372efb-60a4-425b-b391-1f373bb07772","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":106,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"9fed4940-9ca0-4142-97ef-4dd001339ecf","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":106,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"8596b7c0-99e3-4bc2-acd3-02a77a5cd7da","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":106,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"4fe3466c-8687-4901-8f2d-6966b99ef3ae","block_type":"box","text":"i.e.","page_number":106,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"e6994cb3-da53-4712-a37f-641287a6bf96","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":106,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"2336ae33-41c8-4b05-82eb-d431045f322b","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":106,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"7586c1fb-e5b9-45ba-8ff4-f71952ad47b2","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":106,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"4c917bf2-326a-40df-8186-f80d573339ee","block_type":"box","text":"and income involved in the transaction.","page_number":106,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"42ddad8f-2748-4bed-91d7-21d73bf30d0f","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":106,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"27288b2d-0165-499a-8578-5f480de64bcb","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":106,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"633a5507-92ac-4e11-9fc1-35ac6fbf3d9d","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":106,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"60d97874-210d-4a18-a07d-328bdeef9a3f","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":106,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"e761196c-88a0-43a6-a421-96f74b2838d8","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":106,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"563b5300-661c-4687-b8c6-6a5f010a520f","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":106,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"df13efb7-8418-47fa-b781-ddf6d7824219","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":106,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"2d782974-1cfc-4734-883b-0e8c247547e4","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":106,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"06051b8e-edf0-4d0c-b682-9baf2ba78ae1","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":106,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"b474f55f-55b8-46c6-8da0-7994f12f5925","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":106,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"96c54cbc-f759-4a7e-b7ee-a4b70c9d0b47","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":106,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"c208cd20-f8ad-42cb-9877-a08ffe2037f0","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":106,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"eb26f7b1-077d-46d1-bef8-48fd02c49e66","block_type":"box","text":"Restricted Securities.","page_number":106,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"4cb0eec8-976b-4d20-82f7-7d14ceb7e0a6","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":106,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"f6116c51-5b89-4e0f-87aa-3dc400a6296e","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":106,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"54d29243-32a2-4a25-8670-2ad4613a17ec","block_type":"box","text":"II-70","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c9f073e7-051a-41bd-816b-dcabce3f33d3","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":106,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"dee7290a-9fa3-426f-9c89-0f77abb6ad84","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":107,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"77a00716-30ef-4890-a36f-49f23fde084b","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":107,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"3de624ff-411c-4d91-bcf5-fa9f157ccafc","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":107,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"1044cf03-e65b-4dce-82ad-06244dc85d57","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":107,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"35fac8d2-1c3c-4074-914d-eb300944449f","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":107,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"d0fd9b44-c845-47f5-8e01-245f86fd0073","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":107,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"efda3496-5731-4b71-9137-e7faacb57b0f","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":107,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"213527fa-ed73-4803-858a-f5d9a61c84e2","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":107,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"e17a74d7-acea-4755-b0ba-3caa45304dc7","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":107,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"25f26489-6ca6-401f-8626-0fe0a19edf00","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":107,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"a7ed369c-01bb-492b-88f5-eb2964b44d51","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":107,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"8f8a3976-43c3-4b5a-a36c-d2bc8dbd8d65","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":107,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"c4615475-4ec1-4ab0-91d2-c227093c4c57","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":107,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"cbb76a90-5f37-4e1c-afa9-60a28a8f0c94","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":107,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"7a2ac36a-e028-4581-9e30-bfdad96d9ba2","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":107,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"4a512c48-223c-4319-b5d0-a05a5a4c1bb5","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":107,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"b2967ae7-a6bc-4e01-ae87-f2d466632e68","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":107,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"15da2e7b-3d7a-4bda-9ec7-08ae4490fbf0","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":107,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"b8b1dec8-b9df-4917-966c-da49fed684c8","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":107,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"25be6045-b37c-4d6c-9c9a-e5c2a5276380","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":107,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"f9a9d56e-1f56-489a-a072-15408f971798","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":107,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"7e961d9b-34f3-44c6-b75a-c2b2bfeb646b","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":107,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"47c4aab7-c5b4-4d2b-b89f-e86f15ba373f","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":107,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"38be5ffa-747a-4941-a575-eb193fc1be12","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":107,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"b88332df-8f8d-438e-8aef-9a88d921ab3c","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":107,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"f2b74648-d066-44b1-9c9e-73fda17eda5f","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":107,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"27c4ba7e-bc6b-4b32-85de-cfb75bd3a5f2","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":107,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"4ea19e7c-00e4-4d2f-ad09-e70925ace29b","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":107,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"89fe530b-10b1-435a-b2dc-60f79cefa7b7","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":107,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"1f3271f4-2f27-47a1-b60d-d8699a7a5244","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":107,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"1c6c4775-528a-42df-99b5-2a6d7a1cbe1d","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":107,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"b69d267e-c837-431d-b962-ce25d6407bfa","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":107,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"4ba2ea7c-db09-4ded-bb6e-86b300313ce9","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":107,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"c53e7703-adb1-42f2-a93c-b635c4b897d8","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":107,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"e86b6929-dbaf-443d-b583-3d33f57005c3","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":107,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"66568517-dee4-47ff-880b-cd9950dcd0dd","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":107,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"be954f02-e70c-4400-b634-4fa1ebc6f399","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":107,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"1f9bf6e7-dea5-4513-9b54-f2d214404153","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":107,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"da4ea59c-c95c-4ee1-aec4-1d38a95c06ed","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":107,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"6f88394c-34e8-4fb3-843b-77f7e777d042","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":107,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"7e638dfc-dfd5-4f46-9bd0-28ec87d70471","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":107,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"dd51c59c-1cb4-46ef-8d8a-e80f32880041","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":107,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"2ec5e435-dfca-46d0-ab0c-b5d3a68df238","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":107,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"efda4466-9377-41b5-be6d-608022674717","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":107,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"f20411a5-3fb3-4f24-adfe-5679e95e1686","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":107,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"bcf153c2-0b16-40ac-866c-154d0544b578","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":107,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"ae9c8d1c-7a68-420a-a1c2-876f14ae64da","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":107,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"e9ca1979-2497-4e23-bb42-996ce82020fb","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":107,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"248d8819-7fa5-4853-8950-a0c643ba6866","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":107,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"6980ef9a-bbae-4596-9d94-67fd6426990d","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":107,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"fdd1ff1f-58eb-4d04-8f4a-79c9057c7b97","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":107,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"59ff1f6e-748e-4714-8278-f49c4df4400a","block_type":"box","text":"especially as that Fund grows in size.","page_number":107,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"3eff728c-390d-41f6-83f9-33d71dded6ce","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":107,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"e807098b-2319-4902-898b-e6bc6adf4675","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":107,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"8494520d-096f-4703-8029-fe34c47f9182","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":107,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"e5defc40-60a1-4023-8806-d50ff3e46641","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":107,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"2b7a63ca-4c91-43a6-80d6-054fd2be1cd2","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":107,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"803d7c7c-b962-4067-bce0-81f0c08d4643","block_type":"box","text":"II-71","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7926445b-2b20-4544-a570-d0b114fff2c8","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":107,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d54f8b12-2210-4f57-8d33-60a4efb2a6fa","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":108,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"1fe4e754-0c11-4458-a343-d833bc961376","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":108,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"964cf413-4aea-4e2f-8136-931232da261a","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":108,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"7f7d568b-3ea5-4484-9d0d-db0cdc1a09e0","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":108,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"f44b6a8c-b96f-4cc2-91b8-30db95ecd788","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":108,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"c2b8a8e0-ee35-4d9a-8398-5d08d2f6d204","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":108,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"81e11581-971a-4f85-87f3-32946106d671","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":108,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"e5f0e93d-6711-4104-b9dc-05a052401dfb","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":108,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"8a597ede-011b-4fa3-86a1-762e928082f9","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":108,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"e182adde-4b34-4efd-be5f-b1085020c044","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":108,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"54c4137c-3c7c-4c80-b109-4e580a71193f","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":108,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"f0ef8f12-6544-4e98-9753-98c0c92720d6","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":108,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"b7efbf89-188d-4431-9d91-c6a923495029","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":108,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"a3d3f1cb-cb1a-4243-be44-23ead12149d7","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":108,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"899a2785-7bed-4b3d-8715-3756f852f501","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":108,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"ca080853-840d-4139-b95a-4118ea41138a","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":108,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"d00b0554-eb72-4525-a082-4de62d5de9eb","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":108,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"e2d7010d-832e-430d-8c45-2e0073d149df","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":108,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"679e07e8-7e0f-4ceb-b00a-1045fbf3d64b","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":108,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"f819d54f-1e53-4605-965f-995f591a5b0c","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":108,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"156ca29a-bebb-4a94-b785-7fca8d79065d","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":108,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"87ffa4b8-c147-46e6-ab9d-31bd9e1ab71b","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":108,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"7a5ae31f-4ee8-496b-87fe-160ae433f66e","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":108,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"20678b85-1435-41b8-b95c-08071eec6586","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":108,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"0aff3b3e-f08a-46e9-a276-3b4fea539c5d","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":108,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"165e1978-7cb9-4bcc-b252-deed1092475e","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":108,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"2a4d0bf3-9a27-4ebb-9b3b-860c8179b8b3","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":108,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"3a253230-5562-49f0-8530-77745ed2ba93","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":108,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"4529828c-5ad9-4582-b930-100d5c0ab1e7","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":108,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"5af225df-d26b-4e6f-991e-84c30a95108e","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":108,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"f3632171-e598-43c6-aa9a-3445aedea7f2","block_type":"box","text":"similar financing transactions (","page_number":108,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"dfe7c536-e549-4b31-ab79-44eee746d30b","block_type":"box","text":"e.g.","page_number":108,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"bbe60ad5-c9c0-4c94-88db-479200aabcbd","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":108,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"69dea279-102b-495a-b4ba-f51019b8eb4e","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":108,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"c917d432-68d5-441d-8dbd-317ea17c6371","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":108,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"68a43440-4096-4555-b027-506d1b817db1","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":108,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"6217d1d8-8173-4a50-ac6c-f824902d0c6f","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":108,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"17a61e19-df1d-42e3-bde8-4fb63e42ac32","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":108,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"d46f3646-1708-4928-8dcc-c076dca164ce","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":108,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"0f1ccc17-346b-4d22-b7ec-528abd98e2fb","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":108,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"969a91ea-de7b-4a7a-ad4d-af6ce37d0f19","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":108,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"ef048533-a7b1-4dd4-be30-cfd3f16131dc","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":108,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"41f30985-8f6f-4b02-bd51-5371a56386ca","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":108,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"7f3ad1af-6d67-4158-b4fc-3521187ac867","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":108,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"34013036-bb2a-4327-ba84-0b27a6033375","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":108,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"83deaa0b-0c9e-4edd-8d60-8ee7bcee31da","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":108,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"157faa02-c842-4879-b1e2-07095b27c73c","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":108,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"7b660e0a-5052-4be4-a108-b2bf5ebfccb1","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":108,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"5467e0f8-4ba5-43fd-856b-3bcc5cdd4f1f","block_type":"box","text":"amounts to be received under such agreements.","page_number":108,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"1f00f65b-47ea-46fa-81c7-7d7b1d8ae516","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":108,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"4bf59974-0344-43ec-8ff9-27c6f628d51b","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":108,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"c399c4df-0f45-4d37-a4c5-9f00c0dfbe96","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":108,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"86d480b8-9eea-46a2-8833-68fb767409b4","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":108,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"74cdab17-be28-49e8-91bf-8a146171cc29","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":108,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"1f7a76ba-a6db-4f8a-a4f4-7d6a1f2c51d0","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":108,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"298a39df-8fd3-4b46-90f7-9f5c67351934","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":108,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"bcd4519a-ce24-4ffd-864a-b45f1fed7242","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":108,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"8f7d43a7-55b4-45fe-97e0-6ba1c49e6ad2","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":108,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"a00cf0c1-7fb3-4b6f-834b-e12c344466d2","block_type":"box","text":"II-72","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a391fe59-9c30-4517-b890-37ea8c9822cb","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":108,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"76c7d33b-e011-48e3-885d-0879ee4fbbaf","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":109,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"c80842fb-ea76-43d8-b8ab-fef386e4ad50","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":109,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"45f648c3-1de8-42ae-9e13-650f8b60e609","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":109,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"4ed162e6-7d9a-4956-895c-92839c434bfb","block_type":"box","text":"Rule 144A Securities.","page_number":109,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"a4984e9d-b6b6-4b07-a36d-05c5ad95aa0e","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":109,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"2c766a38-86ad-483b-9ca6-f676fa7ea21b","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":109,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"3eb8230c-9ff0-4fa9-a0a0-5467c4cd6d9e","block_type":"box","text":"Securities Lending.","page_number":109,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"18b5b507-1055-4502-87f6-83f2314f6667","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":109,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"2c7d1a32-3626-4678-943f-0014bbb862a3","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":109,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"c9ae13be-d6e3-4f18-a06f-f4fde6d37e99","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":109,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"bfab339a-90b8-4eb8-9a3f-2d948f881b68","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":109,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"d56399a8-5d91-44a1-9b1e-26a1e6e5d7a4","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":109,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"87f8c4fe-b516-4bb5-be8b-d48fe78176d2","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":109,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"c19a15d9-89c9-4f60-8c51-97a2050aa456","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":109,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"7db7c48d-78a2-46e2-a5e0-5b965aafe273","block_type":"box","text":"the securities were not on loan.","page_number":109,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"f7d3dbb6-9f99-484d-83c7-9d4dafd03f18","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":109,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"869d02e4-5f3a-4223-8722-0dff37e7f0c5","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":109,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"4e2c672b-7ee4-4025-8b08-d21fc8c2f311","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":109,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"a61778e9-35b8-4c66-a4bb-6cf34cfaafb8","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":109,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"1b2eca95-4b7c-447e-8fc7-46ac8fba63d5","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":109,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"bf410aad-ffe7-4964-82f9-3b6b209f44e8","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":109,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"d9f9baa0-6f1c-4739-898f-916766ee596e","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":109,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"702b7ca6-9ea2-49ca-b701-2c4c30135c6e","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":109,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"86adaf12-c3de-4494-8dcc-e95264505503","block_type":"box","text":"i.e.","page_number":109,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"bba4f8bd-a0fb-4983-9b5a-272b8686b377","block_type":"box","text":", the risk of losses resulting","page_number":109,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"e35343b3-0406-4208-8497-a105600336e9","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":109,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"01000865-4d79-4706-8f4b-616c7bbf9c03","block_type":"box","text":"i.e.","page_number":109,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"35513ce8-212a-4930-9142-0d04db55c72a","block_type":"box","text":", the risk of a mismatch between the return","page_number":109,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"9dfb21eb-25b3-470d-a98c-c7dadfa7ceb5","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":109,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"0bef9738-bcc8-43d8-84af-c75f3dd13f14","block_type":"box","text":"i.e.","page_number":109,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"89999808-d609-4ef9-bd8e-6ffed1f7ae23","block_type":"box","text":",","page_number":109,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"7f0d5650-14d0-4d6b-b867-04ce3ca0bace","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":109,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"45d6efe9-6dd3-47ba-a647-53aff57d6f72","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":109,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"7a5405b2-b089-4b60-b6c9-03c390802592","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":109,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"b0881a59-eb51-4bd9-b781-f4c4fafb9acc","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":109,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"660c9715-bff5-4258-8c63-cc38d850631f","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":109,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"022a1604-ba4b-47ca-8ba7-201cc6da75c3","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":109,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"9379684b-c70b-4b12-a5e8-7733bb1ab48f","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":109,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"c833c32a-de5d-4688-9496-97193a918fcc","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":109,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"a4d083d4-3518-47ae-ac5b-69d272b2328b","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":109,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"d1ef7034-31ea-4628-9af4-20afb64e2dcb","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":109,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"7498260b-50c2-4363-9dfc-d3a8efba3bcf","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":109,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"f7182627-00dc-4e11-a7ca-7a5a712fce55","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":109,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"4a1d40ca-5a60-40d8-8c39-cae8537294ed","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":109,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"bbd843a3-036a-445d-bf2b-cb1f051ee8fe","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":109,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"4a90cf76-b38f-4a7b-ae26-84d8e0bd7ba2","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":109,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"65ea235d-6958-43ec-a052-dd2408e7ae6c","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":109,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"63e37fec-7d7a-41c8-8e68-02e5ddf6f03f","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":109,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"e415fd22-3792-49d7-9a72-c52932053c11","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":109,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"b5cdf65d-da3a-492b-a281-bc01627b35e9","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":109,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"8062bb0a-c41f-4738-baa7-517d3f4249c9","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":109,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"d3f69ff6-5279-496a-b5ce-9bc8bead05ba","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":109,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"bc16f45b-d1e1-4910-b870-3bb003af6d62","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":109,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"39562fa3-3057-43f5-b1d7-84ae9d15d42c","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":109,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"2519d940-aeff-44f8-9497-f2ad54400730","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":109,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"e5757798-118b-41cd-856a-9cfb87f7ed03","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":109,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"8eca950a-4301-4afa-9e42-d63868c0e54c","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":109,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"d62123b0-4ff6-4409-9cee-d07bdb271e36","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":109,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"cc02f83c-ad83-432d-8644-5609361c2cd6","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":109,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"955f49a3-d2ad-498b-9b4b-d40d7e03047b","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":109,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"e7e7eee1-d5f4-4e7f-bff6-6ebf16d4db37","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":109,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"c548d28f-875b-4add-b468-e057ce2c3afd","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":109,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"63fafb3c-1409-4d35-a80f-02f59dce2c6b","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":109,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"46a078f4-327c-47b5-9b7e-dcbec4bc5852","block_type":"box","text":"II-73","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9d836a3f-8c42-4053-aa56-2fa02fef7641","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":109,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"3856cf3e-7d3d-466c-8852-a6b9707eb3b9","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":110,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"d5b82e64-6738-4d29-b527-e7e904be2c00","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":110,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"635e5676-0840-40b4-a472-7a40c068d238","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":110,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"69869524-2150-4e63-8e8c-b8b484c75466","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":110,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"696a1852-cbbb-486f-97b6-7c0948c7769d","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":110,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"2fbb7b63-d217-45ea-adf7-d054432b6cb0","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":110,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"633fa6d9-6eea-4b7f-9348-57aff8b9f371","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":110,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"ac2e3d18-950b-4351-a1ba-961e2a990707","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":110,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"e4029670-bc43-4ae1-a1d2-a2e0eeb6d73a","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":110,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"6dd8105c-0d8d-4d52-b908-bc61040ee2ce","block_type":"box","text":"the current expected compliance date.","page_number":110,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"9cd39083-b80f-476a-83a9-802c22de8301","block_type":"box","text":"Short Sales.","page_number":110,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"27d3de6d-06b3-492c-954e-cf64159fa248","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":110,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"692a4bf6-51e9-4a97-9624-f52595622563","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":110,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"7db67387-a111-433f-bc38-ae571194235f","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":110,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"7cb9f528-1b5f-42d0-9bae-6de9535d068d","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":110,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"b1e0d37c-eedc-4858-82a5-325d88f6e042","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":110,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"ad2a2f81-18cb-4fd9-83e6-ca86958642b5","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":110,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"e896d4a8-77a4-4125-905e-517fa697ce2c","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":110,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"27cf14b1-e57f-4176-95a8-add27d252d33","block_type":"box","text":"securities to the lender of the securities.","page_number":110,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"c5aef10d-8b7b-43a0-80d5-4475b012a32b","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":110,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"0ff29292-b155-4d53-a91d-2bb44c7edb19","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":110,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"3e2b0ec5-38ab-4d4f-bcb7-ae94f72a9d77","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":110,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"c406d2ca-f690-462a-8942-801eb68ffd94","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":110,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"7f9f661f-481e-4916-84ed-dd2686891946","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":110,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"3fce10a8-0bbf-4968-a0ca-0b1df2d33ce4","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":110,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"1e9160f6-1710-4aa6-b991-6c5464ca6f81","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":110,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"4b205403-d8c2-4735-b537-093a2ab079cc","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":110,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"a59db911-38b8-467e-8f94-7c2983f11ece","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":110,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"f8fc9e0b-5b33-4191-94db-9fc8a28a10d7","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":110,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"8053c546-afb3-40c0-b70c-8058bc063258","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":110,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"9e5afd09-868f-4d22-be30-a8b9e6a9e009","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":110,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"0cb44b18-296f-4907-b6bf-1f03cb078aa0","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":110,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"9e26c0b2-d6c5-4fc0-af94-93f46f50ae93","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":110,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"d2e5e711-a815-4a2c-beb9-86af6648b58c","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":110,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"3662d9c2-8488-4d2a-a890-74882898e001","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":110,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"f8d774dd-b586-461a-bf12-dccf3cf4a305","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":110,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"c12fdd7a-0d04-4a29-bf2d-b71cfa1367b9","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":110,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"b8118b40-3eb2-4075-b0a4-aa454af65298","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":110,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"e693798f-24fe-4ede-9ec2-900628a328e8","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":110,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"49800f63-2032-4b1f-be39-abad3cf8a839","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":110,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"72d7faed-8301-43dd-8210-a611a7b78cd1","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":110,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"a22a18fb-3804-40a8-85f5-47baec60fd22","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":110,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"2ade9ae0-7766-4ad1-a184-5843b35529aa","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":110,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"d2185838-4a78-48e6-a690-ec39ed2b8cd3","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":110,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"df52eeaf-0f7f-464a-907c-ea860b0f02cb","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":110,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"dc16abd4-85df-4fc5-b74a-6d98faff75be","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":110,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"19851056-e3b8-4d9c-adc9-19f9561acc29","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":110,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"69f4e666-333d-4120-87bb-9337a083a2dc","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":110,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"28a529e5-8779-45ff-ba12-ddd17946754e","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":110,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"db5d24bc-a910-490f-9c23-3e1b9663d03f","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":110,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"d8dc6a61-9e69-4724-abb1-82aebfef2ba2","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":110,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"09a0efef-923d-4d1b-8aa1-68f55d1dad78","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":110,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"33d5de69-1c41-4a9b-8b1f-c9b99fc21503","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":110,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"b366ef00-3800-4ff8-99e4-7d7727dba300","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":110,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"bccc0c6c-4f01-4f99-ab40-318b2243b834","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":110,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"a7da30f6-c1f3-4f10-957c-80a5799489db","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":110,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"35835305-9294-4957-9bc0-ebfa9b45a258","block_type":"box","text":"II-74","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8a5db6ec-afed-4c7d-acb4-3064f246d50d","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":110,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"18e1cc3b-a705-4a1e-a6d5-268416e180e8","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":111,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"d8b13334-bb1c-4709-9c01-ab6434cf83dd","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":111,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"1fefe991-eff8-4894-863e-41ff35279223","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":111,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"a22ff0c5-4f21-47ca-9f6e-415a061245de","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":111,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"0fc7101e-8dc0-461c-95a7-8f2e83a83ae4","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":111,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"650100b8-42a8-4c00-9314-c85bb17ec4e8","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":111,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"0849fb52-bef6-442f-a14e-6eed288dc0a5","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":111,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"9c9bee9b-dabe-4b11-b445-7bb8d4c867f9","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":111,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"59ef7173-896a-4d4f-aae1-180ba448d47a","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":111,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"88585792-0395-40f5-9999-a9790a0870d7","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":111,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"891bf7e4-16ab-42f7-af3c-1808144d186f","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":111,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"9e16c113-b278-430b-b27f-127597fd73d0","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":111,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"40004fd5-f12c-43e7-90e1-081d83b9e75d","block_type":"box","text":"Standby Commitment Agreements.","page_number":111,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"71799ffe-59c7-4e54-a9d7-e240a4d4e225","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":111,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"8942010f-21c0-4148-9d3e-5a2fe7d215a1","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":111,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"568c527a-7e96-4b0b-ba70-b66ba2ca2144","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":111,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"0b74ed3b-b951-4e41-b632-2b9b4f9907ae","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":111,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"715a54e1-05d6-4e32-bcec-6c4d135a6f2e","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":111,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"fe015928-b717-4eac-a5cd-b8cd67fc2e98","block_type":"box","text":"advantageous to the Fund.","page_number":111,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"049a905b-186d-4ab5-b850-eac8f60df2dc","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":111,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"064c50ae-55b3-4da8-a5a9-216927ac1564","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":111,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"469ac0cb-9c2f-42f0-aed5-cab2ef53ac17","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":111,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"959c6aaf-3fd1-4cef-a960-74384c2583f4","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":111,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"5cbac467-4857-4c1e-a772-bbeae526e376","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":111,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"3a2d3649-339c-4533-8bac-b732fac7155e","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":111,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"7451c47f-0ecc-4fcb-a129-fa222cc1a8e3","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":111,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"4b4f605b-16bb-4320-b41f-4678432f49dd","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":111,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"ecbae383-f479-4cfc-8828-53644d1243b3","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":111,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"9611c69f-d78b-487d-9a2a-f01af77860a7","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":111,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"6bd9219a-32e3-44d4-8601-080a52fa7e24","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":111,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"4b115c25-a4fc-4f44-9cde-63ee67c490d5","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":111,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"11c5ca0b-f223-4cbc-9616-e6b4427370cf","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":111,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"0f3275d5-bf62-4916-b354-5aa1956a6c2b","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":111,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"97166f78-414c-48bc-96bb-6e217198c2da","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":111,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"2b2010b5-ecce-465c-9bf4-622109469304","block_type":"box","text":"Stripped Securities.","page_number":111,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"aed711c6-288e-42cd-8a68-68294936f757","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":111,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"3690d864-b850-4f65-8c5f-218728c03872","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":111,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"afc1d1c3-cd17-4f45-9e45-40850709addf","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":111,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"1c5e6935-0f56-41a3-b6c5-8e1ccdec1e33","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":111,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"ca01c75c-69c0-433f-803d-ec084be99c98","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":111,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"2f193d7b-51a3-4869-bc38-779db8a52275","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":111,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"f950634e-97cf-4b64-9079-eadd2fa9ee7b","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":111,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"5e32cd6e-631a-4e78-bf81-d01b8b832340","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":111,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"df723bd8-706c-43ea-ae23-36e364d647ec","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":111,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"e1c2e0a4-86b7-4b69-b9cb-253ad239bb98","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":111,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"c4746734-1e6d-43ee-896d-9a59fffc0788","block_type":"box","text":"Structured Notes.","page_number":111,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"cf9b2146-0a73-4701-972f-52bd1b149060","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":111,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"08f05c8c-bf25-472a-87e6-06948e3e38d6","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":111,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"760a4852-c062-4ffd-91ca-61b36972948d","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":111,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"3bcc7410-2637-40ae-b53d-555bc43e7caa","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":111,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"399fe2e1-9c05-44a2-8b06-b5fd55e22811","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":111,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"fa874d6f-9824-4974-a6a6-c1f7e480bc78","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":111,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"251c7942-c0a8-4d3b-92cf-c8f49de556fc","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":111,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"545d1e6c-f294-4108-9891-049fc3a0c5a3","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":111,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"3dcd4302-c34f-40ac-86f7-f9a873cb0171","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":111,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"07225d58-5fc5-41da-babd-c0ddce4d2298","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":111,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"820bce7b-fce9-487d-97d6-b0daeab653d2","block_type":"box","text":"II-75","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5c6aafe6-659b-4b44-886f-8ab18eb6192e","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":111,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"e0f8dbb3-5208-4116-99ba-c5f6462208db","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":112,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"5cb62213-7409-4598-8ff6-52bddc7e535b","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":112,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"e44e8826-0232-4758-99dc-688cdada58c1","block_type":"box","text":"the risk of loss.","page_number":112,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"90eeef0b-dd10-49ac-b397-4242abd9776f","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":112,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"0dad16ca-8ffc-4088-8c3b-f5568cc7d6cc","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":112,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"ba0357c2-ce4c-4bff-8eac-42f8808803e2","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":112,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"c19d037b-d66e-40d5-8ed5-9cf3094c31c6","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":112,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"9effd3a5-69d4-49bb-8f85-0d3c732d4fdb","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":112,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"7a2490ca-8da6-4085-8855-85071f779b57","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":112,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"dc68efcc-608e-4324-a1cd-4fc233555ba7","block_type":"box","text":"Taxability Risk.","page_number":112,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"c5f9973f-0eff-4597-adb3-e001ee0d839f","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":112,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"78bffe41-f8f2-4d23-8788-dac40951e028","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":112,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"882dbd08-4974-4907-ab68-64e6512c53b7","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":112,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"f5f99a83-dcd4-4a9e-b2d9-f1101c13f54a","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":112,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"1a1cf721-1930-4a56-b1f2-1e3bde121adb","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":112,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"43dd9b8e-d798-4738-b5c7-95181cf8eef2","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":112,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"f2982bfd-3950-49a9-852a-941f7235980b","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":112,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"179056e6-c73c-481e-a810-24a416ca80ef","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":112,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"1b1044ca-4e8d-4f25-86fd-decf66834a8c","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":112,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"2d6f4a8d-4d2d-4665-a428-2a7c122bcffd","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":112,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"a24ebfeb-8550-4d4a-8426-b1d3fa1b4dd9","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":112,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"3ac6260b-2806-4afe-a5b0-3f5b04d68521","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":112,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"8a62a454-484a-4753-a0c0-0d55e514f5e3","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":112,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"7d95098e-e39d-4aba-b6c9-78638ddbb532","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":112,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"e2e318a7-edf5-4326-a57d-4c155131cd02","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":112,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"e192bf72-07a8-4dcc-a172-157fcd8cbd8e","block_type":"box","text":"the value of an investment in the Fund.","page_number":112,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"2dadc538-1d65-4f5e-a4f5-f496ba223f3b","block_type":"box","text":"Temporary Defensive Measures.","page_number":112,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"e21112b7-07d4-4bb5-b5e6-883ab8464bb4","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":112,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"cef89882-5e2c-4af9-8441-159adf20f580","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":112,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"4e4b77ec-9daf-405c-ac86-a80d834c6284","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":112,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"b19638b1-b2a4-47cd-92bd-d5f4ab2e554c","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":112,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"e66b925b-0c8f-468e-a7ee-4b12ab3e82f5","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":112,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"32db25a2-ec2e-4e14-8681-f63e1619339d","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":112,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"20b0a598-4bf1-40d3-aaec-01573ecbc242","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":112,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"ac5d924c-83a4-474c-8899-06c11a002b2c","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":112,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"04193a3a-b5da-4052-89c8-fe92001066fc","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":112,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"82d16a1e-ca92-4440-8040-e06edc25b43d","block_type":"box","text":"its investment objective.","page_number":112,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"28ec14f3-8bbc-4572-aaa7-872cbfa71bee","block_type":"box","text":"U.S. Government Obligations.","page_number":112,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"d1feb202-807b-4940-a17e-dfbe98530539","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":112,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"73363e46-8e26-45dc-abda-726e896d25ad","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":112,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"b5dde393-fa18-4232-8647-916cf4a6b443","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":112,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"8c2d05b1-4f6b-41f9-9cac-69355949d111","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":112,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"aadab72f-77d1-42ff-b5a3-d48a0c54edab","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":112,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"fa9350c2-d95e-4ddb-89a4-c2ae37e33d3a","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":112,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"bda2aad6-7744-4e87-adec-fefbecace3a2","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":112,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"eccca47d-7436-4ebf-8122-adac1f6f391b","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":112,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"71f04dcb-bb3c-4cc3-b735-889b2d665b96","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":112,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"bf3466d7-50dc-4d5f-85b3-d8572c295765","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":112,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"6e679f9a-3d62-46ea-ae51-3a6e455fc1e0","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":112,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"b964844d-3458-461b-8afb-7b9cf51a395c","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":112,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"e8f5e368-4af2-4d68-aaeb-1af63ddcebaa","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":112,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"8a7900bd-6c3c-4bf6-91bc-06d076a8f445","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":112,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"ef9a9275-4582-432d-8cb9-0c12e3764a74","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":112,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"cce6aa6f-8ffb-42d6-8add-d8d09662f3ad","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":112,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"a2339907-8a46-4e04-9d8a-edf626a0cac2","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":112,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"b04dba46-46e0-46cb-867c-2dc6c1410576","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":112,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"f91ac6be-4ed4-40bf-a9a1-0fa651e4562c","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":112,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"6db94474-a89e-4a0a-ad93-36dd5877a3a5","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":112,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"262939e9-4e55-406a-aab3-977cfe9d6f2f","block_type":"box","text":"II-76","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"60457483-cb24-4551-921a-93d9d78a2088","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":112,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"776f3236-f900-4e21-9029-4346c23cdff6","block_type":"box","text":"U.S. Treasury Obligations.","page_number":113,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"daab7c81-d9fc-474c-906c-3d37327e1d18","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":113,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"441c3226-073f-48c7-836b-0e74bf45796d","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":113,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"77376da5-ed61-4932-81f7-4858b5eafd07","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":113,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"e8a6d189-d8b5-4419-83a1-2dfe6c0a0c33","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":113,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"3a33d475-2d80-46d2-a570-9a87df937195","block_type":"box","text":"do so.","page_number":113,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"267168f8-3f68-411d-9bd2-b89a60071667","block_type":"box","text":"U.S. Treasury Rolls","page_number":113,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"e9f7ac42-0074-49f6-aaed-6557f608608d","block_type":"box","text":".","page_number":113,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"7fb65c8b-292a-4025-898b-f66a0fcbf9da","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":113,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"f2596d92-dd34-48eb-8250-01a7f4179796","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":113,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"c58e71f0-73b1-48c4-8ab3-2322a54c2c54","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":113,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"12210d38-5617-4a75-96b5-0953aa1f9c66","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":113,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"49d01c95-777c-406d-9c3c-48189b305bbc","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":113,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"18eb7cfc-8173-426f-9a77-93c311cea82f","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":113,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"18dfa10a-983a-4b73-9dad-461187981c47","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":113,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"1835aaa6-7468-4ad2-b2da-00ae8b70b547","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":113,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"c3854c9f-e119-4e5e-916f-a99cb6a8e8ab","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":113,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"defd78b9-7e03-4a97-ab5f-14bb81eca9b7","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":113,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"84fd57cb-47ab-4c61-9033-22bef7fe6ddb","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":113,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"b723ddbd-f2ff-4389-8a8d-7c99df185a90","block_type":"box","text":"Utility Industries.","page_number":113,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"e5e0d2fa-5e6c-4ab3-bf65-3502fb8b377e","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":113,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"22228bc5-0544-4883-bbb7-e16279609424","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":113,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"cd6de4e8-10b4-44df-9a18-ea753c803134","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":113,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"ee4e6f13-24f1-4a1c-9118-50024cb7daef","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":113,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"243027cd-5d4c-416f-a1a9-59348000400b","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":113,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"cfee825d-40a2-41cc-a61d-84b9260a82c5","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":113,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"ca557c32-77ed-4379-8470-b853a12fddd7","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":113,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"8ccb6b9b-a811-4a10-96d7-bbd737d07c0d","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":113,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"7c0c9cea-591a-476d-86da-031be6c8d15a","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":113,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"eeb835bd-834a-4f4c-ab43-47c344815423","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":113,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"73a54cd3-f804-492b-b6d4-aaaefd0217c1","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":113,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"dc8619a9-7ce4-4005-8c94-355d7968d8ee","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":113,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"1799bf2d-4845-4f9a-beb9-fe98c90a2e38","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":113,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"4dffe304-9603-4275-b1d9-e5ab234b08b7","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":113,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"d23e9d82-61db-4e1d-aaa3-d25e9b98895c","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":113,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"9e6f170a-6ec5-4c44-a545-8dd4dcd15c82","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":113,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"3585452d-6362-4356-aa11-a9bc45bdabc1","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":113,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"58acd21b-65c8-4c07-831f-0ca8f400a517","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":113,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"55b0799e-1b72-407e-b395-1d8b3b28bbf7","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":113,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"1b4168b4-70b2-463d-a81b-cef4810dec0a","block_type":"box","text":"utility.","page_number":113,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"aa8859cc-0dda-4a4e-bcdf-30a6e3f5e323","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":113,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"99e3ee8b-2ffe-4919-bcb8-0a0cdcf241ba","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":113,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"e02ef967-f157-4967-a0f8-a2c2671fa5e6","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":113,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"47340fd9-4afd-46ca-9ce7-69d56f32ab0d","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":113,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"c3e6f28c-8bcc-45c2-9751-046fc6ed836f","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":113,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"af059ff3-d75d-4f33-9545-e910f8fc283f","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":113,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"05918d61-a237-41eb-a4de-afef4f52b035","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":113,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"a362f8d8-8248-4d01-bb5f-1df0f87d5ee7","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":113,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"c558034b-1f90-4da6-985a-833fdf0ffc86","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":113,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"74d1c706-a3bd-4838-9c91-19abdc5bad08","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":113,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"e6504167-2ed9-40b7-977b-361f5689f1d8","block_type":"box","text":"continue in the future.","page_number":113,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"77f805e6-614c-4536-b73d-7e7b9616c4ec","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":113,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"f88942cb-f497-469c-862b-8ea89ec85340","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":113,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"0e1931a8-e9dd-4357-924d-871bb44800a1","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":113,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"6e1e00ea-5739-41fc-b916-540153f6eab6","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":113,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"4fc152b8-3718-4d9d-9326-8f14d8ebfacd","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":113,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"c1bd3cb6-0a70-4921-8ea0-7528d364ae3c","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":113,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"e8f7075e-98d7-4f58-beb2-1a2786f5e7db","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":113,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"2e7eb75f-7a54-4b30-9869-9b34253db447","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":113,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"01485170-16d2-4ea6-bfde-6a3b89e78eae","block_type":"box","text":"II-77","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9635e23e-7185-49e5-8172-544b23e5f27a","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":113,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5ea34ce2-2233-4a0b-a7b2-d0bcaaac810b","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":114,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"56a7a1ac-2483-4c2f-b66c-0d3c59b7cced","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":114,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"727cafd0-7eec-4ca2-a993-437af32371ce","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":114,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"26e040c1-089d-4eb3-9221-d9d7915ba0a5","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":114,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"44b6d6eb-6d44-4f3a-9495-fb09ceedcda0","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":114,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"6e70b154-7fe4-4816-8de7-98825c270808","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":114,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"2a7ce2e2-822a-43c9-93ce-60e5a2832744","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":114,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"4ed75004-b45c-4874-87fc-a71c4f2f5ea6","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":114,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"35284e7a-12ea-4687-805a-733d2ce9ecc3","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":114,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"dc44ef4c-a4a6-4764-8b7d-c3aaee891c35","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":114,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"ba265d7f-05e0-48d1-91e3-3986ed55c362","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":114,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"2e79952f-a6d1-4c32-979a-574d4f73dcf0","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":114,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"99f551d4-cf50-4c07-bd0c-cf49f2c46af2","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":114,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"a16e5307-efdb-42e8-821c-dd51e05b3f47","block_type":"box","text":"ways different from regulation in the United States.","page_number":114,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"68009737-0eb0-4d32-b220-9970f94743c2","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":114,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"5367cc6d-dd92-411e-aff1-8f67216f2226","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":114,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"dca3c566-14df-48b4-b491-5f016d41f9e2","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":114,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"e9fd02ee-5fdc-4a64-9b13-2db6ebbf5737","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":114,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"e6e4c9e5-5e5e-4b29-821c-b6fdc2b4fad9","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":114,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"3924ae58-b8b1-4444-9735-6e1daa5b8c40","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":114,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"f8d5805a-d7cf-404f-9e0b-fe3b8e8357c8","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":114,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"930f9c3d-af58-489a-b792-f34526a87a47","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":114,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"a56c13d7-5c52-4b54-a12d-3fd6e240eb60","block_type":"box","text":"increase.","page_number":114,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"f6e4a885-3ca6-46f1-a9f6-783e84b5d358","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":114,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"d5e87145-bb71-4264-979f-a7939e91a9fb","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":114,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"96f00c35-f0a4-45c8-a2a7-dd0f52e3e8dc","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":114,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"0b19d676-5f34-4314-8f7c-16494ff9f1c8","block_type":"box","text":"Electric.","page_number":114,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"1e3cd5f7-7987-4dfc-a20c-ed48196f6390","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":114,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"d1430672-707a-4d62-8f56-b33721a696b2","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":114,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"f1fda157-74d0-4888-9a33-c8e435a386a9","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":114,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"32b046df-69b5-46c2-b770-3e57b6fd6458","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":114,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"d9db8279-a1e2-4b4f-8c3a-f9508ce67fa0","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":114,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"c87cb830-8c46-4084-8726-86a7ad50ca60","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":114,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"b920d130-84e7-4e0c-93ad-517fc6453cb1","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":114,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"fbf92c5f-4ea9-4587-8d48-f2cdeb8d78b1","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":114,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"98ca225d-ffd0-4769-8550-3db37f59c97c","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":114,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"70438c71-40bb-4a8d-9956-e4b2a16ef9ca","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":114,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"7b727c2c-0391-4419-b050-731a2d87d3ae","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":114,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"9b8c06cc-101a-450b-9470-9168d1228dbe","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":114,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"99439114-4d0b-4e0a-897e-5c62d2ce7ff9","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":114,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"96436d2f-33f1-45b7-9845-56f36e8201d0","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":114,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"dc18a3a2-095f-4b24-aeb5-a5574e4aca57","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":114,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"4c31204b-649f-4d9e-b141-4fc2d9bae01f","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":114,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"6c3767a3-796c-4b28-9261-9fb54aefed6e","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":114,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"d30eb7ff-5e02-4677-a730-24fdeeaffccf","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":114,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"ba33b7c1-3bcc-433c-b93b-55e6898f8bf0","block_type":"box","text":"and for decommissioning such plants.","page_number":114,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"c8fa0f09-db80-4cdf-bff1-738ac46d12cd","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":114,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"4f2d8988-d2ac-4ee7-a00f-64215aeac9be","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":114,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"78efc627-9953-4858-8faa-25f55d03cb84","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":114,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"d3310966-4bbb-44c6-aecc-376fa3075ff0","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":114,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"ab143ea8-d5c9-4755-ae3c-2cb4fea09348","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":114,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"c0f0fe50-0b18-41a7-85d6-a0914953691b","block_type":"box","text":"greater predictability of cash flow.","page_number":114,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"6c60abf4-d5b5-47ef-a919-077a52693427","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":114,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"4bbb6680-631a-4097-8da4-4bf68f475d51","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":114,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"5729177b-f653-45d7-b155-92cb791bcc98","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":114,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"b6931cf1-199a-4495-b0ca-a348abe886d7","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":114,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"ce165700-c73b-4806-9dae-e9473090431c","block_type":"box","text":"II-78","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fdea2677-68fb-4ee8-923f-2bb7af6a1ba1","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":114,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6a1a627d-1bc4-4147-86a7-8caef98eef40","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":115,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"29c171cb-2d68-4d2b-ad87-fc83610cde9f","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":115,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"ed7227c8-ce58-4c08-a0c5-76a7a8753f82","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":115,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"48f73f7e-139b-4669-8282-d4e45d3e29a0","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":115,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"77bc3feb-f759-49dc-bf38-5d0ce37c4066","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":115,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"9745037f-1d7f-4dcc-a408-c46b245820b2","block_type":"box","text":"Telecommunications.","page_number":115,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"623d00d4-6ad6-4cb7-a829-55f63673b951","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":115,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"43054b4d-8870-497e-b7e0-4da7ac860d1b","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":115,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"84a12820-d6fa-4018-a703-24a1048b81a3","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":115,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"596594e1-bf43-460c-ab48-e6d54ad1db44","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":115,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"19603417-6c2c-46af-bec0-1ee899447465","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":115,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"7de49183-bedf-4640-8944-7567305e825d","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":115,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"bfef1450-8af4-436d-b96f-6f02d8ac049c","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":115,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"2f746a42-2851-4437-aae7-410b1b7d8c14","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":115,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"5942141d-27bd-44fe-9e63-0f68160ec87b","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":115,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"8868f677-59c6-428c-b720-f2eac6400750","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":115,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"5b6682ec-9f57-47bb-bea3-4988fe0ae74a","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":115,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"7701f7f3-ac63-4f5e-b6e5-d6575f9dff16","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":115,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"c9cfbfe8-27ec-48fa-8e9e-373f63993a4e","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":115,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"f9ab8ee5-ccc9-40a5-bf17-a54c6ae62e11","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":115,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"21c6f417-edd5-46c0-8fee-9848e8201c4e","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":115,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"374899c5-1b0a-467c-b0d9-e119a373113c","block_type":"box","text":"residential, corporate and governmental customers.","page_number":115,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"d74a3acf-3399-486e-93db-399df22e4ba7","block_type":"box","text":"Gas.","page_number":115,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"652ebd61-5275-49ba-8928-0a91cca80600","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":115,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"70238383-492e-42db-af97-abda8b78f2d2","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":115,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"93a077bb-0476-4921-964a-a3852d59d5bc","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":115,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"dbd5a964-1bce-4c6f-921e-43de75669943","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":115,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"d4ce2fd1-afe1-4cbf-92d3-f0e49df526ab","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":115,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"12ea6374-041b-4ec1-a847-d834b69e1faa","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":115,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"693ae0a5-c8f8-496e-b8a9-115e228ffbaa","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":115,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"42f174b3-577d-4f49-b487-45dd67f7626f","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":115,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"fd3701ca-a891-4e67-a5ee-a7c4cf6763c6","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":115,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"e0631230-a9a3-4485-8898-00cbf556e098","block_type":"box","text":"Water.","page_number":115,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"c075ef6a-86bd-42fe-8e5c-bc80401f1095","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":115,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"a96bdaaf-90e0-4caf-9a7e-38674e3f84e8","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":115,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"52f24040-6a03-4880-970e-7baf0ceed183","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":115,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"21b03ec2-a7be-4108-8564-9a4eb02b21e7","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":115,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"521c10be-092f-4a14-aa3b-fa6c04f80e22","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":115,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"28ea2afc-35b1-4166-980f-d8bc8ac8d253","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":115,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"12d66c3c-d165-4e7e-a4d9-0f1eb64080ad","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":115,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"fca97798-3a22-465f-ad3c-cc6c44e06604","block_type":"box","text":"Utility Industries Generally.","page_number":115,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"8d556c6b-c528-40ba-ab3b-951306f5c352","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":115,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"86032502-5905-43d8-b2c5-658f0b0385ba","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":115,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"61c81d5b-76e2-4a8a-af40-4124a33a884d","block_type":"box","text":"not develop in the future.","page_number":115,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"4f03242f-d04c-4475-a238-b4ea1622c428","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":115,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"6056ef1c-87cd-465a-94d5-9db231fcfda1","block_type":"box","text":"A Fund may purchase or sell","page_number":115,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"4505881b-6ecd-42d8-9e00-8ad6492cc465","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":115,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"c91490cd-fe2b-4a45-9310-fb736c0850aa","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":115,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"89d80315-0f77-455e-9e42-af327cae7cfd","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":115,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"2239d90c-4505-478d-9ef4-bb7b9ee4a3e0","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":115,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"f9c9c5ce-506b-49c1-a48a-5c4969308b52","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":115,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"26da7699-d8cd-41b1-a17e-0dd1844380b2","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":115,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"c8bfcfae-2877-4b95-bfea-d5b5dd7d07f4","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":115,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"ef0c8129-4390-49f3-98f1-667a0ee1fab7","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":115,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"45ce8f9a-a22e-432c-86b6-b36f2effdd5c","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":115,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"119e4eac-1b7c-410c-a4be-8b0e3c06a069","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":115,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"f2e1fda6-7c5b-4bae-86e6-05a31895e02e","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":115,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"464906d6-a3f3-48fe-937d-f9299d45b7ba","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":115,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"d418057b-aab7-44f0-96b7-912018606a32","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":115,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"f3dcdba9-e9a0-48a5-9312-66a9028e4aed","block_type":"box","text":"II-79","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e03f79f6-e78c-48fc-9ec6-cb398e9ff056","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":115,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"72e2ac5e-f702-460a-b6c6-35fdd783bb81","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":116,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"00806bfc-4e19-405b-8bb3-e9d21a8b50ce","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":116,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"dba4ad18-34fb-4a17-806a-3e0e72eb82df","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":116,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"db0a1ad1-3594-46b1-9eae-3f6210d1f8c6","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":116,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"1b9f72fd-2612-45b7-a02e-7e1ce03c5c87","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":116,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"ef7e6d18-7e71-4aa7-87ee-5fe05b616fd3","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":116,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"dd866c0d-e232-4860-8e53-08995b778b5b","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":116,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"764af3cf-b309-49c7-b22e-d0e9a4b96878","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":116,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"bf8cc0ea-b74b-443e-ac6c-9fc6ba68d92a","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":116,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"ad2b4a21-eb97-4a36-8f07-dbd956490acb","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":116,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"f3dd1bd4-e3b8-4619-a8da-378aa142cf63","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":116,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"c31a9132-cac2-4b81-9c87-42c89e4f3d83","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":116,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"179910c1-d9dd-494a-8579-311654480129","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":116,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"c8957875-41eb-406f-bc8d-c1867d17b178","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":116,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"e3535afb-1c16-4b6b-a868-f08670500eb6","block_type":"box","text":"securities (","page_number":116,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"79bc455b-4c91-48cf-bbc4-a33b3cfa32cf","block_type":"box","text":"e.g.","page_number":116,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"de4f0318-3b76-4db7-9384-12faf9ff4bb5","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":116,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"f1d53e14-7809-4c18-9650-683ac20b71e0","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":116,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"029d36f2-ea2c-436e-8355-6e7bd31f4bba","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":116,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"bd40aa9a-c049-470b-b8ff-40b220517b6a","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":116,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"2fc5b910-94c7-4060-81e1-c89fc01d765a","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":116,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"d9770926-f59d-4fdf-a4a2-79c1764fce4d","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":116,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"4da9da3a-4a61-4288-8c9b-e6e091da0721","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":116,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"54ff22d3-38da-411f-a391-e1857f194f74","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":116,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"19dcfeea-a299-41c3-8b6d-17fc68ca4ad7","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":116,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"930605db-94f9-49f2-a090-2fa171e6fc23","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":116,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"2cb165ca-0545-4a3b-ac76-77d32103c887","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":116,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"6cc3bc10-2266-4f7f-8c5a-0341af37e28b","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":116,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"22dea005-6996-42c9-88e1-962f85d21129","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":116,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"ba80022f-1ec1-47af-8d5e-c7b08e031103","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":116,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"35426174-5bf8-453c-b85f-f5a86de532fb","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":116,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"57b3f877-86f9-487e-8931-c11a82eff5cf","block_type":"box","text":"Yields and Ratings.","page_number":116,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"cbe9584b-5214-409c-a944-a727bfcb4a7a","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":116,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"756ffd48-0d72-4942-9c30-48190d28c728","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":116,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"ca1f6196-42fb-478d-b880-6180fd50bcfc","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":116,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"432b89a0-c58a-44fc-b164-6f54e4bd84d3","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":116,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"c7204b76-6378-40ae-8f8c-8eb5d2d7f5ff","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":116,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"e86fd166-3242-4b51-816a-ce9851d8fc04","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":116,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"63fe791c-ea54-4735-a4e1-07fedd503e61","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":116,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"407ce992-e80c-4d91-9883-1fa7d5c33355","block_type":"box","text":"continue to hold the security.","page_number":116,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"80bacc6e-8604-4ab1-b54a-37b759ed2af2","block_type":"box","text":"Zero Coupon Securities.","page_number":116,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"ac353b9c-f54e-4802-a789-3a118ff182ee","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":116,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"bef2d740-56ec-4de1-abf4-127e743c9b78","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":116,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"c620b311-cecd-4623-8042-1624e1b852c1","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":116,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"3045a73c-3afd-4704-9e6b-503dfc969404","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":116,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"7b9809fa-45bd-4a4b-bae2-378748893adb","block_type":"box","text":"security.","page_number":116,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"5261e72d-c2b4-4240-a865-9867b358444b","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":116,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"8524c16f-5c6b-4e63-b8fb-5995e113e1f3","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":116,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"306e9ea6-2d74-47ad-a6e8-15290f08f104","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":116,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"23998204-1a32-4769-9f25-a53e92444ce4","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":116,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"6142ac38-0980-4601-b35f-7e6da3fc94ff","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":116,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"0f82c5cf-222d-4457-a334-1efad9c90d50","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":116,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"6a7d8832-5f7b-4aa6-bd3e-2ed72448ce24","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":116,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"15eb6352-2fa8-4099-ac1c-6c7a78915b1e","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":116,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"de610066-ecde-4d24-b1f8-84f90fa75ef4","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":116,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"c45dec09-b183-4316-98f9-f9141292a5c0","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":116,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"f2bb1c68-592c-4bc7-b242-3ae4b41191c2","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":116,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"fa3186dc-43ba-4d30-a76c-cae2fc167b1a","block_type":"box","text":"II-80","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"57541427-ddbd-4d25-8c09-8625a9108962","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":116,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"2c086ec5-ca34-403c-9f61-93ccae2ed0a9","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":117,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"513b89d9-b7b9-42ff-9f41-6db82207a58b","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":117,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"bef57c73-ab79-4191-80e3-d13ca90e87a4","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":117,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"fcab13a8-ad1e-4d0f-b7f5-8d4574419638","block_type":"box","text":"intervals.","page_number":117,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"ab4e25cc-bb5b-4fea-bb0f-07b7fcf944c2","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":117,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"63321a5e-a3a3-4de0-9189-efe237de6586","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":117,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"9f38b4b7-c0ca-41b4-bc82-9c6ea54ab4a4","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":117,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"9ecd0420-e9ff-4a5d-b23b-b2586bd85ee9","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":117,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"b4336ea1-ed1a-447d-b8a7-c64a271d5865","block_type":"box","text":"exposure to zero coupon securities.","page_number":117,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"f56274ac-834e-423b-ac28-3c5beb5e4907","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":117,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"01c424d2-396c-4715-ac11-3bbf96a9ea5c","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":117,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"d282f429-53f3-46d3-b8a4-a39ee59f6400","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":117,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"d2c555d8-a6a5-4c1f-9aff-4331bae9938f","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":117,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"aac6e705-0e3a-4f5d-b69b-bdc94029a3b2","block_type":"box","text":"Suitability. (All Funds)","page_number":117,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"64427d4d-11ff-47fe-b5b9-c56d71fa1b6a","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":117,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"ca8246b4-22b0-482e-b9dd-febe88e757ca","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":117,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"ccf44f3f-c0d1-468f-9dbe-7209267465cc","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":117,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"979549b2-da22-4e31-a8d9-5e6b764a0a09","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":117,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"4ffc5e80-d1c0-4daf-a67a-3f2ce213f654","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":117,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"9fc8d0ad-531b-45b5-be5a-26314a64dbd3","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":117,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"18ee4446-bbb2-4fa6-8462-2c340b021fe9","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":117,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"91c70076-d8de-49eb-b1e4-e0e23c7c9f84","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":117,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"240d4df1-0af1-4e81-a842-e6e448723c04","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":117,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"7373f2b4-212c-4d64-9555-fb85544f16e5","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":117,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"2ab17e7a-e2be-4c5c-958c-f6d1695ba11e","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":117,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"cd12fdd1-d099-49af-89c1-3d56bfdf784d","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":117,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"5455f66e-85d6-42a3-baa2-7719cf7ad34d","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":117,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"ef90dab2-a6c9-41fb-91f3-35702c2a7634","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":117,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"e6be43fa-20f0-4571-8ba3-828fa4a4bce3","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":117,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"aec441fd-1f8f-4551-8dc8-d94e6a97dded","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":117,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"22342d99-3d58-459c-b35b-b804930e7d2c","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":117,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"dc1a0ebe-143c-4bf6-bd4a-d0d27580d939","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":117,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"7cb5a38b-ec02-4419-a41c-7c6b0a6b6010","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":117,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"c4ba7b91-62c5-4e12-8685-5661de17dae3","block_type":"box","text":"(","page_number":117,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"2e292568-2e4b-4f69-bd99-f25ae0b2a0b7","block_type":"box","text":"i.e.","page_number":117,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"7777f71c-d2a4-4b00-8967-70bac22a7321","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":117,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"3e739ba4-9a5d-498b-bd52-f3dc09961a2e","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":117,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"c8c70bb1-87a1-4710-816f-e6e554fa9785","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":117,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"3a5d3609-e3a5-4003-9e83-7c39ee251e0f","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":117,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"ca659d70-f10e-4778-b5b6-dfa92a6b5674","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":117,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"d7f084cb-60f0-4b56-b7df-2a918a9c0e63","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":117,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"dd5b6e60-f781-4022-9d97-5af29d8ae11a","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":117,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"e195f97e-eeeb-4d0a-a8ba-863494a91c76","block_type":"box","text":"regarded as the sole issuer.","page_number":117,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"b335f6d8-e684-43e2-8169-eda7068e96b7","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":117,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"1e1ccbec-8faa-4187-a5be-840c15dbdf66","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":117,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"d3884236-87f8-41c8-837c-44471ab6f325","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":117,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"8d81f4d5-f29c-4a4b-bef4-2371809ab3fa","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. 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The Distributor pays certain promotional expenses of the Funds","page_number":118,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"c9e82710-3244-41b0-8af9-3baf1ca6b71d","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Certain expenses are financed by each Fund pursuant","page_number":118,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"6e51f2f4-3b37-40a1-8272-d66ef21ddd72","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. 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Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":118,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"10a317da-95cd-4b27-a2e0-5c0988faf24a","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":118,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"c23de85c-d384-445f-b796-7e2d335983cb","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":118,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"4045a03d-74a9-4f0f-9728-f5d87ddbdda4","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":118,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"c54bde1a-4167-43a0-ac35-7e2d006e52c2","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":118,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"65f50203-124a-4fcf-adf7-79cafa51804c","block_type":"box","text":"Duration and Termination.","page_number":118,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"0ea929b6-d048-483c-9e64-b44085d001c5","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":118,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"cc5673ec-4434-4d5e-9493-5f654f5e35df","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":118,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"d9617a55-e585-4db9-a404-82db17debdc3","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":118,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"5646bcae-e120-4f73-8df9-44cafb7dd461","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":118,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"3d18a994-6ced-4d19-9aec-5c6ff8caf205","block_type":"box","text":"II-82","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f055dde6-8b31-45d0-a7d3-df4b4e3429ba","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":118,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"26529690-9bb7-4b18-bc0a-9076f428cde2","block_type":"box","text":"in the Investment Company Act) of any such party. 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Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":119,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"44922056-9bf8-4e53-a6f3-b92cc81311ec","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":119,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"7e9a2c3e-b283-4a77-8a6b-29acf8fd27c9","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. 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Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":119,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"3d2c26e9-f402-421a-9bd5-ed3bd335ed0b","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":119,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"aeef25bb-45d7-4f9a-902e-4d47c427ccf5","block_type":"box","text":"Custodian Services.","page_number":119,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"be1f6a30-c7c7-4ed7-b0cb-44f88f38a130","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":119,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"0a1d5ed7-c089-4762-8d84-14d643ab2e15","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. 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The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":119,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"9b09550e-dc9b-4064-a46e-a65ef71f09a4","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with certain foreign","page_number":119,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"96908a24-7804-4fc0-b2b1-a1f0f6eb19cb","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":119,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"f3b5267b-0f75-4362-a6aa-97ad39a44dc3","block_type":"box","text":"certain assets.","page_number":119,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"efbb5867-3f8a-4373-8f74-1d30093d5456","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":119,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"336e49a6-cca0-4eea-89f7-e61eb3f59208","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to certain Funds, on a monthly","page_number":119,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"347385ef-f07c-4357-b644-16e8eda8c1ae","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":119,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"53cee672-f1a0-48b8-99dc-dbbdc9c88fdc","block_type":"box","text":"credit”) or a charge based on that net amount. With respect to such Funds, the custodian fees, including the amount","page_number":119,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"62d25998-ae9d-4c66-b8a5-36eacd703298","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":119,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"8b86a786-fb82-4b20-8e14-0516a7599253","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":119,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"a7e4d1ae-4970-47ed-8754-291fe46fa929","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":119,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"577f8acd-8261-44f9-b679-c69d307ddb33","block_type":"box","text":"Fund.","page_number":119,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"44649b3e-0c01-45a8-bb4a-9f40ae9539a6","block_type":"box","text":"II-83","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"420f1c95-131e-4383-9006-d4227d6f9600","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":119,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"e9242b61-0214-4c56-94b6-261d21024af4","block_type":"box","text":"Accounting Services.","page_number":120,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"657bdfb4-3ae7-43d6-a353-ef9f1d07aaaa","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":120,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"ec6df119-3d80-4125-9033-b8d1b2e9f65f","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides certain accounting and administrative services to the Fund. 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State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":120,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"659cbd47-1b04-42f5-986b-f1deeaa910c8","block_type":"box","text":"Master LLCs.","page_number":120,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"d3ac0043-55c5-4e7c-a790-912c7ba8985c","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":120,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"ab3c5a32-9bbc-46b0-a6b4-aaef1e22f890","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the","page_number":120,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"019be2e5-468d-46bf-adce-b8fe2c7220ea","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":120,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"99f79874-1da2-4915-9d49-e547d2a0ab44","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":120,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"8ca43563-fd62-45d2-b226-79b5fcab2be1","block_type":"box","text":"Distribution Expenses.","page_number":120,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"53789832-ca49-4141-b609-b5373c0d2c38","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":120,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"215ba375-0044-461e-94ab-d1b9c0ea761b","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). The Distribution","page_number":120,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"af7d8b67-4d32-434a-ba0c-8b0e5b25c0fe","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":120,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"798d1450-3a0d-4108-9ca5-6729626e98bd","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":120,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"a16063ec-c90e-4213-ba76-eeca4fd8a8f0","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":120,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"cbc1a0f1-2e43-413b-a63a-1c704ed57319","block_type":"box","text":"in connection with the offering to dealers and investors. 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Each Distribution Agreement is subject to the same renewal requirements and","page_number":120,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"6e00cc8f-4e04-45a9-8199-e141d7a20b4b","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":120,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"1f60b436-f5db-45f8-840f-49c338e7bc51","block_type":"box","text":"Code of Ethics","page_number":120,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"c04e979f-6c6c-4464-94d9-b375f9fe5da9","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":120,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"337b88aa-a88e-4511-a2e4-07a01a4e1d92","block_type":"box","text":"17j-1 under the Investment Company Act. 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Employees subject to the Code of Ethics may invest in securities for their personal","page_number":120,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"d05a92a1-6056-49f7-b9ab-9550a6660898","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":120,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"cae85af5-5a4f-4c99-ba91-095732f466df","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":120,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"4304acfa-4568-4ebe-a0a6-11630fba49d8","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":120,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"a2cfe0f1-9d9e-46a5-bb72-d01599cd3bff","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":120,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"7f594758-033e-4674-a0f7-cd408f4930a3","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":126,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"d73ff543-459d-45d0-b531-0e0e5f553d13","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":126,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"9845e9fd-1fcb-4f9d-a633-402d9368dc66","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":126,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"bf0f995d-9e0f-416c-9c24-265350a445c4","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":126,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"650385a7-38a8-4683-a3b6-f2705c062023","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":126,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"8dac2472-9e80-48dc-870f-e7aec79d161b","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":126,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"a8072797-f8d4-44a9-be21-3deb79eefd08","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":126,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"45f368bb-505b-46ca-bfde-65c5bf0aff16","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":126,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"676e15e2-f5d2-4eb6-b939-0b036fbbddd8","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":126,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"78100fd9-6000-4545-ad18-7761578f2ade","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":126,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"2843e3ce-2521-432f-933c-b6fd21ef3c70","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":126,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"9825dbd1-0f8b-40e3-bf97-3e516bb378b2","block_type":"box","text":"II-90","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0bb271c2-1e47-4395-a33a-27c01cc0eb2b","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":126,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d6ca3801-4c1c-46b1-9cf0-0206aaf2d324","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":127,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"582bc64c-a27a-4f95-b5cf-12db9ed7d0e9","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":127,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"4455bae4-5f07-4f63-a338-2e713cc37705","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":127,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"6bcd14f6-0146-40cf-95a4-95d3a0869f5e","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":127,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"8d8ba907-8f01-4e7b-9e94-a12798613cd8","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":127,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"27d54adf-4f86-4cf9-89a2-8046e99115a3","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":127,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"1c375b05-420d-4426-98ba-c7564222b300","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":127,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"b39716ab-f736-490b-be3d-4c43724409da","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":127,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"281e5f23-4ce9-4226-9b4a-5b6be3ecc037","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":127,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"886a35ea-eb9d-4a85-988f-94f73d3b697c","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":127,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"7a0868b4-f5d0-4f4c-b21c-a82886a8fcfd","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":127,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"1a1609b7-0230-48c1-a515-43d8fc33f085","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":127,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"588c8e80-60a9-4a1d-9228-1c897784c483","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":127,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"37c4cb53-deb9-4751-8198-97b4c4079aad","block_type":"box","text":"managing a Fund.","page_number":127,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"0316f15c-a2b9-4483-a9fa-2a5531bada44","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":127,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"d927cfaa-c138-4629-9b11-84349ed9883a","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":127,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"3d63e940-4c7e-42a2-aa91-0497e8e518ae","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":127,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"7cc5dc63-1072-4b6a-af3f-62ca05f428d8","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":127,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"6929d2d4-d585-437f-9433-c87fb8f0f31b","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":127,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"15cd4926-cdc7-4c33-b4ec-5fd3c1e0864a","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":127,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"ed300edd-75c5-4094-bc8a-3fbe4f837420","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":127,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"27913e34-9024-432f-957d-ef6fe64723d3","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":127,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"ff0a283f-4ad9-4da5-ab36-82565454e9b8","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":127,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"0f5d89b1-700a-430b-821d-54dad939f769","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":127,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"368bcb94-15f8-4e0c-8273-b921474edb63","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":127,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"a7b4c25a-0967-42da-b84f-b1d75d6aaa1f","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":127,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"c4a486e9-5393-4a99-aab9-6fba1ec9088c","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":127,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"e036c1ec-0884-49da-b52e-be661d975964","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":127,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"5843ebec-9d96-4897-802a-4f74a7a01234","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":127,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"c3ace5b1-6e59-49c5-b3f5-383aeaaf98e6","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":127,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"ddaf2a10-4a1f-491e-8649-af212a3cb3d6","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":127,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"a5705e4d-8f4d-4a0c-bb7e-f6c6fd57c4a5","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":127,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"d02ca127-c376-4305-9aba-9d0bc743b57c","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":127,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"68d2cf43-2c5c-4d71-8b41-092d2d4edf3b","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":127,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"7fcf9020-47e0-4e4a-8916-d62be7ffb045","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":127,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"476ee473-d369-46ca-a99f-6752077d1739","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":127,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"a914a0c8-06af-4974-a117-82f37434fb69","block_type":"box","text":"under management for BlackRock.","page_number":127,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"ecac567a-2950-4a50-9c5c-bbf4cdcaa931","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":127,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"0ba3c031-f40c-41b8-a994-8c1a1e77edc9","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":127,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"c44da443-9221-436b-b9d9-a86db7a672dc","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":127,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"3691c3f8-05ff-4220-af8e-8fcc95d4c27c","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":127,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"0d978ce3-104a-4862-840e-7c2bb7e6bcf9","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":127,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"0c70ef6d-3646-4f0b-b3c5-b1281ee163d9","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":127,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"8dac7a4a-4074-43a9-ad91-6a4df735b69e","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":127,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"baabf606-1c5a-46dc-b21e-1992ee258116","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":127,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"c9aae91c-ea14-446d-8f39-7daf648eb4c9","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":127,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"24f00294-d814-44d3-964d-8dec4c9f0917","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":127,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"f859773a-0132-4a6e-8c41-4e4ba4f4e103","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":127,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"2b9e1c96-3fd9-477a-b000-9e3bcf709ef6","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":127,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"bba49e1f-de9e-415c-b3e1-57402f9b292e","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":127,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"9b2ca694-0cd4-4371-a45c-df688a60a594","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":127,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"85818f64-8f2d-41a6-a6fb-28727646aff5","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":127,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"046f51ca-7283-429e-a554-1435b89ac9d0","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":128,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"622718ab-8240-4fea-81c6-62827f9c8a32","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":128,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"30cdf6e0-e38c-4740-b612-d06427b30cca","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":128,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"5921757c-db67-4657-8b10-2807c291ff7c","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":128,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"cdc46f1f-99db-4554-ae4b-69c810e0ca3e","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":128,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"6b97bb9a-b7f9-4d23-8fe4-ec81fdfd5c00","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":128,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"320e7b84-bd59-4421-b549-c70051f6d750","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":128,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"b6107ff1-ad27-4045-bbdf-95f960179edb","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":128,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"300880be-29b9-4863-aa4d-fa1bff7dc0bd","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":128,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"511729bd-116b-4d7d-b39c-9818ccfb6425","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":128,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"d9bc45e0-d9a2-4fbe-930c-f630bef02a5d","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":128,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"cdb438da-7acf-49b4-bb8f-35a02f5ed4fc","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":128,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"11c96ee2-3af4-430e-90f5-2eec7abef8bf","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":128,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"f7bf6522-89d8-4d42-adcf-c108795cdcb5","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":128,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"29a79d73-9e72-4a47-a329-0562e4eb6c0a","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":128,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"448ea0c9-618b-41b8-8190-dbcfebee46f7","block_type":"box","text":"potential dollar exposure of collateral shortfall resulting from a borrower default (“shortfall risk”) in the securities","page_number":128,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"49cf780c-d312-45e6-b2ee-19db802e08c9","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":128,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"73bed06c-4aa2-455d-b627-db9c304820f2","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":128,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"31bd896c-5dea-4a8a-b188-2e8820e4acb7","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":128,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"e7170d9f-cdfc-4816-8cf7-dc69e6de7f66","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":128,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"8d239e94-0f2d-42f1-ad59-133efcb228a5","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":128,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"d6ec822d-f395-4bf2-bbf2-9340af2a0c23","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":128,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"aabf6c88-bb57-405e-bcd1-5b2694d5be32","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":128,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"b9ec50ce-c8f4-4e6d-8b63-3278d128f34e","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":128,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"1c0a83d2-322c-42a2-aa6c-9ba8a4b0dc55","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of a Fund or","page_number":128,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"e33b954e-b993-4ec4-9877-3437e73c7de9","block_type":"box","text":"terminate a securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements","page_number":128,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"c4512c68-baa0-4213-ab6d-f8051ff55c2f","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":128,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"8dbdb6b6-2c50-41d7-95dd-aad3bc39bc30","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":128,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"ca818384-d70c-4a39-8910-fa2b5b7e221f","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":128,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"5b60130b-4c4e-4b6f-b497-5f16e8c818f8","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":128,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"b12359a2-85d9-44f9-9ae2-259cd6e6e0f2","block_type":"box","text":"regulation.","page_number":128,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"41a3ccc9-8f5a-461c-95b4-bedc48563eda","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":128,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"b6567186-979d-424e-91d1-4c0462711f26","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":128,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"ae897778-446d-4951-962e-56ebff7e028d","block_type":"box","text":"various program limits (","page_number":128,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"58d01b05-9cc1-4f61-892b-6923b90cd063","block_type":"box","text":"i.e.","page_number":128,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"777fc4c4-cd7e-4d3a-8af0-378f17590ee3","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":128,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"cdc18b10-7313-48f6-8cf1-c708cd7dc5f5","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":128,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"4e76c266-40cf-4cfe-adef-6f7eaadad08e","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":128,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"f8dcfe84-638d-4122-b4ed-7259316c9ce0","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":128,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"d15bd9af-742f-4530-bb75-8005ae8cba7c","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":128,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"92d705cf-e0ab-4925-b046-d3bcbddf0a29","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":128,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"6704e9db-df8f-4e88-9496-b717e4fb41bb","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":128,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"c4c0ed2b-f376-4da6-b86a-d99c618e8ede","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":128,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"9ad1933e-3a0c-4219-a0f3-7d828f7bcf8a","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":128,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"06c3b595-5d11-4893-905f-ac2877ce5aef","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":128,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"baf276d7-d411-4fe8-a66d-4217ce615cc6","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":128,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"c65b8665-8f51-417d-9170-ca2e0eaeeab5","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":128,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"06f61c2a-8d46-402e-815a-3f3a9d3b208c","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":128,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"143ecbcd-9250-4197-ae00-181f3ebf987a","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":128,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"2ea17a49-cffa-40f8-8014-7581b50a8ec8","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":128,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"011521d0-7537-48fe-8499-6d0be07751c9","block_type":"box","text":"II-92","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f7355f44-d005-4b86-bd62-98baa3e1998c","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":128,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"17b2c17b-2883-4f31-926b-ead74811b3c1","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":129,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"615b2e14-c137-490a-9f91-06b51c6a2c62","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":129,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"33faa49a-ed75-4110-86ce-ce49ad477562","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":129,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"328f8a0e-2ed1-44de-b354-da2035a8ea5d","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":129,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"f4761e2d-792e-4da4-a284-18330c0358be","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":129,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"23e1ddc1-efdd-4452-a987-735534fba847","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":129,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"2c0785c4-2bc2-41b9-bad3-dcb7e896fd43","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":129,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"b9538ff5-1245-472d-8af3-7bbb904c72bc","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":129,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"0405e105-2464-4e3f-81e8-7386f3a2aba4","block_type":"box","text":"than through client commissions.","page_number":129,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"e23b1ff0-29d0-4317-9596-a47497b932c9","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":129,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"d6e9db17-1566-4b1a-8f10-2d7d48688de6","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":129,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"09faba3a-f014-4778-8321-3370799557bf","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":129,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"227ac1ee-8395-41d6-b32e-1040ff480b9b","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":129,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"f2ddf6b6-fddf-4c2c-81e5-04fa6a3b95f8","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":129,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"15c98e3b-6f0d-4844-bf6b-4f52490e8906","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":129,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"f5361f62-4b43-4f64-a058-bf8bb1cc3158","block_type":"box","text":"research-oriented software and other services and products.","page_number":129,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"035e1592-c213-419a-8a24-dea419d712ca","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":129,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"1f0c15e6-9ffa-462c-8b07-aa49d216980f","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":129,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"33654630-3a43-46ca-84cd-477df7a4dc4d","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":129,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"0b265bac-6165-4edb-85b9-d962ce0213ab","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":129,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"96b31a73-8fbb-4539-ab21-9bb85469a680","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":129,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"0aeaa9e0-f543-47d4-b088-f27c4da37029","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":129,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"d53d5823-5412-435e-b7f7-98ec86fe5060","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":129,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"ab120255-2cb6-46c6-b716-ac0579f5a58b","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":129,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"dc9e6bdc-6c32-45bd-9c7f-a86a1f712d83","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":129,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"ebc77d18-da3c-4821-bcef-80ec109efc80","block_type":"box","text":"and services itself.","page_number":129,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"c20c07ff-7523-4f76-80ab-8d1cf43fe32a","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":129,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"00e99a5d-b6c4-406a-bae9-23ab5f462781","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":129,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"1d939f6d-897c-4ed9-bd0f-abcc53107765","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":129,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"64a17cd2-f4fa-4c94-9801-db5c48244587","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":129,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"583a9769-c55b-4421-8301-ae0e296ade1d","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":129,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"18350cc3-9d03-4fd1-b0eb-48fd277a860b","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":129,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"35644e28-d6e4-4daa-a7a3-363d39f740de","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":129,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"7f37b751-b40c-41df-b4ba-53506d384af9","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":129,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"dd1595a2-1b4e-4745-aeca-bf9ec364cb3d","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":129,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"7fc6e3bd-abf1-4021-86d6-afe6b38c780f","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":129,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"185305e9-61a4-46dc-b408-9044c9645bcd","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":129,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"7987f3c0-d069-49b9-a75d-d479ffc2110e","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":129,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"3b5f31ba-6277-4376-a3ff-0d37d444e89b","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":129,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"112f4cb8-9d6b-463d-9f40-9d756473b652","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":129,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"92a8954a-8a7d-4af4-bb3d-69a3efe62ccd","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":129,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"89003be6-3297-4770-81a1-afb58ba3fab1","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":129,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"0d0465ea-b537-4110-97c1-274682937f1a","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":129,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"77f02f1b-4f30-4a07-a5e4-abb245c688f2","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":129,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"637a9f18-dc20-4c45-a901-1b4ce98cd8c7","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":129,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"94bbc4cd-2bb0-48a9-9e26-7035df3da505","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":129,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"9b6fb118-d4a4-47b7-971d-4499668a0e35","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":129,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"ab5d3b7d-1ebe-4af5-82ee-db24e7e22cf3","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":129,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"b38c364b-5117-4be3-8d2e-4c3d80ea8b1b","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":129,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"2e1ec61f-1084-40c9-bf6e-f5ef1fcf381a","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":129,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"e68c44a4-5120-40f9-8c8d-a237db81d0b9","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":129,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"96139c50-6341-4eb3-a18b-1294bb4d6219","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":129,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"84df041f-60c4-4090-b190-5d2752c68c48","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":129,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"b99d523e-476c-49cf-bcbd-35ed6c8a7605","block_type":"box","text":"II-93","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bf0672c4-fd36-41ac-831e-9f1a3f263ab2","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":129,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a6b6e445-bced-4557-b487-c0e68950b1eb","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":130,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"492717f5-11fc-4cf0-8e8b-2b614a434f33","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":130,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"c839b982-8c8f-4e6d-8a4d-a7b6952c18f8","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":130,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"2ddc5d47-cce3-40f2-a98c-de8c0bf8b1da","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":130,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"4565c3a5-6dc4-43a6-9dce-368444a31970","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":130,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"e60acc41-fb2c-4a89-a5e8-ddcd1df257a0","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":130,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"06d55f75-5641-4a5e-b08d-7c048487dabc","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. 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BlackRock and its sales personnel may","page_number":130,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"215cc9df-431e-4077-9c28-acec6cea0641","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":130,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"e6ed72fa-1254-4452-b210-64ee4f26a0d5","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":130,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"2aa5c726-ced4-4660-8fbe-6ef97f8ce193","block_type":"box","text":"management. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":130,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"8725596c-97b4-438a-8d96-f47f110114ad","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":130,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"ff18be3d-e7b9-4b66-bbae-7d2354bfc133","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":130,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"4eeda9cd-d63c-4196-99f3-ad9e306609c7","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":130,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"0dcd0518-bc51-4391-8604-2e62d0b496ca","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":130,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"d95685d3-f098-456b-8d7c-128102885cd2","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":130,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"df2d7fb4-6a34-4e8a-a311-56b81d0a2689","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. 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The fair value of one or more assets or","page_number":130,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"954f29be-306c-455f-b929-508f9d63ed81","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":130,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"be5b2c71-b630-4bc2-9045-f81cf39f4e72","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. 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In connection with any","page_number":130,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"81a05d0d-bb6d-46b3-8925-ca33b62d8318","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":130,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"ea079f93-3602-46d0-aa8f-a4fd6b74c413","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":130,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"0f3a1194-d9fe-4865-8834-7db97f24fe56","block_type":"box","text":"some additional expenses.","page_number":130,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"22a15f33-3926-4442-81e3-e58611160665","block_type":"box","text":"II-94","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f6c8ad82-538e-4291-bdd9-3213b57fa7db","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":130,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f8407d98-e257-4511-9824-fa223f580eed","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":131,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"c4132a56-0192-4153-9244-535796c5e7dd","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":131,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"5a6d2639-fc51-4a29-8362-4d32505e631c","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":131,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"0e2b2202-0aae-47c2-9ca3-d734c3fc17d0","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":131,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"24588fee-a90b-4ac4-acf2-294c4e189a63","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":131,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"ac5a71b1-b6f5-4e46-8919-1f4772369f01","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":131,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"e29fc62b-01a3-4847-bea0-e9ae67fd140e","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":131,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"4b636c09-d849-4e21-9cc5-38b19905b6e7","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":131,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"90911e6b-508c-4261-a471-51f7adcb5fb6","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":131,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"e53fd72f-4e2d-499e-b186-42b19a12d07a","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":131,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"cc727aea-ddf4-4876-8eff-e9a4b1162415","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":131,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"35dee4b4-2f0e-4c9e-80b3-1f7951f604dc","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":131,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"66b1b6bf-c18c-4e00-ab77-f56c48e5c2c9","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":131,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"69fb48de-f250-42d2-a7f7-cac0f00da0e5","block_type":"box","text":"to purchase, the same security or instrument on the same day. 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There may be periods when BlackRock may not","page_number":131,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"cc5af03e-4180-452d-b989-f02107abb79b","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":131,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"d9ab265c-85be-4fcc-b775-a63df6282290","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":131,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"b3bffc93-6c0c-45b5-873c-0e482e657ca5","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":131,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"0eb5c6ab-48f9-4b03-b346-49b5d16362e7","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":131,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"f531ad2c-359b-4ec6-a155-2b4b6e5adf7e","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":131,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"42d80ad7-ad39-4ca9-8fbf-7e5c3998f253","block_type":"box","text":"public information about the company (","page_number":131,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"bc20c226-1f23-4571-b0c2-08f726aa8b2b","block_type":"box","text":"e.g.","page_number":131,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"fc9351fa-da7d-4990-b05e-1dc932db096a","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":131,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"974d330a-b592-4243-bd60-83fd70869795","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":131,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"93dba5d5-3faf-40b5-8cd2-0db9c921c302","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":131,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"6fac3270-d2ad-4be8-8775-d315f97efd62","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":131,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"f029545a-7f90-49d8-869a-bd7b6eb2d5db","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":131,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"bffc9fb9-eec5-4025-b018-6ee898d76086","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":131,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"1c1405c5-64e6-4f46-9645-347ebf6048a8","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":131,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"d12a22d7-1529-49ab-8221-93923dbf8a9e","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":131,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"783c4e15-ad90-433e-8ae6-d7fb37e01300","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":131,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"141fbcbd-03b0-485d-b116-f3b93a4e627a","block_type":"box","text":"of the issuer.","page_number":131,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"5ba0e0dd-2d66-4808-a5e4-4b588ea1caca","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":131,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"618f28f9-45ef-4f56-ac79-5bace2d85ab2","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":131,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"7e82485a-0141-483c-8a76-c9421d8a0b84","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":131,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"3cac99d7-cda2-459f-bfc0-1933c3c3d913","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":131,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"ba6c68e4-78d4-4d36-aab6-2361c335228e","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":131,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"cca04c30-1003-4138-aaf5-999ef7968b2a","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":131,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"4f7722c0-ce75-485a-ad9b-f7d3d4c09c7e","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":131,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"b014b68a-8b9f-49a6-bc0e-61468ad377a4","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":131,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"f0467c61-75e7-4140-a39b-6144ef11dba7","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":131,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"3f9c8ce5-87bf-40c8-a221-bb4b6ce8a881","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":131,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"a6d490c4-8b48-466e-9e41-25a6a278ae03","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":131,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"b20b603c-8908-488f-88f6-0351966bf284","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":131,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"bace366c-4c39-4f06-809f-e1d598d368bb","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":131,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"8d82c9d0-3730-4e09-b0cc-c4b0b24208f3","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":131,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"ece5310b-2e0d-4291-b3ae-d49445c01042","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":131,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"51133197-ce71-49dc-8f5a-4489d51c112b","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":131,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"e5b93ebf-b259-4954-8b1c-3393c3911765","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":131,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"1f9239d0-3765-4b8f-9a5f-9de65f3e7816","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":131,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"f819e3bb-d567-423c-bc09-b7909a271dfc","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":131,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"4ce3443b-7c14-4a5c-87b1-a1d3cf909bc4","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":131,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"904f78ba-043e-477d-8e45-d0ce49a097ef","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":131,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"875bca41-3a7d-46c0-af9a-bc1eec17e8d8","block_type":"box","text":"II-95","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"861a7fa4-beee-4dd3-9dd6-18a72c7b7063","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":131,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"b149cc5a-a0dd-4186-8ca8-23ce6a453480","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":132,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"732b97b3-7efc-4a8f-b29a-beb35c40d88d","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":132,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"d3a6c3a3-c30e-4a06-985c-e4e1aec433ec","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":132,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"87ce1495-2457-4646-ba2f-741c358f871d","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":132,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"9c133264-cea3-4a77-8f94-4e8e27516d97","block_type":"box","text":"a barrier.","page_number":132,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"482970e1-0cec-434b-82ad-299d401433dd","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":132,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"eb3e0568-4727-4cc4-83a2-13323abdf8e0","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":132,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"d1363fbc-5b52-4a30-87a3-cbb954995a3d","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":132,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"e2f6fa40-bd37-455e-b402-8219e3d79491","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":132,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"aea30c02-b7be-4a64-8a6f-d1e0f27812af","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":132,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"5590cc5b-2c8d-43f5-8f8b-b59361b1d698","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":132,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"1fa95fba-1bd5-4ec7-95e9-66521b073eed","block_type":"box","text":"that operate in certain industries (","page_number":132,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"ee5cc58a-6c0b-4114-9d77-e90b7112f2c2","block_type":"box","text":"e.g.","page_number":132,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"7069f7ce-e33a-4d31-bbd6-645d8531cac0","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":132,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"c855c7f6-e56e-4148-90c7-842f0e242ca5","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":132,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"9cf7dec3-7c42-431d-9c19-79f30e92fb1f","block_type":"box","text":"e.g.","page_number":132,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"55190a79-77b1-41c9-9bdd-2a9966cefdb2","block_type":"box","text":", with mechanisms such as poison pills","page_number":132,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"4ecd7b4f-e269-46b0-9fb2-03002c50d5e5","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":132,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"d61f52ac-8e3d-4feb-9999-41085b4cc19d","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":132,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"2d33b2b3-c010-4a86-a196-e94da03d6fb6","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":132,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"e2da7095-f7d1-45a2-b992-fdf16c8ff3d2","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":132,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"0e615a03-8e25-422a-a055-baefa4952957","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":132,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"45152ae1-3968-4d35-ae56-c35727a469b1","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":132,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"ca754693-22ce-4208-9619-c6e37d426e6c","block_type":"box","text":"seek to make indirect investments (","page_number":132,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"7578f343-1581-49a2-bf52-05b6fe85d2ba","block_type":"box","text":"e.g.","page_number":132,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"d67f7f53-2d6d-4139-ab2e-ca199a32c630","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":132,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"c615541d-b97c-457e-88d1-35e2bda6d83e","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":132,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"627351a5-139b-4758-9656-c3c716cffa35","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":132,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"b4538700-874a-47fd-9a5e-e1c29d29cf15","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":132,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"e2b66db6-055f-47d8-8cf8-285315a1d308","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":132,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"9b1537de-3d1b-4a64-adc9-16dff0d2ee32","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":132,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"abf9ef46-8453-4fb5-83e1-f2b879460672","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":132,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"d131835e-abf2-46a7-9b38-c72cb2a059d0","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":132,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"8f9b08f6-29f3-4042-92a1-e9895765714e","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":132,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"c5160a78-83e7-41f8-bda4-19a655030212","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":132,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"c9783bb1-4b0d-463d-897c-78b237c622b2","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":132,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"b8181f41-da21-42a8-a8f8-82ed8d9e7f73","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":132,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"34a2d907-1e6c-4dee-9b68-a5f1118f6a6c","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":132,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"2964b35a-35ec-49c4-9ace-1fc9aa4f5e86","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":132,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"96013510-285e-4cb1-941c-2f9292ae45d8","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":132,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"27e71469-8b2c-4cf8-bee5-445d87fb825b","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":132,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"7c64b28e-a730-4c97-90b4-9dd91df64ad7","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":132,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"5b6bb6db-ed82-4863-bae0-2ca795c41892","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":132,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"faaa4fb5-f4d2-4ae6-8596-58ab954cd66c","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":132,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"8466ee67-b193-460b-93b9-dbc6eccf3183","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":132,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"9d2be738-25b3-473a-9f44-c059b95a3f6d","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":132,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"0d2fa7cb-8ea1-4bf3-8246-b2a76d021f7f","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":132,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"44978b39-69cc-4955-a3b3-81c762d9404a","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":132,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"7604aab3-0485-473a-a33c-bd800439a6ed","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":132,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"837ad5d4-4c75-48b9-acbd-ec5d648237e4","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":132,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"24608804-fe4f-4234-b15e-4f77c06efe09","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":132,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"ccb8a1c2-0a2f-49eb-bb1e-7525fe354dee","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":132,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"1c2797ad-561a-4c22-b9f3-30a554aca952","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":132,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"b619fe69-b763-4294-b139-babc2660ed60","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":132,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"d0a0af27-d130-44cf-ba07-39b28225ffe9","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":132,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"67c4ec9f-3465-4b37-85ce-d5952fde51c5","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":132,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"f5c97498-4f8e-4c6a-bf47-a2e5c4d7e73a","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":132,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"8ec2785f-0856-448a-a765-c653ec33f99b","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":132,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"2114ad59-cd37-4222-a90c-343a20bb85ec","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":132,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"7124d670-2cad-4e3a-9f9a-10f5243bca87","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":132,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"08744dcd-9f08-42f7-bb75-df3df52ac8ec","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":132,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"a7a05961-753b-4885-8e08-23bcdb8f9d3a","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":132,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"974c5047-735a-4ff7-9c30-d86da6d0fb2f","block_type":"box","text":"II-96","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cbcf54e1-f041-4df8-90be-0e0b9c19cb4e","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":132,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"0fe00cb6-d92d-44e1-8d2e-474b2316993c","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":133,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"bbdaed64-8ff7-4a41-81ed-6c383c10c12e","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":133,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"fec68330-e64d-4fe7-97d6-0c3c600faac4","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":133,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"4cb165fd-25dc-4992-9bf5-aa641a3124b9","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":133,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"0ade57a3-3f6a-44ac-ad41-f8132d060726","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":133,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"74773809-78bb-4318-88fb-c669cd9022e1","block_type":"box","text":"strategy with respect to such security or asset.","page_number":133,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"4fd60174-0cf3-4cc3-9ec2-0994a71dd0cb","block_type":"box","text":"BlackRock may maintain securities indices. 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In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":133,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"62c8738f-f9c8-4e77-862d-18a5fcbc48c9","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":133,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"5aebd95d-5b2b-451f-b60a-0aa23be7b1ce","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":133,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"557d644c-3585-4d5a-bb94-b6f022a347eb","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":133,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"8dbbd977-898c-40e6-9de5-2dfaa6e7307a","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":133,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"7c3425a7-3e71-462a-b659-7c90945661bb","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":133,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"8da8bd5d-0626-4398-8499-479fb92a0f69","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":133,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"0d43f4bd-2355-4ecc-b50d-b0dd741b9c05","block_type":"box","text":"e.g.","page_number":133,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"df8518e4-db3c-4a3f-aa6d-ee0ebc53a844","block_type":"box","text":", custodians,","page_number":133,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"9d10b005-7b53-4c15-9db1-3a6e555d8d06","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":133,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"cfc9d6b0-84f2-402e-ac96-d88f05e8bcb2","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":133,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"c073cc82-a7da-412f-b307-b3f34e793b2f","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":133,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"616d6531-5cb2-43a0-8b73-3d13e13e1ffb","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":133,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"6f6c19b8-31eb-4643-a5c3-43449e8b4616","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":133,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"4b9d9c54-1818-4ad7-98ee-c80e651b457f","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":133,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"7d0dc6cb-9e30-447f-b9e0-3763734659f9","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":133,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"91283f15-ace0-4caf-a4ae-84513827e735","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":133,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"210e657e-4f75-498b-bd15-dbd10e70f249","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":133,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"846f7d42-73d8-49aa-b199-0c277718edd1","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":133,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"11fa0b94-12dc-43bd-a464-1810805a3b89","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":133,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"ec3d9a2d-3897-4bab-b8b5-ba0dafb78222","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":133,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"c7a15112-401d-407c-a7b4-3567c730047e","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":133,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"54b4aab0-c1e3-433b-acc8-e3b9e5835e8c","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":133,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"bef731be-d138-499d-883d-9b9fbcca5c6e","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":133,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"544ff6d9-5052-4756-9876-96fa048e1378","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":133,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"30ccf3ea-4f60-41e1-bc05-b2221cca5e4b","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":133,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"11bb25dc-8397-4527-a057-e4607dc9d2d6","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":133,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"260b03ea-8c18-4bb6-a24a-5691c6349a7e","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":133,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"18d500cb-cf73-4313-913a-9bccd93a3556","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":133,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"add07479-30d8-45f8-b8da-282f487d498b","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":133,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"b14c9756-23f4-4287-9032-8ad264ae54e8","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":133,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"c5cf20d9-6e15-4f1e-abbc-f4fda5157453","block_type":"box","text":"provider.","page_number":133,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"001e852a-790e-4cd5-a1e8-87c0f8c27f2b","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":133,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"5d0bad33-6b89-4746-bb1b-ae239a184c72","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":133,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"c09369af-a3d7-4cd0-9617-eb44b6bcade0","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":133,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"ad6942a8-79ac-4bbc-a029-3798f81cc7ef","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":133,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"0c28b5e5-7611-4d03-afc6-2c50f249aa99","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":133,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"210d4a9c-0d02-414c-ba6d-7049f5704c18","block_type":"box","text":"PURCHASE OF SHARES","page_number":133,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"f45d15f5-43ca-446d-bb3a-8c592cb1aadd","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":133,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"4a5d7228-1312-4649-94ea-28042b5f9f70","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":133,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"8477d7bf-9828-4a66-a436-467781c49af5","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":133,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"1e8b4822-481a-4d19-88f9-695cd50459ea","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":133,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"6d8c9e80-3b47-4265-91e3-c3acce1b4a6a","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":133,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"66c0247b-99de-4a9b-892b-09a6d6564cf0","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":133,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"8f734e70-3ab2-493e-a211-46279ac1ba66","block_type":"box","text":"II-97","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9db0f471-8a13-408b-a758-d613aa461936","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":133,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"e6f9589c-ea0e-40eb-be43-be9510b5c0c0","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":134,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"aa020a95-5318-41a5-8049-c39e12d6c41b","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":134,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"9d4c1dd1-7e55-4c0d-95b7-a86749090099","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":134,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"5c8352f3-5a60-4849-8a3b-7d20612697c4","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":134,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"4b46db3c-2e8c-40da-8e44-41fc47aab577","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":134,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"096a3a35-1451-40c7-a979-62134ecbbd8e","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":134,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"fbc8a15d-1f39-4962-931a-88dda7a2ac31","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":134,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"536a5b3e-09a6-4e9b-8e69-121923426319","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":134,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"5c486c57-5427-41a7-a2c3-5f7db07068a6","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":134,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"8ca15be5-7453-4407-9344-0c3f4f510f67","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":134,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"fcf693b9-6090-4ada-b28a-5b6c0b2d5c04","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":134,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"f938ebf5-9c50-4a70-a2ab-8623d4ed3131","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":134,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"c85a61c9-2914-402e-a228-bc7bb75560dd","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":134,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"396658c5-2dd9-4142-a31b-f28af51ef22a","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":134,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"29453725-1be0-4ad7-b694-c99490f0893a","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":134,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"3eadcbfd-0c64-434e-8409-c22a546b1d97","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":134,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"77bcb774-edcc-4eab-bfbb-23f38377af04","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":134,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"f01f36f7-6091-480c-8501-18a86c1ad396","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":134,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"a7c19e9e-0915-4b1d-a2a9-da3e53bc2352","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":134,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"aa96de5e-8cb7-4387-b77e-40ba3b308459","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":134,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"c7b33493-eb59-4c61-b78d-82db3279b52b","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":134,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"2c013a69-b43b-4952-b141-1379ee0ac4df","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":134,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"c8f2aa95-1fc3-49c0-9dc2-341767947914","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":134,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"3585d4d8-d783-4ea1-8660-0a88f01098f8","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":134,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"3d9a85c0-0ea8-4e24-bc0c-d1472ff6255e","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":134,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"e7f4921f-ba6a-496c-a329-ef8116c1bd09","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":134,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"798e581c-eae8-491f-8b48-4ccbc398216e","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":134,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"a7f8efdf-4774-47ee-b50e-af8ea7d72e29","block_type":"box","text":"investment is $25.","page_number":134,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"56fa0032-e2df-45b6-bd16-7fe1f1dcacec","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":134,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"c9bdefec-1dd8-424c-b432-3fa7f3977673","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":134,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"5bd5115b-b449-4296-8fdc-749a42ef1c57","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":134,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"a3e20d44-c37f-419c-ba85-cefbaecc7697","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":134,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"c7903f0e-8de7-4d2b-9973-4e84b680f336","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":134,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"346cce01-ad59-4b45-bd39-0397031bbc63","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":134,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"82a804a1-549b-4c6f-9e7f-25f421d50010","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":134,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"1e5666ab-d364-4b06-904b-ee8440c4591c","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":134,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"655ca8c9-1b46-40f0-9a01-21ab7e8a4f4c","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":134,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"fb49ea43-ff12-4140-af5d-b90b78377f63","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":134,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"6652253b-81c8-464f-a470-c2d41bf296a0","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":134,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"0f3f6783-d9f8-455e-9206-f041d9c49c12","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":134,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"4ca22962-a749-4c2f-a4c9-a54240c92152","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":134,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"78720a25-69b6-4011-a41d-c1d6e21dfe2d","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":134,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"22539586-fb6d-45d3-9d32-5541029170be","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":134,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"3082327b-31e5-49c8-88e1-460c6391c7c6","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":134,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"0195ba7e-af82-4fac-9c12-5c00ebaacac1","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":134,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"c60d9c1b-3ff9-40c0-85e3-fd08e3a472a4","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":134,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"1c347edb-8975-4ff2-9f1a-cc9195c46d2d","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":134,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"57dd7e99-dc92-4263-a8fd-55699a3fc8bb","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":134,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"67c5a656-baa8-4c6e-bbe4-1e5f5b58522d","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":134,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"47011de7-d8bf-4194-8372-c5aed9a8127c","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":134,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"b4a00329-0dd1-4bf5-9c9d-d2549dbfd812","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":134,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"228f5794-ff9d-41f3-9fcb-a8557d386cbd","block_type":"box","text":"adviser.","page_number":134,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"7c9ec2a5-c6e0-4e64-ac65-3bdb48988335","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":134,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"f536f6c6-e0d6-4b7b-9414-97195772ac63","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":134,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"03601a51-298a-4505-877f-fc61aa169e22","block_type":"box","text":"II-98","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ac31ca93-7666-49f6-86ac-918bb29beb01","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":134,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"597a21b9-b86f-425d-8f71-ed1ff82aff89","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":135,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"56ba4cf5-6831-4e39-8339-45664cab8dbc","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":135,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"be96dc24-5ca4-45a4-bdb4-4b9f462f51bb","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":135,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"a82dfc3a-9f38-478a-ac6a-abd144a9e4a8","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":135,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"7f6f5000-4f37-4e7b-91f1-b585a1310ee5","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":135,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"5b542a5c-a622-4435-8f05-eb0cfc21639e","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":135,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"5ea74be8-e157-44f1-944b-0c5b36c30eae","block_type":"box","text":"also be restricted from making additional investments.","page_number":135,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"5be9ecaa-d315-4290-9f65-d457fc169074","block_type":"box","text":"In-Kind Purchases","page_number":135,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"e326e763-06a6-4974-b2a3-59055a5168ab","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":135,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"fd300fb7-1e2f-4b8f-b209-0b39621e3fe8","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":135,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"8e0f5587-7b09-4c7b-9993-1a39aac8c37b","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":135,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"a58f5df1-0666-42cb-836d-0a9dc1cee29a","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":135,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"f3bbb647-fee0-414f-8c3a-46d3ea494563","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":135,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"4804e126-c334-46f1-b4b9-8097b0d94080","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":135,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"2973bb8d-5705-432a-aef6-ca7c78b8235f","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":135,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"fe7d89e5-a18c-488f-aee2-4dcf4c44ca2f","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":135,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"81df95f5-e7fe-4a98-8c2a-6c28112da291","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":135,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"fa40950a-8fa6-4457-933c-1c7b946f5f59","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":135,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"f751138e-77eb-4191-a2a0-30750762dd33","block_type":"box","text":"has settled.","page_number":135,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"896d1b62-365d-4ef1-a427-3527f19e0e98","block_type":"box","text":"Institutional Shares","page_number":135,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"cc310558-b5b7-40ac-bd1b-cef3ab96bf2a","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":135,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"406c73d6-3526-4569-9241-6d587c61a1a6","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":135,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"6fcb67aa-54cf-445c-a3ea-a97bd4d1e86b","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":135,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"524eb571-9473-4a34-8acf-8a0e80cf23fd","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":135,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"b026014f-d174-436e-b028-b16ddcb14c99","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":135,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"220cb1ff-e100-4b6c-9118-cc85d034ba41","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":135,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"9616c0fb-3f16-41ec-a485-05a467dfe007","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":135,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"e06eaf7b-d289-42ae-957c-ebb630e2abe7","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":135,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"2107ee3e-6b9c-41b9-a74a-ea7ca286c88b","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":135,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"e84613f7-736b-494f-9398-4c166c7fc5d7","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":135,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"d2f74c34-dbb8-44f1-90be-5498d2c9b73c","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":135,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"8fe37fdb-c85a-4c7d-8c9f-dad00ee02524","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":135,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"11168c1a-3a29-420a-ac00-8ecf6be700be","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":135,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"f8e010c6-d3d8-497c-8894-1f9f11718529","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":135,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"95cba34e-d0b1-431c-954b-29b644a46dd2","block_type":"box","text":"these fees and conditions.","page_number":135,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"3e5ea0d1-eea8-4950-a554-8a3d16b33427","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":135,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"fa0bb5d9-5ead-4a95-99ef-64132254b780","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":135,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"8d35cbc7-906a-4fb2-8990-2a2aa3ef173f","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":135,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"84ca63d4-2bd7-4c52-89e5-56946a9eda39","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":135,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"1de04f01-ecf4-40a7-b8cd-4b2ffbac3ff3","block_type":"box","text":"incurred by the Fund.","page_number":135,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"04bb8bb7-4bfe-4051-b504-fc2e8091477b","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":135,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"6929aacb-5050-4ed9-aa37-d00565957316","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":135,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"92c336ff-08f8-4ecb-9dba-dfd14a3f41c0","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":135,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"8f38bcba-f63f-44b7-9ca3-99de22ac2274","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":135,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"c20cdef8-5bf9-4b62-9ab0-b19a64f210de","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":135,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"dd2ffb1f-89ba-461c-a6b2-cbbb4f72137e","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":135,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"2593371c-a5d7-476b-aa9d-7238ef78364f","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":135,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"5fb67846-c4fc-4d60-a28d-e825ed23ece8","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":135,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"3849f76b-e057-4d97-9518-4f138d8a07fb","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":135,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"ab8299aa-3d24-4b21-ba56-80dcd0b3d654","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":135,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"c0621d88-3c8a-424a-8d80-f03e4d1e143e","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":135,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"dcb9b929-3629-4a1b-b7cc-75d45572416e","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":135,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"2a6a7b9c-7e79-44cf-a8a6-e938ca161183","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":135,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"c3cf4562-eb20-424c-8a07-9c42e9cead47","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":135,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"6ba67dc6-cedb-4c92-a3ce-18f6afda17f9","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":135,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"4dee7bdd-421f-45cb-b65c-524d562d3da7","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":135,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"0b37fddc-9826-4a37-af4a-eeaf1943f340","block_type":"box","text":"II-99","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9887debd-c771-4af3-a43e-eaaea167d077","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":135,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"922e64e6-0a9d-4a1d-9ec7-847a00b5659d","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":136,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"c31aebae-fff1-4568-8162-4e5b6e2fea89","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":136,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"4376ee1d-e193-4a9d-aa8f-ae8d2d96d162","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":136,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"ab9e3360-711d-4143-a490-c2acad637387","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":136,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"a1b5d9e9-f812-4ea2-a24d-2da0fa182e6f","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":136,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"a1a4e9db-ef21-4105-bfe6-61bce6d21417","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":136,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"0cab4963-7c67-4bab-a129-fdcc504ae9bd","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":136,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"00db33fa-4b50-42f6-87b3-1d1ca5295f5d","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":136,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"7852818e-e3b9-4d36-832f-e9383e8618c5","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":136,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"e960e000-99a3-4323-b24d-f5bb7bb93c60","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":136,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"20ddf608-13d5-4d18-8094-c43b5a0051dd","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":136,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"97709f1e-c9ee-495d-b985-2afd0d44fe3a","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":136,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"8b7f6dbd-9c87-4f86-855b-651426da9257","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":136,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"1b0dd3bb-dc05-41f7-8220-34d32c33e239","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":136,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"ed0d5db0-333c-477d-a97a-5de0a22dc471","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":136,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"eff0e057-75c7-41ba-8b5c-073293f7e023","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":136,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"895fcbfc-63a6-4cc6-84ca-76b350c90588","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":136,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"6bdbb5c1-3d54-4fcd-8feb-75fd7c999b97","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":136,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"ca343c0a-0f06-46e5-b7cd-14a760ff1948","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":136,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"ae769819-24ab-49e4-b310-8f46e9ee7764","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":136,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"ee07f16f-5ba8-4542-9b9f-b423829eb4e5","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":136,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"03bf64b4-5486-4637-ba0a-33f6272080c6","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":136,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"d4dfa87e-e932-4b3c-9c19-e457755e2585","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":136,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"c2d0fe89-6ebb-4cf9-9203-4075c1ce7832","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":136,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"c7a0c730-13f1-4ffa-91b1-e9e95fd8322c","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":136,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"755528e8-4fc4-4a71-a932-55b360d7b239","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":136,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"ff4b3339-981b-4447-a661-3faf7ab916c2","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":136,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"3f9444f5-2d10-44ad-8723-5d69aba75add","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":136,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"8d69442d-2096-4a91-8075-88f29d605ebc","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":136,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"64b5d192-5e74-4ddf-a3e4-27d250690018","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":136,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"b19fb5c6-0873-452e-a889-db777b0c7c9f","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":136,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"fe57da06-cdd4-4fb3-a149-78f4389ed49a","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":136,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"5fc160b9-f935-4793-aa80-c143e8c36b73","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":136,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"0187594f-4b6d-4cd3-bae4-8a27059f8c72","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":136,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"f7cf95fe-4f0a-4c34-99f2-0aef52309e23","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":136,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"5699f8fb-829b-4f1e-9a8f-12cb5e8266fe","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":136,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"e724e76d-9996-4d34-8da2-cb4ec07db678","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":136,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"6771d0b9-943a-4e67-ae6d-6e1c49247d81","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":136,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"f402bb1c-f2a4-4083-9d04-80c206c75d4a","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":136,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"dc1a7612-0e09-4167-ae75-5316d026a39c","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":136,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"5d07fe4b-9d35-448c-aced-a1a8e8881158","block_type":"box","text":"periods indicated.","page_number":136,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"c2db6193-9d3e-4a07-8f9a-adb7176275bc","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":136,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"66572c89-9493-4d6b-b512-b69e8559e90b","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":136,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"a27b3860-0959-4383-9ba0-e4c808772e86","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":136,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"1e06136b-6323-412b-8d79-9a8824155eaf","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":136,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"584bf761-e5c4-4d1c-955e-f05513c461d0","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":136,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"04e4cfcd-f694-4965-84b0-d1e7fcfb7cc9","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":136,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"4a071f20-a93f-4f32-8bdd-2b7a9fd20d10","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":136,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"81551bf6-0bc2-4c26-850e-b93018690d56","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":136,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"c1f8fe3b-e8dc-435d-9281-9682f9b188e2","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":136,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"be4f7a92-c38d-4441-8609-a95df7e7e485","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":136,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"b441805d-4935-41f2-a426-fd015c919d74","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":136,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"3bae01d8-87ac-4333-9e2a-070a25fd4ec1","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":136,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"e4afb444-86df-47a1-ac89-f260345c11ce","block_type":"box","text":"II-100","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"50e0bbda-3563-4b3a-9d2e-212bc456b842","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":136,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c512bab2-ce56-44e1-943f-3e34ffbc0a5f","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":137,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"2db82356-2b3b-49b5-96bd-2148c975caeb","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":137,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"f049917a-97c9-4bea-9995-ae3fd86e2ae6","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":137,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"d8907fa4-6655-421c-bcac-e3974c781c2f","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":137,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"b4452564-029b-4cab-ba7f-777356a1f399","block_type":"box","text":"Reduced Initial Sales Charges","page_number":137,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"9abdffe4-598b-4adf-b971-df74190f3b2c","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":137,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"c464dab7-c269-4a6a-b410-3c1be3a8a13d","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":137,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"859aa754-30e2-4bc6-92c0-be8a3c870eb2","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":137,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"9cf54760-61b3-4d19-a854-545282dc48c9","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":137,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"c15e5622-3ad8-4721-b742-001fe536905f","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":137,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"5e419ca4-107b-460e-8211-1e5e5d6a05a6","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":137,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"3d7605a2-74c6-4c29-b3ab-4d2bc5b3aa07","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":137,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"435e4d9e-5fe2-4186-b404-97f82a5109b4","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":137,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"c685698e-1375-4dc0-95b1-f66487d7a4b5","block_type":"box","text":"Reinvested Dividends.","page_number":137,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"ab8660ea-00a9-4fae-b1d6-01ee40a3d427","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":137,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"4a9bbb6d-6655-4aea-8181-8c377495c5c1","block_type":"box","text":"reinvestment of dividends.","page_number":137,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"dcceeebd-92b3-480f-8150-0e5cb9a775bd","block_type":"box","text":"Right of Accumulation.","page_number":137,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"cccec678-c404-45b6-b60c-c629d0eeb4db","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":137,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"2ac40146-2a2d-4f3c-8ba4-f18e3c632677","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":137,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"de3b08db-d1bb-42a6-b990-3fa6d4056427","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":137,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"25cc7efc-8074-4c00-b8bf-d0f9157cb232","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":137,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"0740fc1e-9edf-4551-b9b2-2dccccf597e5","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":137,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"b69f4cab-bd50-4a7a-b3d7-53b5fa48dbec","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":137,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"81fd7c35-a8d1-47de-9411-02a7e9b9e32c","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":137,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"26a38ee7-9171-4ad4-a867-d142de40aee0","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":137,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"a0e4bd63-8472-4a9d-9a6d-8c36ee830041","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":137,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"5d7d8aa9-cd3c-4a6e-b6b4-d3119b9a145d","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":137,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"b1d07018-93ef-479c-900d-fb237e77ed3c","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":137,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"93354ec2-2e3a-4ac2-b1a6-bc966f3c73dd","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":137,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"045a478e-b26c-499c-af52-49ff7c1e6830","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":137,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"143a56e7-d65f-4013-b77e-26fca5ddf18e","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":137,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"1f96a2d4-d520-4691-b97e-2a7758a0bbb9","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":137,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"3cd38e3e-cf4c-424a-a959-3869e7420aaa","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":137,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"b7372287-e085-49fb-af1a-b95f99a08421","block_type":"box","text":"Letter of Intent.","page_number":137,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"0782b8d1-0f83-4041-a72f-ddd0f9911b98","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":137,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"4e2aaba8-0893-486a-9ee3-b4c5c7ec3639","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":137,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"877fa6c5-68a5-48b0-b3f3-3baa2aace11f","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":137,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"1fb2b6df-b387-496f-82c2-99dc5f8e5da9","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":137,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"2c2ee3d7-c8cb-4288-af58-c52a0bef98ca","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":137,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"dddc7832-41de-48cf-bf95-3419775470ca","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":137,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"d748c37f-9bf2-42a2-b66b-85878af3824a","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":137,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"6e1693c9-4cb7-4a5b-b544-e35c4de0947a","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":137,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"4d2e358f-ca91-4858-b0ed-1daa4cbc8390","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":137,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"f56d22c9-fdab-4715-888a-3165d994f872","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":137,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"e3f5988d-f4ed-4547-95cc-3d2fb0f0704e","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":137,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"0e217b11-db2f-4496-b235-5006c06ec0e5","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":137,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"dbab74ee-36ea-41c8-bd60-83c0866318b2","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":137,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"114bf393-5cbe-42ec-af36-64d156e258b6","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":137,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"2f86d117-3552-498e-a391-26f164d8825d","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":137,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"af94305d-0613-41a0-9b41-7fba5b782d37","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":137,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"d48a4a66-4360-4a99-98f3-482ca28d464a","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":137,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"e17bb767-9618-40d1-a9c8-466e84924fdc","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":137,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"a4b7b922-fe73-4423-8628-fc7feb96944c","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":137,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"b287764f-2b56-43f9-acac-e3730847c158","block_type":"box","text":"Placement Fees.","page_number":137,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"022f214c-5fc3-4499-bb22-7b7697b7efd3","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":137,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"dc2ac26d-60d9-4471-97f4-e608de663184","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":137,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"eb774b29-f07a-4974-9932-4499acdc16b6","block_type":"box","text":"II-101","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6613765d-f07b-4e79-8abb-8b21f321ac60","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":137,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5e4e6726-1cd0-4f10-85f8-b2d1565fa5bb","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":138,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"92dc694e-a098-4acc-b65d-3018a3a7ca92","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"218c7172-b559-46fa-b4ae-7e33ed158898","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":138,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"bf6657ce-ffd1-46f9-bfa4-a3df918bbea1","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"7b6ddf1e-6a70-4fab-82d8-97400e13bc1a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"c3f1a4e4-80b9-42ea-b3c2-c8b9eea9f728","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"7aee917e-889e-4682-9560-10b2fef4a1e7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"cc877d6d-e7b7-462f-9ca9-b977c662379b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":138,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"7bb1c950-abac-4905-b7c0-d6e148dae362","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":138,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"893ba2b8-6961-4374-90cd-6ea54df6fefe","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":138,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"cca38616-57e3-4a81-a1bc-58addcf8b921","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":138,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"25ad6bff-2289-4820-8f55-12b0b2c80932","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"e47a0b96-305e-4889-ad47-2154bdc2a8c9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":138,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"2f97ef14-3e5f-41f1-ab55-1c2a2301ef01","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"69e70237-2b6e-40f3-a672-33ec959efda4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"4f43efe9-fd88-4863-9e88-8a0946782093","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"cb4a21b5-2262-4032-80c3-c2fc19ef7699","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"a4daacb3-b933-4e50-b7a8-177247742690","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":138,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"920a48b2-d948-4ec9-9edf-0676ee4894fa","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":138,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"06ecfdb8-c0f9-4e76-b07f-90fcd47aab97","block_type":"box","text":"SM","page_number":138,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"f8d47ff9-d6ca-451b-8fb6-ba898543e198","block_type":"box","text":",","page_number":138,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"928861d6-c04c-4b95-b1c8-d94c9e1b3e29","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":138,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"2a478051-b3e3-407c-8b45-8f8b24830d98","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":138,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"b2622a5a-5ea7-41c0-bd0c-43e676a3f4e1","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":138,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"ed435b75-5421-4ee1-9018-13fe225f8d47","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"031d6572-3177-4cd2-ae9d-eadcf0a97fa0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":138,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"5ddeda48-3e7e-4faa-b3b2-e6be7410b812","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"229c036e-d115-4a59-abca-993c09eb29b9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"1bdd5475-82b2-42b3-85fa-fc9e712a1b07","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"d9895604-db65-4ea0-b17a-32fe3090942e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"3e1cbdd8-74ec-4ce3-8fc4-40fb52bdd97d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":138,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"5855f8d2-975c-4b77-b08b-ec7a89509865","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":138,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"d8156b06-5c35-4023-a08e-5a00b7ef1006","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"e74bc348-a428-43ea-8c94-7c15f16ac8db","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"36dc8a40-4888-4a05-abc4-02b2b33ccc43","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"392d0c2b-2976-4564-830c-89accd6d6725","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"efd585b8-1aff-406c-85bb-c3c05c64aab3","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"ee8450cf-7316-4645-8c36-58f53a9a76d9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":138,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"60f7f181-9911-4a90-97fd-4b65f4b3d1ad","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":138,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"24e8cc0d-6b13-4564-a5e1-0671370e392f","block_type":"box","text":"may be up to the following amounts:","page_number":138,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"5183c79e-1f44-4c31-9d22-5ca62efeaefd","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"4481ba46-d0cf-41de-98f5-04f3b183f2a7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"a64f3d4c-d8c0-44bd-bd4d-56ad612e69ac","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"0059ee4b-f6c9-41e7-9ecc-0fae82cca5ac","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"b1e1eacb-64f8-4ccc-9d51-94d904dd5979","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"5e8c59a3-9d89-4320-8419-b276c4625cd3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":138,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"55eeec31-24e5-437e-8999-08a2f45ece88","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":138,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"10a29d4a-bf68-42f8-b410-a5da2f191ccd","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":138,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"f320b35d-ceee-4d71-b5f4-f321348ebcc8","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"be34b20b-7431-45b1-aab0-29e39a46941b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":138,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"dce0f180-d119-4357-bba7-45b35d40c4f1","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"375b36d7-409a-4ace-9a8f-74d3c0d88981","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":138,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"49e3e5da-3505-4a83-ae9c-d8f87a9bcdfe","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"3fb364ef-bea1-4c95-a07b-7edcda08c4dc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":138,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"8b332e83-bb73-44bb-830b-0ae9b8cfdac9","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":138,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"2c863e45-d45c-437f-a636-30bb531ebb98","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":138,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"571ccde0-41a8-43ce-aba1-412d25e822cc","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":138,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"7962390a-7f3b-4017-9af3-53725ab04890","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"c94afa4b-efdd-424b-b178-70f18b39efb0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":138,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"7f91e6e7-85c6-49b5-be7d-5385a0841697","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"38c2cb00-a22d-4f05-87a8-bcfb854a09fe","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"7b8bd7a0-e6c6-4248-ba40-b8a0c74ab42a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"89e18949-ca7e-4b16-93db-8ecc539ccf12","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"3deaceff-1744-40ed-a95c-336e620bc543","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":138,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"e62a3a82-4aaf-4597-b7b0-53977d1fcaf7","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":138,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"0aceb23e-8806-4e05-af25-67b15cce7d9c","block_type":"box","text":"$250,000 and above . . . .","page_number":138,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"7c5ca94c-b58e-4fc5-87d8-b03307bbad57","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"4e90075e-8570-494f-ba1e-346ea4ab0fe3","block_type":"box","text":"II-102","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b8b6bd60-f013-4b35-bd1a-4cec1113b7e1","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":138,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d08c4985-8aba-4df4-ba44-bdb5832f1a6d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":139,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"b2681ee6-ebee-493f-a29b-1fb76a90fdd0","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":139,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"7e73f45c-78de-4973-9517-54c6640020fb","block_type":"box","text":"the following amounts:","page_number":139,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"0ec7ee76-5a6b-4749-8fa9-75fc5dba47ae","block_type":"box","text":"$100,000 and above . . . .","page_number":139,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"bb18f24f-7041-4ff2-8988-6064499ffb98","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"51202ce7-8da8-4fc0-93fc-883c96e9c222","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":139,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"9b42d3a4-02ae-4464-8e3d-99ccf53c76da","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":139,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"c6d7afb4-1fb5-443d-93b9-6f78bad20829","block_type":"box","text":"$250,000 and above . . . .","page_number":139,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"a3902470-6a1a-45d0-b8c5-08fbb719ac35","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"63f5d351-3bf3-406b-bd41-c793b7b9767a","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":139,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"648cab82-03fd-4724-be47-977409b799e6","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":139,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"03855f84-2a12-4199-9404-1920808838e3","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":139,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"9d7ab9dc-943e-4fc5-ab16-d509ebc5be0d","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":139,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"12a3ea2d-eb89-4b13-8853-c1eb54b95f9d","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"52493c86-a6e0-4fd1-93b7-a5c01e1106d3","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"9a099f04-ca25-4d5c-9e4b-852ea7658c21","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"017c2982-3306-4236-a2ea-83a002721190","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"411e7c80-2757-4d4e-b512-6994988945ce","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"e2430a29-0398-4c01-aa16-2e6e99864bac","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"66dc648f-1bf8-4b5d-b2e8-1e893b44dd70","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"63edf614-41bd-4e96-a01f-591ae1349e44","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":139,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"aae852a1-db95-4bbf-99d2-493daed8bbcf","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":139,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"c6822a91-dcbd-440b-b1e5-64cf03f7fd6d","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":139,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"12f20afc-c1f9-49ed-a675-a98d31f05e5d","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":139,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"62d01547-a3de-4b2d-afce-139e417109d4","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"bb52ef13-7a94-406d-b8e0-0d0caa2992c0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"9c1eb167-19ff-4d37-ae74-bc90c9c6ba39","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"7882f867-9b2a-4237-998a-337cdea27942","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"1b4a7bd6-3c46-4130-9228-8e2760606373","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"51580962-4e49-4c73-96bd-cd7e78e781c9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"bfa8b0d1-a353-4c53-a863-ca2ce1d2a62b","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":139,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"0dc4eb20-ac4b-458a-8700-d9c228e7b1cf","block_type":"box","text":"®","page_number":139,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"7230cdf0-634a-49c8-8209-cd2651c7f1dd","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":139,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"f02d5569-fa4c-4c7c-b311-47cfb724b8a9","block_type":"box","text":"®","page_number":139,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"47e856c0-55d5-4d11-b9df-4f449bb35cc2","block_type":"box","text":"Index 2035","page_number":139,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"1c8fc948-35bd-41bd-911c-4fb294c17f17","block_type":"box","text":"Fund, BlackRock LifePath","page_number":139,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"48c0c51c-fc22-44da-9956-72a2058e16f7","block_type":"box","text":"®","page_number":139,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"6cf88c54-d0e0-49af-8a4f-b1e3275f8660","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":139,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"9c9492f0-3058-4183-a0a0-eb7b113fd3be","block_type":"box","text":"®","page_number":139,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"d8214851-9556-4142-9a8a-54f3bcb8bb6d","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":139,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"83bfe30b-964f-4e6e-832b-cdadc7a39859","block_type":"box","text":"®","page_number":139,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"fdeeb853-fbee-4309-9532-7194bcaa1845","block_type":"box","text":"Index 2050","page_number":139,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"11d44006-83b7-495a-a66c-ac8819d8b091","block_type":"box","text":"Fund, BlackRock LifePath","page_number":139,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"4ab22350-c57f-43c4-a4df-4d673142b9b6","block_type":"box","text":"®","page_number":139,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"edb5255a-0b99-40a1-9349-cd5f0cef6a42","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":139,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"87da4117-ce09-4567-9f11-9bb363674275","block_type":"box","text":"®","page_number":139,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"6069df7b-a1bc-4d53-aede-5a89cd27af0f","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":139,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"0167ea66-65fc-4a72-936b-0e36e3ccaa36","block_type":"box","text":"®","page_number":139,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"175d43d1-3be2-4132-b992-ee7f32b43951","block_type":"box","text":"Index 2065","page_number":139,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"8bd6fc47-05f6-48b1-ba05-6f83d319aa58","block_type":"box","text":"Fund, BlackRock LifePath","page_number":139,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"441bb994-b190-486a-9550-3b9833eed05c","block_type":"box","text":"®","page_number":139,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"f5c1d7ea-3498-432c-8de8-e1c100fe0baf","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":139,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"d93af3b9-0cd3-4163-9448-da83df519d04","block_type":"box","text":"®","page_number":139,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"c472a130-20be-4aa1-9061-a26a2c92c309","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":139,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"232f3520-ced7-48b7-82c2-9120899aeeb6","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":139,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"958f28f1-1b21-410c-87b6-e5e8a3f57ddb","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":139,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"be0a7479-2b21-43bd-92a7-19c43a41fa42","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":139,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"0c5128e1-a497-4757-8923-ebb08c410db5","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":139,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"7633dae8-3a65-4af4-ad5a-b929dd4c20e3","block_type":"box","text":"SM","page_number":139,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"4d747af0-226a-44d6-b6d5-51f84faaa6fa","block_type":"box","text":", the placement","page_number":139,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"f57e98c8-8a71-4309-acbc-6e45139f1fed","block_type":"box","text":"fees may be up to the following amounts:","page_number":139,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"eaf2a925-e8a8-436e-9857-3a14d862200e","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":139,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"b9d06fa6-d805-4b57-9858-b6c892028548","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"83b3849f-8f1f-4233-9945-0f2992c2d169","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":139,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"b9f26174-4bb8-4ac0-abcc-acdb48fa405c","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":139,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"39cce72a-a8dd-42e2-9a0c-d34b65396cff","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":139,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"27c43935-f3ac-4fa5-8b45-6ba9b8cce525","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":139,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"05613f87-3f4c-4a59-9950-4f78cbe4a650","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":139,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"59af23f8-813a-49e3-8f5b-ec3e54f6341d","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":139,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"1c985b01-db4a-42ec-a6cd-d4a939bdef08","block_type":"box","text":"$1 million).","page_number":139,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"2c33edb0-9af7-48a2-9054-17b086686932","block_type":"box","text":"Other.","page_number":139,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"688cd42f-82d3-4683-8352-5dac8a95f0dd","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":139,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"9402adf0-80fd-44e0-af70-03426125f352","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":139,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"b7ad8060-4e8d-49d2-8a74-b4a4534a000b","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":139,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"917c5f3a-f5aa-443c-8da4-0efef1953c17","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":139,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"a67ad06a-af57-4801-8467-2c8098754d09","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":139,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"2788a733-1c9d-4f9e-bb31-5dbdab9a64a5","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":139,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"05dd7c75-236c-4e58-a457-c764b666e5be","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":139,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"d56c0914-a4a3-4ad8-9c52-2f4bf22a83ec","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":139,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"88b55dbe-b227-4347-88f9-a335651f8887","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":139,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"c7cf6494-d14b-465a-9a5a-b4a0f2a48241","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":139,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"a02167f1-a4ed-4ea9-8365-22496c0e11b3","block_type":"box","text":"II-103","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1d6a031c-826f-4a5b-83dd-221b60059ec2","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":139,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"db716ab9-9902-4665-b490-93ab9e2a1011","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":140,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"6194b15a-4b0b-4371-b471-237deb1e160c","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":140,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"2cde2847-b4a4-4f37-8e19-5b1ba55e2658","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":140,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"93296e73-2ed5-460c-9374-3594f0c088ec","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":140,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"3d854d5c-5015-4f98-a12c-457437cc91e3","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":140,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"b7886d6b-26b9-4737-97ad-350d6113435c","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":140,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"0869c792-6a1e-4dd5-bde2-f7b45a5aff2a","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":140,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"f5ec6f71-613e-414b-ba87-2244e2b142e2","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":140,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"1ce5739e-dfd1-46c3-beb6-291c1df16982","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":140,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"1eaa9e09-ff8b-40d6-a2ec-0ebbc8df7e4e","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":140,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"e01b0bea-e0a3-499d-9f02-f941ae9ce418","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":140,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"ca63375c-c18c-4c16-969d-0257316fcd91","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":140,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"7982020a-b4ef-45ab-9339-0deb09586940","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":140,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"44584d81-d1b4-46d8-836c-9384f6d70acb","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":140,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"45962059-161e-49bf-87ae-77460d1289d5","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":140,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"acebfadc-2b13-4dde-93e1-2da51dd2cd4c","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":140,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"9ccb31af-db99-4e81-9184-172a704eb0ed","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":140,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"47e4223f-8dac-4d8a-8142-d3dfea36ec2e","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":140,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"63e53c1f-39c0-4345-9d9d-863db42c3b1e","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":140,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"17ab85e0-eec5-44e8-8241-2a1cae9e05dd","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":140,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"3929c76b-940a-4b13-a6e9-b26aa931afac","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":140,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"a6c13797-0c61-423a-8268-a280c097e89e","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":140,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"c42c52a0-a8a4-4bf4-ba8d-60a18f78e757","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":140,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"8bdf7901-395a-49e1-8e5c-297388729f8b","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":140,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"873c2fec-fb8a-4aec-8ba1-cbaf0cf3084f","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":140,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"c9d4ea23-7160-4c0a-93a9-acf6b2f186ae","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":140,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"7d22cfc5-c02c-4ba7-8cfc-e1384a2daa0c","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":140,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"4adb2c09-8215-40ae-a006-1ab0a3c5ae75","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":140,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"e7d88215-5636-41a7-b43f-250691608df9","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":140,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"0a583d28-8a44-4488-aff7-d8bfef748c7c","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":140,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"2eb0a608-b1a6-4df6-a4c3-213b92fed605","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":140,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"635047cf-e129-46e8-969b-19d54bc4cd1a","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":140,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"ee25edfc-1656-4dd9-9834-487387b4ff96","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":140,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"fec5bdb4-d01c-40ff-b363-0e80d1a09942","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":140,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"2c832bd9-3543-41e6-89c3-0ad7a8701fcf","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":140,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"69da6c22-165c-45d2-8d6e-4d59b48468a6","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":140,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"877b939c-bbbb-40b8-ae0d-a75285839759","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":140,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"648f0215-9162-4ca9-8036-453541e8a1af","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":140,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"dbd2c270-fecd-420d-82a0-f000f5c9eed3","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":140,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"b31738b1-aeb5-4412-9196-8f7e5017e46f","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":140,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"e297b77d-5467-4d70-88ec-eba0e3f82d17","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":140,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"4b66e708-184e-47d4-a6cf-6d67980b3103","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":140,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"01fb835a-fa77-41a9-bb11-3d0b179a79f0","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":140,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"9f7c89a4-3f9c-41f0-a64b-e4901449ac98","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":140,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"be7db596-21ea-4f7e-8821-5669fe12ee25","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":140,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"2a19a424-92b6-497b-bcfb-87f0628a7cd2","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":140,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"8dc010f0-8aa9-4dd8-9131-c8f9e1f08be3","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":140,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"904962f1-1017-478e-9546-fd5a1020c721","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":140,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"6db91523-3b42-49f0-b0b0-dc2c9866a050","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":140,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"602e0dff-770e-4fd7-a2c6-6c8956f1799e","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":140,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"3d234370-0c67-49ae-b3b6-720e10e1ee07","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":140,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"b7cce5a9-2575-423e-a59d-4dc291d4d4e2","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":140,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"3d26ffa7-44c0-42cb-b9da-c7b3c8b2d74c","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":140,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"2e839cf0-1dec-4853-90f5-28efb41de2c8","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":140,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"d32a92b0-c0bc-4f7a-8fa7-1a77fba23914","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":140,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"7c928b57-8453-4b5f-a5f9-50569178ca14","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":140,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"32ca2288-5920-4b3f-9ba4-629675c9f14b","block_type":"box","text":"II-104","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6937002d-cbab-49cc-bfbd-11467fce4cd5","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":140,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"470c1145-99f0-4830-a710-a54f3c9fd267","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":141,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"6432750d-4038-4287-a97e-5ba45901c52e","block_type":"box","text":"the absolute discretion of a Fund.","page_number":141,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"9a32839f-81e3-40e4-8d87-497e6cf8577b","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":141,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"47d050f3-8256-44c1-b3c7-f513347a9f5e","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":141,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"ebd778bf-9d21-4654-8a46-9b3d86648b5d","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":141,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"5b7fbfe0-6b87-4dd3-bfdb-a311e0630d11","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":141,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"acae499a-e87d-466b-be8a-54631ad77d29","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":141,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"11c4b06c-ac40-4f6d-ad0c-c4f6bb0662ce","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":141,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"77c81283-f967-4175-9e27-5a03a0b40bc0","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":141,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"f63cbbbe-0884-4a8a-89dd-99578eca0b78","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":141,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"f5c59900-d72b-477e-b3d6-a69f7f3355cf","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":141,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"238e2dbf-f995-42c0-8e92-34348cbd3248","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":141,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"0264725e-e8ff-4f1b-a384-1baa497e082d","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":141,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"56d0c13c-7715-40d8-b4b2-ba1b2c33cfe0","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":141,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"0895f816-0197-41e4-9cb5-ca2e43c8825c","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":141,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"0afd286c-ca11-4548-8a6f-6b13e15408b9","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":141,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"26f736c3-cc0a-410a-9894-89a5c97eb171","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":141,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"667b0b24-df42-47a3-b3f5-d488dacbdf9e","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":141,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"322a3f02-37e3-4574-994e-8042dbbae18b","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":141,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"2ec86f72-c987-463f-b5c0-518ac932e3d8","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":141,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"f1edad96-f6d9-4064-bcf1-5a3425341619","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":141,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"621aff12-67be-4be1-a53f-b26e696f9519","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":141,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"4e5c89f7-1be5-4dfb-a3e3-f95b34acabc3","block_type":"box","text":"public or private investment company.","page_number":141,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"9515851b-7dee-44dc-a0eb-2b762b93fed2","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":141,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"fb6d0d96-5ebc-4a21-958b-7914c4fb311c","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":141,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"f97b92ae-7534-4b12-822e-b3476eaba59e","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":141,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"e1027938-3e45-4ea6-9cf0-c029a21cce69","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":141,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"ac7622c4-17a9-4780-a3ce-2743bb625fd4","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":141,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"f5c500b2-744a-471a-a742-6238cda2e768","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":141,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"338bcdc8-30ac-482c-b5c4-0167b84c4216","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":141,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"a19a5141-b6ce-4a2c-be73-fbca0c9a31fb","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":141,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"884ca817-eade-4a9b-b577-7cc3878884c2","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":141,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"b91bb45a-04f9-4b6c-90a4-918f86763fc1","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":141,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"52cb9c34-9852-41f0-8d73-dee702f6a55d","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":141,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"9d0866f3-8a7d-4650-8efa-f131e0d5cc1c","block_type":"box","text":"intermediary associated with the account.","page_number":141,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"57a3a572-94cd-4345-904a-5a90d5bb3e8a","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":141,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"d908c02d-1bcb-4249-966f-000b579cbbc2","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":141,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"ce3cfe5a-4961-42d1-a1ad-9fc22ff73a95","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":141,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"c4cb0eff-e8fa-4b0f-9645-9442d9b94f51","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":141,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"86dee85e-8aac-4fb4-a8a3-f997ca3e52e2","block_type":"box","text":"CDSC shares.","page_number":141,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"fbb3b99d-62d3-4cff-a5b2-73ff828756f8","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":141,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"10479f03-6a04-46ce-ba62-6790042a3531","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":141,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"bbb42c1f-f34e-47e5-a647-79a99657d081","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":141,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"c1efd7c9-5eea-4c81-97db-4028cf44975b","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":141,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"9583cb7f-9e95-40d7-9bba-983fc90926e7","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":141,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"7197c9d6-9236-47fa-9de8-1e275fab5772","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":141,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"16ee1072-00ee-488e-9f8b-b99b33a1b570","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":141,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"4c53cf0f-1e77-4f18-bce6-e9bb98d3f4a7","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":141,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"8df08173-affb-4f80-8715-daf1efdca485","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":141,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"42f6815f-403c-488e-aee4-2e95845093c7","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":141,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"e904c04a-da57-4529-a9b9-7449edfad3b1","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":141,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"ead1dbaf-9ae7-477d-9f32-8201a82bf405","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":141,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"15911b3f-0a3c-40d2-ae73-6c608bd24d46","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":141,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"189b1fc6-b092-4e1a-95d7-79380d843868","block_type":"box","text":"II-105","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d1ccbaab-a0c5-4f27-b280-165e1baf249a","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":141,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"21252eda-6a2a-4d4a-8962-114071e233c6","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":142,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"b12746a1-899e-47aa-806d-ecfce1e9b576","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":142,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"95a70095-cc99-44e2-aba0-60d2d22f557e","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":142,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"7818aa82-bea9-474e-b128-9630611ecfbd","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":142,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"7d4dc089-011c-4c3c-a2c3-228477848c5b","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":142,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"65821763-1a4a-450d-ba19-18932bc73b79","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":142,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"1e5df276-5c28-4125-9174-2d942c6bb237","block_type":"box","text":"Investor A Shares.","page_number":142,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"b5765fe3-0a58-4f83-b9d5-3ff0b8d741a2","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":142,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"3a1c6dfc-0ec7-4e54-8e42-f7d973c456f2","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":142,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"d72c44b6-6884-4bde-9108-9525da6aa2d7","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":142,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"31b97db7-f108-4668-b3da-419d6e73c700","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":142,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"f61bd6ec-2f0f-444c-bd95-75912f0e28f7","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":142,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"d47016e1-35e0-4365-8a35-d68daa06175a","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":142,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"3f6ff904-fa48-4feb-b430-f7f50c186e24","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":142,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"83fc1ac4-702a-4b46-81fa-d99480cf644b","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":142,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"997b4488-f44c-4bda-9015-a149dcd29401","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":142,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"a3e78476-df14-4a13-a01d-e492af2a4adb","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":142,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"9fb98eed-824c-4c90-aaa5-c5406a79649e","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":142,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"7167185a-1c5c-43ee-864f-98d36f9d7b8c","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":142,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"8c9397c5-cb71-41dd-b69c-b7d9f98e1d72","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":142,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"59f8b43b-90d7-4024-af40-4de09a1fdc25","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":142,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"d1bfc8ba-2a49-4c16-9451-44f3f40165ec","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":142,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"d42b2741-7dfa-41a5-b318-98bf6f4af0aa","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":142,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"0bbeb957-f1f6-49e5-b2c6-bb43c9c7c26f","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":142,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"c9a20a62-4a54-40b1-8454-1e607c22574b","block_type":"box","text":"“Investor C Conversions”).","page_number":142,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"ad390d88-9834-41ff-9abf-61a2ae214ea5","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":142,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"1990311e-6680-4863-83e7-b18acf183b31","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":142,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"a36c9d75-e55f-463b-a11e-b305cd94d368","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":142,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"a39a4e0a-2b9b-45db-9562-0cb53db95491","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":142,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"4c8fd1eb-6a02-425c-9d4d-aea45fdbfaf7","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":142,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"89669f6b-c47a-4259-b965-c12bd31cf32e","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":142,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"cfbed4e5-de3e-4391-b29f-07d70afd503b","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":142,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"71fbd4f2-53f7-4896-b6f9-b984c94a2243","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":142,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"7b98f813-75de-4d17-8ece-17aeef669f09","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":142,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"2a56ede5-29bd-463e-9f3d-2fffac76fdc5","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":142,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"792b38f8-e811-4048-899a-162eb8c1d61c","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":142,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"28faa71f-e513-494e-99b5-ccb6d3caa80e","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":142,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"1951998c-80f5-4cfb-bd4a-5fbf7418605e","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":142,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"0dde386f-8c70-45ee-b7b4-9d69ae79ab66","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":142,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"ccd4a8da-c6b1-486e-a24a-8a1f12e28e8a","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":142,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"c69daa74-7e04-4c3d-9b83-65a76ecd1c18","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":142,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"7e32b621-3449-464b-a8bd-2654a9fcd1cb","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":142,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"52952f1e-d4a6-4722-8104-62978e8de008","block_type":"box","text":"redemption.","page_number":142,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"ff440189-48ed-41fc-9335-9eccd4e4b824","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":755,"width":734,"height":11}},{"id":"f59b6945-5c90-41cf-ab7f-ae04d5ac7f80","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":142,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"56efe021-9b7f-4de7-8d14-717128eb1f0e","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":142,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"f0090aa3-7fb0-4c59-ae1e-6e881096335c","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":142,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"76a295b8-d345-4b24-906f-6a4e6be0433c","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":142,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"d7d510ba-d730-4ee2-9080-f3b02be7fc8b","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":142,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"d3b81e99-9aaf-4b3b-875d-3c800bb78a95","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":142,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"1325a26c-34fc-429d-ae3c-70ce9abe31e2","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":142,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"cddae9fc-9e95-4084-9158-71d691396193","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":142,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"344fe93a-9886-4297-86f6-c2ddc4e70bac","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":142,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"89dfa42f-d47c-41ba-a685-1c3ba17d9f1c","block_type":"box","text":"II-106","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"731be912-3238-4653-922b-e94a256de6eb","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":142,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"1acc3e69-230e-4fbd-9018-624f82a56a2b","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":143,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"a33c4eb5-ad70-4692-bb71-2941f4c7d204","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":143,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"3e699ff2-3164-4e22-a20e-83d51900494d","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":143,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"0ad245c3-e1a8-4605-85bd-d27e92b922d0","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":143,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"7cad94e9-462a-4428-aa28-7b00d9f7751a","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":143,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"d54e398e-152e-4063-900f-d79b6ad6c193","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":143,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"1bb55b31-54e5-41fe-8d25-643e78fe7e2d","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":143,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"e0e4d05f-6262-4363-9248-478896242d95","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":143,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"b1aa917a-7442-4ea6-960e-f0a7849f415c","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":143,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"f5dc124e-e375-4013-83cc-b8d3b4c4cdcc","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":143,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"0e7d1542-ac99-4200-8c7f-e3424f52c33d","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":143,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"ffe1e8a6-c9d5-4539-89d1-1ca5d9714f66","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":143,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"4f62bab6-8eef-4b8b-9fcb-2a374df479ef","block_type":"box","text":"Class R Shares","page_number":143,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"883444ec-f133-45f1-b1fd-757eaa7ffa10","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":143,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"5d95673f-fd70-4bc9-9e7d-5474ec135daa","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":143,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"125f8fcc-660d-4179-903a-2492e50f046e","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":143,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"e737e1c3-c728-4cac-a2df-7411da66f09f","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":143,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"0d04d48f-5143-424e-b834-585316859d25","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":143,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"c85d0433-d57e-4c20-8696-f7c75bf528c5","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":143,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"f11c4062-9f38-4ec2-b245-d7fcfa190a12","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":143,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"9e62df30-4f00-4a22-b4b5-01ee94ac1586","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":143,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"0cc91dde-ea6f-421d-9470-391024d53023","block_type":"box","text":"Class K Shares","page_number":143,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"82f40915-8438-4000-8124-6d1bb0769c52","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":143,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"a1e7f41a-ab81-48b8-9a8b-7585c1ca9c6a","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":143,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"b7c02a36-c772-4b9b-9756-2b62edafedba","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":143,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"85cc99c7-e575-46f9-b33d-af79e172c4ca","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":143,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"e98bb8f8-140c-49b4-98fd-f67c395eb000","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":143,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"214ba0aa-e161-4fdd-85d7-d059d12d5a03","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":143,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"bce74682-ac57-4d62-9393-76133900ad8c","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":143,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"a9d6f5bf-aa87-4754-83b9-323a9a48f6d6","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":143,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"321165e2-9bdd-408e-a0e0-b29fe2bab9ff","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":143,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"54dbc523-8a48-4539-b3a1-f8ce26b45294","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":143,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"7baf02a8-8046-47c0-b00e-d379ac8ee8eb","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":143,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"3bbedecf-d351-45d4-8a54-5603e33b1be8","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":143,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"095d5149-505a-49a8-ae9a-2047a7163163","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":143,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"a7439f94-aaa2-4b0a-bc5b-be6874525531","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":143,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"2ab036a9-fc14-4b52-bb9b-4fbe88680fd0","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":143,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"be63541d-a582-4aeb-8799-92551a4cfcf0","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":143,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"b673744f-251a-4076-8edb-fec98439b907","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":143,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"de1a2985-cad2-46ef-b67f-11ae80056a69","block_type":"box","text":"distribution and marketing agreement.","page_number":143,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"0ce4f6a7-6823-4183-aaaf-b7dbf2c481d6","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":143,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"b32dd709-be35-4220-a0b8-a5d8a6d92c1b","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":143,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"ef19ee76-2911-43f8-b393-bbd44af44a9a","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":143,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"9ce30e48-57d8-47e2-a764-3d4a1bfe5486","block_type":"box","text":"Class G Shares","page_number":143,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"16273eac-9cd3-46b6-b037-91673194fe27","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":143,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"607303c2-0b85-4e9b-8857-05a2f0c6c8ce","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":143,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"f44157bf-ebf5-4718-93b0-b1d674bbec7e","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":143,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"b8088496-f703-4b64-ada0-d59a22ed3811","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":143,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"bf797410-964d-4052-8f0c-b71249583b06","block_type":"box","text":"eligibility requirements.","page_number":143,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"872ffae3-0b9c-4a0c-a03a-9ce306c00d17","block_type":"box","text":"II-107","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5e81e4c7-3326-4df4-9943-d8dab11e5dd5","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":143,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"44308b12-94da-4953-9daa-04960103362d","block_type":"box","text":"Service Shares","page_number":144,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"f07fdd08-6e43-4f10-8e1e-bf9b9ebc7a2a","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":144,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"2a4dd1e1-680f-488e-a263-fcf2c3668174","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":144,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"2b0fb2f6-ed2b-408a-a991-c56a5bed2a06","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":144,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"bf2f38c7-18cf-4d14-b77c-484a4cd54e10","block_type":"box","text":"®","page_number":144,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"ed0d377c-cff3-49d4-b5d0-c76f09522c31","block_type":"box","text":"Fund in 1996; and","page_number":144,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"1523da55-ea37-4928-8f7b-d0ad063c646c","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":144,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"8c48082b-f504-46ba-8198-50073a6a2cf4","block_type":"box","text":"SM","page_number":144,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"6a1bac63-e813-4aa7-bc6a-edb75ca013b9","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":144,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"dd7d7aef-fb19-4793-87ce-329c1cc4cecf","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":144,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"58623599-36ad-48ab-ac22-66ee2ff207b0","block_type":"box","text":"BlackRock Shares","page_number":144,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"a6a4adac-d000-459d-8553-312f2f2b5dac","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":144,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"ec1fa939-8912-4f85-8091-7f34099216bf","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":144,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"19e5b73f-f931-4f14-ac98-1ac475b97ff4","block_type":"box","text":"fee-based programs.","page_number":144,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"8bd29b7a-6f5d-43a0-92d4-7329779a98b0","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":144,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"bcf3ccc8-0f2e-44fb-b8ae-0bd8559adc5f","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":144,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"4d2a981b-05b3-4428-9dfa-80f9b231158d","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":144,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"02b367ee-9316-4152-8730-0f239298a4d9","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":144,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"0c232252-85a1-4278-b495-69e55153368d","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":144,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"828f3bdc-81c1-4708-9e71-03befc916a29","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":144,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"02e28292-43e7-4935-9fd3-8adb25899351","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":144,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"09958a6c-96c1-4d9b-a669-20caa10fa1d4","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":144,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"1e75dfb5-8d46-445e-a620-1aa679ff2bb2","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":144,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"cb969033-2b69-4838-80b6-e6b891935c44","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":144,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"403580c1-7364-42a1-bc6b-0721cd4179e8","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":144,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"26eddc85-0a34-40f4-80f0-542d53273f30","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":144,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"8d354032-6881-49ce-9f12-4b948cb31a14","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":144,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"76a1936b-aad1-4de1-a107-ed4d7f5bddd8","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":144,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"3dcdf5df-3f74-46d8-aaf2-18d8561eee06","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":144,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"08858b87-effe-467c-a716-1187ee4c04c7","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":144,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"34477301-bd5e-4089-889c-1b9c77ae1029","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":144,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"62f9227b-9e85-47c6-a4cb-8c913f1ddd30","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":144,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"cc2d35fa-1334-4010-9c4c-d42b85ac2b12","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":144,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"3b1b61b2-b446-4d41-9836-a05ac382ffef","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":144,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"8c9acdfa-7b57-4507-8a20-888dcf8a1516","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":144,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"e7fa792a-4f5c-4b2e-b9ec-bc3a85f4d7c1","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":144,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"dc2baef1-c835-4165-a2e3-363d902d0bbf","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":144,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"9f9f8cee-bead-450e-928b-9b2939160b6a","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":144,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"e1ff750c-a18a-493f-aad0-d60415b1eca4","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":144,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"c0f9f179-daea-4567-ba7d-591ed3261e84","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":144,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"f2398062-1635-46e4-a81d-3da61b372484","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":144,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"93f49c9c-15b2-4090-8c23-f337c7412977","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":144,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"5d736998-62ad-41a1-bb88-ca1f706eff60","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":144,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"cffa350c-2324-4784-bbee-824fb4022692","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":144,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"2d5521a8-b6f1-4423-8acf-31f12a3df15b","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":144,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"00f438f2-173c-489c-8d87-dc6b54a7c5d6","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":144,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"d3ad5576-2a5f-4279-8e5a-0f83759af8c5","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":144,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"7d7394d3-2e03-457d-abc1-4ff3552ed5f6","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":144,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"9f55cda0-b787-47ef-acc8-bf228c5de609","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":144,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"394b8ef7-7ebb-4785-8d1e-0d46bb92adbb","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":144,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"ba4dbfe7-8471-4a6d-83a1-5aa38eb50b22","block_type":"box","text":"compensation for selling different classes of shares.","page_number":144,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"392e3df6-cdd9-49f5-91d8-a2fa70be0f2d","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":144,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"bcdbcdf5-0935-4197-996f-6acfc8a912df","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":144,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"11343544-cb84-49a2-940a-f5e97957f5b0","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":144,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"ef88755e-d322-49f3-8492-8df4ec66f1be","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":144,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"cbc53ed4-d689-467f-9a23-c34fca9fc048","block_type":"box","text":"II-108","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f13536a7-60f7-4a92-a48c-c1e6aa157b03","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":144,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"20544e98-95f6-4633-b6c2-294818d4e832","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":145,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"eb48caf0-2e77-4f8b-900a-e0fa9860fd1b","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":145,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"447a33f4-aec4-479c-a54e-b236d682d930","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":145,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"011ad80f-587d-4562-a570-b16ae639b17e","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":145,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"a9b7422c-129a-4457-8b03-b49f9c44bd1b","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":145,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"6b8223fe-e47c-4737-8442-52d45be943db","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":145,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"e7d85ed2-297c-43a6-a804-9c38fa3ec3e2","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":145,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"b65205ac-049a-45a2-9505-59ccf5a105f0","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":145,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"4dd9fa4c-1d4a-416d-94b0-f097a8a087ea","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":145,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"92efeba5-07d0-4c69-8dcb-59b9dba690d9","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":145,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"9d45d7c8-a55f-4bfd-b8b1-514701b18a76","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":145,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"3820e621-2447-4be1-94c9-7f7458467138","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":145,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"7d6b8a02-ab74-4902-8946-1667fa9fea64","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":145,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"826223c2-95cb-4cb4-be10-818004259080","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":145,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"b219b5de-bb0b-4b13-9157-73ce5999e0c8","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":145,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"48b81388-14bf-4e7d-b2c7-50bfcacffbaa","block_type":"box","text":"easily accessible place.","page_number":145,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"a5975ec6-368d-43cb-b191-026ce495ff2a","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":145,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"5c47be15-ad01-4a6b-aac9-4f170eef2ad9","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":145,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"72c3e727-7182-4c03-aaac-9f8b6a422f1b","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":145,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"bf25dda2-b6c4-4aad-bea8-e5f670949ab1","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":145,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"7d131164-e986-47ac-95ff-972b9fef57d3","block_type":"box","text":"fiscal year.","page_number":145,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"4a3445c8-ecf0-425f-a762-397d2be963dc","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":145,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"7eb3dfc8-e1ff-481d-9b2b-9f16a7165507","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":145,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"32497b66-46eb-4d0b-ad54-d97e0eb807cc","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":145,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"0d10655b-953b-4ea9-9478-c608501b597e","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":145,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"82d71767-cb43-4294-beff-79df229a33e5","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":145,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"312c8684-441b-4d57-9f5a-3c80f6185441","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":145,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"2e836f22-d3e1-44d5-80e4-3506466c0c58","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":145,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"5b76af40-2232-449e-b099-a4309e19d644","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":145,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"2115b892-570c-4aea-ac09-94f0628408c2","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":145,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"44112911-2b82-4120-bd00-3fc03c8003a9","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":145,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"e2c3d8a2-efee-41f7-a7a0-84b3a8821d9d","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":145,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"1d06d821-1ce7-4b51-9119-29845332deec","block_type":"box","text":"and Class R Shares of your Fund.","page_number":145,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"fbc612a5-19de-4c58-860b-ae2f2793d93b","block_type":"box","text":"Other Payments by the Fund","page_number":145,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"16dae19f-c1c3-4d29-b9ed-6789257be730","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":145,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"d883143e-1dd1-4b1a-a060-17082ad125ae","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":145,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"b4cb274c-7e20-4d97-8530-ebfa3f133892","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":145,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"d07a5012-4c7b-4607-ac20-0b4df2196a08","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":145,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"4158dce3-2d46-43cd-9230-0f1bfb1be000","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":145,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"2ef0603a-3894-4b37-b01b-5eb53168beb5","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":145,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"c769f0fe-4377-423f-a243-69d9f660deeb","block_type":"box","text":"of these payments may be substantial.","page_number":145,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"fcec2a3f-8e06-4caa-8b4f-e2393cc2db65","block_type":"box","text":"Additional Payments by BlackRock","page_number":145,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"c6f4919d-92fd-4cf9-b8a9-5f7261607fd2","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":145,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"e1202bdd-1fb1-4fa8-8af8-1a40c6221420","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":145,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"3e82f65a-f4a6-48eb-b7be-c12306028cf9","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":145,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"f2920200-23b4-4662-8d06-759fdab59e44","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":145,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"fed1ddbb-a88a-40ae-ad43-2f54213581d6","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":145,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"ff824ee8-f99d-4f62-ac34-9996fb119019","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":145,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"8cd3714a-cfa4-4f89-9c73-058b1d3a06a5","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":145,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"8eb07c94-5b43-4ac7-8558-2274d2b420a8","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":145,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"04efa334-3255-4f1d-8d41-6a61f6c32730","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":145,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"3413e267-8af8-413d-a295-7b236dced68c","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":145,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"ec7ee660-faa5-428d-9b67-c9844e6c6581","block_type":"box","text":"II-109","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"16853213-6101-4bdd-a0f9-98098c077739","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":145,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"e1c9d87b-248f-4cb7-af8e-caa6d6effeb2","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":146,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"f67e5975-2ec2-4bd5-85ff-f8abfa9d54cb","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":146,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"e3479c6c-9f62-40b6-ac05-d8cfa3313f2b","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":146,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"d36d6b1b-57b9-4cca-a663-3d2c0bbf7000","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":146,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"a2534d69-60aa-4270-bd7d-215245051b39","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":146,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"a6e46505-46e2-4b25-a113-035bd2f80a1a","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":146,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"afc80225-9354-4e34-a7b7-787f8b3b9b27","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":146,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"427df7e9-8eeb-47f6-949a-eb7c967707b6","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":146,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"28577aa4-10f4-4b68-b51a-28ef895126da","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":146,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"69d3c99e-5163-47d6-8869-fef61acb13c6","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":146,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"2e13201a-73d5-492d-9096-a4fb4de9b341","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":146,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"42dc8690-984f-4191-b565-95edaa123664","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":146,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"7e24db88-a42e-4c8a-8e97-78932b2cc121","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":146,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"970cab35-610a-402d-8838-f14b0be2757b","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":146,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"696d335e-7acb-4020-9d15-e12514a043ca","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":146,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"89f1d6da-e15e-4b1d-aec2-3eb4a5f77064","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":146,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"1a971aa2-f15d-4147-9928-8c2f4f5334a7","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":146,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"77daa154-93b9-400c-bd8d-fd387481361a","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":146,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"5284dd5c-eb0f-46e8-901b-fa33e0ebf7c1","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":146,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"1bc25ae6-18be-4647-bcce-5e088ea912b5","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":146,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"2a403ccb-2872-47f7-8469-ff9bfbdb2c9d","block_type":"box","text":"Funds.","page_number":146,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"0fb98f07-f67a-4bf6-9c6f-f02866900b9e","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":146,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"f1e256b9-9b4b-4c2d-afb1-eab26dd3ecb5","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":146,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"88ee29da-0a81-47b7-9459-0594af182da5","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":146,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"e8065ffc-6581-4c80-9690-2bc9aa135498","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":146,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"80450bf3-05e5-4da3-8f36-62c9e95d378e","block_type":"box","text":"B. Shareholder Services","page_number":146,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"58224712-fdb0-4daf-b8ea-c26dc2a01d7d","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":146,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"945e56d9-5fd6-4559-834a-c2b6ffa2a6f3","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":146,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"8c34d0ce-65f5-4280-9db5-08c3ceb05880","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":146,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"e6b3de5c-8cb5-4c6d-91bc-1a1b3a1740a5","block_type":"box","text":"II-110","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"14231349-ca3d-422d-9d1c-2cb41e83d564","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":146,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"71b86503-bb5f-4535-95bf-a11606e3f861","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":147,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"8d488eba-ce32-48f2-abb2-25b4df102123","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":147,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"91ebc6c1-40f8-47c0-a103-53074cb9a825","block_type":"box","text":"payments 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BlackRock","page_number":150,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"86f48f31-a52e-4ebb-8f69-de37128450bf","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":150,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"a04c5928-cda8-4dcc-bb42-42e68acbb4fd","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":150,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"3422c970-5c25-497b-97eb-afb64b35decf","block_type":"box","text":"traded products.","page_number":150,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"7bc4306c-6ed1-4ddd-9953-5b7be6611b65","block_type":"box","text":"F. Conflicts","page_number":150,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"83c7e11e-12ee-4af9-9d8d-f3fef54dfe35","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":150,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"90e0cd91-c4da-4a22-b825-d28ac3831b32","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":150,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"c4eedcfd-de45-40a4-a4a7-257fd6770e72","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":150,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"e47f7bd7-13f7-4179-a38e-5802bd6c7c9a","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":150,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"9248da7e-1262-4d59-86b0-ee4ffc83d637","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":150,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"3d3e44f4-0e4b-4309-912a-90954d810721","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":150,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"e254e877-8a94-43c0-af27-33d2e289b8e3","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":150,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"5659cd41-cf39-4b2d-a6d8-cca446e8e576","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":150,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"45f06e47-e1c0-4c40-8663-131eaed192fc","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":150,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"1e0f5758-a1e6-4f31-bdf7-c68b8fa7eea1","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":150,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"1ddaff38-9425-41ed-a200-5b43b2df5c65","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":150,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"892b67e8-3ee7-40e9-8770-a8ab35764556","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":150,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"01c426ca-ba8e-4679-8305-3b7597f7241b","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":150,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"e53dcd4b-ca05-4ea8-a043-edf98a767e98","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":150,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"296f660d-8756-4f92-afd8-c235315af23d","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":150,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"e1437c5e-ac53-427c-8b3f-447ffa881c26","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":150,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"a4e6afbe-bdf4-4988-9079-f216a3c4a66f","block_type":"box","text":"appropriate.","page_number":150,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"c52504e3-0ba8-48ed-a069-cf46bc1d9785","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":150,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"61962f4a-6b02-45bf-8156-2143e595c115","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":150,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"c8836082-1057-4222-83a8-94a2054a7b19","block_type":"box","text":"described above.","page_number":150,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"2b89ca5b-0fc4-4fdb-9c80-531559b79545","block_type":"box","text":"REDEMPTION OF SHARES","page_number":150,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"d31ce219-87c3-4859-a55c-09dfde1f8334","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":150,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"4439e130-d387-419e-8f96-a5a9eac331d0","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":150,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"5d8cd376-1c4c-4622-90b1-0541790690b7","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":150,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"96846050-5145-4be2-b96d-9c1be4f95bd2","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":150,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"550351b0-2de2-4cd2-b623-c945552881f1","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":150,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"c8d817e6-77b9-4fbb-b4e3-cca22e772b57","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":150,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"43807e8f-cc5b-4361-85d9-ec3e2bad0bf0","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":150,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"0e8f5ca6-6984-4239-8880-1660c4f4b70c","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":150,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"032d75de-57a4-48ff-ada5-d9acbd334969","block_type":"box","text":"II-114","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"412c027e-0d4f-415a-bad1-827181afb8dd","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":150,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"3b4a8953-2fe0-4d0c-8537-057a18a3d192","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":151,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"b1165f5d-d5ff-46df-9b38-ac12fcf45ca6","block_type":"box","text":"for any shareholder of the Fund.","page_number":151,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"87f162ce-1540-452b-b5f2-821c2633fdde","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":151,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"b9698e6d-31a1-49b4-851a-2669bfb9ad6a","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":151,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"d6a3eeb4-e0fe-4b0d-b37d-2798091857f6","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":151,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"4db097e2-fc2e-4f1c-8c38-53ead9c7e8a1","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":151,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"3b64cbd7-7618-4daa-90a7-d9e36ee67887","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":151,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"b08e5e0b-096b-49d6-a9bc-cb024a943eb1","block_type":"box","text":"redemption.","page_number":151,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"f5eafb8d-5141-4c3c-8c3a-b32158333e4d","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":151,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"63d01e87-8ac9-4a4e-9302-3a641eb369b5","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":151,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"ba14e240-1cd0-467d-892b-c4325d451d8f","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":151,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"4badba8f-8918-4ca5-86fe-9092d7ed1ab1","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":151,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"f312cc53-953e-4b7b-a6d5-066bb4965769","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":151,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"dc410736-1df4-4d3c-a4f9-a0e968f65fdf","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":151,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"8dd99946-faa4-43cc-bb1b-7da7e0cf19fb","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":151,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"064e9899-6aaa-42c1-86f1-bbba1844b089","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":151,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"7755c56b-d0c4-42dc-8a25-aa1fc2123fe9","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":151,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"5788e57d-327f-43de-b494-bd3baeb6bcd5","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":151,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"e1c31e52-07f8-4803-8631-ed9cee850d51","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":151,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"cbdd63ed-208d-4e63-8da0-b0a5dd216e92","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":151,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"4d7e53f1-d019-41a0-aab0-2eb1656b03e6","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":151,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"02650ff0-383e-4444-93f2-8eead9960724","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":151,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"2152a15e-7c5f-4414-bfb3-08f8c359bd9c","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":151,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"e4b619fa-eee4-4d41-9522-de326ddeb084","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":151,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"dd5e9ff6-096a-4430-adce-6aedc019ea45","block_type":"box","text":"Redemption","page_number":151,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"2cc0de63-e5d7-4d92-81d3-435edb1653e8","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":151,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"d9ddaecd-b74a-41ba-bf98-743250a32f1b","block_type":"box","text":"Redeem by Telephone:","page_number":151,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"c428ecc6-5afb-4bbb-be2e-b1f0a993b19a","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":151,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"55579a72-9a09-4571-adfd-a58f8444d72b","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":151,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"4b671f1f-763b-4ac4-9c08-b958d0301058","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":151,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"105acdf2-b67a-4da8-a20f-64a2d7a121f2","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":151,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"d55272f0-5af4-4c35-909e-5caa37fe06d0","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":151,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"718281c8-3e72-40c1-8893-58e05c477477","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":151,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"5b9aca84-eda5-4984-ba7f-0ab08bac159a","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":151,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"e2234500-618f-4068-ae49-8fab0a401a2b","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":151,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"ba072509-2100-49d3-81b8-9c61d9292986","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":151,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"e99f17b6-aec4-46a0-86ba-0730df50d786","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":151,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"2fc301c5-91bc-4ee2-bf51-2a8cddfb1bf6","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":151,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"421fad5e-7e5d-4682-9bdd-6e0bc1c658be","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":151,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"92ea2bea-787f-43c1-9f9c-63d33fabaa05","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":151,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"e9c8bd4f-2a33-42bd-80ca-6d48eb7f10b4","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":151,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"56ea268d-50aa-4f6d-9715-2da3076214e0","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":151,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"c4271120-2695-4f1d-893d-286220df5278","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":151,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"5811db19-4bb2-4225-bd73-164ea3e11cb6","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":151,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"01aa73c0-ca56-4e3c-b509-411b4fc0fefc","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":151,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"35fd806d-3d3c-4b68-b946-47b730a4b090","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":151,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"3bc092bb-7d8a-45e9-b4eb-67c2c9fcdf05","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":151,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"09da1c84-c95d-46f0-b775-d2ab9b9689fd","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":151,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"78b51d23-98fa-47f9-81a8-ac93f0b13c79","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":151,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"a6a44626-3fd6-4c85-9ecf-48a8f536b8fb","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":151,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"5fae0d22-5272-4693-87fc-772e00a260c2","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":151,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"89c76f98-86d2-443c-a390-45bcd59a2595","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":151,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"5a2c07a6-6ccb-48aa-bb03-6972d3e1bf18","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":151,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"60ff11b5-40b0-43e8-93f3-a805d3af77f5","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":151,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"4cd59076-170e-49d2-8696-cd477d0ba530","block_type":"box","text":"II-115","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7f6e8806-b44d-4e20-8507-dd9508aebe07","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":151,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"55dd4be2-00c4-4660-8921-8d7ea10084fa","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":152,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"70e54b67-6008-40ef-8c62-172176906014","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":152,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"cac827d6-be07-4901-92e0-090f20f16cb6","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":152,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"bd9b1d65-9c9d-493b-9571-cb91c39eb977","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":152,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"5d776839-b82a-4c75-a03a-881ce6c28ff7","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":152,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"bd33ad3b-6573-4314-8575-d5718c68f98f","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":152,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"8991faee-b11c-4346-b49f-56d9b91e5231","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":152,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"80d56ae2-9312-4a0c-a535-77d64015d579","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":152,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"6850abc4-b4ee-4ab5-96d0-e81ea492e8e2","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":152,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"a4243d02-9d32-48e2-b236-87a7d7cdf92f","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":152,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"35ad91af-18d4-4514-9df1-677a4a7f741c","block_type":"box","text":"Redeem by VRU:","page_number":152,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"1a8dedf5-edf6-424b-ab65-93da7b2bfbf0","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":152,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"5cfe545d-0e79-4566-8ba0-42cc2ad25b6c","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":152,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"050a31ee-adca-4435-a25d-d0e725c96114","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":152,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"b67c11ab-0f16-4785-a8bf-ada269a7b918","block_type":"box","text":"Redeem by Internet:","page_number":152,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"4e91edc4-e88e-4212-800e-83df815bb3eb","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":152,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"87219e52-8fbe-4587-9c21-560e1adad349","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":152,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"c4675d57-2c31-4255-a7c0-76313c1e73f3","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":152,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"b3284d47-207a-4d1d-8313-d796a957bd38","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":152,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"deeba56a-758e-4320-8b7b-335d4925ee42","block_type":"box","text":"institutional investors.","page_number":152,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"f3d73f7e-0044-48d2-a3c2-a0aa7a5ee808","block_type":"box","text":"Redeem in Writing:","page_number":152,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"eff6c713-5f50-4042-a9ec-2fed71d394ed","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":152,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"3739156c-899e-458f-9310-1d9d7678d296","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":152,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"83f89506-a956-419a-9c22-6f91f822eb91","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":152,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"1b66cd60-e8f7-4a3e-b180-94ff5ac5f47f","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":152,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"20dca9df-29be-4c9f-af55-ae39e8a625d3","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":152,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"a1437217-2322-4cab-a949-c3017e9b6b8a","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":152,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"e4785186-46da-4689-a89d-c1dbd400b546","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":152,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"e919da3c-a1b3-4533-9045-715afa892ec9","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":152,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"2688dc99-2aea-4865-b88d-2a4c8ac8573f","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":152,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"a3154f7e-e954-46fc-a3d1-7f42e544de10","block_type":"box","text":"or wire to the bank account of record.","page_number":152,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"955cbeab-cda2-4ffc-a6f6-eaaefc7f5509","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":152,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"88d34905-0b3d-4f80-98df-0aaecb6b98f0","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":152,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"4741ea3a-48e1-494c-a7fb-dc61e5035ad0","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":152,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"95072302-c8ae-47b0-8cd1-94025d1173c6","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":152,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"dc13d300-609f-4f95-9912-fc7317617a6c","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":152,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"bde590fb-d590-4553-b942-b242e8fdcbf9","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":152,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"78540d1b-5ac0-46fe-96ca-f99c4f1834a4","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":152,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"a347c255-f172-4c4b-ac88-4968d1725015","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":152,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"45b1ad80-71a7-41bd-97aa-5b53c52f52be","block_type":"box","text":"redeemed by the Fund.","page_number":152,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"486a0878-9e90-4e3e-ae76-efd850015b7f","block_type":"box","text":"Note on Low Balance Accounts.","page_number":152,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"e4d36b0d-a468-4195-88bf-9b5f4bf46451","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":152,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"34cd4bd1-3bc8-4ce1-b0b7-37e754069145","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":152,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"bde89538-8a7f-4cf1-88f2-44b75936a829","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":152,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"24367c59-f0b5-40b0-8c98-0fc019b1819f","block_type":"box","text":"for any reason, including market fluctuation.","page_number":152,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"4a84e44c-51bc-4542-9055-da78406f0031","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":152,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"f68f65d9-d636-4869-97ab-4d86619f590a","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":152,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"62ecc539-87fc-4ec1-9ae8-f22654c78b68","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":152,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"8d82aa1b-1596-4bea-9fcd-d226e6f551ec","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":152,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"9335288b-5276-45b1-b348-081bf7f84b99","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":152,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"f4da0a60-e7ea-4d0a-89cc-bafdf0bc4e0c","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":152,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"76c6b7cc-d7f6-47e8-b56b-32592ba715f2","block_type":"box","text":"Redemptions in Kind:","page_number":152,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"8ae5fa36-09d2-40e8-8a11-70c206e43e4c","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":152,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"46ab779c-144e-4bf1-8a44-a36663842014","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":152,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"a47fcbea-d544-46cd-b9ad-5be91d69f0a4","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":152,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"475156de-6457-417c-977a-99621a5520b0","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":152,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"071c078a-a33b-484b-bde6-139f5ebce08e","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":152,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"8645198b-c813-4659-92b5-16711e2077b0","block_type":"box","text":"II-116","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"60c48d07-d7c1-4bd8-b5ef-435b35f8abae","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":152,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"bfbd9135-adc3-487c-857d-e2d12bb08acf","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":153,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"2e273774-16f1-4c82-bd41-4adf1270d461","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":153,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"12acc9ff-18b2-4085-b939-330824abb870","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":153,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"e445878c-daca-4cc5-ad77-b8cdd0fab180","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":153,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"5f97692a-631c-4e45-86bf-5665c8f549e7","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":153,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"3d2f1653-39e1-4cda-b1dc-43266d9c8c53","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":153,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"5427babb-a9aa-498d-a87a-7186d77d0375","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":153,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"7186f7a6-0e3b-4700-af22-e1f252cab60e","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":153,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"add3d0fe-f1ab-4fa6-be49-7a296b1b237b","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":153,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"0e2f84f2-4c38-49f8-a293-2fb7b877f655","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":153,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"920c8e18-e7c5-4cd0-add5-551851438cbf","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":153,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"c2d9ed45-571e-4747-9b35-734a90f98122","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":153,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"56e3efae-c42b-4f47-9c58-7d6fdcc46537","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":153,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"2672d413-32df-426b-a9c5-5dcac7541ad7","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":153,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"147bf945-6432-4186-9757-b8f52f6a239d","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":153,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"7edb7ead-6c85-4934-8f36-7ee82c1a9b75","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":153,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"f681fa03-e96c-416f-9a3c-2fc941446ad9","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":153,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"558c2b7e-708a-4ddf-9ca5-c63d86482f80","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":153,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"09b29b79-5831-44e2-a9f5-96007cf5e37e","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":153,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"3da824ad-12a6-417d-a00a-bb919b56cb5d","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":153,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"3897fee2-a537-487c-aab7-46d43f999a9a","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":153,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"57af352d-d667-44c6-9d83-71d07ee56256","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":153,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"01e7d5fb-6a97-4360-8a7e-cdde187ef260","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":153,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"cb2bc12e-fc96-4056-8cd5-c3334f4eebfb","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":153,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"0578ce87-4f5d-42b6-a53a-063fa5f35a80","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":153,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"d4c773b1-d18f-471c-b44e-4a699eda31c2","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":153,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"7e36c7d8-1838-4a3e-b1b6-aefd8a9ad69c","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":153,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"5a4b99c2-6928-4c0b-98ea-7bce4a2cad6f","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":153,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"fd806b75-e9cd-4e6b-ba4b-15fc6ae40972","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":153,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"3ec93fd6-975f-42a2-9cdf-5b5ff7a5979d","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":153,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"aa955d4e-7195-49ee-8a0d-f7cd89143b2c","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":153,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"775543df-a61b-4e4a-b5e4-2b6bc3dd8cc2","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":153,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"33793217-e3d1-45a4-859e-37646ab1e447","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":153,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"dc18100a-c3fe-428f-a2f6-672936d45e59","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":153,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"46dd34a6-768c-4f63-8b79-985f2438103b","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":153,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"150dfcbd-1280-46a4-8a90-a0939f3d71b6","block_type":"box","text":"Repurchase","page_number":153,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"fd4e5d5f-3eba-4a8f-870c-a3158b7dd1da","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":153,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"476a0ef0-a54a-4ecf-bf92-940592324e45","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":153,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"f6a8af71-159c-4261-8fb8-ceaf8c3ec420","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":153,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"81805d1f-c971-41f7-86c2-f2ffa2f46bca","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":153,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"ed22d9b1-6d75-48ac-8ec1-85b77e664e52","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":153,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"98e5b734-4651-4699-a714-efd391cf1891","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":153,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"5c7e9e29-a74e-429e-a9cf-a3ba5624796f","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":153,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"932343c3-96f9-4832-9456-b1fc4b5a0bec","block_type":"box","text":"next business day.","page_number":153,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"7daa034d-ea11-4843-8306-0c13a1339190","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":153,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"e0e0d88d-7606-48a9-80d4-07a39ed5a355","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":153,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"4acb81ed-12ad-4876-abd5-f1aa285f0580","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":153,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"5f9ad6a7-9577-4a94-9570-75835c142e09","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":153,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"4b582ffb-8810-4968-bc5f-9abda3e563bc","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":153,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"03a9509b-44ce-41c8-86b5-50c9edf2f79a","block_type":"box","text":"redeem shares as set out above.","page_number":153,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"1a81c8d4-d679-443f-925d-ad201c8edfc4","block_type":"box","text":"II-117","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c462e576-d763-4b37-9a25-ec6b234662ad","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":153,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a524e313-fe61-442e-b068-5cc0cfa78e5d","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":154,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"2274648c-c924-4edd-8731-caad5fe13904","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":154,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"3aecbfc3-32b9-493c-970c-3ca1bf240073","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":154,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"c8b12080-2b4e-4059-a9e5-d05ab55ad8bb","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":154,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"88816741-69fe-47dd-abe7-2cc7a47f4b37","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":154,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"36a211c7-1ce9-4e30-81dd-bf59c9bd3dab","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":154,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"7cb62128-84eb-42df-bffe-8f219a1d1305","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":154,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"3f3e85ee-59a7-48d3-90f9-43472475edd3","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":154,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"74b6ad5d-ca4c-46a8-bb49-1c7c6110b8f6","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":154,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"434b82c0-211c-4a6e-a281-de960966d0df","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":154,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"7342d4c8-45f5-4557-8731-db1a1f79b517","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":154,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"26962535-fbb9-429c-8fbc-b82336468489","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":154,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"10d7ee90-28a4-444d-9715-683ffaf7c9bc","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":154,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"5848f608-4e12-449e-aac7-76a43e895623","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":154,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"93b5c187-ff20-4ec5-9476-ee0c39174cd9","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":154,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"11e0b56d-7cc3-4d38-b640-5548be23e41e","block_type":"box","text":"Investment Account","page_number":154,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"ed3e78ac-afde-4f76-8d14-0a715b723e7a","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":154,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"8d9a0f4d-a896-4a29-83d9-0b51021466a0","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":154,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"1f301dd7-c359-426b-956b-437c4d8e1094","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":154,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"920bcaf7-4e0d-4baf-a9c4-258752399c68","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":154,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"d77c3d47-b10d-47b9-b01e-64292f41d405","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":154,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"9dad092b-f072-4f1c-968d-da3e93ae415e","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":154,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"80c5b7db-dbd1-418b-89d1-174dc6cf01c7","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":154,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"8dee5ff2-8798-4738-b9f3-5cf3518569bb","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":154,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"1c280238-fc5c-4013-bd19-4b0e413a494b","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":154,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"d266bcf2-a88f-4f6b-8260-3c6c3492ff67","block_type":"box","text":"automatically at the Transfer Agent.","page_number":154,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"30dfbe00-5b21-4041-809f-a0ccf77b6367","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":154,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"99af9233-e049-43ca-b2b9-acdd80604541","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":154,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"c34433c8-227e-4bfd-b460-d1d506381b43","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":154,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"94426f61-3b7b-4679-9903-4bce19d75205","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":154,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"6c3d4718-ff5b-4778-9142-b56698fd3dcd","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":154,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"8ca80f47-7465-41d6-be03-0c24886b4ef8","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":154,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"70a32ed5-32a6-4913-a162-e108064ff383","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":154,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"ed5988c8-ef8a-4e95-83c7-1ba47ca12fe7","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":154,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"c771918d-98b8-4f27-9bb8-050afd2a3310","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":154,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"2c096f56-ff93-4204-b644-a71c1f8ae68a","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":154,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"b0bb6983-ed47-4de4-98c6-d904ffb96071","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":154,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"934f23cc-a0b3-4f8e-bebc-5c6224c60a33","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":154,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"78bab353-3dc7-4734-b257-1a671ddef489","block_type":"box","text":"issued.","page_number":154,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"efdf3059-6a02-47a7-95ce-20f005432090","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":154,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"6bf3b88c-7b70-446b-8dfb-e1762397f6e9","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":154,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"6cecf752-02b8-49ae-bdc8-7bedbff3affb","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":154,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"f72b6daf-004c-4aaf-a6f2-a3a2093b5f28","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":154,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"daf5f283-cbf7-4cdf-a26d-93633f499eed","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":154,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"f2e0b944-a1b3-425c-b334-a31ecdf8bb5f","block_type":"box","text":"Exchange Privilege","page_number":154,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"0556fa5f-81d9-421c-87ff-c9643754e2e3","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":154,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"c5ed665e-6f55-4f0b-8a6c-35bdaf761b88","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":154,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"78c2a020-aba8-47e7-a4ee-91edf9116062","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":154,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"ae05d26d-cfd4-48da-8912-e6f126e63484","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":154,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"b08b2df1-3d73-4f22-85dd-f7d023ac6de6","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":154,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"edfc0b0d-0f56-4aec-b89b-79d2a6dac4eb","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":154,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"732413fd-40f9-48ea-b490-ee5721b2cbd9","block_type":"box","text":"II-118","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"735be64f-b50d-4fc8-96d2-c8e195da6599","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":154,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ecc9e77f-89ec-4aa5-ac5f-8e26d8f267f2","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":155,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"5822307a-720b-4312-a575-fed8a28cecdb","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":155,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"f226bc74-d7b4-4506-9c23-1414b4ad64cb","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":155,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"05246385-7c32-447a-9960-e3d4711c55d8","block_type":"box","text":"Institutional Shares","page_number":155,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"45ea9bc1-9cff-4bb1-918f-00d600b82522","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":155,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"ed32892f-6997-463a-9adc-2505ca4df3f6","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":155,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"d8f79d27-39ce-41d7-899c-774224f034cc","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":155,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"56b79153-6847-43bf-9d01-018633ed0f4c","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":155,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"4aca53b5-0c91-4845-aee2-740571e941e0","block_type":"box","text":"for Class G Shares of other Funds.","page_number":155,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"240639fc-4d7a-4913-bb8d-faf9b5b19ecb","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":155,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"d8575919-43fd-4e96-98ce-275a84801b9c","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":155,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"a5cb95f9-a657-4071-b1c7-78230ccc671f","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":155,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"8a4782bb-820e-403c-803c-8590cce29f11","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":155,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"81399546-f6a9-49d1-830f-3660c004e89f","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":155,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"a2e48de0-2f6f-42c3-bf33-37d9d00eb472","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":155,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"1715b3cf-43fa-4816-a5ea-eaa433cdecd3","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":155,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"9ec56211-159b-40d2-8d48-b339265fb7c8","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":155,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"7a87841a-03b4-4afd-bb76-ac70ec62a51f","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":155,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"de7789fc-3d2b-495c-975c-c8179c096c82","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":155,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"a075f5f5-84f9-495f-90ce-6234d95ae7e6","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":155,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"8153dec7-81d8-45e7-920f-91cc85b09389","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":155,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"d8a214e0-5446-42c6-a9a0-d73fd61577e2","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":155,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"ac04a5f5-56ba-4750-9801-c8751c37ba01","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":155,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"28a95422-f155-4d0a-b599-d6a3245e4cc9","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":155,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"d60e251f-a2e6-4276-b674-b171906f49e1","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":155,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"c02edd66-6fe8-4c56-932d-c04c86df96e0","block_type":"box","text":"Exchanges of Service Shares.","page_number":155,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"0fb352cc-f70d-4067-a268-e3d675192129","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":155,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"42a5df6c-b26a-4338-ac5c-cd375ef80014","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":155,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"2d7961c5-1ad6-4015-b40d-3d8bfa25d163","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":155,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"c4e8981a-cf81-4118-b453-b187bbc95eb8","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":155,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"bcb916df-e36b-4da4-b5ee-964df054a635","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":155,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"3ce7c0c9-5fba-4f63-b735-b8422c95cf6c","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":155,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"d8a3ec12-26d1-475f-8c56-017700a15c18","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":155,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"1ce642d5-bdcc-4aa4-a749-f0944e4d3595","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":155,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"3648c99e-f774-4bfd-84a3-994f3d9751a7","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":155,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"53c07688-21eb-439b-99e7-b554e22533ef","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":155,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"530d807f-a956-4bba-b6d1-81311e49dcf0","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":155,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"53a441f6-24d8-41a0-9482-2c7d58130cd8","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":155,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"1a1937ba-a331-45e1-be90-817d821f812d","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":155,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"c1da0e58-bb23-4d22-a613-6307162310a8","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":155,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"89cc63f0-f775-4f8b-84e6-2c770542cdc0","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":155,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"5b09b7ae-03bb-4b20-85ed-ad68ebd21757","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":155,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"7ebbd66c-3228-4755-a065-f2404f1efc15","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":155,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"636c2431-3d36-4857-9dc2-598f57ae535f","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":155,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"52cd7290-d079-4372-82d7-137467a6a7cc","block_type":"box","text":"exchange.","page_number":155,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"42fe72e5-fb2c-4d2d-a620-3db4e4dfed0d","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":155,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"694bbd1e-b0f3-4985-b60a-7693bd384c1f","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":155,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"140e2973-cc54-4029-aacd-9afa563be787","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":155,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"a63a561f-8d33-4842-a0c9-5de3009c3a4d","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":155,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"11bf4bf2-ee5b-4665-99a6-658abb65fc96","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":155,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"5c7c3107-b5fe-486f-a6d0-a184052ae453","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":155,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"7ca974bd-78f7-42ac-b7e9-e4f66ac87678","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":155,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"1d81bf98-210b-4bb9-a244-8c37bb8d8a94","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":155,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"888f81d7-35a1-4204-8777-57ea8894281a","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":155,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"e2c795bd-4627-4fde-84a0-01f0b7960c51","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":155,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"fa7068b7-5b5b-49cc-b8e6-944c8fba2c14","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":155,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"b85a5886-2c81-4463-b5d4-e7478adc00f9","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":155,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"28dab149-b674-4fbb-9098-3f17b08b5a19","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":155,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"538a6175-9353-4ff5-be5b-c15ac3b8934a","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":155,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"60bfb4e8-a4e5-4a37-abc4-e92d9e090913","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":155,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"05a6b8bb-eb8a-4cad-83ca-b770513467cb","block_type":"box","text":"II-119","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"36fa45d2-34d3-4271-bd37-b09eb10dc179","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":155,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"2f45505e-01f1-4163-89a3-bf31bff63096","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":156,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"e4fe4d67-84eb-452d-b64a-335175a9b18b","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":156,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"9d1fda06-e682-4e0c-8804-6b1e97b9e0e0","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":156,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"3d031208-5797-44ab-b76c-fd61be7fac94","block_type":"box","text":"Transfer Agent in writing.","page_number":156,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"42d29bcf-8be7-477c-a456-e81a637be50c","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":156,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"6ef9d57d-71b4-4222-b3cc-7370862169e1","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":156,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"739f3f75-2817-4398-a039-219e47009a87","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":156,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"0c5b84f7-0842-4c0b-a38f-af3b5df751e3","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":156,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"b340b883-9b1e-4356-8d83-ad1357ea49ed","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":156,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"56261164-0cc1-4a34-990d-8f473b506480","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":156,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"e2802960-cb6e-4e40-8ca7-209642226fba","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":156,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"bd1bcb87-4920-4f00-9870-497599b2af0a","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":156,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"2b50a263-52e3-48f7-9fb9-f3200b058148","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":156,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"003fa00d-5f99-4140-be68-5fb6d73bd33f","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":156,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"f7213a3b-c98e-40e6-bd76-60da8c75838b","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":156,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"eea424b7-5c2a-443e-aa5e-3442cca346b6","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":156,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"3aae6d87-96c4-4054-95d2-a253ce2b2f9e","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":156,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"cf868586-7f9c-49dd-ac6c-d4e4d83dd10d","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":156,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"9223a38d-eb4d-4dd1-9521-4ded8ef5218e","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":156,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"bcbcc795-997b-4efe-bea1-3212bad182d7","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":156,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"e42296ee-6ece-47b1-a2a0-cffcbcfae1eb","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":156,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"e5192745-b295-402e-8502-da59f5acf207","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":156,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"77b72893-ec62-4791-8513-a20c1531f295","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":156,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"58093db2-89d7-4259-8ecd-4cc9ab54dca7","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":156,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"72da8375-c7a6-46d9-b596-830c9c5f1e00","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":156,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"1f068857-ecb8-493b-8ba0-1c0ada8fcd3c","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":156,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"bfc68c88-09cd-46f7-bbc8-0fc9a87df3e6","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":156,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"55b23368-8666-44a3-a6f0-4fa25c1243de","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":156,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"fcf0ad88-2513-4766-9923-163955cc1573","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":156,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"c3357ddf-b9f0-4765-8aad-1c820b5bdeae","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":156,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"6e9538ef-50f5-4807-a9bc-9684671bf51d","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":156,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"34975497-2c1f-4161-a7fd-7332a719127d","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":156,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"759ba2b6-79d9-4761-8fa1-fb471f707a98","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":156,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"851e74b5-1885-4a6d-97c3-7a014af8e5db","block_type":"box","text":"may be distributed by the Distributor.","page_number":156,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"4774e264-4ead-4ece-97b1-66610b807e72","block_type":"box","text":"Participation in Fee-Based Programs","page_number":156,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"29dd03cd-4b30-470e-be90-b220ab7e0e49","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":156,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"89e3f52c-1fa6-4456-a8aa-c590b7c99a39","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":156,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"f84737cd-8e72-4a35-9c9d-43ac0e48ee75","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":156,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"73962832-483d-4766-ab84-c7b0be84bcaa","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":156,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"d799a68b-733e-468c-8e4a-f0e3b8e21d0d","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":156,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"60e2c630-8b41-4f96-9a94-f1ff16f17ff9","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":156,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"036624ad-c4e0-4288-ae83-960bac708e27","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":156,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"0dc429f5-b138-413c-8080-00a401a2a28a","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":156,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"55b06b07-dd89-4895-b8e3-5336ecf4637c","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":156,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"71c8a5da-29d7-4947-bea3-05b801eeb5b6","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":156,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"fec33a05-85b3-481a-9a1d-215b52e9e36b","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":156,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"781069cd-748f-4d26-ab5e-832ab529743e","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":156,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"0f31fb29-2c73-458e-a606-f1057dbc9554","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":156,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"790abb1a-3e92-46eb-8492-01b52145f7a2","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":156,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"02da6ed0-5e51-4803-8afa-a876cb18607f","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":156,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"ab162f95-1282-4d7f-a5ac-141e9c5adb18","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":156,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"b4ec1348-0a00-45de-9ce4-19cc06a9bfc2","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":156,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"270f9d43-7297-4d9f-812b-bff86fccc8b6","block_type":"box","text":"II-120","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4ecc35ca-03e9-407f-87e4-13ae9e732f26","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":156,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"68ea29cb-2e21-4587-93f9-328c0a332ab5","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":157,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"23bbdabb-2364-4d33-81d8-7df4be5eea07","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":157,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"0a8f1af1-e9f3-429d-a240-926eb923aa95","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":157,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"ab416ac6-ec59-4cd0-9e6e-663235534c49","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":157,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"7d41df9a-878f-4ecd-9401-f82f6de973c3","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":157,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"b7dd8b35-7c5d-4f61-835d-2b34fbb4d421","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":157,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"9ff20356-bdd0-41c7-9fc3-e2f27b782839","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":157,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"52c11cbb-a6ba-4379-bec0-8a832a552136","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":157,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"99a64cff-5506-4bb9-b9df-30fa8617331c","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":157,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"7d2b5c19-6199-4d31-8680-ffa52b583b3c","block_type":"box","text":"information.","page_number":157,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"297541cc-c836-44fb-8587-228270bfa78b","block_type":"box","text":"Retirement and Education Savings Plans","page_number":157,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"b66f91af-8a1e-42e4-9f6a-694b3a0b26aa","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":157,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"5d45de9b-be3a-4ed2-9b43-f53280d775e8","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":157,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"7054a1a1-10e4-4815-851c-5ce2f1750761","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":157,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"15b24407-11ad-434b-95a0-480506d6fffd","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":157,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"30cfd1fa-3c73-436a-a571-264410381acb","block_type":"box","text":"your financial intermediary.","page_number":157,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"011369fd-1674-4cd5-b4bb-efaf405cd884","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":157,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"13af5973-fea4-4f43-96ec-321903c81d7f","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":157,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"e83eb7c3-a15b-4a69-ba4d-8311c304e014","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":157,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"d3478901-ae3b-46eb-a016-e666413a44f2","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":157,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"c4338f08-c011-43d1-bfc7-4407f74b5039","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":157,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"80d383fb-c619-4911-a594-8d58d57baf84","block_type":"box","text":"Automatic Investment Plans","page_number":157,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"eae787ab-6416-4298-82f3-adebc13f58d8","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":157,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"5c1e4fec-3bc6-4cb4-acff-1bd243978297","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":157,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"f60633ab-3809-492d-848a-59af1842c50b","block_type":"box","text":"®","page_number":157,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"8b620dbb-ac87-495f-9dcd-cf3cae4d5bbb","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":157,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"053a9361-2cf3-4138-8930-503a65770b43","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":157,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"4aa02649-9e97-45ce-b772-b80d4dc56e48","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":157,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"b57c5573-258e-4401-9d32-02fa53af4859","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":157,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"544acf7e-099f-4daa-b69a-2a14104b85e2","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":157,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"ce65c3bf-1ce2-492e-aeb8-f30c92133aae","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":157,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"f1fcefe9-5226-41d2-abe5-7734f9f7b666","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":157,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"7f34ff55-513b-4de8-a8f7-fe96c5690751","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":157,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"f3316c3c-d0c7-4643-9a6b-558205c72fc5","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":157,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"80a76123-430d-4ea9-b431-b5968adbe9ed","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":157,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"746d9c55-3e2a-44de-afe1-30b8c7fd56a2","block_type":"box","text":"Systematic Withdrawal Plans","page_number":157,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"1e622e60-e1eb-4e00-bbba-0f3b3bc1df6c","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":157,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"7cab3643-0cb2-463c-9260-ebc063be263a","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":157,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"899954d7-c917-48f7-8027-ce570a25a3a3","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":157,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"9bc78882-6667-4bc7-a080-bd668f729eae","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":157,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"1c9e7714-adb7-46db-9259-13d01a83099d","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":157,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"b13aabfa-8749-411b-8382-3859bd55b719","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":157,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"79b35127-02a2-4694-bf79-c3253788582c","block_type":"box","text":"www.blackrock.com.","page_number":157,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"dd3c0b49-7eaf-4079-a048-f98cfd994519","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":157,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"329b59de-d733-483b-8e9c-472cda0249b7","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":157,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"88f3bc5b-e35d-40e3-b52b-331aedcf61bb","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":157,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"505afc2c-e2a2-4b4b-8975-1aa6f5a7d810","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":157,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"05cef5db-0151-4c26-b686-bb0e67661e62","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":157,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"f404893b-d67a-49f6-8e1a-1601321cfef8","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":157,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"0e9996a4-21e4-4e8a-b204-20683e3e20cd","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":157,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"9345d0bd-aa6d-4cf2-b365-2e6fd2a5f263","block_type":"box","text":"II-121","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b55614f4-d22c-405e-9c19-0ec0d60088ce","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":157,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"e076bf6d-5009-46a2-870d-fc1624eaa9b3","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":158,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"8dac2221-1ab4-4ae5-b90a-e14a24f73da9","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":158,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"6b6744df-6ace-4996-a2d2-77e1289241e4","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":158,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"83e24ff8-4ac7-4fb8-b0a2-8c9a92d44164","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":158,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"a4acb373-dcac-409c-b7ec-ca78edef95bf","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":158,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"4c74d55f-747a-416f-9010-6ac5818ed1e4","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":158,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"ff81b010-a5fa-4e91-abd4-1268965764ed","block_type":"box","text":"Dividend Allocation Plan","page_number":158,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"e9e4dcb8-6987-4d90-88a5-835d65217bb7","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":158,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"14e66274-dc69-4dfd-983e-cb31429b61e5","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":158,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"fb455aac-512e-4fce-8a9c-36b6603d6710","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":158,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"5e4225e9-f22b-4bcc-b860-a3bbb50596c9","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":158,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"8500d7b3-a359-4a9c-8d3b-19a067215dbf","block_type":"box","text":"PRICING OF SHARES","page_number":158,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"117ab499-bf59-4ef4-a735-04297ca0eb41","block_type":"box","text":"Determination of Net Asset Value","page_number":158,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"0c9c89c2-092f-4c16-9094-5aeb27949362","block_type":"box","text":"Valuation of Shares.","page_number":158,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"5a16496c-79ec-4630-8237-bc8c3f476bb8","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":158,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"9396415f-6d00-4438-95ec-ecb40206941c","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":158,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"8788298e-ba2c-42c2-a05e-43dfc11ae349","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":158,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"6627fb5d-a042-48d7-ac9e-9284dffcb70a","block_type":"box","text":"Equity Investments.","page_number":158,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"ba803020-4793-419a-a5f4-a9567fcdf443","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":158,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"19a9244e-eb4d-413a-9036-4ccdd107868d","block_type":"box","text":"e.g.","page_number":158,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"186ddc16-e412-4f80-bd2c-da149de4de70","block_type":"box","text":", NYSE), on separate","page_number":158,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"21804d62-9b9d-40c1-bf7e-decc707309f4","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":158,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"05db6dc8-6344-49d7-ac87-4d833fcb6761","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":158,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"4d841b1b-ba13-4979-90c0-91b2236e7c05","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":158,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"7d3e5116-958b-4bb7-b06f-3ca1e5d3ea4f","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":158,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"ba065a67-54f2-457d-8c44-4c838983dfc1","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":158,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"b8b67941-609b-48ce-bf36-3a8c6f15e775","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":158,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"bdd9e536-a2f7-4a0c-bb4a-117867e5229d","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":158,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"0842ce91-0d7f-448a-9fcc-e177832c36c0","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":158,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"156fcc7f-7ec3-4b61-a440-a1c1d10f759b","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":158,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"d64242d2-9029-476c-b976-d5fb4ef7a66c","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":158,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"32781c1d-2c52-41a1-896e-fb189124f3d2","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":158,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"b8f576c7-bf9c-4e3b-b9d3-d0c25a5808bd","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":158,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"778e3a55-0416-4ec3-86f4-8c3e660da8f6","block_type":"box","text":"defined below).","page_number":158,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"ca6abd30-e840-4cd8-9672-42389be118e7","block_type":"box","text":"Fixed-Income Investments.","page_number":158,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"b156084b-7912-42b9-bb79-d9b456b58270","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":158,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"eea6bcee-434f-478a-9068-436bf287b5c9","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":158,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"d1c4674c-93c8-4554-885e-da8090c36914","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":158,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"12e36fe7-8bcf-4529-9be7-b41ca25ab557","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":158,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"8e46b3b8-e0b3-470f-b1f2-bf87f7919da8","block_type":"box","text":"e.g.","page_number":158,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"e4c22942-810d-42d7-8289-c8adaa7cd6f6","block_type":"box","text":", recent representative bids and offers), credit","page_number":158,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"bf9cf77d-a21b-4e44-9073-28eb8cfddbc6","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":158,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"2742d31a-18c7-44a1-b976-509f009807bc","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":158,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"54f2661f-aa94-478a-8735-9ac5f74b0eb3","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":158,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"3dc374c0-6cd2-4718-813c-c0ac14fe823b","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":158,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"9287401d-d245-455f-ad92-49892d20aa22","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":158,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"499860a3-9a6d-4f8d-bfe7-cde85ca63ebd","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":158,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"3616f420-89bb-4121-adbe-ae39ceae9367","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":158,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"19a0b1fa-8206-428d-9c6a-0223e83dfb35","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":158,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"c1a1e22c-0e80-4718-96da-f29d0646b861","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":158,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"bd98442a-d101-4d97-ad89-6926bcdfa318","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":158,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"0cfe2c29-633e-4d0d-9b86-d875fdd139a7","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":158,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"39160521-470b-45ce-9637-f49425b2e0e1","block_type":"box","text":"attributes of the tranche.","page_number":158,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"c6193a8b-da05-40a6-8a91-5d446c066eaa","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":158,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"73e74722-3bca-422e-98ec-a7177b936cb8","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":158,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"38ebe2bd-3792-4ee6-a1b7-1cf015827343","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":158,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"d5229d11-1392-4575-a994-4f604e3c4ac9","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":158,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"3e3fc156-560c-4e0c-b341-23432f5e3188","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":158,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"502e569e-9c52-41e1-ad2e-f99f96ede0ee","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":158,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"57dd4a4d-1130-4732-b51d-8bbe80b14f5d","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":158,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"29a8999a-2de8-49c7-bf6e-69f80537cb1e","block_type":"box","text":"II-122","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e5c6a3fd-4fb7-4fa0-9a91-dba73c94f272","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":158,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"a804714a-8a8b-46ae-842d-b219ba10b821","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":159,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"251ffb63-67f5-4392-94f6-ca4db1fdd695","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":159,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"7cf47e75-56df-40fa-b24e-409b6d7527a2","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":159,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"9e27f019-c0d5-48a9-a848-3e3f11e377bf","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":159,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"4c3b19f6-31d4-4115-aaf9-be93fb1dcb40","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":159,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"031ec95c-0ba6-4185-a0ab-5a9208dc3f3d","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":159,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"4fc1cca7-13fd-4e9f-9b12-2262b88668fb","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":159,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"7c05a57a-d8c8-4ab1-b83d-e2ea317732ff","block_type":"box","text":"Underlying Funds.","page_number":159,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"d47d830f-3c4c-4484-935d-33ab2d27b338","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":159,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"d020b7de-8e42-4173-98b9-8d119ca3d7f5","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":159,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"5975f4ec-e2f7-4736-82e4-4033fdfdc584","block_type":"box","text":"at their most recent closing price.","page_number":159,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"8e9fbdf3-e638-40a1-a426-03f53df8ba02","block_type":"box","text":"General Valuation Information.","page_number":159,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"e5ff92d8-b307-48f6-a3c1-e5920cd26199","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":159,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"bdeb6c3b-c207-45b0-9b9a-d44ffa20bb0c","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":159,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"781b6265-fe18-4bb6-9e69-4636131c3723","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":159,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"2e7ab02c-72e7-43a3-8d02-04682c9aac7b","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":159,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"613d6ac7-5c78-46eb-b7f7-0d9e3da72989","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":159,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"a07e572a-208a-4ade-874e-288327955ca6","block_type":"box","text":"the revision.","page_number":159,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"54c7d664-dabf-4e7d-9059-b3279afb9083","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":159,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"c7741539-1d64-48e8-beb5-9f7e853ee600","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":159,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"e453db23-0667-4dcd-bfb7-7f378b576d08","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":159,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"3762e20c-4f91-4ec3-a2f0-6a8f98b482e2","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":159,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"e7b1bead-83a5-4dce-a4b1-e2a4b407d4ae","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":159,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"e941e7bb-3971-4f5c-ba1b-abe23506dffb","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":159,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"6e115006-0c1e-49c4-92ad-5ffe4d0fbfa2","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":159,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"387f361f-0784-497a-832f-04c9c07992cb","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":159,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"cc496231-45ef-41d0-88c2-5743f24bcc57","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":159,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"b9a7a3b5-a0f5-4f37-922b-f4d1dd622a4d","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":159,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"b8fd8152-7667-4275-a7c3-251960dbb452","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":159,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"28694a14-7fcb-4d2a-8084-d4b26874cd76","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":159,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"4a19b976-adc2-4124-9fcf-065757211795","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":159,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"d3aff883-ec86-4b1c-b963-dfeba7e20453","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":159,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"44d70e66-10bb-4a46-8983-d165a810ed9c","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":159,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"336c5aad-7aca-485e-9dfe-8a088dd406a3","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":159,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"56fed670-04a4-4b85-b382-fa62942dd530","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":159,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"844e39b0-93d6-411a-9ad5-0fe6860a9edc","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":159,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"33990c4a-97b3-4112-b826-5901e5ec80b3","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":159,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"eaf5ee68-4c9c-4b19-a893-699b5657bae0","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":159,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"225a112f-d3b8-43b7-8a73-fdb709bb16a9","block_type":"box","text":"Fair Value.","page_number":159,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"a31c24d2-bc3a-4c9d-ac0a-5a4fafe5eeaa","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":159,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"a6adf988-f4f5-46c9-b500-0e3c916c6859","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":159,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"faebb8c3-bbfe-45f7-a7a6-b61e65c4a531","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":159,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"b937c499-3624-4cee-97ad-143f5d7ce32c","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":159,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"641c85f0-d033-4df8-abfa-fda68e9d396b","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":159,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"ee5d7f4a-8ba1-4d24-85fe-44d8b43026e7","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":159,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"74e9b329-c0a3-4242-9d45-a9d318c19444","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":159,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"98d82047-1df9-48ad-9d02-7b6b79f6c564","block_type":"box","text":"(","page_number":159,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"ef2430f4-ae5a-4ce9-93df-5ba3e3f64302","block_type":"box","text":"e.g.","page_number":159,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"3ea79729-d35e-4de2-ac6d-8817b98e3f3e","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":159,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"aed6a900-f837-42b0-8c08-4e947b092623","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":159,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"095dbff1-a74b-4193-8a4d-86b85ca69bee","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":159,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"d065a5ef-d1c5-4cbc-92e4-a88c1221c9cd","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":159,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"02ad268e-f78f-41e9-94ba-ea856875355c","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":159,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"45d1ad9e-80ea-4cda-a9e7-78833b2f07fa","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":159,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"2dfeab02-a0ea-41da-b0aa-036ea9253806","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":159,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"db8f0fd6-42be-4a9d-af45-b64f2f4bd768","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":159,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"493743d1-5a04-47e7-ba57-d468df5a834d","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":159,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"0d8b73e0-4cda-4e4a-91dd-36d21f86c857","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":159,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"3cd477ee-1b0f-43cf-86dc-744d6b536eb4","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":159,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"45bb674b-2cb1-4f45-88e9-b7a2dd438d7d","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":159,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"ad59cb73-a7b8-451d-9d35-56dc9434105a","block_type":"box","text":"II-123","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"281b8dc6-552a-462e-849d-115cab865d3e","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":159,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ea6b4c10-62df-4b69-8ecf-31ad3036c3b4","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":160,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"a31a12e2-87b5-43f8-90a4-a0a691489fd9","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":160,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"15ee0b11-2a56-40c7-ba67-f9771e484282","block_type":"box","text":"pricing time.","page_number":160,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"f795ecd6-ed5b-43e2-99c2-a00f8033de9a","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":160,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"47cf0e08-934d-4f05-8898-6282fabd3c42","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":160,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"be2b79eb-c216-4791-b724-e7c423ae85c5","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":160,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"bc50e6b9-83f4-4af9-b66f-f3a3fb87795c","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":160,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"be893b6c-810e-48c8-bc36-058d6b14cf85","block_type":"box","text":"assets and liabilities of the Funds.","page_number":160,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"1cb40329-4578-4f74-b3c9-78e4b0d1f4c8","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":160,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"617ada21-9574-4a0f-8d95-079ad2bfd507","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":160,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"1d6c3967-7f91-48ce-b746-2d88bfaf8530","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":160,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"f0a9b8c4-5a97-4a79-aae0-285817c3f039","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":160,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"2cdbafa7-b47f-49c5-8f1f-8f59eaaddd0a","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":160,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"01e70170-6e41-44fb-8173-0c88b7a87276","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":160,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"20474562-742b-48b8-8d1f-83247a3969f6","block_type":"box","text":"valuation models.","page_number":160,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"3c03d1d8-4445-4308-b02c-93606586c52e","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":160,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"984af8b9-849d-44b2-aa30-1d56ae71994a","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":160,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"9c823bfb-6107-4a00-8949-8e39a0bb6ce1","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":160,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"b232cbbe-9b55-4799-8ed8-b10746ccd9d8","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":160,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"6f236f51-1025-4d90-af01-925c72c1181f","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":160,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"8fb71c35-27ec-49cb-bd33-9229a336663a","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":160,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"9e7d7a3a-2656-4ae3-9a9e-894db32cce2e","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":160,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"fbe8eab1-144c-407f-bd48-d979969b88de","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":160,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"d88db86d-7ac1-4300-a15d-13dfdf8f1695","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":160,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"9be7fe8f-7ab6-4c19-83a8-6178ad49b1a5","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":160,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"1273ed1c-daee-433b-8902-a5d1b35a8e3f","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":160,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"f68396ca-f077-4312-812b-5cdd254406b9","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":160,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"ee68983e-43a2-4cd2-9606-a954af89a76d","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":160,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"7a25e9f5-2320-4483-9d8d-34beb77f1493","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":160,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"2ee43cc1-9c98-4e0e-b04c-4d81c3728410","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":160,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"f44edfe7-0bdd-46a8-aa5c-f350f07461d1","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":160,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"21b01849-579a-4beb-ab09-06394d52d069","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":160,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"24bc3542-bdbc-49d0-9ae4-2eb426147f8c","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":160,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"d105e9ab-8be6-42d1-b801-7ae5087cbc64","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":160,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"790d26c9-e8f0-493f-bbed-b54ca4bbb3bd","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":160,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"816f3284-57fd-4526-8419-bd8f48dd3ae4","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":160,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"bd8e143d-eff1-40d9-80a1-1cb6ec6636cd","block_type":"box","text":"party determination of fair market value.","page_number":160,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"b8b78b63-bb97-4d9c-8a3d-a1acf3fa05f8","block_type":"box","text":"Computation of Offering Price Per Share","page_number":160,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"ab2bca8b-02d9-4e52-9610-c916fab4590b","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":160,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"592f2bf5-d69f-48b0-81c0-90b10ddb4569","block_type":"box","text":"the offering price for shares of your Fund.","page_number":160,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"82d1c3ba-6364-414d-aa72-23b9f4d2171d","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":160,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"aee71aae-e46b-4d3d-8c5f-bd491461d348","block_type":"box","text":"Transactions in Portfolio Securities","page_number":160,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"c50a09c4-c9ca-49cd-b7a8-6265a6618b53","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":160,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"c51de2f4-6857-49d6-a974-bd415c5ee76c","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":160,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"00320e49-b19c-4021-b6ab-fcac6bcceb0a","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":160,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"f4d96063-02cf-4fa6-9e04-8f5387789f4d","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":160,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"df1413b5-5c13-488d-a4ca-ccda8eb37c69","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":160,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"38308971-0d0c-4d9f-9898-48e7ec64af1d","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":160,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"b4472123-52c4-46e1-9ad3-2219803c325a","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":160,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"f7bda1f1-bd6e-4542-9959-47fd9d25260f","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":160,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"a7873adf-66e2-471c-a629-66628404aace","block_type":"box","text":"II-124","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5beaf52f-1844-480b-8bb7-30b07db9891c","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":160,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f82e516f-a7ca-4bae-9358-7ab572b10c7a","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":161,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"af6940fc-c233-4f16-a131-116fa3a4a145","block_type":"box","text":"reasonable in relation to the services provided.","page_number":161,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"64ef3fca-3510-433d-bd15-cc048c64ed85","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":161,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"a3f7a2e8-7ff1-4de2-a3ab-a13206b717cc","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":161,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"14e23770-e3d3-4d9d-b8d7-faeea3f27634","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":161,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"27e26b6c-1046-4f9b-bf0f-9318e32fc5ce","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":161,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"7acab924-0ac2-483e-b644-f9dd2f09f7c1","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":161,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"ae88aa03-530e-4976-9c46-748499b4ed81","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":161,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"3b2db572-c3c8-4f1c-ab51-df4deda3d842","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":161,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"d046c2d2-bd95-46d3-82ed-eb02315a9048","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":161,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"c2f75d38-3e1e-4c16-a431-4bbf0b62441b","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":161,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"d3106653-0937-44d9-a435-c4055a8637c7","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":161,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"5212324e-6f96-440a-bfd8-91324abfb57c","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":161,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"64dc3707-da16-4273-8734-cd6041f0c335","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":161,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"91a8c1fe-495d-4366-8963-260d46d49ae7","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":161,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"236023df-e96a-4e65-87bd-dbd379a40716","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":161,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"c0570c20-4e1d-45c3-a6ed-762424ec162d","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":161,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"f3bb81aa-1275-42d6-ad09-a33526b3dc91","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":161,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"a7ad3b66-c34d-4229-ac1a-fb098d83428c","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":161,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"378ebc8a-e3af-4dcd-8ac3-65558100acbb","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":161,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"37eab5a3-955c-4448-a304-fa8b77de282d","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":161,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"87de9443-d4d7-4d6c-8ed3-e3c5fe6fb20e","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":161,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"1942d8d0-9f3d-4a50-a436-401ca247e086","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":161,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"690d5b85-a936-455d-a496-703b80c29478","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":161,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"c3db8f65-cb34-4d8a-83cb-940e410cc487","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":161,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"6d2f321d-e180-446e-ab30-5b53da7bc6b0","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":161,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"a4fc14da-ab40-4981-84b7-d0cd78558eee","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":161,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"78a72321-1986-4b0b-909d-1ea34b1515d6","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":161,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"c64816df-e298-4415-ae8e-4c3e9d311047","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":161,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"4d81090a-2aa9-4733-a71a-05da71f004d2","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":161,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"22925a2a-7203-4331-a2db-00fa02f12e12","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":161,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"58bc2de4-ef96-436c-a70a-7af9aed0b5e9","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":161,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"78745765-f61e-4a07-9486-a2884b213e5d","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":161,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"a0c8b625-bb4e-4a2a-b8d9-ffa426c91529","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":161,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"6ac975ab-ad50-4f5d-94b7-2539e1f039fc","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":161,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"7d1dfdd7-cbb2-4a97-a184-e237fd01559d","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":161,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"292b62ca-6207-4180-9342-16436932023c","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":161,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"78f24c99-c0c4-4818-a9df-190b510379db","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":161,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"406ecd78-50c5-4dee-9bc4-e328a2df899a","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":161,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"d787b717-236e-4644-8a02-3327b17235d1","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":161,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"6378cead-66e8-4f9e-bf23-4d3ef3b7d7bd","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":161,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"630feb1e-3f8d-4708-9415-56f83ebf7282","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":161,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"53b5be7e-8583-445e-9e9d-155a4e675548","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":161,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"ee73398a-89c5-467e-a1a9-ada0f64e3dd1","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":161,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"fc9c2ad6-abc4-46f7-88af-ecf4f5e94d93","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":161,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"08344c54-75b2-4ccb-a0b3-bfd230d32cb9","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":161,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"c286b1ef-d35e-40d9-abd0-3176b34b5230","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":161,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"354eab1c-fccd-4485-a2fe-1b0570e7a052","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":161,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"566cbd82-43ac-4e53-877d-2d05f37c1833","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":161,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"1786fd7b-3668-4ee1-b799-e11cb9038530","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":161,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"815b35ce-efd9-43a3-9534-0192ebfe7af6","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":161,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"9872471a-8c4d-40d8-8097-319c96eadbe7","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":161,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"0cbbe093-0f9a-4e97-8660-6e8e011cad53","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":161,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"1e985987-e745-45c1-9f97-214c5881e01d","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":161,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"cfec5da8-00a1-4214-9663-4cdc98b77d73","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":161,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"a2fdf5d4-8aa6-4507-9288-84c16c4fbcaa","block_type":"box","text":"II-125","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b350484c-da75-4044-b93d-0095415f1519","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":161,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"2d4455a3-2b85-417a-8b5e-7d24d3a925a0","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":162,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"511783d9-95bf-4b7c-95fc-5d03082f14c8","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":162,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"b670b4cd-2c35-40d8-bc8d-b621405d16a4","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":162,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"f4475884-1cd7-4d3c-9def-5ff450f1b167","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":162,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"09f06b9b-d681-4307-8796-5b9981e58552","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":162,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"f1657d78-0674-4901-82ef-ae7e9b1a7f55","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":162,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"b67f023d-889e-4e36-ab6c-04aa48d96874","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":162,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"f4bf4dcb-b142-4a1b-9deb-90b60a1aaa53","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":162,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"e7d91d1b-d68b-40da-ba77-9c29ebe7d4a2","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":162,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"9854c2a1-6705-4050-bcd8-f3d0a06c17f5","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":162,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"16f9fc3e-4955-44b2-aafe-1700eb38d701","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":162,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"b67c501f-823f-4985-a42b-493832d12ab0","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":162,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"b1fc2af0-da1b-4bc8-91e4-76c1ab926dd4","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":162,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"ce2a59d9-3635-4524-9db3-2fdb540b759d","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":162,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"7d30c44c-2894-4625-8eb3-c36cade574de","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":162,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"b6001fe0-b450-4ea0-a25f-09f4221ccfe0","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":162,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"78fc591f-106b-45a7-b6fa-fe1e81402703","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":162,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"2fbe1a6b-fbc1-4f96-9a21-18f9bcd9de89","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":162,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"304363fd-34d5-48b9-be22-ea0b46c86740","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":162,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"33af5580-ce89-422a-9efb-101851d7546d","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":162,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"180d74ec-ab7b-4742-bef7-4cd1fd0f9157","block_type":"box","text":"brokerage.","page_number":162,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"ef41a60d-a558-4319-9897-d2d25c2689a8","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":162,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"9117bcf4-f10b-4bc3-a3a5-bb708c956a07","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":162,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"28abe7cc-9d16-475c-80b4-703517134ae5","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":162,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"bd51524a-91b0-4407-a944-644665354673","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":162,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"1ff036e0-f78e-46fd-b02e-17270b7dfed2","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":162,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"9e34e9d5-3385-4318-a7a1-8fa41db143ba","block_type":"box","text":"Section 28(e).","page_number":162,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"d983f3a2-f547-40cd-b10a-302e776f25cf","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":162,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"10751569-7d3a-41fb-90f0-aa583f1b3d36","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":162,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"fbceeb44-a03e-4d8b-902f-977703ca3e13","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":162,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"731d03e2-c2d0-42a5-ae3d-20292bebf9e6","block_type":"box","text":"execute transactions for those mutual funds.","page_number":162,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"a1cc018d-42b3-4265-b9a5-39dc911ebbee","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":162,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"485dd94e-d377-4bfd-a667-543bc836dd7a","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":162,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"059496b5-f1af-4121-a786-87c6e17b0de6","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":162,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"4a76cef0-fbac-43dc-8bb6-285470369c83","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":162,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"aabfc5f5-7375-42cb-bdb7-885766317e81","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":162,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"d33df5a8-1d1a-4dae-b9f8-bcd14a5c32d3","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":162,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"95fcee0a-cf9a-418e-a8d8-4b240447642d","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":162,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"1db67f2d-22ef-42c5-b8e6-2754e2f73863","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":162,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"af23b71c-2168-49d6-bce0-9cfc1dddd7ab","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":162,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"85daeee2-ac58-44a0-9e10-9a90f69f1840","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":162,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"ccc97622-6e44-43a6-94dc-aa7ebc445c6a","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":162,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"615d5b0b-1756-49b0-8cf7-26f2361d7c9f","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":162,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"e2a49696-28db-4aed-811d-069e90f9b217","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":162,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"b2c69e71-60ca-4ebf-915f-a889824908b6","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":162,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"99796dad-a5cf-4776-9b51-b0a3af687736","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":162,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"9535e68f-0bb4-4f9d-b930-8cf165a50da5","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":162,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"cce7dde5-b64d-4027-acc9-20c729c82729","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":162,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"ae444597-f037-4be5-9554-10f36e9485a8","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":162,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"a0aca69d-8212-4e7a-9652-6d226942e16c","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":162,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"7831d669-770e-4f3a-a6df-b114e409701c","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":162,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"0ec27b4a-282c-482b-829f-d2624014b385","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":162,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"5f5ce843-ec69-4e85-8bc1-87965afc6cd2","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":162,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"d48331ca-84c5-4142-8349-97dbbe1861f5","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":162,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"2cae3005-022c-45ff-bfc8-b0fc02ce9d2a","block_type":"box","text":"II-126","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5f5edcc0-03b8-4132-9d7e-a8b9992963bc","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":162,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"95b03282-e9e1-4aac-973b-a54e4812c2d7","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":163,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"77991de2-7be3-4b7a-a830-adbac1757b92","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":163,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"f46ed32e-566e-4c6e-a27a-d937a03af0e2","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":163,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"573600f0-a329-4d9b-a9fa-aa6b6e635b47","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":163,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"fd302df1-aff8-4ca8-882c-a8ef36d407be","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":163,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"45c06a8e-de19-42fc-80b2-1d94bfdafff4","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":163,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"3547bfd3-c88c-4d43-a942-42afac1acfbc","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":163,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"d79ff87b-1c45-4998-8d71-2a0186a788cd","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":163,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"d6c036cb-222d-4404-94a5-9f1eccc86775","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":163,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"a698afb7-d66b-46bb-8d26-c4c46659dab0","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":163,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"0a3913a7-bb6f-49d5-911e-6a698b68ca0b","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":163,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"970dd0a0-8409-4122-805f-298f9cc56975","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":163,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"f41bcf7d-41d8-4b29-8315-1684561b1900","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":163,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"a147b623-cf6a-4baa-a8d0-02929a7fb360","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":163,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"c927653f-502c-4bda-a653-2674d496636b","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":163,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"d7e67782-7cba-4ce5-a244-388e7a5c3690","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":163,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"3d21c94d-fd36-4430-b5fe-9e7e548dcc5d","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":163,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"4128eb9a-be25-44b0-9d02-2502d3e80904","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":163,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"3a7873b0-ee16-4dde-a6b9-8c999c8c3cea","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":163,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"11f355b5-2dee-46dd-9e3e-154172cf26fa","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":163,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"e9f94814-bf6c-4e7f-abf2-aa3bb7fa836e","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":163,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"5a3a6757-b4dd-4a51-a57f-6ab3d8d3548b","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":163,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"a055f452-2f32-47ed-8bf6-74d3273d2ac1","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":163,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"7a6f2431-45d1-496c-a970-f0646199277c","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":163,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"9da720dc-1c21-4d74-9e73-070cc5ff3960","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":163,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"af257787-6515-48e5-9e1e-f0d3bbd2af06","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":163,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"5f7b2a32-8067-48ed-8e34-b2bc40ffaf00","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":163,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"6966c82a-62a5-4f5d-b8ce-eb4f72f6314a","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":163,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"b6a14d26-20bb-4654-9f98-75f0f2d9571b","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":163,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"60b5b8fe-b717-4491-ad3b-95ba41c6f707","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":163,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"d8eca4f0-da2e-433c-9457-e92f161ef54a","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":163,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"e5708592-e7f2-426a-b837-e648bd47d1a3","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":163,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"77dbaa12-fe90-4ec3-a072-aa52f2523102","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":163,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"6c7e2469-e80a-4baf-be37-c792103638c5","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":163,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"d1e26d52-ee2c-4e50-a763-769c8075c311","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":163,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"a871cc50-b45e-4dc9-b823-f1c422be6023","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":163,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"3fd5dc87-66fb-47d1-951a-31cc41a273c4","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":163,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"b9594f79-c584-4a71-9a57-07ea1941f3f7","block_type":"box","text":"accounts and compliance constraints.","page_number":163,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"433f669b-52c8-42dc-8964-7ec90ae50df7","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":163,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"a8d471a3-3a93-464a-b8a2-0b380b3708c3","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":163,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"17003545-1fb5-4e43-8f54-9d2763da78d7","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":163,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"bec87551-c731-4ab7-b0bd-e2e020a229f2","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":163,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"87a39566-975b-4a05-ba1f-97f9bc280824","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":163,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"b565c184-838f-40b2-b85c-bf6f12733e59","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":163,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"e63c9456-b5cf-4c1a-b22d-25ddcc544fd2","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":163,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"b75e1a7c-de32-493a-9145-86ecb1c2a393","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":163,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"559e3edb-5eed-46c1-93be-fb5887799250","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":163,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"a205f545-6b0a-4cba-8a6d-b1c435800519","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":163,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"0d2f5c4f-a228-4594-bfe6-15689687392d","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":163,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"393f5ace-ce4f-4671-89d9-a329ff37d93f","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":163,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"bb8832fb-0eb0-415d-ba1f-fc308191e405","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":163,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"766a9fd7-97dd-4f26-b8d9-e2de674a1798","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":163,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"6e958149-7966-4396-8803-a78af1906c06","block_type":"box","text":"clients may be used as well.","page_number":163,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"bcce4bab-2264-4765-8683-9e6d0e23c43c","block_type":"box","text":"II-127","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2345b4b4-2722-466d-8622-dc0278d57fde","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":163,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6dd48286-30ef-4ed6-bbcd-bc83e06be5b2","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":164,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"331aafdc-4bb2-47d5-94db-b3ead4d369d9","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":164,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"953156a1-c566-4063-900e-5329b43fa8de","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":164,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"b92e9fb1-bd83-4dea-86bb-34d034fc0e35","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":164,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"7e297dbe-8e93-42fb-8fe7-7970b55d669f","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":164,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"5007e5f4-086e-43a9-bdad-3ab9febe0b2e","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":164,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"7c687fcd-a845-40a8-838d-4dc40940c72c","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":164,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"4a936e4f-00df-4ed1-85cd-79c88a724b24","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":164,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"eef79306-b495-4b06-9495-92efdf6d2438","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":164,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"18758036-a17f-494a-b57c-e9e1d8d120c6","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":164,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"cfc16eb7-05af-4a13-a0de-557d7c4c0483","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":164,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"5a433c4c-7653-46cf-aaf4-34d436e0f182","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":164,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"223d6768-9285-4f18-a0cc-be09087d13d8","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":164,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"41d01e61-41f4-4e2c-81cb-c3ba177c25b4","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":164,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"ee40468f-101b-47f9-8d75-117e7346d868","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":164,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"4de621c5-b53e-44ba-bd83-15498426ec41","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":164,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"80bc70ff-00d0-4865-a2fe-1af57cc165d7","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":164,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"38617db7-f819-41b2-aba0-5b8ad323fec0","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":164,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"1c1f9687-e515-4565-9a9f-73bf1a47e437","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":164,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"02678107-1545-42c5-b635-344afab522dc","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":164,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"ea696d5a-727a-46d2-92f7-09a4ef289ea2","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":164,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"34ccd6b9-3fd4-4d9e-874e-94bcb15c1c80","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":164,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"d92b46ec-ce33-44b5-94ee-3b18b47a7ba3","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":164,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"6b04be37-54d5-4c64-be41-810961bee67d","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":164,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"0874999d-4a49-4860-af25-2a716d599d66","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":164,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"5194a297-79ca-48a7-897d-fff0b548d6fb","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":164,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"a4bd0e1b-36a2-41cc-a8ba-7ea40f0f5271","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":164,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"683103b4-7fbc-4b9b-a8f8-0a5e079e9afc","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":164,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"67a8ddfd-6d6d-43e6-b8aa-ed19f76c31ed","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":164,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"ba786e29-bc4f-45be-b74e-8415f48e24d1","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":164,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"868ae4f6-cd5b-434a-b573-9032ff7eb945","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":164,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"e7c661ea-86c7-4b31-8a5a-ec4090983521","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":164,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"31c83c50-82cf-43ca-868a-791e29125b4d","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":164,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"7f26f533-cc8e-4d85-adaa-8aad5661833a","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":164,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"b04c05a3-37ea-4cff-9e4c-e508fb682e48","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":164,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"268096d4-e4d5-4d54-8cc4-0ef1cc071c41","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":164,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"456646e4-ed7a-4b61-9dee-51f22e13a458","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":164,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"6ea97c18-9824-4901-8ddf-cc2091ac14ee","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":164,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"9c222b39-49bc-46a2-86fd-ed0dedf936d8","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":164,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"bd1c955d-7d1b-4bb0-ace7-e9d06162ee10","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":164,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"35d2c318-1ed5-4b53-a3d4-21a408012f6e","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":164,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"91cee5d9-241d-4d14-b69e-5bb93ab41392","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":164,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"a8844d7b-2418-4a85-9730-1c4fd3b37653","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":164,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"0f7ce2a1-f532-4554-a76c-72b23c863817","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":164,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"0be508ef-85e2-4e94-b861-c5e69013cb92","block_type":"box","text":"Portfolio Turnover","page_number":164,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"32a2f454-acc9-4e75-aff2-373af661a5c4","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":164,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"d1433d87-e369-4e4b-82cb-92eb53ceb6c1","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":164,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"6cb5d752-2002-4f4f-a483-09af4706a5ca","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":164,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"1af6d127-eccc-4f47-8ecd-acdf2753dc6e","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":164,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"fbc4024e-3fa7-46db-a339-33362ad181c5","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":164,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"13df0657-ee0e-4395-a136-2d0403108da9","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":164,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"495baceb-b812-46a0-bb11-a6da1fd574c4","block_type":"box","text":"II-128","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"135ab5e0-7b27-4a29-8fdb-4388138d9e13","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":164,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"b7e59e03-fef0-4341-a005-83314f7bcdfa","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":165,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"72f3be87-1a89-4ded-ae1b-b7250e35b295","block_type":"box","text":"Dividends","page_number":165,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"fd42eb4f-47b7-4c1d-b802-cb833545d2f8","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":165,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"1160261c-7a4a-4ddd-9130-6dc4266dd4bb","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":165,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"9c7e7a46-b747-4e7e-9457-48b300c6f2f6","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":165,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"08ae0722-37e3-4168-bdb7-31d7158fc2a8","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":165,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"0c22192b-147f-4084-bcf6-61189314f84c","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":165,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"5a87f71c-90e6-47af-a603-21cbd6eaf6ce","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":165,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"e0efa4b5-fba3-4104-94c6-5e3e6f5b9ec7","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":165,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"e83ec22e-3a6b-4449-bcd6-d59553a309ac","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":165,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"c4275bc7-b68e-47a7-b2bb-a5aa281b8fa8","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":165,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"6876a212-0a29-4290-9ea8-8fdd4b1d71cd","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":165,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"c2f02015-088b-48d9-8aa3-7ba1fbf3c133","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":165,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"6b66268f-de76-41c7-bb71-4fbb2e02db54","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":165,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"9aafc486-dbce-491c-aba9-d31546db242a","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":165,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"1f0d6870-d67b-4d6f-8212-8c97dfc2d410","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":165,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"6948437a-4db9-43de-8ca1-d09130d7e490","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":165,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"180aef2d-773c-4d4b-b01c-34be9919f9ef","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":165,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"ac12df1a-423f-4f11-a369-632039c976c5","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":165,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"25ff9489-9b22-42d3-8c65-b05325d7c25d","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":165,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"128c3adb-08f3-4cfa-b4a5-309dcb17dff8","block_type":"box","text":"Taxes","page_number":165,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"a08ce9f4-a7bb-4938-a7a2-967d25b5bbab","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":165,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"a1e8adfb-204c-470f-be94-db4c34202192","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":165,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"3eaeae6b-9fe5-41f8-aa81-e26b7b09ecd7","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":165,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"54c6c64f-36a3-411a-bd73-1eb31d73a867","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":165,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"1796d157-a303-4da8-9e72-5bdd0cfc9794","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":165,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"29daf38d-95dc-4eb5-b8af-4ca2e8c69ae1","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":165,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"4cf2c24e-0b1a-48ac-ab6a-346fcdb05e07","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":165,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"6d1dd3dd-bffd-4e25-941d-5c4106271721","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":165,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"6f9404d4-ae6a-43a1-b017-fcce6d6d8b9b","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":165,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"c5423b35-70e6-4794-bf22-42821e5b4cd9","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":165,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"3d567a93-32b5-4d1b-9d1b-c52674da7c2a","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":165,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"7a3efe44-7a92-4150-93f7-1fdf59f923c4","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":165,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"a231c260-2df8-42ff-86eb-d8bcbb848051","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":165,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"0fd8983c-cd3f-4620-89fc-c99827a861a2","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":165,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"53aa1de7-84ae-4d32-9c85-f05bc459a75c","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":165,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"94123df8-f3f2-4206-bc19-5e789f508256","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":165,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"cd945cdf-ad8e-4050-b1f7-ca321f97f493","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":165,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"04ff2c98-9e38-40fa-9c76-11b024de2cb0","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":165,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"ec27b3e2-1100-4b84-9543-eb6b5b2554f3","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":165,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"7b41f587-3a40-40ce-8111-d6f2b46190dc","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":165,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"98fe52ac-df81-4fd8-92bc-7f5623dbb3a2","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":165,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"15e9c583-6442-44b9-8bdd-f95920b3a28a","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":165,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"37a6350f-5c9c-49d3-aca7-ca2dc8ec4337","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":165,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"c2218390-7183-4810-bc18-c031cac551d5","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":165,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"6e79b509-6294-436c-bcb6-8910eeb5aeb0","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":165,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"2a124db0-7f98-4ebf-95d7-14d9e616f343","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":165,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"bb5f355a-aa3a-4165-865f-369fef6ace4a","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":165,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"0c7d8d54-ff38-46a4-bd8d-7f646ccabe3a","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":165,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"48310e23-6827-4758-9aca-db89b8eea651","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":165,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"f773da77-8a75-4b43-8d12-23917b1a8878","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":165,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"8026dac3-9a2c-42d0-923d-0b9d594d6fdd","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":165,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"6099e8db-6516-49dd-a1d1-cffeae83ee14","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":165,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"a8272f13-1769-4fab-a7bc-dd5e0b6071ab","block_type":"box","text":"II-129","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b63d616c-2cd9-469e-94ab-97c94cbf64b1","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":165,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d1cc330a-0579-4e09-824b-69272e7e6beb","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":166,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"7fc5662c-d358-446b-b77b-25f1e3bca73e","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":166,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"4ddb6b5f-6c3e-4463-827c-af3e11b0ffcc","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":166,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"57ea6904-0518-4e56-b66e-ed9c40363970","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":166,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"9753b757-5fea-4d79-bc76-652b5bcd408c","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":166,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"215cf1cd-3aeb-4e44-a5ef-a2b1fb60dbdf","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":166,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"9306cb75-edd9-495e-aa9a-a01f5f698c54","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":166,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"4b3b503c-f8e0-4bef-b9dc-2dadaee6a01f","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":166,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"8f0bfb7d-1a41-4c53-9c96-36f3877e00e0","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":166,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"21d22b67-30d7-464c-baac-05da71c53a2f","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":166,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"07367999-1857-42d0-bd99-329b98338320","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":166,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"44078249-fe16-48d5-93f6-16adf2037b95","block_type":"box","text":"limitation.","page_number":166,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"ba6c83f2-3f0a-495a-809c-af393fa8595a","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":166,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"db06f7bd-a01d-46e1-89bf-a138c4c7a2c2","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":166,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"0fde2f89-bced-4427-ad23-c47d0985db85","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":166,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"d396e105-9e8d-4949-89e7-4114668153cc","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":166,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"dd4b046f-399e-47a8-a467-56352eab8a75","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":166,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"0b8f4fa2-d17e-4154-98c5-909315c673b3","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":166,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"f245ed08-8415-4f84-9fdd-f9133b46bce0","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":166,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"e798efa6-6ffc-431d-a5f5-841f51a47dcb","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":166,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"a7ca8843-ec60-405e-82ca-20be6329975f","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":166,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"5c47974b-a38a-4769-8119-e0a6d620f55b","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":166,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"20227915-365d-4925-9794-698ae497be9e","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":166,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"c94fa9bb-12f0-4367-9cde-857d52cfc61b","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":166,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"aaa3813d-4bfb-4ca0-a4b5-83c894b71bf3","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":166,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"67739fd5-e92b-4932-84cc-c886022449d7","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":166,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"1edd133f-2c43-4eaa-afdc-8e865f5e6315","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":166,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"b0955ea7-8b04-474f-a901-cc3a85ddf928","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":166,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"838e1b85-85e6-41ae-b88a-3201fabe19f7","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":166,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"6bdb10ca-a427-4f31-8de7-e01a063f0d28","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":166,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"7d30fccd-fb78-4df8-8bba-1d15da546c9b","block_type":"box","text":"constitute “qualified dividend income.”","page_number":166,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"6b1c931c-e547-4b4b-aead-992cc1940ee4","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":166,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"65c27df7-b45a-4b3a-bb10-150ccf19ebea","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":166,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"fc59da8d-ad0d-4588-a0e8-8595859ad8de","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":166,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"598cdf49-4ad9-4df0-961b-687f3aad6b7e","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":166,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"f6dc3cf7-6fd3-4fe4-be5d-a6793696c279","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":166,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"4095079b-d1f6-448c-b26a-3bc99af455ec","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":166,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"1a17eb9d-a977-4d8d-9d9f-cece2057d813","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":166,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"1cba901c-c915-479b-8385-a4d03c90754e","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":166,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"e555e5fd-94e8-40ba-80e1-277e2d7424d2","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":166,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"64b2a5e4-dbe0-4180-b1f0-22b615eea0bc","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":166,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"627a06c9-aa83-4dcf-a2ab-9bb2d4ae979a","block_type":"box","text":"against their taxes.","page_number":166,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"643b00e8-91c1-4418-ab02-87fc92173e46","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":166,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"6dc96bf9-c71e-463a-979e-66ed15085895","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":166,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"53eb253f-014d-4fbd-b493-c5c7033e4ee8","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":166,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"13a6fdc6-abdb-4daf-bd42-b03a314db25a","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":166,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"541b3ac5-7881-4b93-8fb8-3f37a967ea6f","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":166,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"cd8c046b-cb8d-49f0-8838-9f8cec7386d4","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":166,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"a51a5db8-61d3-49b0-95e4-ffd556b4ecba","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":166,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"fd701e1f-54fa-4692-a1de-912f63476f5c","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":166,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"181cff66-435c-41a7-bfab-e2e3fcc5f6f4","block_type":"box","text":"dividends received by the shareholder.","page_number":166,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"d2d1c448-74dd-4df7-a9ea-327d798e05f0","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":166,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"b24293ef-67d4-4180-b87f-28eb5ffb1f37","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":166,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"bb5a7cfe-8352-4766-aed0-1cdb84e26d79","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":166,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"800e04c5-abab-4739-ab4a-208177f8be5f","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":166,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"742147ef-37bf-461f-8623-4d14a90ecf7e","block_type":"box","text":"II-130","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7ffe14e3-93d7-461e-9356-d9f371fa7b98","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":166,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"deb1e78d-d3d7-45ad-ae6a-1a6e4f168b56","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":167,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"7df1c45c-57a6-4d4a-9826-44cd3d2fc379","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":167,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"991510cc-32d9-48dd-8995-4fb2b73a64b4","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":167,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"73105018-4fa0-455f-b7da-7e64f819aeac","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":167,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"b4d4a56d-9899-40b5-8d7f-a03295f9c73f","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":167,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"9ba9bbb3-8efa-4e60-8af6-f2e5bd74ec92","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":167,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"51465fda-4db3-475a-9b8f-cd27f3f26406","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":167,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"6be9adcb-0a61-481d-a70d-4f16a67c4e28","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":167,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"cb6e3d60-ccc0-46c0-98e4-d65cd68e68cf","block_type":"box","text":"taxable year.","page_number":167,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"6adcf7c8-ce48-4d53-a6e9-e7ae83bd0fcf","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":167,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"61042b36-41eb-45ea-878a-1a27bc08f505","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":167,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"baebd0b7-ccc1-4b74-865b-284dd1a8bc2c","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":167,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"797fe606-becb-4ae2-b770-e0a3dd7615f0","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":167,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"f4bbfa1e-96e1-4218-b90b-a59a564c28de","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":167,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"a6d3b674-a99e-4ea5-868b-e4eca62804ed","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":167,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"58e39021-a518-4c83-aa62-aa657a901de3","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":167,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"757880ad-da50-439b-9204-7cef0063fe11","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":167,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"74e5ae44-3bc3-4183-acf8-3665da719159","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":167,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"73861f84-3998-4815-86cb-2de2ef33dc33","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":167,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"48251ddc-1be5-4be8-90c5-b3fb1736b347","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":167,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"010de9b4-709a-4407-82df-15848378b180","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":167,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"d6e40902-cc2c-4857-a8ac-3d363308e1de","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":167,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"57d6605f-3299-4b79-8299-811a865daf87","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":167,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"fb7084e5-4ae6-4268-9c59-618ee05fbcc8","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":167,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"b3f79964-a6b0-4e1b-8c97-811a08030c5e","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":167,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"c6b8a810-830d-4a9e-a1c1-c8bae05e5f45","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":167,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"e08495c9-1a91-46e1-ab1b-0b19eba7863c","block_type":"box","text":"special tax rules that apply to their investments.","page_number":167,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"9bb97f7c-b881-4660-b415-5a096c32f654","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":167,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"2d6a861d-b4ce-4c08-9d31-181c0e83bca9","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":167,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"c0ffc44a-790c-4a6e-b74a-1098713fa5b1","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":167,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"043abe06-13ab-415b-9f3a-6b3cba92923a","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":167,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"b350bc65-bb99-4dad-b52a-4014d6e9897f","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":167,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"ac594038-4435-4e54-b7e8-eb5d2d3d5b75","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":167,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"9f9b09e6-9354-4ed4-a1cb-82620557019b","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":167,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"7d4db4b2-6eb3-4f6d-a8ed-913f917d04e7","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":167,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"998eb0e9-0396-4bff-8699-7881c89cfae6","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":167,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"fd13a29f-79ef-449f-be35-ebdb84280d4a","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":167,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"4067c430-aa80-45c1-9383-6a0847c03173","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":167,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"c4674e30-dee5-4615-88dc-ce46a0dbda76","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":167,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"c5327a2c-3a36-4666-940f-bce15b18da72","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":167,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"71a9990b-795b-42f0-8588-8025dfa62042","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":167,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"b948e9c9-ab50-4d85-affc-776d9e89314a","block_type":"box","text":"redemption of such shares.","page_number":167,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"c5dabbc1-ff41-440b-88c6-09ed659fa39b","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":167,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"d8145abd-70c3-4cfa-8822-8ecf9a944191","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":167,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"31b7f896-726a-441a-8e2b-09fa8dc397ee","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":167,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"8ec219bc-821e-4536-b1a1-d1540c52987b","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":167,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"135ad623-0552-4cdd-b0a4-f8fbcdf17926","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":167,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"6f9ee68a-0208-425a-a341-615cb51c43f7","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":167,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"7cd6eecc-4670-48bc-8dff-282ea8a36dbb","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":167,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"0115089c-251e-4749-bf9e-be84d0cff70d","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":167,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"3887c02c-6c22-4a06-b4ab-67e3003d88e7","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":167,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"90c1b4b4-d7f6-406b-a9d0-a73b532bc22b","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":167,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"8748dc88-28cc-4f14-927a-307a0cf0fad9","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":167,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"2635b2e2-b85d-47c8-b801-43e04762721d","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":167,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"3641692b-dc68-4002-9b3b-0470a2380cb8","block_type":"box","text":"II-131","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f8905e92-3ad9-4742-8984-b2122f3d8965","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":167,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"62fd4bbb-53b9-462d-b41a-855243ee4c53","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":168,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"47bb6a23-0e69-43fb-9160-776224a06296","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":168,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"4054a998-6211-4e3c-bc77-7e88977fe7f7","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":168,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"7c94888a-717d-4015-a34d-f9efd35e8c72","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":168,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"91b7f5a8-da9e-4268-a8d8-34edbf3c1a90","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":168,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"7b8af893-ce03-4e22-acff-a7c8cb47adfc","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":168,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"f9678e7b-35a3-4996-98c4-515de60b17b8","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":168,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"56e003ab-f800-42a8-a332-c2d11313c1a2","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":168,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"91fef6eb-a022-4fe0-b1a0-cb24e0c3ecb2","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":168,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"e26d5cbc-ae23-41aa-a330-999515f7330e","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":168,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"58d32ab9-9f12-4d04-bd03-3c00e206e517","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":168,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"c334868a-0537-45ed-a40c-d2a8bcc43ecf","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":168,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"50157e49-deb9-44e7-a7d7-7eaaa5d53ab5","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":168,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"e5eb1c2c-e8d6-4efa-b6b1-a8dd673a0809","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":168,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"53650277-ba54-43f2-b76c-7b0cd26e28dc","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":168,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"97a64bc8-53a6-4a4d-a2ea-b0cc4bde09b9","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":168,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"01d90209-b7f2-4543-9da8-4075bd984f8f","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":168,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"6d066045-f814-477d-892a-9340614e87eb","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":168,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"be618555-e1b9-4443-9b34-4c1a49c62740","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":168,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"bdb77fc9-23e6-4141-bae5-8ec14a994ac0","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":168,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"405e0579-950e-4822-b0a4-dfdce5f5a005","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":168,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"56f5865a-5a78-458a-9455-2de4287ddb3a","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":168,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"7aa6e417-78aa-4145-bcd9-77e9bcb34b80","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":168,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"dd4c5b3c-60fd-4e74-baa2-dad7d88ea246","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":168,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"8bc634f2-907f-4262-94e8-48315b799ee6","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":168,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"9651b860-4aeb-4b2d-884a-7eaf1d79babe","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":168,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"4b650e95-155e-4d83-9498-9882fff7e5ea","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":168,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"aa0c5b3e-461f-4239-8ea0-d7bc3edf125c","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":168,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"8eb0f394-6ce7-41d1-8929-306be702fd62","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":168,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"a57995c5-809d-46da-961c-43d4d431f0df","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":168,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"acaadd21-adb1-4647-b249-2b6121dfc9c3","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":168,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"9273050a-3060-4a2f-8e80-4ab4875f2918","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":168,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"543484c6-8ea2-471d-a923-f71e7fe31849","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":168,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"b0ba433a-6b44-4af6-a07e-7d3338fb31ff","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":168,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"f59e6123-eee3-4659-85e9-b008ac47a308","block_type":"box","text":"in subsequent taxable years.","page_number":168,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"3767df51-8140-4f43-ba55-edb742437ed7","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":168,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"11118afc-0f4c-4098-9b2c-6ddfb852e1e8","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":168,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"434c3792-df36-4a21-b26a-afaeaaeed555","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":168,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"003bf5e2-5b1c-4733-ba68-cc370c4a9eda","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":168,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"7edfaa58-8b69-4570-8758-05e0e36c7703","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":168,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"ede25963-ae02-4e9e-b5c7-60613083d259","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":168,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"667b17ed-0b4c-40a1-a67d-409f07534b76","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":168,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"ee68952e-5ef6-4b1b-bfb3-07f0c246b0d4","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":168,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"b5579349-e9c8-4c33-8c1d-fb344f19d863","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":168,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"31ec79d6-da00-4f84-9832-7998d0d9da87","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":168,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"25355193-1c18-4c37-9896-f12e9d0a7a0e","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":168,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"3b5c65e2-0da3-4beb-8362-d959fcad1145","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":168,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"ee7936e4-45ee-460f-acd5-40fe2ec10af3","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":168,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"daef515b-3e32-4b39-ab42-38c24b205417","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":168,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"3ff4d525-d596-4ec8-9177-feb77853ecd2","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":168,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"54dcf2d2-0cae-4981-bb73-5158b35ae385","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":168,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"57a89d7f-e188-4c13-bfe8-1993d209459a","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":168,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"81af9898-ff97-4395-b0c9-5d439185454b","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":168,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"118e411e-8763-4436-b87f-10a739995ba3","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":168,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"36e0e090-6158-4f58-8185-602ffb838661","block_type":"box","text":"dividends under these rules.","page_number":168,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"4ef7456e-a008-41a6-913b-e2de244f0493","block_type":"box","text":"II-132","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4e41ff1c-96c1-471e-bd17-0ba6e74592c5","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":168,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"7b94bf5e-18c5-462a-9cf8-6f2f79f48486","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":169,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"a8416272-c39a-4523-a1be-07c2509a0f26","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":169,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"7a790169-9b40-499d-a1c0-b9bad695139b","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":169,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"831723b5-c772-46bc-ab53-c99e0fc6e4ef","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":169,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"c9dfb8ea-7ff2-493f-9125-12a107120dae","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":169,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"4cc811c2-735a-4563-92dc-227fdb07acdd","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":169,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"2256e037-0930-423d-9c59-3a55dc954187","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":169,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"41bc2c76-2467-4870-bc76-efc47e6b512b","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":169,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"c1c32b5b-7bc4-4152-bfe7-11541868d7c8","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":169,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"7effb588-98a9-4f83-8cc8-1ff27a489cbe","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":169,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"7bd2fbbf-d6ff-4661-b11c-f5d03e7438a8","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":169,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"a380d848-d780-4341-bd0a-77c0d4ce6cce","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":169,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"7b2ac81a-2657-4f9f-beda-4b4375790ced","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":169,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"d752a31e-24a9-44e9-abd5-7b0a1a0726fe","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":169,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"06cda758-0641-4edf-b40d-3a4f09a0e421","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":169,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"6c023748-f3f2-45c3-9fdd-54bf2a0f3cb8","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":169,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"9a802451-db7c-4df7-810a-b41c0c19e499","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":169,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"89f0f52a-12ff-402b-a079-50566447102d","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":169,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"6792112d-0968-4bbd-8128-7246f0316173","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":169,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"8c876f58-e393-44e4-bea7-c4e25ae8d65c","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":169,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"5fb72835-daf9-4d27-836f-d40deffd1d9d","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":169,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"7cfb4ad9-2c3f-4e17-84f9-68e2b6fa53d6","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":169,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"77f2e1e2-c89b-4594-8ee2-6995d8667d16","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":169,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"317b79ca-9d4a-43c2-b865-1f93d8a0a286","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":169,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"9e0f432d-de7c-468b-bc76-5f8aed1d573d","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":169,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"1a4af206-e9ed-4fa8-a4dc-d0d1262a2f3e","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":169,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"aceea721-fc67-40d9-9efd-44b823400e4d","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":169,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"fe83a76a-3deb-4567-8358-8c4e73bb264d","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":169,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"fee42f29-96fb-47eb-ad77-be1ee8a70270","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":169,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"0ebb6dcc-7b40-4e68-802d-578bc1487a07","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":169,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"cb94c3bf-b24b-497b-8ef2-54177ae66e84","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":169,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"57ca8877-74c5-4833-ac3d-b35b3d16eeac","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":169,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"ba62c0d1-d6d3-4059-ace9-6770237e266a","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":169,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"c78f6039-260a-40f4-b925-20f1512c43f2","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":169,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"bcfbe0ec-da7d-428d-9ae9-1d28e1dcd747","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":169,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"e9a39dc6-14d5-4f7d-84ef-ccaa202eff08","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":169,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"3e70fc46-6816-4dfa-aa77-79b7c91a9d65","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":169,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"5f6c1f9d-ddb0-490f-9741-e7f52232c315","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":169,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"c42c792f-fa50-4bf2-a0d4-a1d426acad4c","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":169,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"291bbd0b-c6a2-42cf-9953-e429e11906e8","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":169,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"0fadf0b9-ca9d-4f3a-94fc-9683ceb1c04c","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":169,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"937ee253-0e0a-4fb5-a057-e9033b4c1e6a","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":169,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"51129bdc-995c-4868-8288-db72ecceaf6f","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":169,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"62b84b0a-3421-4a8b-8d1b-2cbbc781357b","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":169,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"899bbef4-406f-4aca-be2a-46f1eb7dea8f","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":169,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"59fc8b10-7f0e-4416-97fe-f710d1be96dd","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":169,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"4e523da3-05dd-482d-8332-287ca6b5c991","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":169,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"3833e10e-0487-4461-93ad-308cc2d54a71","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":169,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"2cc0117d-dee0-49d0-a2c2-a40e143d6add","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":169,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"05cf4306-44dc-49bd-95e6-04f49052fede","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":169,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"992bcfad-6b0c-4e84-9e6d-2c80e42317cd","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":169,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"bf79d98c-a753-4280-a195-502c6a6eb309","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":169,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"96134aa6-c305-4a41-9c32-9b846d224755","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":169,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"1b142c59-f45b-4c94-bd33-91e24028b373","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":169,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"17e13533-13b2-4aa1-8b53-394e5847db86","block_type":"box","text":"II-133","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"35cf7b01-5a48-4bd8-acce-ec0406d1165e","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":169,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"18ae8bb2-a010-4471-99a0-9b7f0af16536","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":170,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"57ebc751-f9fc-41e4-975b-94f5cb3695e0","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":170,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"4b60748e-5897-4a9e-8ffd-0e74d4190007","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":170,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"c29c21d3-06a0-4efe-9ed7-5932e42b7d91","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":170,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"fbcbf641-17e0-47ed-8ddb-e2cbada5be2c","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":170,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"976aa8ee-ab6e-4232-a94c-7b19931adde2","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":170,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"d62134d0-1482-49e6-b9d2-eb2f28de2456","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":170,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"404eefff-07c9-4ac2-b8a9-cf6b68d559c1","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":170,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"ed2897bf-c0cc-4183-bfbc-add77b1262c1","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":170,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"7089e07f-9f8b-45b0-b963-df5118b551dc","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":170,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"ab159ad1-8341-4db3-80e1-fd097784ff67","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":170,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"3a563f17-1f51-4a8c-b324-22e9d24ae47c","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":170,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"e8603c9c-0939-4aed-8b69-7321c15ae71e","block_type":"box","text":"investment opportunities.","page_number":170,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"3ddcc0cf-7f98-4c9e-8271-ec7347be31a7","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":170,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"1450c6e7-a41a-4fc1-a0bf-0347d58c26b9","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":170,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"daea82c3-3cb1-4e4e-86bf-bd704b04ddbe","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":170,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"3ed42243-3bda-419f-9049-ceef93cb7b02","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":170,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"dac1755e-055c-44f7-824f-6792147f837a","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":170,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"17cfb4d3-d07e-4836-ba91-9e36b9de4a3b","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":170,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"ba8817b5-4f75-4ec9-a667-767fedf78af0","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":170,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"122afc01-e0b3-4fe1-a5c3-96d10c4e0bd3","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":170,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"9194da1c-1a20-418a-ac2d-6ae06f86ea82","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":170,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"d33031d8-c2d9-4959-af80-e68c09d57210","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":170,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"b9f4e533-b76c-4eb2-8d0c-de431bed8c0e","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":170,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"d24b557a-11ae-494d-b622-98b5364526e4","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":170,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"07bd61c2-7783-4644-ba0d-74fcf3053771","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":170,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"032bbb5e-20ea-4303-8a9c-23d593ec8145","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":170,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"134ead98-ad69-4e20-8dde-b6e1c786e062","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":170,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"52314211-21dd-4754-b7fc-fe4ad4318049","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":170,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"431b42a3-5aef-41f8-80d4-3530a98811c6","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":170,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"f44cfa7b-54ca-46b9-888b-c13b55b9755d","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":170,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"fac44741-073e-4344-8ec9-ccbcb6ee3fd6","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":170,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"f7abb6cd-2c74-4e45-9502-f006c61074d2","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":170,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"f975ae35-0331-4b42-9774-ae959984748d","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":170,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"9fe7f039-8122-4d53-8204-cdd5deb92076","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":170,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"77ef91ac-a796-4872-91bb-4538ad756127","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":170,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"89fc4532-2308-4bf1-9e28-8ef94def52ba","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":170,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"ddb5f5c3-7703-49cf-ad65-933fb53e8d9f","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":170,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"3a3aaace-bb32-43d0-ba04-981547347e43","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":170,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"86367479-6e3d-4d66-af48-d509b4ecbb3c","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":170,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"5b945439-56ce-4663-9cc0-e11d2e11a0e6","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":170,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"93f496a8-b70c-4750-8e31-303e4d9bfab4","block_type":"box","text":"positions in its portfolio (","page_number":170,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"5500073a-40a5-414e-90fd-5d84e98f072d","block_type":"box","text":"i.e.","page_number":170,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"a39f916a-9cf7-434f-8acd-839e7f01e948","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":170,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"dca38ae2-c649-4e29-999a-a3698ea05e98","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":170,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"e420ca56-6efb-4e33-89b6-33cf57aabcda","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":170,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"5a8376c8-786c-4f80-a747-b8085567869d","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":170,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"527618d1-e0c1-422e-89b7-7780594e4479","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":170,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"9e778953-0b12-4ee4-af54-9d4070780d1d","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":170,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"3408e378-74e7-474a-a930-4cf8edd1371a","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":170,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"650b552f-e5f9-41ce-968f-6bc8ac0d3bbf","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":170,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"8a4d5d2d-4fef-4c11-a793-b81d4dbaa7b9","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":170,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"d08b6c22-ed5c-451e-9c1d-b048a4425531","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":170,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"89078597-bda6-42e8-9801-ca8e5bec28b6","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":170,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"013852db-286d-4a95-9f10-aab5e0c67bd1","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":170,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"971efd1c-0b4e-488e-98dc-d29cc6c378cd","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":170,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"f0398d5a-a172-4dec-8902-93d91a3cf107","block_type":"box","text":"II-134","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2e7bec4a-7401-4b19-abe9-20b59feedb33","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":170,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"00fc7d98-6fac-4e85-8b5a-cee2c65b49c9","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":171,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"275d73ee-99c6-4749-adb8-4f70442ce6d1","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":171,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"2d676312-8cf6-4ede-a627-67c5ef7d3ff6","block_type":"box","text":"capital asset.","page_number":171,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"42948b45-9ef1-4ca1-9253-e856507b500e","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":171,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"e8d38210-a7eb-41e6-8a9c-d35bd25116d5","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":171,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"f259253d-a788-4d9a-bca9-63db9e762b1a","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":171,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"617eabb4-73eb-41a0-ad6d-e7a42b826f7e","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":171,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"380f9d92-bddb-4e36-b1d3-25f689a150ff","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":171,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"339feaaf-2093-46dc-ac74-bc8e2df206b5","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":171,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"18735301-1dad-49f2-a9bc-54a4fc86e298","block_type":"box","text":"Fund were to invest otherwise.","page_number":171,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"e94e4fd7-1c0e-4a4a-a4a5-739468a9b61d","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":171,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"c1905900-8bef-4c0f-af6b-55033351b51e","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":171,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"bfb8a169-a072-4c62-accb-780c2b12fc00","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":171,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"d67f6fbe-773d-49a8-9a9c-36e84683c858","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":171,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"90bb72e9-ab5c-4031-ba2b-e012b5372554","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":171,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"b0c5eb69-52e2-474a-b67f-3cebdef7f6ca","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":171,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"5ec819e1-bd2d-41c5-a5a4-9c2b3129128e","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":171,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"2d84df48-1ee1-4106-a690-5df794d2e703","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":171,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"691f8334-8b99-49ac-8632-854c0cb97ac8","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":171,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"13daad85-a086-4ced-9251-9100a0aca401","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":171,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"fee947ba-2610-48af-b39f-162049112c6d","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":171,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"994ffabb-5820-4871-9ba7-9bf43da3299d","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":171,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"a9e5c8df-0a55-4b80-872b-ab13d7c8f646","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":171,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"73049504-3efe-4edb-894d-487f22ed209b","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":171,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"42aa3a1f-3dbd-4639-bb17-22865807204b","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":171,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"2f9fa294-76dc-4b96-a951-d0bbcd7dcb2d","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":171,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"79e11dd4-ae85-4640-8811-7bdc4d940768","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":171,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"78601dba-7379-40f3-b83f-74bc84f7ed86","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":171,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"8c98a20f-a728-4699-8a15-dfbb3469d647","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":171,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"cc3a90c7-68dd-492c-8237-373e7eb904d0","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":171,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"2a947080-da4e-4c6f-b9ed-0bf8831b93c7","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":171,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"a5449cd0-cff8-42ac-acc8-dacc7399e3dc","block_type":"box","text":"PFICs.","page_number":171,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"e9c1cf3c-374b-4c7e-ad84-eeb4f2f0e685","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":171,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"b5e5aff0-bcda-43cf-8e97-3983805cc73b","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":171,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"89a75fe5-e3fd-4bc1-9703-a2d14d25fa34","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":171,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"cafe68a2-e229-4f7b-8ea6-1ada83db6960","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":171,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"5d0fe1b1-2111-4a20-bb09-f9b6fdb9fdf2","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":171,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"d38dba5e-7248-4150-8236-a9895f662215","block_type":"box","text":"difficult or impossible to obtain.","page_number":171,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"ff97701a-60fa-451a-b888-5e568ada9282","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":171,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"c8c46f5a-4146-44ff-853d-a959a36a4a30","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":171,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"08244d3e-e19b-4b4e-b336-94d2b01febf2","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":171,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"ab487d8f-ab0f-4622-9b0d-8c0c9cd0a570","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":171,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"9cd3767c-5162-4169-9e95-5c6e8a8769cd","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":171,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"6f4591b1-42bd-4fff-973a-667536b00246","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":171,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"cbd5a035-7ae5-4386-9b73-5171efe3ad20","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":171,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"b28ceb3a-d7fa-478e-89d8-59645d6ab568","block_type":"box","text":"Municipal Funds","page_number":171,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"e1e0a75b-9f60-4634-8568-c02fb5334a65","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":171,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"adb28c2e-d01a-4413-92c7-e5b298c039bd","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":171,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"6e9420d0-8f27-468c-8f4b-792a9f42a617","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":171,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"459676fa-5d91-4980-87f5-bbc52ec0faa6","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":171,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"2b278db6-e59c-458e-839d-b69ac566e184","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":171,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"191febcb-157b-4f1e-8705-9713e84cbd3d","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":171,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"d26de23d-aa07-4e26-963e-504b20b6b00e","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":171,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"9e9b57c3-2675-4108-9ed4-0caf6c2e5106","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":171,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"e2dc0852-bcbe-4058-a1c0-287cea1e3dcc","block_type":"box","text":"II-135","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2ddf813a-3616-45ed-991f-1a234f9b47c5","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":171,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"add9cf79-ae7a-4d16-be38-78a8b841b4a3","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":172,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"da901077-466e-46e5-aacf-75e775394a98","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":172,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"ae1059fa-47d8-4130-b0d5-9e4e708ec551","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":172,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"e3d0b75b-b53e-4bcd-aae1-bddc54fe5b27","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":172,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"27e34f18-93fc-4c18-859c-e67302537ece","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":172,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"a3a66243-6cae-4ebe-9c02-d18f43994b7c","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":172,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"f22f597a-3fc7-4421-8d6d-610685f743ce","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":172,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"83d5c597-e7c8-4929-b792-fa6339b984d5","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":172,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"94dacd09-a618-4082-9324-077214c2934d","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":172,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"90fcd2dd-54cb-4912-98bd-4af7533bc271","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":172,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"3d1eeda0-e5be-442a-91f3-e653c112bb04","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":172,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"8ebf583f-7c7b-40b8-b9f3-c2204d645c2f","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":172,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"07877af8-3bcb-4716-8f33-672f1695f38e","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":172,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"830e252d-0ff5-4221-aade-4088a274e2c2","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":172,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"1722a76c-e0e6-469e-92ce-6675f0d60f14","block_type":"box","text":"constitute exempt-interest dividends.","page_number":172,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"91a72fda-3407-4b02-8c5a-0f5926fa91d0","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":172,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"59aa83b4-d3eb-4fde-a7fe-85d0da9c9c56","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":172,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"6991e751-641f-4232-a022-4d4920880824","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":172,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"b33fce23-d952-40a4-bf50-86534646e582","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":172,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"af73b2ea-c553-4124-be7c-937561b84210","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":172,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"b5f5c695-c090-4164-b8e6-77344db76104","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":172,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"d761f629-3365-49aa-9988-3348be48c23c","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":172,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"eed1f689-468e-4155-a2e9-82a159f729fb","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":172,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"e9ef1929-4969-4a13-97e9-fa8521b44daa","block_type":"box","text":"income dividends received by shareholders.","page_number":172,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"b71ea73e-0174-45ed-805d-7d47003b0b2b","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":172,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"9e9db0a2-73b8-4c41-a0b5-3c7f374b3ff0","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":172,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"e12c5d55-08fd-4fb4-bcfc-efb8f2e43c1d","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":172,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"4a0e66bb-50d4-470b-a969-5b872c114a93","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":172,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"4776fc08-9de2-4cf2-a63a-8d6881f2c21a","block_type":"box","text":"the accrued market discount.","page_number":172,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"bba6c97b-67da-4369-8eac-e05bacc7b109","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":172,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"7f9322b0-e676-4c37-9c25-f3ae0b13bad1","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":172,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"624a4ecd-47af-4036-9795-7a8b362d07fa","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":172,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"31bfd0a8-4799-44bc-997f-c700e19a6fb2","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":172,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"fc98d685-9816-4a33-a25f-c546722e2b0b","block_type":"box","text":"e.g.","page_number":172,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"3644a1ad-3210-46a4-9beb-6ff1a4b85f7a","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":172,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"0db846c0-7b10-4129-8cf0-600cf90573bd","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":172,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"a00b734e-82f4-4732-b9e6-b5922c0d94e7","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":172,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"677d761b-3f7b-4d4b-a5ef-6b583bacdddb","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":172,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"8229c687-ce23-4c8b-ba76-443db0b34e4e","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":172,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"280dcd6e-8b43-4a02-9cd5-0ba9d56f820a","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":172,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"2ad5d17d-7f51-43f9-be44-701c50424f9b","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":172,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"a2167882-b147-42c6-9716-dd51770aba18","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":172,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"3511fac1-1348-4737-b66d-b200fa534726","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":172,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"8a8d1ead-ea5b-4e1a-b624-10897beefacc","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":172,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"08228b26-37fe-4e90-8ee0-b6fd701258ca","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":172,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"c8c8d07e-4aa4-4ed9-b8fa-fde843c8b147","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":172,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"48316d7e-ea9a-4f48-a04f-6567c09a5ab9","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":172,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"1c1c668a-b51d-4758-b97b-72bef758623f","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":172,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"8f2a59e1-706c-4ffc-98db-bce1a82a96e4","block_type":"box","text":"within each applicable state.","page_number":172,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"7098e5c5-f8fe-467f-8ca0-01489231cf10","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":172,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"ef6dc134-798c-41a1-9b63-740cd1e0c064","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":172,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"2976293b-a106-48d5-a4dc-cab5ead16bfb","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":172,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"6843e174-3047-466e-99e9-9369a8163dde","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":172,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"7f7d3616-e1ae-462b-a8bb-7a6a784dc0ba","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":172,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"dd3cf68c-5f2e-4325-892c-fe9084c8aba5","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":172,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"73b9dd3c-b077-42b3-848c-c4a983a2639a","block_type":"box","text":"II-136","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"69903d01-4d11-4de0-8bf2-0f215c1df71c","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":172,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5383cc32-e877-4d4f-9747-90d3da2f9347","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":173,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"2fb402a9-7790-43c1-a7cc-7328f562aaba","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":173,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"fc718c40-361a-45da-b663-fae501133ebc","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":173,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"a9a1dcf3-9dcd-45fb-9a27-6f3e246593e4","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":173,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"5c73b4c7-63fd-4d7b-a787-346bd78c4731","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":173,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"5a6f4ac2-707e-49a5-b3ba-a8c6feed2a05","block_type":"box","text":"exempt from state income tax.","page_number":173,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"89187a27-2c11-4b05-809b-8c10bd4706d8","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":173,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"c55bca38-a27f-459f-bb1f-1f0040bb4265","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":173,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"46018396-aa71-4395-9912-920597e26e0e","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":173,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"38836658-a177-4a98-80a6-274b5561e05e","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":173,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"e574f6c9-691b-4527-8550-988c2f7b1e0f","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":173,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"6f398cd2-ceee-4d52-b2ee-b4727a2e0f17","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":173,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"e459aea9-f796-4c28-b1cb-b808d2493ba1","block_type":"box","text":"decisions may have a retroactive effect.","page_number":173,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"afc4e548-9ae7-49ab-943f-9fa5d18dd152","block_type":"box","text":"PERFORMANCE DATA","page_number":173,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"23ba395e-bf0c-4101-a20e-6d07fadae82b","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":173,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"22e0b2ef-30cf-43f0-a338-3b512b968427","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":173,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"6224bdf1-c5e8-4020-8eea-b07c9e3df894","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":173,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"3f3163c8-4d15-4098-bb91-101849b7bf13","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":173,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"4915f227-b1a0-4043-9eac-cb3b1b81ddba","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":173,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"f1f521ac-2614-44c3-8c4b-4430978e9689","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":173,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"b6fbcb09-9f53-461f-8431-7666060effcd","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":173,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"e6509775-a5be-4a5c-a4d1-18b68903d9e6","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":173,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"f87fbda2-08a4-4a7e-b1ed-e5716e58d40d","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":173,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"7c7d4ea2-7b01-4b27-92f8-f067c49fdd21","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":173,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"1ddf1fac-5cbe-45d8-b0ef-2d88cd6114dd","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":173,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"2fc2cc29-1035-479d-add3-11d51d6102a8","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":173,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"fc6fa915-c50e-4522-9c6d-ff684b31fb1c","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":173,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"2429bc29-0a69-412a-b7ce-aeca47cfbfad","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":173,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"83b803e4-7dd7-4d01-a692-a105482d8b3e","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":173,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"2984d3aa-3558-42e2-bb76-3f32899ef1f9","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":173,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"f7e54e03-75c1-4ce3-8d8f-392479897f6b","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":173,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"39cc554a-59ac-4ad9-8285-033b5095e459","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":173,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"2b0c6ab0-6500-49a5-b4ce-f06c73db8b6e","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":173,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"b80fe999-f523-4f32-b474-c5acec4ff482","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":173,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"bfb3c2ed-a61a-4f56-914d-1297f4f0532a","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":173,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"5bc28d8e-2927-4abb-8318-3f29fb3f0401","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":173,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"6d18f30a-76a3-4913-922d-4979e1d8e673","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":173,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"b8d78955-255f-42d0-a860-a2c123a44e9c","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":173,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"ac55d2c0-25e5-492a-b9a2-fa2d7b7574b6","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":173,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"c8d9bb2e-d74a-4ea5-b072-1f4c28306da6","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":173,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"da801732-a209-47d6-83dc-4586e3f4a2e5","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":173,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"67e77107-661a-4855-ad81-cfb0a470303c","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":173,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"fc6168e4-3593-4918-bd7e-dd1fa2d6863a","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":173,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"1efcb9e3-0386-43db-a36c-2c413d701fe9","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":173,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"00f50cc7-06ba-46b0-b583-82dea4fe4c4c","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":173,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"3d4d17c1-8744-4a6d-a08c-d014245f8188","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":173,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"fd686407-f526-473c-9d56-5b2896cd553f","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":173,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"423f43a6-7973-40e8-92cd-f8594c1dbbcc","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":173,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"35bb0427-96e6-4ecb-9a1e-ce527482c556","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":173,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"aafa0889-e98a-4918-be5b-8b8a6c21f4cd","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":173,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"7ed21837-3f50-4809-8e44-5bb402644141","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":173,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"6b6b5f64-ee5b-4c58-8b09-47c62ef4a09c","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":173,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"4ccbf24c-968f-4e12-91b5-0c7737b3e682","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":173,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"dc3ad0ba-44cb-4902-a51e-a407db7e941c","block_type":"box","text":"II-137","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0885607c-6757-4a62-92ba-16674a16ca31","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":173,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"779ae29d-a30e-452d-b179-1cc305757ea2","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":174,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"5404e6e5-4f52-44f8-a740-d3052280e342","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":174,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"639687fb-4629-4bec-87de-854c1c9b9800","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":174,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"ce3df719-62fd-42f6-a586-64af64dbc0c3","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":174,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"66b27f6b-40b5-4508-a46f-ed2f5f4da97e","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":174,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"75f63d1d-7531-4d12-8cc8-c01067b20449","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":174,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"4a128a3b-e26a-4779-8a74-620febcdfdc5","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":174,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"2dce4605-d761-49d6-ba5a-43e7f2f6250c","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":174,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"96f46b99-426c-45fe-a826-70d02c235027","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":174,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"15137fce-a727-40c6-8887-f6508e4d358a","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":174,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"3fac3267-dc6c-40fe-8d04-cade52849c11","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":174,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"4c96ad4f-61cb-4147-a8b0-45dac758bb76","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":174,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"01630ba7-1238-426e-b9a3-54be595b3307","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":174,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"051abf7f-0463-4bf3-92a6-e491096ec34f","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":174,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"3f788f68-a18f-41fa-b5db-1c7c4aae4be6","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":174,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"6a28c477-0f35-4fa6-ad9a-bfa3608f8629","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":174,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"4f4df626-8512-443a-95bc-7125d8d95e38","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":174,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"32b6b39e-64d4-428f-a5aa-fa3be78f9d81","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":174,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"fc070dae-979e-467a-9492-2200899161ce","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":174,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"c77f1a0b-dcbe-4bb2-a4de-00933332870b","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":174,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"57322b20-3091-416f-a3a0-b30690fd96a8","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":174,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"060d9990-a57c-460f-8532-1d60ea948174","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":174,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"95efbafd-0c30-41cd-b6c9-23773af1dd8b","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":174,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"d53a7d47-d887-4419-8810-3592027a8bf6","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":174,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"0b6cc339-fd12-48b8-9ec8-ccf91c70f1d9","block_type":"box","text":"less than their original cost.","page_number":174,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"b1f919c4-dffe-468f-956f-0ea3b232a193","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":174,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"1cdd1cf2-97b0-4ba1-ba8a-1697760a023e","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":174,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"88e9a10e-c3ec-4caa-b217-f6f531564d69","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":174,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"0de0399b-1489-477b-aa94-73076ce358f4","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":174,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"051d2dd9-5d1b-4bef-bf9c-570d5742e2b5","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":174,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"67551656-e441-418d-bdb1-e9a585701d5d","block_type":"box","text":"lower amount of expenses is deducted.","page_number":174,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"e93ca533-2d27-4e41-8248-d3df3d053d19","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":174,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"b63f7333-32e1-4ecc-aa9f-72d0f4989e79","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":174,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"6ae00881-f1ab-401f-ad77-6ff381defd04","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":174,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"95680299-ffd2-4e2b-a581-a1823bd8839e","block_type":"box","text":"Money Magazine, U.S.","page_number":174,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"9f7de14c-d252-47c9-8298-0f4dce71058b","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":174,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"01ca845c-c989-4332-948a-b0d40540a611","block_type":"box","text":"or other industry publications. When","page_number":174,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"b0ef4d2e-d5aa-4324-aaf3-be114e1c05d9","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":174,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"894f21e4-450d-416b-be7c-b38e37be8fbe","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":174,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"6cecf7e2-ef18-46a0-b34f-878f11822a28","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":174,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"1473791e-636e-49ff-aa7b-b78bafa0ad02","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":174,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"0e05387e-4a8d-435d-b0b8-d59cbb076852","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":174,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"f3dbd2c9-b193-4a21-bcca-f58f53cd26a0","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":174,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"bbbc2e9c-dab1-4f0d-bbde-1ab2cc69aae0","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":174,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"eb83ddbe-0f31-4fd6-8abc-d06240bbec3e","block_type":"box","text":"developed by Fund management.","page_number":174,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"c199c595-87a5-4ea1-9605-1c1c100435a2","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":174,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"b2e82a6a-c08a-4407-9e5f-0d5673d9ae64","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":174,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"392a9392-4f8f-4057-9b74-4670ff53966b","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":174,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"98717382-535b-4dba-b5ee-429cb469c57c","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":174,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"6aa1a51f-d5b6-4418-8d50-d3e1710bd6d1","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":174,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"6f21ec95-fc76-4402-bb5c-d8e01f596967","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":174,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"2b6f7e6a-1cd2-4b25-8230-cff49ced7af2","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":174,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"901b94de-b2f4-4264-b872-c3fd28da1c55","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":174,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"ea0f0072-6907-4642-8b32-d2824d11d594","block_type":"box","text":"II-138","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ea3ec6f7-22c0-46e3-90d7-9c53e3582842","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":174,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"6cb5f1d7-9415-423d-932b-73e030f2fb59","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":175,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"987731ac-9c72-4b00-b6f2-444e6cb02456","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":175,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"8caae8ea-7569-444d-8904-2c3ea1ffbedc","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":175,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"98e67a58-16e8-4913-95a5-f39586d4d350","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":175,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"72858d70-0d2d-4448-9c4b-254c77b4c0aa","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":175,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"c6b104d8-0021-4743-9b53-4098bab1c6a3","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":175,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"23aa8594-1e94-48f4-915b-6f8120bdd00b","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":175,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"d3060299-618f-4711-ad32-15af78f44d62","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":175,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"f34dd08d-4823-4504-a4db-313ff0da1ea7","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":175,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"8775f89b-10c3-40f9-8127-4d691709357a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":175,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"6cda2c5c-39a0-471a-9aa8-f231e060ca42","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":175,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"e5eb29b6-f6b6-4e94-9c87-b0bf018110ff","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":175,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"10dc2a04-f1d8-4039-81fa-0ab2e1b2d61c","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":175,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"703f4e8c-e78a-4c2c-b79c-c76539fdf995","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":175,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"453f3bcf-3f70-4593-a107-320b2859b0b7","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":175,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"7e9db93b-d577-4535-8e47-7ae097292cfe","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":175,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"cf704673-9765-4c98-95f9-cdfb540db222","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":175,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"41f5c0c4-f9b7-425a-aa01-5e07f7a050f8","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":175,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"4114e89d-bf10-4eb7-aeab-59f536668bf5","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":175,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"fdef71cf-07a2-483d-b7b3-6bb9fd210a4f","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":175,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"f3fd9ffc-a4a1-40f2-ae8f-beb7e47de4f4","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":175,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"1ec9438a-3ac0-4c1d-b9f2-438f1c5d6c29","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":175,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"637e7dc1-8ff2-4320-8bad-d8541223a4f2","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":175,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"3c9de76c-e3e6-4ded-b9a3-6f1923f6a7fe","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":175,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"28cf4e7a-c0c6-46d4-9a40-e855ae89c91b","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":175,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"12bcb994-5dc1-43a7-b3a1-673299fb4178","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":175,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"5a174053-40fd-4766-a8dc-8d73602bed47","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":175,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"5565f0f3-e475-4c20-a047-a8c80ee30119","block_type":"box","text":"GENERAL INFORMATION","page_number":175,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"13bbdf5d-accc-4033-80cd-6f0245e1f799","block_type":"box","text":"Description of Shares","page_number":175,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"06ecd0e2-9ef5-44f9-ae5f-da41db80db72","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":175,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"53b40b1e-65aa-411a-989e-d3c0d30a1d9d","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":175,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"4bf56535-6e29-48bc-b2c7-44c99e003749","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":175,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"d8d3e3c0-87a4-4ea8-85e6-82b81ed27576","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":175,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"c81c7253-0ed4-46ca-b680-871679d8aaee","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":175,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"b1d1c1a3-bbab-44fd-9072-fa704ae61d1a","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":175,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"6e436ae0-abe1-4432-878d-1fa69ade1213","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":175,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"d3fe91fe-e3fd-44d1-8751-f865f8102f4a","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":175,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"6bf2677b-f1d0-43d5-9743-dee79979df1a","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":175,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"cb21adc7-1f8e-4ed5-a82c-e3da73943bf8","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":175,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"a996b6a4-99b8-48ca-a96e-9e2f8312116d","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":175,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"4fb89933-8f10-4559-a816-0c01bb5d6019","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":175,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"9e46d731-5079-4ef8-ae0a-418b5d00155b","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":175,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"74373fd9-ede2-4fc1-aa82-f6e0ae0e97f8","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":175,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"e6f6d98a-7a5b-4872-9299-78f6d3674306","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":175,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"3d5a7ee3-7006-4cc9-bf3f-726c02cd8340","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":175,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"5fc55b76-b075-405e-a23b-42525e2698d6","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":175,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"a8f5be0e-5ba0-4a84-b86f-58209b78d46a","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":175,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"e552dbaa-a1c0-467f-9916-d033ef013440","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":175,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"c976f53d-dad9-4618-9ce7-52b4ce88a9c1","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":175,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"825cd3ef-c35f-4b03-8470-06e96aa2fb2a","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":175,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"84a84af3-d3ed-4f46-ae26-049dc6d14702","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":175,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"cc957302-5c54-4c79-889d-95a1cedcf35d","block_type":"box","text":"II-139","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c652d36c-0f1b-4013-aa57-881c3a05006a","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":175,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"fbbf438d-55e2-4822-be26-5e9d2cd5cd54","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":176,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"215e7972-07c5-4276-9d2a-6c7a5d3779ba","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":176,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"8e3d102d-ccc1-4dec-abc9-fa4f251d2517","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":176,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"40af38bd-ce21-42de-b9e8-f1c7eba7496f","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":176,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"194f5918-8693-4089-abcb-5a13f902cae7","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":176,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"a5877330-53a1-42a9-bd52-b7930b9a604c","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":176,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"d27b75a9-6851-4d6b-81f3-0a9d6969be54","block_type":"box","text":"Additional Information","page_number":176,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"bd312dbe-23ab-47d8-8d25-06b8bbec2d03","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":176,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"23df13a2-45da-458b-ae77-fb4efb1a2502","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":176,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"666cae6b-29b3-4195-a65f-ffad0591fe0a","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":176,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"25646c93-4d88-4deb-b17a-ce1adca6f37d","block_type":"box","text":"such name to any other company.","page_number":176,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"94d4ff0a-9c46-4c83-8d4e-a660587ba2ac","block_type":"box","text":"II-140","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8f948be0-6741-4fa2-bbcc-2b851225642b","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":176,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"68910f28-8b09-442c-9b92-9c5480e5f2de","block_type":"box","text":"APPENDIX A","page_number":177,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"afde678f-97ff-4121-8378-88414585f50c","block_type":"box","text":"Description of Bond Ratings","page_number":177,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"6f5a7fa5-5d6d-4521-aadd-d9b97fb45a56","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":177,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"d8b6d445-d17f-4758-9605-50f69803a8e4","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":177,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"c4dcd853-8bac-4b60-be33-4d9a260b187d","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":177,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"9dfcaa40-0ee1-4f38-835d-ed9965aa91d7","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":177,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"e38dab26-a2ce-47e9-a58a-7a410261c8a4","block_type":"box","text":"securities on a particular subsequent date.","page_number":177,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"a616f5ac-84bc-47d5-b215-0920480d0577","block_type":"box","text":"NRSROs may rate specific investments (","page_number":177,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"9f437606-db51-4091-87e2-836e2745c130","block_type":"box","text":"e.g.","page_number":177,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"0500d5d9-153a-4e2d-8a9c-703f5c5e7027","block_type":"box","text":", bonds), issuers (","page_number":177,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"6a5b918e-3b55-4d7f-a803-4d31f2b2311b","block_type":"box","text":"e.g.","page_number":177,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"6db18a14-29a5-4715-b374-2fb8dc40da2a","block_type":"box","text":", corporations, governments and financial","page_number":177,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"05959a34-aa4c-439d-8a71-00b88a23475f","block_type":"box","text":"institutions) and/or programs (","page_number":177,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"2417c534-c223-450c-a6ce-ab0345148e30","block_type":"box","text":"e.g.","page_number":177,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"a63116aa-d9ad-4e21-93c1-36524a40e0c2","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":177,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"19a81979-b41a-4775-94d4-c0c9ddfb292b","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":177,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"46201bd7-62f6-4987-a2b9-8398c93cfd2b","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":177,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"c97d81dd-625f-4362-b626-a07450b01a2e","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":177,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"886af068-566b-4ce6-a72d-70ab33d599d3","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":177,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"24218465-7428-43f2-a8c6-3e99ca203826","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":177,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"31401922-731d-4f06-9a2d-b4d48730b959","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":177,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"391ff4ec-38af-45be-9b72-b15ec3d2be8d","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":177,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"b7e393fa-b672-4411-84c6-83c5bb783acd","block_type":"box","text":"security (","page_number":177,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"40998c6f-3bf5-4405-a814-d1fcd9a33979","block_type":"box","text":"e.g.","page_number":177,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"050d24ce-c578-4cd2-b55d-c6d05be8d833","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":177,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"4bc7e966-b8cd-4571-bf81-de5345f9c3e9","block_type":"box","text":"highest of the multiple ratings.","page_number":177,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"167e7743-eb0a-4d71-83a3-4c469fd11585","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":177,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"e7b7f367-f651-4fa5-aa6e-f4e8df53b5d1","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":177,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"799009e2-7f9b-45e2-bb9c-795d0ecb90d9","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":177,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"b88d03a0-e012-4146-a2c6-551960be97b1","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":177,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"a6632370-cfba-493f-ab8d-d1da577953ac","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":177,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"c3605548-3580-460f-8060-94ea4da82b43","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":177,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"1661a5ea-3792-45fc-872a-4cd7f157da3a","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":177,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"36d0c765-9b1e-408b-a519-14dc0a0efe97","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":177,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"e50a04d0-b928-4784-8473-25da75f07c8b","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":177,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"6980a2ac-d239-41b4-8d1e-4c8b05894065","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":177,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"06bd4df9-abfe-4357-82e2-2379c6af66c1","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":177,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"ac867fb9-3ff7-4b85-ad80-fa700af95037","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":177,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"9737974a-ebc7-4d60-9262-d6e563eb92fd","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":177,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"18eff868-5860-4edd-b77e-7f37501ea401","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":177,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"45a2c3ba-35da-4f36-8db2-8d11f2edffdc","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":177,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"30b599ad-2792-4cda-b02b-ae9f8fd07917","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":177,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"474e91b1-d0f2-4197-a6de-4766e03bad8d","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":177,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"e5324023-9e9e-4687-b32e-e80aa3a4684b","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":177,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"5d7482f0-9c90-4882-b8fa-bf1002256d16","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":177,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"feef8f28-229e-4b52-a56d-d172baf1e04f","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":177,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"d03e741f-73eb-4a20-9e22-28f49318e4d3","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":177,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"f2271de4-2146-4a1a-815f-f1e21b51e8b5","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":177,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"8b10142b-dd6e-4c78-96a3-db73bed26e09","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":177,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"7c6e47f3-1782-44c9-bfd8-947bae1ddb67","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":177,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"863b9a33-c88e-4658-b6f0-94e2d9a04250","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":177,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"bb8c0c67-cf63-4953-b589-f45ab99d3854","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":177,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"28baca84-9673-40b3-97d4-990fd4c81eb9","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":177,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"d370ce9c-3c34-426d-8e2d-7b5d078b06ee","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":177,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"6f8e8cc3-9a14-47cf-a3f9-bfed950973ef","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":177,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"d22270f5-007e-49f8-8c20-5a1f84689dc5","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":177,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"82576db1-886c-4f97-97ab-1c5ee2e13787","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":177,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"e3298999-c10b-4788-8a91-62c0b0e89e53","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":177,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"1578241f-0bb2-4dc3-a478-f20cbcad7375","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":177,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"6d286a00-defc-42eb-a927-208ac4b8d707","block_type":"box","text":"upon standard sources of variation (","page_number":177,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"bac21eeb-93a4-403e-8d79-5f5dda9883e2","block_type":"box","text":"e.g.","page_number":177,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"9733c857-71f2-446b-9f4f-3f86f7f15b79","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":177,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"ff440288-160f-4f46-819e-be9c0e359f46","block_type":"box","text":"A-1","page_number":177,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"4059b144-5183-4883-b384-69e90b31eca9","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":177,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d9c83839-6df1-4d93-bd2a-d5cc4b51a912","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":178,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"5a16a78c-4c60-4198-9cb1-55e9ffa2ae8c","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":178,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"9f55191e-12ae-47e3-9780-8ce921a1e9aa","block_type":"box","text":"e.g.","page_number":178,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"5285dd17-dfd5-43dd-b64c-1048b49d0c29","block_type":"box","text":", equity indexed), absent","page_number":178,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"5ebb23c1-3517-4a3e-b588-76d3afb62e99","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":178,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"88f9aa20-4cfc-4a43-a9f6-542f20dfe032","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":178,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"59761324-21ac-445e-9bbb-bc366650fc9b","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":178,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"0e00725e-c937-444b-9c64-d6ae298d7c00","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":178,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"d7596900-16b6-4a2a-be02-38c24f6ed23c","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":178,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"407f9771-e96c-4d46-a0dd-f6312c2788a1","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":178,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"59379e6d-8c62-4d6b-9c75-f26d0048cb6c","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":178,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"3e93accc-18e4-448d-87e9-cbfd62151e37","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":178,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"9c76169f-7f4e-4ffa-bb69-d9aa7cdf8bed","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":178,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"c5e83b09-83dd-4d63-a710-d1a90dbc8360","block_type":"box","text":"i.e.","page_number":178,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"5bccdbf0-a24d-4636-975f-37f3a8995937","block_type":"box","text":", ratings on nonfinancial","page_number":178,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"3141720c-cd32-4412-bf6a-35780b90116c","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":178,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"9fd1dfd9-d13d-4476-baa0-3e9d5dc90734","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":178,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"8378c8f3-3e42-4562-86e1-b93956d0875c","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":178,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"cc01ec85-109a-4db1-9944-e6c25e727986","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":178,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"4424554e-4ed6-4b48-91ae-32eb3a3f5149","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":178,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"75bf1746-498e-4a7e-ad22-4d2fdbb95e14","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":178,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"729a3e1d-79cf-4786-91e4-d76624fb7dad","block_type":"box","text":"of time.","page_number":178,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"8564773a-025a-424b-9e32-45e01212ca34","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":178,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"e98d4325-669e-4021-b07b-72c4cfaeff6e","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":178,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"222e9201-ebf1-4334-adcd-71819d8a785a","block_type":"box","text":"risk.","page_number":178,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"d6b94e5d-f621-4e57-b33c-efc7697da279","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":178,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"ce277db3-0e54-42d4-a6c1-07be58a40a21","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":178,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"cc1db78b-42ae-4a85-9905-7a6377fb0001","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":178,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"defae1dc-e587-48c6-9862-012113906dc8","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":178,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"847b0aa8-e8cb-40c9-ba9e-dca9da26e379","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":178,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"625f51ab-b510-4911-b647-afb09954eeeb","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":178,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"926ea302-a39c-4801-8e37-b8ecd17eb479","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":178,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"c05bfd2f-41bd-4d47-a386-6d6da13a4f13","block_type":"box","text":"credit risk.","page_number":178,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"5e5c0458-ab71-466b-ada3-cfb1953f023d","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":178,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"a197ae54-72ea-413f-9e25-8f98d5c372a4","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":178,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"b728eef2-99e5-4452-9923-3e0adf43c70c","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":178,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"552e5f1a-3e77-4fd1-b931-162644591785","block_type":"box","text":"of principal or interest.","page_number":178,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"e96256cb-f7cd-4467-9fe5-48328cbe6953","block_type":"box","text":"Note:","page_number":178,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"f0ecff94-54d3-4495-b194-256048172f18","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":178,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"0f82b68b-5590-4a9f-856a-afe00afbb9cc","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":178,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"171cec00-6195-405b-8fec-b39a021289f7","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":178,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"63fad4e6-db2c-41ce-be8a-2d6fe4f22b9a","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":178,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"9b5f8584-61be-4895-977c-2b7b0d91ddfc","block_type":"box","text":"companies, and securities firms.","page_number":178,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"abccdb1d-a2e3-4116-b788-c24564630d96","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":178,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"79eb8597-51e3-4a23-baa1-c2c409dde05e","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":178,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"940a3482-537c-43a6-ac71-91afe90f26c8","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":178,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"d676b063-ad5d-409c-ab6b-13613244650e","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":178,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"c29de1a5-daf9-46ac-87df-e389c4009516","block_type":"box","text":"that security.","page_number":178,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"61e25830-0409-4561-a2c8-c9efc7670a01","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":178,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"7b46ddf8-189b-42dd-9fc9-ebfff0c66f8d","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":178,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"7bc5be47-e385-4493-8ed8-3f90970b05ca","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":178,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"721470dd-3394-4a14-a459-2b5ed42fa502","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":178,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"05ec3f13-a8b3-47d7-8d5e-ca45969532df","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":178,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"c6cd6c04-e358-4cc9-b9a6-eba6743e1fb6","block_type":"box","text":"categories.","page_number":178,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"6bde8320-6515-4ff3-8297-807f709a3dcb","block_type":"box","text":"A-2","page_number":178,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"293758f6-b072-466a-a7c7-a057810aa42c","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":178,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f26769a1-6121-4bc8-8068-943c89592074","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":179,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"3e3ceb60-b319-4511-bb2a-65f12c2ed442","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":179,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"8ff2faa2-ac6f-4972-863b-526dfe79b5c1","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":179,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"65b33d04-24e3-418c-a942-d307c8d686aa","block_type":"box","text":"an issuer’s self-liquidity.","page_number":179,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"26168c72-96dd-428f-a351-cd484d7aea86","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":179,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"fb1abc8c-c0b3-4979-84c8-d3ec45104235","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":179,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"8df0c003-d502-48ac-b136-8f2fff155b35","block_type":"box","text":"MIG Ratings","page_number":179,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"b478ecc1-7650-4186-aad9-a2286ceba208","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":179,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"8f222316-5a33-42c8-9703-573c720825cc","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":179,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"278c1b95-1970-4260-8ee5-449f29b0573d","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":179,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"a1891154-4d33-4e20-b4e5-c606943ee0bf","block_type":"box","text":"MIG Scale","page_number":179,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"1cd43767-debc-4e60-b00c-619fbd61bbd6","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":179,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"3eb41e26-2f72-4e99-856a-d3f8ff093411","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":179,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"4d6a0e16-f959-439e-b11d-1499c67d34d2","block_type":"box","text":"refinancing.","page_number":179,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"0b567b9c-c379-4479-83a6-a387f493f5ec","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":179,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"cd159e96-7dd9-42a9-a506-af43506948ac","block_type":"box","text":"large as in the preceding group.","page_number":179,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"132a24f1-dc3f-41c5-9a1f-78b622ed9a77","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":179,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"e5b9731e-97d5-447e-b1e2-4bb722ce01be","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":179,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"251965b4-3ac0-449e-8dcf-f12b805472c7","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":179,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"020a2748-4b8c-4ddb-9947-2a4580a7721b","block_type":"box","text":"lack sufficient margins of protection.","page_number":179,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"09a87031-a686-45f8-a1f8-cf136b117ce2","block_type":"box","text":"VMIG Ratings","page_number":179,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"8bb9e3fb-1fdf-4fed-9a4e-2fe92812a8c9","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":179,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"d5097667-5290-4196-a878-40535b333c1d","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":179,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"02d2865b-6b0f-485d-b127-de40aa0062f4","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":179,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"c46467a9-74bd-4347-8e4d-80752415f7f1","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":179,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"38c099b2-ff54-48c9-b5a8-8c5d4401944b","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":179,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"a1b67af8-a082-4d4a-80c1-89bc56923bff","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":179,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"639cf792-373c-489b-99db-f17d32231766","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":179,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"ade1f36b-2e51-450a-a6b2-1a0d488888b6","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":179,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"b1a778df-b02f-4cf8-bd46-4e9dea0479f9","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":179,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"f1450182-8a61-4e0d-a960-d181e6516bd7","block_type":"box","text":"grade.","page_number":179,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"49494827-141e-4e56-a182-4883527a3297","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":179,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"26f5d155-4404-430f-950c-e4d96b65738f","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":179,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"546b038c-1a81-4ea2-ab89-06c04ef29fca","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":179,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"63132117-deb9-4901-98a7-e434f3d21a30","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":179,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"cec7478c-bfa8-449a-a5fe-d4bfb41951b1","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":179,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"b3905c22-4732-4a6c-a50e-2f3e2cc3ebcf","block_type":"box","text":"liquidity of the corporate obligor.","page_number":179,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"cdca2257-f4c3-4eb7-9ea5-a12976dd71c7","block_type":"box","text":"VMIG Scale","page_number":179,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"030b7ca5-a987-4f38-90c5-04c01c8d379c","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":179,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"268f43c8-e87a-4fb5-9733-033b179e5199","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":179,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"d460eebd-8596-45b9-9683-eca944bae818","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":179,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"9dd866b7-9707-4f10-b1b6-7d519602dcca","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":179,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"4be006d2-50f3-4eff-8f53-ccc257e6f918","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":179,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"98ce1d84-61fa-4cfa-b95c-65e1a53094d2","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":179,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"460456c7-784a-43e4-9ee4-e6b54e19229d","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":179,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"0137a548-f3c5-48e7-afaf-683cf33d4d89","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":179,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"f7df248c-e948-4528-8b70-c38cefbae58d","block_type":"box","text":"may lack the structural or legal protections.","page_number":179,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"b375761a-db10-4fd3-b212-56e0fe4e9bae","block_type":"box","text":"A-3","page_number":179,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c4d93144-4393-4c2e-9701-79ed50f44b61","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":179,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"bd9873ef-296a-4f66-9d03-965ba56e139c","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":180,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"d194681f-825d-49c3-96a5-c79c99b8742d","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":180,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"806b19d0-d06e-4d6f-b37f-fc9625d9ddf4","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":180,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"81c84d61-a1ea-4b41-825e-db4208512980","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":180,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"358fa6fd-8d9e-461e-bb07-d3a785d6a768","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":180,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"de149bd7-437c-4aec-9cc6-2af167520287","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":180,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"30ed31f3-ba8b-4d40-ab30-caf84fe1a979","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":180,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"30861b1a-50c0-44dc-a69f-525d5b15bacb","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":180,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"84d6979c-f120-4a1e-9e48-4047a2ab6d80","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":180,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"1222f6dc-fe17-42fc-bf05-cef022d2df88","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":180,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"2aee3c18-1564-4e8a-8676-730807b5b0b6","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":180,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"765ef203-b23f-4de2-88ad-994b90285ae1","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":180,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"2170fc63-10db-4e5e-bf28-66fbb40c9fdd","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":180,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"3f29b2e9-8586-422c-9abe-0b512c61e3fc","block_type":"box","text":"from these guidelines based on market practices.","page_number":180,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"ef364a5e-6482-4bfd-9e27-b6c7b66fafd5","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":180,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"52316cc6-dd77-4995-975b-6760835fac98","block_type":"box","text":"•","page_number":180,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"a879fe2d-9017-40e7-ac00-292c3a31734f","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":180,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"f95d0021-5668-4d0b-a690-d9d9e5bf97be","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":180,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"ac53610b-3459-4d97-97b8-fe7069de4733","block_type":"box","text":"•","page_number":180,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"f294e507-c589-4c38-abbc-97a52b3d18a9","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":180,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"cc8fd400-f65d-4035-ba2e-1c59f51b96cb","block_type":"box","text":"•","page_number":180,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"e55a1a18-8283-466f-917e-28678b8d7943","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":180,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"22f87ef9-c9bb-4d3f-9989-3a1205a5a465","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":180,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"6f5594d5-3561-4d20-be6e-414b672f73fb","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":180,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"8a93985c-7e29-47e8-9e6e-901cca2bed40","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":180,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"f5db2a12-8c3f-499e-b1ad-22f271348dce","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":180,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"549bd570-0b41-4a29-b5cb-6d53bcbb3e82","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":180,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"fd700029-d198-4828-8474-3e353de94039","block_type":"box","text":"obligations.)","page_number":180,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"8dac59e0-41b0-446a-aa8c-26d6f658f781","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":180,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"89ab22b9-6944-47f5-b03c-4b53b486634c","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":180,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"08bc8516-65e2-4ad5-a21f-18ad73eb57a0","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":180,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"2baa53b7-92c0-470e-9e4f-02f8368ff74d","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":180,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"990e1bf8-1489-4be6-ac6a-3cc0793b4fe7","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":180,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"ff4dc3b5-f9a9-4399-b262-6d062f2619c0","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":180,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"7cf6c7dc-cbe7-461b-8d0a-48e4589e37b0","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":180,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"4dc9cf8d-f6ab-4d3f-a55e-067f4bedb410","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":180,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"f01ac114-cfe2-46a4-868f-20310020602b","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":180,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"f142c497-a10c-4c49-9007-cb53ecf7b8d3","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":180,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"a354d679-b4df-49b4-9da2-265023415c4c","block_type":"box","text":"financial commitments on the obligation.","page_number":180,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"eb3cb27d-7a0a-4f94-828a-7d3f4ffe54ee","block_type":"box","text":"BB,","page_number":180,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"fcb888a1-33e4-4aa8-b614-b8fcfb41587c","block_type":"box","text":"B,","page_number":180,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"c5294d30-d66b-47ab-9c27-3d6712af3ce4","block_type":"box","text":"CCC,","page_number":180,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"d09a8034-3ec9-410b-9cb1-98dd3348735f","block_type":"box","text":"CC,","page_number":180,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"740d02f1-8657-42dd-a749-ad0843f423ed","block_type":"box","text":"and C","page_number":180,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"d89432d2-24ea-47b5-bf91-207fbec2ea62","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":180,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"75c31c8d-6790-4ca4-b1d4-dee0a58fd765","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":180,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"ffa82770-5953-4795-986e-4ac0a191b934","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":180,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"551a9c97-35e7-4f99-930f-2e3ccf8c3349","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":180,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"507faa1b-363b-4f40-a1bd-b53a05a103c0","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":180,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"9fed3322-74a4-4aa4-b379-a5c83d7e7bcd","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":180,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"9de29fb4-f498-4ff9-a926-a47591a512ca","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":180,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"ff73ff85-3fa5-4f04-b102-91ea586f1e25","block_type":"box","text":"on the obligation.","page_number":180,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"c801cf96-f756-49ba-aab2-4ff2523a9110","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":180,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"3806af96-19f3-4060-ad75-26213b7dd564","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":180,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"13e6aeea-095f-4ca0-9225-f8fcd061d30f","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":180,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"2185838c-cbe6-4335-878e-a34db8e0b0cf","block_type":"box","text":"financial commitments on the obligation.","page_number":180,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"ff58854e-1957-480a-bf28-50853573ba8a","block_type":"box","text":"A-4","page_number":180,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"0645b6d2-102e-4a21-b8c7-14d8c1ba5c81","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":180,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"24fd0898-27f9-4405-8e24-d06886eb1667","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":181,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"14f03213-2323-4827-b902-2734a3b8c9c9","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":181,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"71a79145-3cd0-4f70-9aeb-81bc7202213c","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":181,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"a5442a17-d548-4470-bad2-310de8b7dd8d","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":181,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"44ae81b3-7cc5-4ec9-8267-a5331f45384f","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":181,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"43c7562d-73a9-4da6-8355-0e96735c742e","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":181,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"30bf53a7-dc96-4b7e-b5d2-9a70ff392f16","block_type":"box","text":"anticipated time to default.","page_number":181,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"6110ac2f-f8f5-427f-a958-ee04d16fb167","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":181,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"3ad8440f-5ff7-4dc0-a16c-80cc30f926c9","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":181,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"e9918397-139a-4a00-ae61-733535e22eb8","block_type":"box","text":"higher.","page_number":181,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"e9affb81-dec8-4140-82fb-115c8703c8ee","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":181,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"5693775d-3f6c-45b7-a03f-5a7a7e848db1","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":181,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"84211940-4f6a-40bc-b050-a2c3947bd077","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":181,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"8c116d4a-c36a-4469-8331-8d883a2ba019","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":181,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"f798e41e-c7eb-4371-9ee2-f42033bfe357","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":181,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"4c02eaaf-a36f-4f27-85ab-56b54da41ac4","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":181,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"c84d82e2-7ec5-4874-9246-c6aea173384f","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":181,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"bd5bf0e7-f48e-451e-9cc3-284a1dbac6af","block_type":"box","text":"restructuring.","page_number":181,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"adf931fd-df43-4830-bb87-ab81a354441c","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":181,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"0cf0bf3a-ef53-4b66-b4b1-1c9bcf1c8be4","block_type":"box","text":"standing within the rating categories.","page_number":181,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"90c24225-b0cb-4546-9a48-01983cd4e091","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":181,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"a863c19c-47fc-4d7b-8b9a-04e464e1496e","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":181,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"32b28a33-7685-48f0-85e8-01c93b3c1a49","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":181,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"5cf11fd1-c542-46bf-99b5-1f1028d09a53","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":181,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"6242948d-84ae-4e5a-8463-4a88166ab88f","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":181,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"97a201b2-6e5b-46f2-b20e-e7de6648cbd8","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":181,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"01cf7a25-013c-4020-a7da-beea7d15d261","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":181,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"85869db2-67d7-4401-b11c-ba35ba588ee1","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":181,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"cbb89e57-425c-4276-a696-27a2c3fc99cb","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":181,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"bdc367d4-0ba9-4b50-a03b-d7c0c2eb93db","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":181,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"2fd30d8b-cdc8-438c-90a7-058aa5330870","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":181,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"54a0f6e7-f1a3-4f66-8acf-7b8337ab7bb5","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":181,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"1b5a3253-3285-46c3-b0d1-06b95821ebbe","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":181,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"a6bafb51-765c-462e-96c3-d214c23dd31e","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":181,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"1fb0e1d2-4105-4f51-b63c-8836fadab6c3","block_type":"box","text":"financial commitments.","page_number":181,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"b1739b0a-3294-4d24-9b41-4bc81162cfbf","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":181,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"91945d7d-9cd4-4f06-bd4d-6baa5c8083da","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":181,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"a8c47acb-ed0e-4a4a-8bf9-30a23bc8311d","block_type":"box","text":"commitments on the obligation.","page_number":181,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"cfdd142b-3dac-4eda-b558-9b551ad94cff","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":181,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"1726f773-c258-4ef2-a24b-d1b7410712bd","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":181,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"df655fac-6185-46ae-90b4-0e86f128a0ba","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":181,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"52b792e0-9bff-4bce-ac81-16fff6a5cba3","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":181,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"cbc509c6-4897-4168-a374-e58dba1cac8c","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":181,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"783e2382-ace1-4d54-b0b8-db4a2fbeb6c0","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":181,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"83399a7f-4404-4586-8be8-488baed40051","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":181,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"9f8035e8-27f2-4f0c-968a-d1475abc7d78","block_type":"box","text":"debt restructuring.","page_number":181,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"f8030432-30ee-4205-b89e-f0e442494fef","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":181,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"ca14958d-dce0-4730-943f-9d90f1ee71f6","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":181,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"a82d938a-2199-4e80-a5c9-e7b15e988dca","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":181,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"cb93f071-7aa7-4aa0-9ca9-38309cccab4f","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":181,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"3482722d-3284-431f-9eae-aab9a0f65fd4","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":181,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"5d30a71b-5415-4220-bc08-695fd443dc44","block_type":"box","text":"A-5","page_number":181,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"f729bfe7-96f4-437a-8642-dab48c4e1c89","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":181,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"aafc5a79-d988-4552-9100-ab7d79c44b7d","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"b8627223-a2c9-4444-ac3b-342a7b5b3f9b","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":182,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"c6b9b96d-d722-4db9-9c5f-0f3def975e7c","block_type":"box","text":"as a note; and","page_number":182,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"8943b845-ac1e-4332-96d9-513754c2bafe","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"90c72d6d-8d4c-4f45-8a18-a9df610ea507","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":182,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"5ed85582-9ffc-4601-8f8d-cb594779d238","block_type":"box","text":"treated as a note.","page_number":182,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"5d827424-b1b3-4300-ba84-93d981985b41","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":182,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"8050a466-fbe9-4155-a1d4-41c120a9467c","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":182,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"41393da6-5c72-4202-8f90-f84bb4e1571b","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":182,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"90302499-c5bc-4961-a22a-fa69c96ffb94","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":182,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"8994f7ff-6678-4c3e-a99d-8d3a97255c90","block_type":"box","text":"economic changes over the term of the notes.","page_number":182,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"4ff6b5ab-7d0b-4848-9b65-8596a0ec45c2","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":182,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"49a80123-930c-4490-9ad4-d31c434685ba","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":182,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"05bdf1a9-8981-4234-840c-985e887602f7","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":182,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"d0bc3c93-4b8f-41b0-b7ce-9a4f984316f2","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":182,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"fa654e12-0fa8-4a75-b52b-a0d7a92f5418","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":182,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"fa37f2ac-d561-4bf3-9d74-830747a013b9","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":182,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"313f0d4a-4405-4fa6-a73e-43ddc20d2630","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":182,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"4b31e7ca-d0a4-4a0a-85b8-c09c82be2b26","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":182,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"255ed8c2-6a05-4973-ae3c-d84a8d0600e8","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":182,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"7b49ffd6-f9c3-4870-a7d3-f6017ba69da8","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":182,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"c6b90200-8a4f-4f61-bff6-64abaac7d72f","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":182,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"e0f999b5-5720-44f1-9169-d7e8ae234368","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":182,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"d80562b8-bf18-4956-8f51-80a1b46983c1","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":182,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"ad444355-0c20-4fed-ac35-2b33e9b84ddb","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":182,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"ec134962-d6de-4d4f-81a4-3cf45bc239cd","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":182,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"854f0854-9f84-4180-9efd-2b8056402fa6","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":182,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"39c511a3-bee6-4902-ab3f-0ba712fd2904","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":182,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"5ce46e81-b9ee-4714-8e8b-1851c0dffe26","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":182,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"3ceba4d6-699e-4a92-b887-a363fe40bed1","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":182,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"89d25c66-0303-4be9-aeef-608e9742c0bd","block_type":"box","text":"receivables or other financial assets.","page_number":182,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"9beead1e-eac9-4053-99a5-085b43dc7887","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":182,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"38e1aa97-c287-46d3-936e-8f0f0e09ca39","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":182,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"ceb74746-36dd-4e8e-a6cb-fcf6f571207a","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":182,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"163a3655-c3cf-4c87-84a7-040edda5c6ea","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":182,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"760a2b8e-3837-45d7-be79-5106b706e4c8","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":182,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"c5cd3045-51e7-43ca-8b64-e284bc155319","block_type":"box","text":"occurred.","page_number":182,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"7af4186c-23dd-4216-a065-6f9a126082d9","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":182,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"e40bbe6d-5845-438d-87bf-98784eff18e5","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":182,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"634c82e8-4696-490a-8f5d-6a96ffb26ef6","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":182,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"47ff6123-ec5b-410f-ad80-d4efcfdb315c","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":182,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"f83d33df-559b-4313-bee5-6afcc58c7715","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":182,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"6800b078-76e6-40ce-b4b7-f9ab9e0b1679","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":182,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"20d331fd-cc63-459d-92fa-f907f6f57cc0","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":182,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"258995d1-853c-400d-a3f2-08958597d2bc","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":182,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"87b0794f-9b5d-41c6-8617-b4a20585ceeb","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":182,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"876820a2-0427-4c01-ab0c-f6dabd858f01","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":182,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"fcd74625-7f93-49e4-9f70-f38df3c93c41","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":182,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"99ee9d71-e2a0-4790-b013-3a3b3e9f642d","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":182,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"2adc5eac-4585-4199-a62f-40f7f2a11777","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":182,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"fb7c20fc-00fc-40a2-bc32-34a7109ff795","block_type":"box","text":"i.e.","page_number":182,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"d7dcbbd5-90b9-450b-bc15-65b81bc234a3","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":182,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"f58da823-77e0-465f-aa06-3645a54baf46","block_type":"box","text":"the obligation’s documentation).","page_number":182,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"f6a3e436-a93b-49b6-8c5e-953b9eb785c2","block_type":"box","text":"A-6","page_number":182,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"2f0994d0-df23-48fa-9c58-6217a36867f6","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":182,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"12ff8394-6ed0-4f5b-8af5-625b6c45cf91","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":183,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"67b8e0ad-de6c-46bc-adb6-986a031cf5cf","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":183,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"5ea81871-882a-41d4-b4ee-af698f72877d","block_type":"box","text":"agents in the form of a rating letter.","page_number":183,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"8e256f77-91e2-443d-9102-a3eb81e2aa65","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":183,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"a4d5b7d1-1671-42ac-bc37-f22718eed8cf","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":183,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"92d36a4f-4de0-4dc1-b8f2-aac4644606a6","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":183,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"fdbcd8a5-e95e-4bab-8318-8d986b1e7130","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":183,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"a766b636-7379-4280-8aec-e6df71a109ae","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":183,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"8f48907c-3d77-4a06-a6be-52976947f1eb","block_type":"box","text":"e.g.","page_number":183,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"90b5bc40-32fc-49cb-a34d-d2c16646c59e","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":183,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"9e1d2e99-652b-4e25-a00d-21859d4e94b7","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":183,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"c7054709-ce25-4e93-90ba-6aeedabe6097","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":183,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"783c7119-b880-42ff-be8f-cb3f30b56c36","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":183,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"5ea146f9-f870-42b2-aceb-fc73b95d8847","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":183,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"688e3db1-6492-407d-8738-7267427777b7","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":183,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"2d3a84a8-8752-4bcf-87e5-a7b91fdd4a73","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":183,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"2bd79836-40a8-4d0d-8879-76a460a51681","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":183,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"3ab4ca2c-b3c0-4b04-b62d-2685060ca6a6","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":183,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"1f646b30-96fc-4ac8-8d5f-32f573d28ff1","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":183,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"d3041d59-c7bb-4f06-9c10-a0f982b91da7","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":183,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"35dc6e14-5f66-41c0-a443-893c35541f42","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":183,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"d1277cfc-051d-4d79-89c9-80022f204645","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":183,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"63ed71d6-698a-4e21-b442-ffb081e5f38c","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":183,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"47894d69-8876-4d2b-acc6-d7e09a5fa25a","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":183,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"6748aaba-b299-465b-8b92-693732db0303","block_type":"box","text":"Ratings.","page_number":183,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"f1dd0fb1-9118-4119-922e-56301c6e718a","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":183,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"e5ddc637-edac-4c83-9184-c936647d923c","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":183,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"e0f1adf5-0080-4992-b854-2022e3f0d893","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":183,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"8cd0277b-154b-4de7-9593-eb8a23620450","block_type":"box","text":"obligation ratings.","page_number":183,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"4c3a77bb-3517-43c2-b1c3-a902aa544427","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":183,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"c43864c5-64d6-4853-8592-8ba6b1e45668","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":183,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"734c46a8-a770-4180-b9fc-d7428050d615","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":183,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"48b5cb5c-70ad-4908-bba6-09e3207ccbbe","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":183,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"22f2b27f-d421-4d65-80e8-8c78cf12456b","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":183,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"e63ae9b6-8044-4781-8b28-ead788f4bc4e","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":183,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"b95c08f8-1c6b-4706-9eff-eef51a2db2a1","block_type":"box","text":"to foreseeable events.","page_number":183,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"bd1fe72d-d24a-4a3f-b9bd-77b1af35e846","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":183,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"aece4665-677a-4b38-9812-b97cb6648ee0","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":183,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"e071dd74-0789-49a9-a6a5-f060a4183853","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":183,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"0afe78f7-328a-4852-8d25-6080b534107b","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":183,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"d8e3e830-246a-478f-b98e-21ff9be1fdec","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":183,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"19e78006-a57c-458b-adc2-0ae3e5a8a6a6","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":183,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"ada154fe-270a-4750-8fca-4709924d1036","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":183,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"97047d37-d538-4afd-8a36-41a5a5a19a1c","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":183,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"e26062fc-05ab-4d36-8bd0-f07a2605c9db","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":183,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"34aca848-9752-48f0-9c7b-c4f899fca17b","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":183,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"66257810-e3fd-40a3-9a3a-02a8b60f2d85","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":183,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"51ac7896-0bb3-43bd-8da4-49a3562b2fb1","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":183,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"4cdf2205-7d26-42b4-92a5-aa915729ea5b","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":183,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"11512f1a-b1aa-4b7f-b1ae-f1d4545fe430","block_type":"box","text":"possibility.","page_number":183,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"09ca45d1-ea70-4a2d-b860-e291aa009727","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":183,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"c6c367d2-7d5e-4bae-a934-bc9b08063324","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":183,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"24713181-8c47-4edd-8c55-7ec866aaee83","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":183,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"8e5b0aa3-8fd7-41a1-a674-663a6ef4ab4b","block_type":"box","text":"A-7","page_number":183,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"60e30c9f-f1fd-4552-9d1f-e1ba2707311c","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":183,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"ded8b775-c228-49c9-9ffa-2618e97ddc43","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":184,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"f04fb513-f38a-482b-bbe5-30629deb7e5f","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":184,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"bba21971-972b-4952-b438-9893f5463c01","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":184,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"9b63caaa-c849-4402-808a-a318ad573207","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":184,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"5534565e-ad71-40ec-b776-a40449853f2c","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":184,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"52edfc71-45b5-412c-8530-de4daf04fa33","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":184,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"a9a49f89-df2d-405f-b1df-f1b7c127cbc0","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":184,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"835bcb2c-4560-4b46-8296-1a986e914c6e","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":184,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"c30b2276-1cc0-4c20-ba3d-c83898e47605","block_type":"box","text":"relative status within major rating categories.","page_number":184,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"f454ffd0-3415-444c-8736-039033813884","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":184,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"1b186312-ebf1-471b-bd47-780a0c01847b","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":184,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"4bdef408-3757-4fb2-ae53-c0eebd176319","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":184,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"2ccfd5c1-01ec-44da-8fd3-07222da91cf6","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":184,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"91994791-4c58-457d-a4f0-24276ba178a7","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":184,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"575669f7-3926-4087-9c9b-71589d483d5c","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":184,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"0c7b756b-ef3a-4f5c-a0fa-dcf879b45195","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":184,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"cb79c455-18f3-4652-8d8e-271db10e1c94","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":184,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"179769ce-c677-4d4a-ae00-008f4f48ce77","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":184,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"8bce869f-e7c9-4896-8232-f08e56621ea0","block_type":"box","text":"finance markets.","page_number":184,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"29cd4507-99c3-49c2-8a53-7ee7180323ad","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":184,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"be611f18-0ba7-46b7-b8ce-c11d9ab1171d","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":184,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"8e2c10b4-d355-4a94-af13-521e1784cd8d","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":184,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"9b86f900-41e2-4b84-afdf-67e0471ab181","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":184,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"94ca8c49-62d7-46f4-8863-b3b5f397edf7","block_type":"box","text":"commitments.","page_number":184,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"c8c0b118-58ea-4c6b-8b1e-9fa79ec5e9f0","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":184,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"4020c76a-692d-4b62-ab48-f26e4e907c5b","block_type":"box","text":"adequate.","page_number":184,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"4f7a9beb-d68e-4a30-93ca-4a3df285982a","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":184,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"c97c4c56-9d6d-46fe-8b54-4f43190c208a","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":184,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"e00a179a-a4bb-4324-92aa-a261d5bb8277","block_type":"box","text":"economic conditions.","page_number":184,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"f6474725-20b3-4fab-9913-d1f89bf85a12","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":184,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"908cb7d8-0bec-4346-b1dd-faa372952c08","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":184,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"9817f53a-c65f-4cb1-b3ce-e3e251ce9b2a","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":184,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"e0eb5cc3-f212-4893-844d-3309343cff71","block_type":"box","text":"ratings only.","page_number":184,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"2308f01f-8bf8-46b2-a600-97f056a09282","block_type":"box","text":"D Default. 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The guidance informs the voting recommendations BAIS","page_number":189,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"abe3f699-4f4e-4995-a0f3-7b631fd112ed","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":189,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"b8de4010-49d3-4a36-8909-8ed224b14db8","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":189,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"e4f8764d-2500-4533-a2d9-22d50538ebf4","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":189,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"ba679f4e-f811-4494-9426-c1e42fd01438","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":189,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"c9039f24-2275-4578-ad3f-10e04b16df3c","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":189,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"45c1e570-d74b-46c0-ae1f-d18373c75702","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":189,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"b92fc3b0-af88-44a2-84db-cc85ea7ce2da","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":189,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"38be96fa-d374-4739-a1f6-fd66f6909cbf","block_type":"box","text":"1","page_number":189,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"8ccf36de-8d3f-46ef-bf5b-32225bc771e4","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":189,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"b1629ad6-78c2-4f55-8d37-87ccd0eeb95c","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":189,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"661a54c7-d345-4ae3-83fe-85f3689ff893","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":189,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"c9c73571-c96a-423f-af2e-1bfcccd072bc","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":189,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"8685cd48-1309-4f8f-bd74-bc04fb7a80a0","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":189,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"55a481a1-9034-486a-8f8c-99c151a658a9","block_type":"box","text":"2","page_number":189,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"4d262760-f428-4901-a0d0-95e9c9c52801","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":189,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"ffce6939-efa2-433e-8c4f-9f0190d6e240","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":189,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"b9d40413-360d-4876-b8d8-0b862882f339","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":189,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"4086c9fd-2607-42b5-9e50-f94dbb2b154e","block_type":"box","text":"policies.","page_number":189,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"efccf048-29ff-486c-9351-6ac1c5ca72bc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c1212291-123e-47cc-b1a9-15d6f23805ef","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":189,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"dfef0cd7-bf91-40d1-ac24-4d28cb5e9b25","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":189,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"7adefb81-a614-4865-aa76-6353a2629fee","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":190,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"958cc2f5-2c14-4a5a-954d-1758e8f939e2","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":190,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"bf79b52d-947d-4848-8450-21e2c15b2c6c","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":190,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"e4259f66-6521-4362-87eb-b16aa0e17dd5","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":190,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"06b45fae-d987-45e2-bd7a-74d01b3e79ff","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":190,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"355ee96f-0a87-4cc6-90eb-36edd518ac2d","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":190,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"6a6e09c3-23a2-4abb-b69e-259f3ad85aba","block_type":"box","text":"this work with research, data and analytics.","page_number":190,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"7546615b-2adb-4c71-ba3c-e53cc406d400","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":190,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"5bd1653e-aaec-4911-a91f-24f00e346bbf","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":190,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"7b89ee33-d866-4ba0-9a17-0bfd41697077","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":190,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"903bf132-2ba8-462f-b74e-011bef309e49","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":190,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"ddfcb68f-a109-475f-bdb1-054e6dabb2b2","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":190,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"05e8e210-dbec-4bb2-9cfb-c90f32d4f720","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":190,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"a016cf4e-9995-4c94-bbeb-94d65d918365","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":190,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"89622f48-6925-47f1-9dd3-d07e78cf5453","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":190,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"b42e07a9-6dcc-4e5b-8154-8ad4d7807a49","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":190,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"3db8be0a-62d2-4b05-950d-fd505e8e288b","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":190,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"d3234f69-6037-4365-9e3a-925bc85db9a7","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":190,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"5c8d3f7f-2fee-4369-90a4-0a16c7b14768","block_type":"box","text":"shareholder meetings.","page_number":190,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"134b295a-bc2b-4b08-84d2-1e5b6c57e97d","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":190,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"2ac64f5c-2d4b-4351-949b-742b54e978b8","block_type":"box","text":"investing.","page_number":190,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"c504b925-d484-4015-b42a-3242074f8bdb","block_type":"box","text":"3","page_number":190,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"59b187f1-2689-4352-a108-70138171cfbf","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":190,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"a1939fbe-4dfc-4846-b255-c38652c10cff","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":190,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"f47099ab-2e8d-4097-98d2-1988614e3e4d","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":190,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"498d020d-7d8a-4624-8633-8390ec36d994","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":190,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"66058694-31f5-494a-9484-314ed922cb00","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":190,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"e623957a-0cd2-4282-b052-55719b8dd0b6","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":190,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"9a5ffbf6-1b13-4251-9330-3559933c7a61","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":190,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"56df0711-c438-4067-9302-59df37fb1f3d","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":190,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"26c8affe-3d51-4d5c-8270-09cdfd080b9e","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":190,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"9db8766a-36a6-49e0-8e23-595d110e179a","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":190,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"4f538972-6e0d-447c-841a-7cd006424896","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":190,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"eb5ff801-1533-42ea-ac73-dd2df8c47a76","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":190,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"5f63e986-4ea9-433b-8c35-e1c338fa876b","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":190,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"941d2ea5-8694-4ba0-8c60-949613519c3c","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":190,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"02a3c0f0-3cdf-4f46-a19a-573ffc0a13d3","block_type":"box","text":"management teams and board directors","page_number":190,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"0317c01b-f983-4838-99c9-578f50f64a27","block_type":"box","text":"4","page_number":190,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"1010eb7d-20db-4318-a63d-83c6bf0d97d7","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":190,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"4c496f43-88c1-4f9b-9508-2f28a2c74afe","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":190,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"854faba7-3909-48ba-87d1-6824d3e9c237","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":190,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"6764fb20-583a-45d1-b882-8d2dbec6b31c","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":190,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"adf041ac-501e-4fca-8f77-c9f7ee85d866","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":190,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"6421527c-aceb-4bbd-ad4a-83854e6cdf93","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":190,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"9b4e5728-a4af-47d7-9ec9-66ca22fcb49e","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":190,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"99ef421b-dd64-4afe-aecc-0d88bedb80f9","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":190,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"9a84938e-d6fd-46af-a0c4-7a656a6dcfdc","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":190,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"8d166650-0121-493b-9231-2f976de8a5b4","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":190,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"3ab9d2fe-d9fa-473e-9063-b4f9797771f3","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":190,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"5654f1a0-14d0-463e-a321-a4b2ae692df8","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":190,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"86611958-4142-40e6-a5ba-e73f0a5b4b13","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":190,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"a82e39ca-ef7c-4a5e-86f4-d26653b13422","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":190,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"4e843f10-ebc5-4e6a-b740-697ac9848283","block_type":"box","text":"3","page_number":190,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"f7986e52-8d36-4012-9ebe-00c4e922126b","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":190,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"03b8f9b4-f2cd-4c69-8b7f-319b60d808a7","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":190,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"335cffe4-a529-43e2-a503-412aeda64469","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":190,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"64f029e3-ff7f-49ec-9817-7f6075716fb8","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":190,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"082c15b5-c40c-42a6-9d33-2d0e392992bb","block_type":"box","text":"4","page_number":190,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"4c24f2a2-1027-4167-9101-689b6c0af3bb","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":190,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"8163bab3-53c6-48b9-acc6-7d113927891e","block_type":"box","text":"boards and their members, where relevant.","page_number":190,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"ba267d6d-0ed7-4b25-b818-3b4f12658849","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"2cf5b9b7-3afe-4cd1-9c3c-ed61e3a70b2a","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":190,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"1d65bc13-28d1-4c74-895f-cef7a453528d","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":190,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"209f8f5c-1f68-4ceb-8efa-fea980f18920","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":191,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"5a4545d8-9dfc-42f0-9e96-7f5200ca8e29","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":191,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"0d1739e4-0229-43d8-bc0c-d3cec7818354","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":191,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"81c7a9e8-ded1-4e71-8281-89bbe16c8d15","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":191,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"059a7932-01c1-4b78-b6a4-135cad914ec0","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":191,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"f72625df-4a3a-49af-99bb-472ebbce5adc","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":191,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"571855bd-5dbe-4462-ad7a-ae6d5ba814a5","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":191,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"9da000d0-7ab2-4692-b314-5983b68d9815","block_type":"box","text":"5","page_number":191,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"4c7c0627-ea73-4554-94ac-f4c2a88eff39","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":191,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"99582aa4-40a0-4187-bf76-28d7610668c3","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":191,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"84292039-3aa1-4375-8d70-3b11071b06e2","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":191,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"005f96f7-491b-4603-a3c1-c3abe3f18bfb","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":191,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"6588ce5d-87a8-4981-97c7-68bbd88f42b7","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":191,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"5e7fee0a-ef62-46b3-91b5-0328afb2750c","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":191,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"1c7b56a3-9cad-4620-a009-96720ac40911","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":191,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"49040c41-6e8c-41d9-aacc-7690813480c9","block_type":"box","text":"5","page_number":191,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"072fa136-1741-4389-b22c-02320fbb587c","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":191,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"afaa6f2e-b1e1-41dc-82ec-30fe1afcfb10","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":191,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"05ee553a-deb2-432c-b352-42adbf2b5e5c","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":191,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"26b85a51-2818-4816-87c4-372b9dd15fb4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1c8e40a8-b08d-4909-8573-f23e4be052d3","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"1510669d-9db9-45e5-9955-74e17da90311","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":191,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"fc473638-6508-403c-8f59-e83c4f5b4b8c","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":192,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"b281338d-59d1-4a47-801d-31e6eebf3403","block_type":"box","text":"Roles and responsibilities","page_number":192,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"29158557-2e9e-4273-98ae-b939a180fc87","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":192,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"e841a9e2-3de0-4762-853a-b6b6894000b5","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":192,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"eb0c65ec-f2e8-48f3-bd10-7aee85df529b","block_type":"box","text":"6","page_number":192,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"3969e472-4922-471f-9b6d-598e03739cbd","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":192,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"f9bf8c7d-6e1b-46b3-abe5-0314e5f47ce7","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":192,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"0ff222e9-9a43-46f1-9dbc-d1f62fb0a24c","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":192,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"a337c282-0db4-4972-8451-5c39b91a9d86","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":192,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"724120d6-bb94-42ca-8dd1-4f49c2589bb5","block_type":"box","text":"performance over time.","page_number":192,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"de166b2c-6e4f-4e17-a072-0e4c7e582644","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":192,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"5398513f-53b2-4411-a653-cd309d0e8742","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":192,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"32afeb44-46d6-43db-aa5d-faff7322a586","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":192,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"a8670822-a5d5-4708-95eb-9cfc1f34ffd1","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":192,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"29128b3a-5426-40a0-95ec-9d51a5a3deae","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":192,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"64aba8ea-607c-4f46-bea7-52946d3b1a02","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":192,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"810e09cb-9fd2-4b84-a976-faa05278f9e1","block_type":"box","text":"Composition and effectiveness","page_number":192,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"3b2b0c66-4eb8-4bad-bac5-ba4bce6d931d","block_type":"box","text":"Appointment process","page_number":192,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"e9052e03-c809-40fd-a527-01ca2d192326","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":192,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"28761f9a-1e9f-4835-9dd1-33e8bc4161ee","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":192,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"1d6bc72c-7a65-48d8-a94a-080cfb8b5eb4","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":192,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"7cdf9ec7-3e8c-4071-b6f1-3746646e3859","block_type":"box","text":"e.g.","page_number":192,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"fe30506b-ad62-4985-aea8-89eabe337180","block_type":"box","text":", sector, maturity, geographic","page_number":192,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"8dd0e3c6-ea8a-420f-a514-3e7b9876bbba","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":192,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"82bb4ff3-7da0-4957-8737-9670c945064e","block_type":"box","text":"e.g.","page_number":192,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"72994a1c-429c-4585-8e03-105193afb4cb","block_type":"box","text":", financial expertise, industry track record). To","page_number":192,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"5a2963ed-a828-4039-9bb4-a8ce01b6c78f","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":192,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"63e31e0a-069c-42b3-9695-0651a14f3dae","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":192,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"75ddb6e6-1a45-48ee-bd76-1a66ccf0d81d","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":192,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"6a0d47dd-1b60-4370-b135-4a0b4facfe97","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":192,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"618358fd-f4ad-4f60-a857-08d852e80b92","block_type":"box","text":"and local market requirements.","page_number":192,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"bca87408-0f3e-4e64-8ceb-1034e0d915e8","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":192,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"b43ea781-ec93-4741-914a-411a6e2fae47","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":192,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"f696c9ea-cf98-4d76-8bdf-2ca94ec97a85","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":192,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"2399f77e-f78d-4e67-a6cb-fdef3afb8f24","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":192,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"7d7ed53a-e5f6-41ea-a6a7-9432fffea833","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":192,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"3fbc0292-a6a7-4f6b-9aa1-c12243401dca","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":192,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"7626b9e1-40d2-4068-a640-d4a67bc5268e","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":192,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"6b2fb1f6-9d8d-4fb3-99a8-8de925d76f7e","block_type":"box","text":"Independence","page_number":192,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"5888893a-8134-42e9-b11d-b6456445a482","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":192,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"02c463b1-da0c-436c-97c7-bf85847b4504","block_type":"box","text":"e.g.","page_number":192,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"126d1c09-0a3b-4667-81e0-73f208d10590","block_type":"box","text":", government or","page_number":192,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"7f8ecda3-9da5-461d-9ea3-f17cf3408a31","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":192,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"bb7d1508-c8b7-499b-aa67-dc96e355b47e","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":192,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"78aefc56-98a9-4360-987b-48948325d960","block_type":"box","text":"conflicts of interest or undue influence.","page_number":192,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"6abce740-d257-4b8d-9241-d8f2678b997f","block_type":"box","text":"7","page_number":192,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"2335ef83-1c6c-4c5c-96dc-7ee90f240ff5","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":192,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"aae5f639-1a75-4766-bcf9-c91c4a35c376","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":192,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"c771eb09-5ebe-4f86-b7bd-646835594d98","block_type":"box","text":"independence should meet those local requirements.","page_number":192,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"56a1baa7-6f02-48bc-b975-7d8d501d4405","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":192,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"56523721-d09c-45a8-9363-c066dd24f51a","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":192,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"7bbf924c-af09-4a3d-a22d-a90c0809e465","block_type":"box","text":"composition if this is a perennial issue.","page_number":192,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"c989c721-9a9d-4763-aeb4-4b20598b7dc4","block_type":"box","text":"6","page_number":192,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"8b233ec0-7a2e-469d-8f38-7c5de71e6b76","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":192,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"ca25b35c-a1b6-45f8-88bf-2a9669dd6845","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":192,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"bbc78bbf-8ebd-4347-b1f0-55cca8f55a70","block_type":"box","text":"7","page_number":192,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"6ea0a073-c0e9-424a-a123-b21889e47365","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":192,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"88a7adf3-9191-438a-83dd-d36ced49e87a","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":192,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"50433e24-42b6-4f6f-987b-b0719b6c743d","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":192,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"d5ab9150-6411-4616-b4ef-39c45f084692","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":192,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"576a25cb-81a0-4b24-8c75-9cee95a14139","block_type":"box","text":"of the company and shareholders.","page_number":192,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"e8d9d71b-c2f3-49c2-9b23-6f710fa51dea","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"879dbb16-26eb-47d9-8ecc-b0b6e63f962f","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"80811e20-4e4a-420d-8545-a3aca6c5bc22","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":192,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d0b54b5e-dcd9-4710-aeb2-32a61c5845f0","block_type":"box","text":"Independent board leadership","page_number":193,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"f7ebb53e-f990-494e-a638-943c7a4061a5","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":193,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"f9a0a139-9f4a-4328-bb5a-83df5767cde2","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":193,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"98a1b89b-230f-4b9c-af6d-33893b55f302","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":193,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"75c2af1b-e2bf-458b-a614-d6c55d63bc09","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":193,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"d7f6137e-630a-4cab-a606-c7b9d4dcd0b4","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":193,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"3308ae59-02cd-4007-ac54-d6dfcf0d7d34","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":193,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"5ab0533c-919d-49dd-87b5-6b1320ec4b07","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":193,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"53eecad6-8c24-4ca6-82d4-c24f4ad11e69","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":193,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"b8ef13f7-d1e3-4ae2-8b0c-408d720b3d4d","block_type":"box","text":"how it serves the interests of shareholders.","page_number":193,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"86b9d645-6dce-47bd-b3e7-72934f2b38f7","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":193,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"1c378358-40d3-4339-9996-4f5d437aed4c","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":193,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"0b038757-f7ec-4fd3-b38c-ae5e7b50de0d","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":193,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"b9a6f075-2038-4bf9-b359-68f862c8e3ae","block_type":"box","text":"Tenure and succession","page_number":193,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"e6ca9a4f-487c-4a7e-bdb9-f84b214bde0c","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":193,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"5643f4b0-6b9a-4094-96cd-58e4aeae7ae8","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":193,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"cc290a8c-628c-4e62-9b1f-37d30057c735","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":193,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"7a5ad8eb-0c99-4f4f-a871-669c140c07de","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":193,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"4d3ffdc8-1dcc-4d00-b091-58022088ceaa","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":193,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"0cb1dc11-7a02-4ed4-8eaf-3ca5b91f4ec9","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":193,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"35c66b14-084b-4073-bef2-5729239bfb72","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":193,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"f505e5d3-2cec-44f6-91b5-184a1f3b01f5","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":193,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"897facb1-29f8-4180-8a3d-799a4b4bc78b","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":193,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"57f18729-417d-4c5e-8801-b42f1b63ee0c","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":193,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"6ccc8cb7-c746-4a86-b361-bc02e1d5af72","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":193,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"10b50efb-0c32-4cf2-8e7d-8280f811a527","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":193,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"64a07950-28c4-4f60-a112-7705ce0650b2","block_type":"box","text":"for their continued service is not evident.","page_number":193,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"0d1bb76e-5693-459e-8b53-1605118b9224","block_type":"box","text":"Capacity","page_number":193,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"850902ad-3ad0-4c1d-9c1a-64cbad8d121c","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":193,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"c1de6144-90b6-4100-848b-0e0d86205e6b","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":193,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"f4fe5f8f-373a-4fb8-9432-ffca2c1bd704","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":193,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"fec33ac9-764a-4574-873a-1c8d4513c152","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":193,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"cb167841-3846-4e32-bc71-afc08235afe2","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":193,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"a0ba9f34-472e-436a-b134-69e6c23cab0f","block_type":"box","text":"determinations across markets.","page_number":193,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"5cd9f705-b0e7-4189-93de-39f6c8afd65b","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":193,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"4ca0b2ae-c70d-4bd4-b918-854bb9d20750","block_type":"box","text":"their duties to the board and company.","page_number":193,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"b52aa88f-5ec4-4bcb-8600-430c0ca58ca2","block_type":"box","text":"Director elections","page_number":193,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"db2cb4db-c99e-409b-8c7a-f98200947f2c","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":193,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"17ea0e52-c74b-4803-bdf0-4a0e02b3d43e","block_type":"box","text":"structure","page_number":193,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"c5091bf4-81d6-4207-a620-1741c3cc1396","block_type":"box","text":"8","page_number":193,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"b174ed27-c2f8-44ca-ba4d-ba859ed745cc","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":193,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"7aa8e909-b777-4882-ba8e-e706c0f68ed2","block_type":"box","text":"basis of its business model (","page_number":193,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"b2f4a976-1952-4224-8aff-a67ca69dfb6c","block_type":"box","text":"e.g.","page_number":193,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"ac1ee1b7-b0a0-4fe4-8069-4a512cb73583","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":193,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"5f9269d9-9675-471f-abc1-84def3a30368","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":193,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"59286046-83b3-460f-93d5-d97c2e109e12","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":193,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"8164a960-38aa-4663-9873-a1657c194e81","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":193,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"564a0adf-a851-4974-bf47-3fdae17c5b79","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":193,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"822e8443-05e9-4db3-882f-87c36bc55647","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":193,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"24c735ce-6502-42c6-8f92-529b6cd7e2aa","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":193,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"0dc03b28-8e3a-4eb4-a8fb-23c54f0728f4","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":193,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"ed2153d2-584f-4680-9073-309baea5cae8","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":193,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"14bbbd2f-2814-4076-888f-6dc6dec51623","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":193,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"2c66226a-da7f-430f-a45d-68fae5b88361","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":193,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"295914e2-7012-4d28-935f-787e2974e66c","block_type":"box","text":"8","page_number":193,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"2727b919-be12-4031-8743-586744302950","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":193,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"55c52222-58a7-4cde-93f2-7960423cb3c4","block_type":"box","text":"directors stands for election in any one year.","page_number":193,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"627fce5a-fde9-4552-b5d4-98d1ae59cb12","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fe6dd0d9-56b7-4cb8-84d6-01a8702bdb2f","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"bef69df8-9f28-4733-97e1-1da123427e57","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":193,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"0d1d15b3-8fc7-4e47-b949-8a2c2339cc76","block_type":"box","text":"Committees","page_number":194,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"bd1b9b0e-4301-40f6-82c0-e9b8bf55189f","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":194,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"78b3787a-4c84-4ba9-9a64-e7ec02cca4a5","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":194,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"6f3a7ad1-cefb-4259-9009-68670d2c0ec0","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":194,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"c6075735-e0c8-49ee-a46e-a83b140f115c","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":194,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"b550f736-1b11-425b-b68f-6114b16e6537","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":194,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"344280ca-b5b1-4622-a1eb-9637e0c34ffd","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":194,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"edc66be3-8946-4428-b46d-1f50f5bc84c8","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":194,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"1393cd29-ddf1-4297-ad49-58c509abcd40","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":194,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"343581c6-b579-47ef-9ef7-8cca24abb55c","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"05cc66ce-ca9c-4861-8a8c-f6346a968e40","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":194,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"40b59fb9-8222-459c-89b6-294bb24a1360","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":194,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"fe2d8353-80dc-4314-a187-b321b4a15796","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":194,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"e0490f29-c1d5-4b0d-b4b0-9df245cd96c5","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"e43eae52-049d-400d-a26e-7f0bfbc32f18","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":194,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"8a837bde-afa8-4511-b4e6-e5b7e8b8584f","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":194,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"0cb0911a-fb86-48a3-b1ed-d01d690ee353","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":194,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"2337ed2a-4bed-4745-96b2-b61ea6e855b2","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":194,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"61ded2ee-22b6-4fb2-b730-ff36bb93d724","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"bc4746a3-ccdf-45a1-b6cf-7274ee4d98c5","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":194,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"57efa96f-f0b3-4ee6-a0ed-c494fb3887b4","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":194,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"8d7250e6-cbac-436d-9b95-0d01ab581b01","block_type":"box","text":"firm-wide compensation policies.","page_number":194,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"ffe98f44-a54d-4254-8840-c2c5873ef413","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":194,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"636fbdd2-cd9b-40fc-96d2-a0615db26692","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":194,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"e0fd9a86-c741-46a6-8e73-bd238bd8a0c4","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":194,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"5b4e6655-5853-4185-ac80-bd352d445772","block_type":"box","text":"Board and director evaluation","page_number":194,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"71c63786-7f1b-4759-b2f7-ad633261c149","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":194,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"0e98a647-0b5a-44d9-b959-94b25d241521","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":194,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"f0a54664-fcc2-4b72-90d8-65d2d03783a9","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":194,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"6fc36975-4a19-4ff0-bb7f-5697a99332fb","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":194,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"a1f228ef-5b7f-4880-928c-6d89042756bd","block_type":"box","text":"a result.","page_number":194,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"d012a8ec-3864-4903-80e0-500b62351a87","block_type":"box","text":"Access to independent advice","page_number":194,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"1c09442e-f216-4408-ab98-36330cdca3e1","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":194,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"723b27aa-749f-4920-ba28-7fa0fb573824","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":194,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"418b5ea9-6d2c-44e4-b959-ca5c8a2c26bc","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":194,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"c373a977-7d9f-4b11-b1b6-0a3c09c0e99e","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":194,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"1783e9d7-3492-4f95-b5a8-f13f42fe68e5","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":194,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"55d6fd09-0489-4e25-afa0-9095a0cfc884","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":194,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"f857bafd-f4be-4a26-9ab0-3eab92401a7a","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":194,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"588287ba-1a53-4d4a-a9b5-5b68b4a52920","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":194,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"d8f2718b-6fd3-4980-9a43-8cecb314bb60","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":194,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"aa6917b7-96e5-46db-b3b7-2a61627cd2b9","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":194,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"9b9f215a-e1b2-4140-9a27-b922b6e9afe7","block_type":"box","text":"performance.","page_number":194,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"d951ed7f-f999-4c68-8ace-830ff7b83fb0","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":194,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"128b0ea0-f183-4ed9-a214-6edbc9970f8b","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":194,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"445e9175-9f54-44c5-a952-66b7ef44df35","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":194,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"f0b6856b-85d3-4b8f-b8c8-2a8252397825","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":194,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"a454d7f5-bcbc-4c2d-9b1b-2824367bb0e8","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":194,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"7b1ec607-a59a-4b14-a5b0-7262150418e8","block_type":"box","text":"recruit and motivate.","page_number":194,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"26e3bb5c-4728-452a-aff9-7e71efb759aa","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":194,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"2eec6036-6d30-41c7-8a74-be9b402a47a1","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":194,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"1cbfe69a-7b48-4a9e-9810-5579274c6790","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":194,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"e5ad1035-086a-456f-8d22-98618320210a","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":194,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"d86aff31-645b-4554-a41e-b5a679396496","block_type":"box","text":"arrangements include:","page_number":194,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"0d7ec370-2886-48af-a057-fed5c7f03791","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"9ff135d7-0202-4f2a-8620-f8dab4d9a285","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":194,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"1d799c07-ce6c-4701-9d8b-6350d486d2b0","block_type":"box","text":"the company’s size, sector and market.","page_number":194,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"999b1b6c-51e8-4192-b684-49aa74012ae2","block_type":"box","text":"BlackRock Active Investment 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objectives.","page_number":195,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"a62c8200-4c32-472e-96d7-909b53f75c32","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"2fe6170d-7b6f-48a6-97d2-44e1c4120819","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":195,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"57854bbb-f9c0-4e48-9eab-0923bdcf8abc","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"7e7baffd-2b62-4320-9004-5dd48002d994","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":195,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"09c42e74-1955-4d15-bfc9-3fe048666609","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":195,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"f5764567-419b-420d-8324-cc70a38217af","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"20354e21-3098-4a25-90fa-c8bae5accdd6","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":195,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"19c57043-2f0b-4380-9ffb-5a12eb85506c","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"10c905ef-e5d9-479a-bf75-bb3a69177399","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":195,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"fb4c5a04-88fa-4767-a0ea-6646865feee2","block_type":"box","text":"transparently.","page_number":195,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"58b1dfb2-2f77-43f0-9789-a562484df36b","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"40efff9f-71dd-41a3-9d7f-b781e3d30f0a","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":195,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"9221fac5-fa02-4d7e-a6bf-77fd39d32d5d","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":195,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"b23f9519-61d8-456c-884d-2861ed183df5","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"4b4b5708-2ea9-42ce-b2e0-9f0018611083","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":195,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"28c52e2f-cded-4957-a50a-10be92dddded","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"590474ca-fd88-4d9d-8308-6bd103cb0ad9","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":195,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"75461c79-a56c-4fc4-814c-168a58c0398d","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":195,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"a67df4d4-f3b4-4ff2-a26d-9333455934be","block_type":"box","text":"misconduct.","page_number":195,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"053feede-59eb-4ed8-895c-1028a0964ec3","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"b6e73771-e844-41f9-9b56-308b60c63576","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":195,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"568a1b74-a8da-4399-b221-dcee60bd0445","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":195,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"e8609cfd-36bf-4b98-96e5-17759e2ea68d","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":195,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"8c59c160-d2ac-4ac9-848c-b2f0566dc48b","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":195,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"2f77e1a6-e319-4285-848c-f44acee36d02","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":195,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"e3e9f1cc-cf83-4787-9a8e-3645c53184f2","block_type":"box","text":"committee, or the most senior independent director.","page_number":195,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"c1b6a465-19de-443a-9915-837695d54103","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":195,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"5b27e0d1-87b1-4418-a72a-cb986e0889e6","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":195,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"8ef97072-ed6c-4149-99e7-b558cb45987a","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":195,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"7b159aa8-a85b-4b76-a0e1-a6bf39dcd66b","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":195,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"421f7d7d-67a3-4244-944c-f316282ed9ab","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":195,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"934eca03-a8b1-43be-90e0-6f9619bb6bcb","block_type":"box","text":"CAPITAL STRUCTURE","page_number":195,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"603e7c70-4af9-4a46-ad23-368bfce88868","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":195,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"849c928e-fde6-4b68-947e-23418d1d330a","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":195,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"f5874165-2b21-406c-b54a-10a6020e38c3","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":195,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"3dcd83fe-4435-40a7-b0b6-baaa69e64aed","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":195,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"9ba8847e-4bd9-4f28-b96a-8ed0914bd3ab","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":195,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"b499876c-3e28-4c4f-80dd-53150f1e27e3","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":195,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"a80bdb76-1f4d-4b82-ad0b-26bb7ca10b84","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":195,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"7dcf845e-a0c6-4669-bf4b-2182fd29e927","block_type":"box","text":"Share issuance","page_number":195,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"5cae6ea8-966a-4b1d-9613-cc0edfbda6b6","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":195,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"57ee0182-43dc-48ce-aad9-a9f10f574356","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":195,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"7f382487-4329-4cfe-a5b6-3855d2f3fe3e","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":195,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"cfca4940-ec05-4cd0-9bfc-5d1d9d20a713","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":195,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"6329830c-fccf-4294-89de-9cba70f8b2fc","block_type":"box","text":"market environment.","page_number":195,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"409cdbdf-15bb-49b0-b428-26cd09aa632a","block_type":"box","text":"Share buybacks","page_number":195,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"e62c05de-3d10-4f50-a029-62a6aea48caa","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":195,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"fcf2c8c0-b460-4d44-980b-e0a1bc2db70c","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":195,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"cf19570e-f4c1-4003-9506-2b2c9b0983fd","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":195,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"2e72495e-c952-4bde-9cc3-50951eaf9bd2","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":195,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"8c069aba-cafc-4f5c-bc33-06a23ca2a324","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":195,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"ff503c1b-c99b-46cc-bf3b-beb7a61eea20","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":195,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"4ea650cd-13a5-4ebf-8d96-fe06a6b72870","block_type":"box","text":"of the company and the market environment.","page_number":195,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"9e41b5a3-4620-4b1d-b85f-72b422ab874c","block_type":"box","text":"Dividends","page_number":195,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"33e9a40d-5a7b-45cc-a471-536c9ccf722a","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":195,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"0fcda580-e98f-4954-8bc0-02140f9d18b9","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":195,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"96b82ad3-6653-4695-b448-2ff3311fc79a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5111f83d-d927-4cab-8fe9-fba6786dd6c7","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"599aa271-5545-46c9-8f78-2d573821b61d","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":195,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"804a4e33-9d8f-4d2a-9658-28a4cdb120c0","block_type":"box","text":"Differentiated voting rights","page_number":196,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"71e73bd4-296a-48b8-9b52-1b24a2ee7c82","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":196,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"ba19edb7-4c28-45e5-84cb-553d394338d7","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":196,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"d7a7bb33-8d4e-4d77-ae3b-b27cb9212e2c","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":196,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"76d30e75-245d-4634-965b-00e218c5bc73","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":196,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"fa777917-55e4-4a8f-85ba-857a7ec368a2","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":196,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"128972e7-980e-4e44-96b2-b62770bfe8e3","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":196,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"b167caf5-510f-4d49-b711-6749a694341e","block_type":"box","text":"analyses of proposals.","page_number":196,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"39844eb8-c1f5-4988-ab28-a46fc6365a81","block_type":"box","text":"Mergers and acquisitions","page_number":196,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"71a40aec-c426-46dd-a763-672ec7ad5294","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":196,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"77dde47d-1311-4a89-aca4-798ee0b2b5fc","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":196,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"7ef4b2f1-690f-4bb1-b23f-8beb8c5fbb75","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":196,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"0f75a93c-8980-4b53-8cc8-55792ad5da27","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":196,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"58f3b83e-8731-417f-86f4-56d606b76492","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":196,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"3934b047-a744-46d3-a622-cf8ddf09c5f0","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":196,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"ddeab8d0-d0a7-4759-9f98-290b50ace5ff","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":196,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"e269c060-63a8-4900-95e9-ea8094917970","block_type":"box","text":"Anti-takeover defenses","page_number":196,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"52ebd1e6-b678-4bbe-9316-49f109e3ddd3","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":196,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"a0aa051a-cccc-467c-94a0-1a4c172bc578","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":196,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"b3cfffe5-52f5-4155-870d-77d2ac24f33f","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":196,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"8cb5a95b-1133-463e-81b1-0167af69f261","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":196,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"0d6b23df-4bcb-4537-98e0-011c92ec2e5a","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":196,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"32fa4c7e-e187-4d7f-8446-36aa8c522f78","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":196,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"beab1732-7ab3-476f-b5e4-dfe950fb165f","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":196,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"b1c4e311-d234-4434-a206-73879a886f6e","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":196,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"926c5466-0f53-4c33-87dd-5c7e39c93236","block_type":"box","text":"Shareholder activism","page_number":196,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"b0abde47-f0b7-45b4-8c45-70cb2539520e","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":196,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"31c1d3dd-ec9b-4e9d-b4b0-bcc1d37f1831","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":196,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"40f7e377-4008-4deb-bce5-03bb11b330d2","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":196,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"cdacdf05-376a-4606-9c58-856197870a37","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":196,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"48cadc08-ff61-4d18-95b2-96709426850b","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":196,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"7f18f6fe-87b8-4fc4-be42-ae218395fd9e","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":196,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"de710e96-e12e-43ad-afd9-1b99f65ca0be","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":196,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"0975c36e-0abf-4e09-a3e1-45ae260ebd0f","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":196,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"9b9cf264-2a97-49b5-b581-62e9dca15370","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":196,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"556b14b7-392d-436e-b53a-682a331fdc55","block_type":"box","text":"protecting shareholders’ interests.","page_number":196,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"f12acaab-edc6-4cba-9e58-f08eb428ab59","block_type":"box","text":"Significant shareholders and related party transactions","page_number":196,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"f3a6c4e9-596d-49ff-96d9-4c45e20a48ee","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":196,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"9217a201-2891-4537-b8fa-bc2c3599b39c","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":196,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"9decbc87-ed74-4cba-a6c2-2164f2b3ccce","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":196,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"0c746b51-b5ec-4575-9ffe-3832ac487ffb","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":196,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"47908093-5ba5-4c51-a740-6d43c9cdb867","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":196,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"6c47a079-3788-4a01-ba75-2f7cc545b561","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":196,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"b799cdd0-8644-4874-aed7-eac49a7905bd","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":196,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"7335e71f-650f-46f5-aa90-1fc2b1660fbd","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":196,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"a14ede08-ef79-4c4f-a722-3352dc19f752","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":196,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"8d188d4c-4b8a-4632-b077-9f8b4e6bbfbc","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":196,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"a0b887d8-2ec3-4d01-95bd-605fc3984a5a","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":196,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"5c13702e-87ec-4e44-beda-2eca681467cf","block_type":"box","text":"audit.","page_number":196,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"9c4be65e-bb38-498f-b49f-2965456da22f","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":196,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"fd6abb4c-0e44-4892-b8ae-971783fcc769","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":196,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"c2d92efe-b4e2-4af2-9c39-9846a1127385","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":196,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"b49455f0-deb4-4b41-a3c7-7be342feabdc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3110066c-8247-44b0-bd9a-2228e3f58bc8","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":196,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9cf5d709-2abf-4e15-b9ce-cbd6441ee8b5","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":196,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c5ea2333-a442-4592-a631-f01d1945fe33","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":197,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"75d7e11e-9e3c-4db9-bd0f-b737ec9ebe0e","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":197,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"890d4931-de51-4f07-bf18-dd2e9625fc0c","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":197,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"014e67b0-3537-4060-b8ab-4ab2d9a9a8e2","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":197,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"5c3497e9-0858-47bb-8a8c-d22b8757304c","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":197,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"c9a0d4be-529a-4d5c-abfa-b93769416343","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":197,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"12828b33-9384-49a9-80bb-28cdf0ecb818","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":197,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"6444abb1-cb5e-4b4c-8475-2b889f04b5e7","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":197,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"a2498923-28cb-48e4-b505-890357357942","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":197,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"8240fa39-7dff-423b-8190-9a48c9c1d232","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":197,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"5c061579-3670-425a-a93c-1368f62a3af6","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":197,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"9de9c0e9-d181-458d-8167-89fe268736b2","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":197,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"e3ae993d-3f1c-4d51-9d0c-c1a0cdd75490","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":197,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"0a8a25b9-3bd0-4e9b-9a87-6f8fbe2e5984","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":197,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"bf6630df-b657-4487-953e-ee0c218f7ad3","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":197,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"f7d526ef-295d-4d5e-ac8a-80e93644c504","block_type":"box","text":"9","page_number":197,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"75e0e41c-3d5a-48ef-88cf-2b025925f068","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":197,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"021147ef-e766-420d-bf6b-2dc9ddc3bf2c","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":197,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"69c0bbbb-d372-438c-88c6-9f65481c68da","block_type":"box","text":"standards specified by policy makers.","page_number":197,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"4cf63cdb-9755-4a78-8f6a-8dec584c2b59","block_type":"box","text":"10","page_number":197,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"1ccddd1f-1dfc-4e7c-9b96-909c8e9de364","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":197,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"303277b8-5726-4b5c-8cbe-7ab721648991","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":197,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"753cea7f-09db-4991-821e-9b9a8af8871b","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":197,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"58ba0474-ce66-4438-824e-ac04645639f3","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":197,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"47e5677e-eaf1-41fb-b87e-64e2913ea445","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":197,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"d1ccb0ae-8909-41f2-8024-b73fc61e1114","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":197,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"5a7cf9e4-45c6-4457-83e8-54505b8cba8e","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":197,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"f54e0b38-88d5-470d-9400-4facd16fd529","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":197,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"ff50fe04-c3ba-4e94-b10f-b0a7683d9937","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":197,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"2cdf5cc8-1c77-4c67-b759-4f9d3a364e72","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":197,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"43c91520-5802-4b72-b15b-e6ee53c94203","block_type":"box","text":"remained independent.","page_number":197,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"0721ca10-4568-44f1-82a7-2aa38591c449","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":197,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"b5e13549-4320-4742-8611-5a15a5ec6da9","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":197,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"656d05a6-8845-4654-bb84-8d624b19b03e","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":197,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"2ef347cb-f508-4be3-b58f-cb4ec0c8cc81","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":197,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"e7ed8cce-33a4-456b-b743-c2e676b9475a","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":197,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"15d39cf8-b959-4339-8660-4bcd1f3f1a9c","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":197,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"00b17c75-7df0-45b2-bad2-93b1f8707a7e","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":197,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"1ba16cec-bde1-4bb2-81d4-16318e2985b9","block_type":"box","text":"General shareholder meetings","page_number":197,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"5cc3169f-e567-4fcc-955b-6d913435fee4","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":197,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"2153ecfc-a471-4b75-960f-36b498de580b","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":197,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"96117ee7-2ece-43c4-aa2a-3fde3bcc44bb","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":197,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"353b46e5-fac8-4660-b2b2-74c1513a1bfa","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":197,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"43d0e2f6-efca-4cf3-a53f-fa22ec63fa99","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":197,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"c66d64ba-d233-459d-82d4-095a70ecf43e","block_type":"box","text":"an in-person meeting.","page_number":197,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"c671ffc1-6f13-467c-883d-2be63b5e0e3a","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":197,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"20698c7e-6c80-4db6-80a5-f99536b2ac8d","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":197,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"47b4fa7e-210a-42c5-97d0-afa1aacdce1c","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":197,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"8f3abbf9-69f8-481c-88e4-1cc13355d511","block_type":"box","text":"participation.","page_number":197,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"ff7d28fb-ebb9-466a-949a-2b8f2241ffc9","block_type":"box","text":"9","page_number":197,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"09833e33-93d6-4a99-974e-41444699d224","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":197,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"697ca63e-dac9-42f1-b156-25bc02e434b9","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":197,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"4e242891-bc66-450a-ac7c-acc25d779704","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":197,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"20e2dbb0-ba18-4572-af1d-0050553c27fd","block_type":"box","text":"Disclosures.”","page_number":197,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"e266928f-1e78-4a4b-b5fc-56c0661acb2f","block_type":"box","text":"10","page_number":197,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"28c3e9bb-59cf-420e-8ecf-ae4d653b5c22","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":197,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"e2d9bbbc-344a-4554-b6d0-1891e929491b","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":197,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"912cdb57-fe3b-4299-9e19-f488a85807c0","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":197,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"d9c922e9-98ce-4cc6-b5f5-97fee0f576a0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"285c721c-a854-48e0-b4c3-afa7531b69b9","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"022dbbb4-6ae8-4218-9730-b910bd8465ca","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":197,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"bc01ac4e-9d48-4957-89f9-f5b85bca12a0","block_type":"box","text":"Bylaw amendments","page_number":198,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"2354ca29-2de3-46c5-a8b9-47ad0a7b5f6f","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":198,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"835b60d8-98aa-407c-a1f9-90e73e2f41a9","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":198,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"6bb4d56c-c01a-47d5-b3c0-c2f3c6928994","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":198,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"bc0439e9-f282-46a0-bed8-99ea07cb1e97","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":198,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"6022c91b-830a-43ab-98b4-0cc66abf9768","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":198,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"ea7bf048-7282-4447-80f1-3def25a41b39","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":198,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"12ca6c27-e3c1-4518-aa91-c1edd51e990d","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":198,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"95762227-bd06-4833-a6a8-aef0e671d1d2","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":198,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"e0500e8c-7063-4b0c-8da8-778d19eba491","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":198,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"1c939428-1f8a-4d2e-b178-317709355f16","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":198,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"7b27baf6-39a5-4a8a-bd92-d9eb69a5b2e0","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":198,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"b894d8a6-1341-4bdb-ac8c-f5c81bd4639a","block_type":"box","text":"nomination process.","page_number":198,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"e0862e75-3471-4b20-be0a-cad568e160ff","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":198,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"0b6c8fb8-c00c-4d6d-8665-4cb981905afc","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":198,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"2379990f-7ad9-453b-b0c7-2054383862e6","block_type":"box","text":"Change of domicile","page_number":198,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"87f0bb8b-d21a-453d-a461-05b59bb47342","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":198,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"9ff792df-e3ed-4f4f-9907-c41ebc6508f2","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":198,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"682f3b01-2226-4ef0-bf10-ad9689070fba","block_type":"box","text":"immaterial.","page_number":198,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"ae3daedd-e8de-4aa4-9d45-1e1a68bca457","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":198,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"403b880e-b462-4c65-a02e-7ec146cd1a10","block_type":"box","text":"with our clients’ financial interests.","page_number":198,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"d3996d50-2e3d-4121-b7cb-f1e65252c7eb","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":198,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"b8477548-35e8-4e46-8914-d9ee5174923a","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":198,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"35b703b9-1393-4777-aa52-dccb50298029","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":198,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"36262c69-9ff6-46d0-a540-f59f9acb3df8","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":198,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"c613360a-0856-45bb-88a6-11b2b86a7ff5","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":198,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"373e2a87-7b63-4308-aaf6-15b242428466","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":198,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"0bd21e0d-5145-477c-a7db-83833d0bf1cf","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":198,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"0a3a609b-9496-47a5-b9db-d6731b30e7bd","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":198,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"108e4248-6e46-4e21-87f9-39df79d12d42","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":198,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"c7024ef0-49e8-41a8-898d-8962274fff23","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":198,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"9f1b8fb1-b087-4c92-85a0-56bf19f1c35c","block_type":"box","text":"relevant to a company’s business.","page_number":198,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"66b53efe-d704-456f-b59c-fa46f48533f0","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":198,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"196a52fb-a50f-49bd-bc87-de364cc47772","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":198,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"40104133-4a61-479d-9137-c0a175365818","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":198,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"a53729cd-e97b-43d6-a208-f2b8d7a95a8b","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":198,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"aca7be5f-b2d0-4345-876b-5ddd66d374e6","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":198,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"0192af04-8ac2-4c89-aef6-c762288ed89d","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":198,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"5da89675-9c5f-48bd-aa83-3eeb9d6602c7","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":198,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"6557bd3a-1aec-4ef3-8074-2ff597e450bf","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":198,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"559c8909-5a93-4b3d-b2bb-8d4619de4be3","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":198,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"1ff56397-75a6-408d-8046-5e9b4bbbc567","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":198,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"53c92289-c58d-4cd4-9372-8f84a06ffdb6","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":198,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"9023b4e6-bea2-43cd-8ccd-1129096d88ec","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":198,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"0995e5af-3def-4df6-9ed2-0b61bda6a7e5","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":198,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"f0a096b6-9967-43f9-a05e-9420b830cb30","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":198,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"3a82931d-f04a-404c-a403-e5b7d765d752","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":198,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"aa200d80-d542-4fea-8606-ad4456a03824","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":198,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"954fdab2-967b-441c-9c3f-75085062b227","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":198,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"d2e7d651-66b4-4032-8876-69d176583eb0","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":198,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"939c1eff-f904-432f-bab0-38deb376596b","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":198,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"bb4650bf-77ab-42c8-8815-5a4b3a2ff4e9","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":198,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"8d6932cf-4105-4ff7-9085-e6a1e480d070","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1c92da24-a0ca-4914-b9b5-107eec186d81","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c1cbcaae-d12b-4acd-b9f0-309aea8f4f2b","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":198,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"90cfcfb8-9d06-4b1d-87de-55d9adffcc36","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":199,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"070d0209-d5da-4212-8183-1a12db706aad","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":199,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"2c30edba-f891-4786-bc26-89c3f9d1823c","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":199,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"1caaad11-d868-477d-8106-7f22a56e1243","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":199,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"4660067c-4eaf-48bc-a442-296dc2388429","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":199,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"58a9da5a-34f1-4022-a667-0ac41b76d759","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":199,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"8a7383fb-12bb-4cf3-ad64-65b2568517cd","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":199,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"7dd1ce26-a215-4410-b5d8-b2de79c5a0f1","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":199,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"ce995115-6753-46f2-af2f-0f59c9b7971c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"be198a49-75c8-4cb7-8f96-255a668e9fc1","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"2570de8f-fd7c-4f38-b65c-de29de4140f8","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":199,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"042be198-103f-4109-9678-d054226441f0","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":200,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"631d095d-af6a-482f-9186-54a722980059","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":200,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"cc9888a2-ca1f-404c-9e6a-06bfb43e44e5","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":200,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"039be1af-4a9b-4861-b659-2636ae0d394a","block_type":"box","text":"11","page_number":200,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"86f3ed83-7e1b-4399-a603-2d244f73069f","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":200,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"cf26c818-de6a-4fb3-9878-7c25c51a0760","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":200,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"766de24c-9e19-43c0-a7d9-3288d609c390","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":200,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"864ed321-14eb-4f75-808d-d45d42812103","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":200,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"54eb3d80-7956-4e82-adb4-56205b08e60f","block_type":"box","text":"regulatory requirements.","page_number":200,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"3ff29686-b881-4820-9f4a-26586b7389ec","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":200,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"d04aacb6-2488-4f7b-9167-da3d9567f73f","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":200,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"a80322df-0145-42fa-9797-140e1074dda1","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":200,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"ba337805-dfa4-410e-8d35-dc09d38eec77","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":200,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"7a696753-550f-47b4-858d-400315d8df24","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":200,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"9781ecf6-54cf-4f94-b04a-a37c2604b4ff","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":200,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"64c2bef6-b74d-41cd-8857-14d3f3b8b49e","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":200,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"da6d6ae2-5dcd-4c6f-b9de-ce14400d4fa9","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":200,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"409119f1-f43f-45ff-98b2-87fe3e482796","block_type":"box","text":"returns.","page_number":200,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"790e13e9-5315-40f8-9483-8c5268861f5a","block_type":"box","text":"KEY STAKEHOLDERS","page_number":200,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"10f4bc61-f5f4-4904-be82-992e12945a12","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":200,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"9c365cd4-f2b4-41bf-933f-82b2a74d2ea4","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":200,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"14d63d9c-dafe-4249-b178-d5b9f393f109","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":200,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"6ea4879e-c072-455e-a7af-c8c9d845ce42","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":200,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"ec4fdbd4-45b9-40de-84ad-25b451cde7c8","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":200,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"0fc5ca7e-bc6c-40c0-8edc-738156d50ba2","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":200,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"466dfc0f-8d04-4bb5-835a-7b40e185dd81","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":200,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"e1786522-b8ef-4072-b4f8-32eee17c2870","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":200,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"cd77d950-1dd7-4665-92f3-c272b68a3174","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":200,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"bf642fdb-7b80-4e42-9bbd-8e71ee3f7f5a","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":200,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"3910dfa3-3dc4-41d9-abd9-c6b4003efb5f","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":200,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"5e04e098-0655-4989-abba-e5d1a31772c8","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":200,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"25a6fb14-63af-4ce6-8fa6-a23e4b388f3d","block_type":"box","text":"i.e.","page_number":200,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"5e090d3a-4bab-43d9-9188-b9166b19e15b","block_type":"box","text":", one in which global","page_number":200,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"de6823ec-fba6-4ed9-bf87-c6692a284a04","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":200,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"5541daa8-d944-4633-b3b8-095423c06954","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":200,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"f3dc953c-d6ae-44e1-ab20-f894ed94fa19","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":200,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"417f7ff0-8767-4b5a-97c8-f2baae4a9410","block_type":"box","text":"client.","page_number":200,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"a8187763-0683-4cef-8ed1-734f916f4d30","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":200,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"57b17e73-dc33-4fb0-9679-d4bee9991bf5","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":200,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"e747f931-816c-4858-afc9-9a073546462b","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":200,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"6c0f37e3-de83-43ad-85b1-beab7cbbbbfb","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":200,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"8f719026-0c5b-44df-9f5a-fd2d6093f289","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":200,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"97ecdc83-6cfd-4c66-8c80-ad57960ac553","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":200,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"fd653a6d-4880-4b37-83f3-f749bbb7d5d8","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":200,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"779c6a1f-9505-44b4-9237-ba951033843e","block_type":"box","text":"1 and 2 emissions.","page_number":200,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"cc7d30b2-72f3-4355-a9e2-c6599dc2366d","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":200,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"d20e6b57-1a6a-4b91-b577-ef8db731177a","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":200,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"a10ee682-c27c-40b5-9414-a4d6ad023ee9","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":200,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"6ee96b2f-3a34-4915-ab2f-2442bf985667","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":200,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"0c676ab8-5089-4268-83c6-d6ed72158d80","block_type":"box","text":"11","page_number":200,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"da3d389f-8643-433a-807e-88a3d91cea36","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":200,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"054921f5-db9b-4074-866b-fffe9830b42e","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":200,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"0b61f59b-25e7-4987-916d-247c307af23d","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":200,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"94a99adb-6a80-4f33-a1c2-80b230a828ca","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":200,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"f97c780b-65a6-4d09-abbb-f6381e60787d","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":200,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"a18a32d2-a1a9-4d79-8df6-2cc836a0f96b","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":200,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"225e3f58-1590-4294-8338-a7163b91099f","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":200,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"8c9b4f50-efdb-400c-856f-f31a49f14733","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":200,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"ae3d003c-7a8e-4869-a8b5-65c370ddf119","block_type":"box","text":"sound governance framework.","page_number":200,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"2f03c4e4-7026-4866-ae46-1ea0070097ff","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"51ec8902-650d-4fdd-ba22-fcfd7b6ae4b3","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"42e8a84a-3279-457f-9376-4d2a4c8db743","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":200,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"9f39e747-9ac6-4849-b858-eb39ace70572","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":201,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"03fb0795-b082-4d00-9105-96ce724f1377","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":201,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"a200d281-9956-4139-bda0-1ad0847c4926","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":201,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"38d82510-6ff6-4f4c-922d-349dd3c8fca7","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":201,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"ea5fa546-f6c3-45f6-a4aa-adebc1a0ebb2","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":201,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"e38f3455-d90e-46b4-81fc-6f8018159f2a","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":201,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"96311625-f012-428a-8f48-0c1d229fcfcc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0d89e22b-a236-461c-afad-7a4364364a5e","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"862ada54-4c84-4a92-aa22-9454fa6e6905","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":201,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"37dd0833-9774-496b-bf57-0452fc9a29db","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":202,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"9085882a-3d01-4ba4-a8cc-2ac82b272a15","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":202,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"a149e645-8b98-47e8-9113-ebc6e21c7f3a","block_type":"box","text":"Oversight","page_number":202,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"fb9d5ed5-8084-47a2-aefa-956f3c7209a0","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":202,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"a55ebe5f-8af6-41ca-8b7e-f33e22387c6d","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":202,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"3ca9846f-875e-413b-91e7-73b96ac10af7","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":202,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"90931f99-cadf-42c2-9afd-a1faf9c0607f","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":202,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"0cc1463d-89e2-49ef-a64c-572e28ce2301","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":202,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"b9913432-d0ed-4e22-830a-33b9feef4688","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":202,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"c4ce7d4b-f519-4c20-bd3c-0ff97c20cdde","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":202,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"61a7c83b-4ba9-49b4-b742-ffb30d2f8733","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":202,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"34a7380b-2a4b-4ce9-889a-2be3551828bc","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":202,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"53c363bf-a1cb-463f-af25-1227a567999b","block_type":"box","text":"relevant active equity investors.","page_number":202,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"445e84c5-0e79-4ae4-b768-c692944ab4b0","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":202,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"e5f83b44-945f-4848-945e-81f2fc375db9","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":202,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"54487d7b-5e9b-4418-8501-ee9046d8197b","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":202,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"2c5537fb-d68d-4900-a9ce-a0d2588db6f1","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":202,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"775ac96a-6f8c-49a5-ac3a-910ac73934d0","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":202,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"ddb42a75-bd0f-44e0-8862-de1cbc07bb4d","block_type":"box","text":"third-party vote services providers” below).","page_number":202,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"06ba9447-4573-4df9-a362-ab7c99f6d5a3","block_type":"box","text":"Voting guidelines and vote execution","page_number":202,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"90ca86fa-2087-4daa-935c-8ca94160a0ac","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":202,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"5ef333c1-0bf5-4a2e-ba8f-c7ea369cdfd8","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":202,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"a2476e68-dd1a-4df4-85ae-1cbadc60adff","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":202,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"85a64a4b-0f37-436a-974d-3f66fdb5aa10","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":202,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"3b4db3cd-a13b-461f-a6c3-c4d8351a0455","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":202,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"53275749-5fee-4379-82a7-180193a6558d","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":202,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"b8817819-732e-45b5-b730-0311b3f28bb1","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":202,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"1fde55ab-7c87-4914-9629-7c8670bfdae7","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":202,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"49778b4a-1a76-4940-8224-4e08a9222a05","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":202,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"58f14fc0-e720-4de4-b5bf-4e5d86eb5404","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":202,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"2fe336c3-117b-481c-812d-f02eade442d4","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":202,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"665f1b63-b47b-43f6-a481-536007726b17","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":202,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"aadcb1e8-a61d-45f9-942f-f15f01ec7518","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":202,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"56425dd6-ee03-458d-8306-053363b54013","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":202,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"834c6958-8e3b-4578-af49-2d98b1302a5b","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":202,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"b558a62c-5854-40c4-a47c-ed0fc5c186e0","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":202,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"3e12f57b-dc58-47d2-9dbb-f3d313e92fae","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":202,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"e2bacb28-8709-4d11-b61e-2b0ebbed5182","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":202,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"a760cc8d-85e8-4c94-a550-f1c071d0081a","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":202,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"03fb72b6-b94f-45ef-9409-75f57a55240c","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":202,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"3bde9498-8cbc-435f-adfb-e3b2568b3bca","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":202,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"fe9fede5-1f7f-4ded-afc0-4c64c5f6ec03","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":202,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"6ab34d9e-a719-46e2-a4a7-701836df3ac8","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":202,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"2e24e54b-3fb3-4535-bc38-e0f0958cb3a1","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":202,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"65712a93-db25-458e-b74f-cfc24453a47d","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":202,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"01cbb106-ac0c-4d6f-abfa-080ea1d70ae3","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":202,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"ecc9a0ff-87e1-4ce5-ab80-db75e51baa87","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs","page_number":202,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"8d4e8390-020e-425e-8c4c-f2768af4285c","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":202,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"6d403e1c-7069-4859-a65d-436237794439","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":202,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"b5c8ff98-4b90-4cf1-b31f-82696903740e","block_type":"box","text":"Voting Choice","page_number":202,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"10f13084-95ea-40d9-8712-1c52ef37ff36","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":202,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"d42dcf48-06fd-4faa-9c2d-7265bec4a302","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":202,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"0fb4f273-9bea-40f0-b542-70a923b022fd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"71015e4c-8d6f-4e01-8c89-0f757f78bcb2","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b1a4704d-595a-4a28-a4f7-8964e5b5410b","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":202,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5de96a06-7f18-427a-b96b-7e9716a12f86","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":203,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"a2478ae6-34fd-4d90-92b8-65358991ee8c","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":203,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"9a56d681-87f8-4f8b-8d02-61e9ec20ecc5","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":203,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"152ea73e-8f59-4c8f-a4fd-115d6a0abde6","block_type":"box","text":"strategies.","page_number":203,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"15207fac-203a-4152-9d04-f50cf717c9b4","block_type":"box","text":"12","page_number":203,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"5e83ee59-aeea-4f89-9522-42ee94ff5998","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":203,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"a97a80b2-ff0e-4018-833d-179a36f36940","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":203,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"28f857f0-69a5-4926-8c4c-ef4ce97d27a3","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. 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All other trademarks are those of their respective owners.","page_number":205,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"f1f73b9d-92f6-44a9-903e-a1cfda1278bc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c976c55a-1742-42c6-8f3e-8d556a198931","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8a8148b1-0280-4ec1-9b4c-effb47f4166d","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":205,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"17387b30-df71-4b67-b2f1-572a23e1dfe7","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":206,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"221d4375-82f5-4514-b77b-8729d7457429","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":206,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"4f41e4cf-f195-443b-b352-d34716217557","block_type":"box","text":"□","page_number":206,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"8978f5db-5892-4944-a53f-5e9d3015b2e1","block_type":"box","text":"Money Market Funds","page_number":206,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"ac805393-9023-411e-b277-e2b70bbab65b","block_type":"box","text":"□","page_number":206,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"1e591ca2-bac4-463b-bc70-348d2e0d167a","block_type":"box","text":"Closed-End Funds","page_number":206,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"94add266-e9a7-4402-8e8a-e9e739db5db4","block_type":"box","text":"□","page_number":206,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"6bb6ee5c-d96a-4029-8ee0-7d5e30d3dd96","block_type":"box","text":"Other","page_number":206,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"916d4d2b-1c84-49a1-b959-2700fad3c65e","block_type":"box","text":"Objective and Scope","page_number":206,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"f92e6f1b-83c3-4dbf-be9d-9571b66dce8d","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":206,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"d2b386a2-84ac-4330-8ecf-451121fc456e","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":206,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"272b24b2-ba35-4232-9825-ef4d58d6140e","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":206,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"692db800-8346-4e81-b383-47e1cc2e0198","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":206,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"c71a3ea7-97ef-467b-a226-583438c4dcd7","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":206,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"3fb52c11-0c5c-4282-8bbb-174756e9109e","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":206,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"3be476ac-91ad-452a-a2e8-41789ecb0e58","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":206,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"d10a5bc4-9280-4513-9cfa-04e9240e82e9","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":206,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"2c6c9c2d-e05d-43f1-b9db-dd42d3d72cfe","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":206,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"bb7c4c07-367b-4b4f-a916-d2142b2ed034","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":206,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"ee940e4a-948b-4444-ac26-cdd0a64a97aa","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":206,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"3411cde4-4219-49fd-8677-bc1333f00ccd","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":206,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"df688903-e008-406f-b8b0-d0756fd9238f","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":206,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"c1330470-3e32-4f9c-bcde-c705975e9056","block_type":"box","text":"Appendix A.","page_number":206,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"50fc2572-ca61-4857-99cb-8847f5f95865","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":206,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"dcfae15d-4114-4537-ac1f-567925dc0b8f","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":206,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"7599c080-dec7-47e5-ba97-09dceef3f49d","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":206,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"0724c509-1fc1-4d27-ad55-2b5a960b1297","block_type":"box","text":"Conflicts Management","page_number":206,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"38c1b053-16e5-4b05-b262-1e3ba01e6596","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":206,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"1d9ff553-4aea-41fb-9f75-2855a8ca888c","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":206,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"14a2d1d5-0113-4dcf-b147-0f8b7e8f3eda","block_type":"box","text":"proxy voting responsibilities. 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In mitigating conflicts,","page_number":206,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"3df34cef-4ad3-4cbb-95e7-880c1a021bc5","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":206,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"5bf04148-5f37-4e3e-a6f9-a15775d1cda2","block_type":"box","text":"In certain instances, BIS will engage an independent third-party voting service provider to make proxy voting","page_number":206,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"2fda7f4d-fa3e-4421-a551-deb3dcb08ca2","block_type":"box","text":"recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":206,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"473dea78-5f5b-46c5-82e1-8199e605dbcc","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":206,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"fea6b684-a7db-41a0-a024-376ef66a7a75","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":206,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"0a6c4125-9c69-47b0-ae08-adbf5b168a0b","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":206,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"2ce58f97-7f46-432f-b7b1-e53d5ee269db","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":206,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"02a1f8ff-9dbd-4748-a544-69965d27985e","block_type":"box","text":"connection with proxy voting.","page_number":206,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"449d3ef4-d3c4-48b1-93a3-5c4192095ad9","block_type":"box","text":"Reports to the Board","page_number":206,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"7ddf9d7a-adde-463c-901a-898dad934ab8","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":206,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"349876e5-b055-4091-8ea4-d43fbf3518cb","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":210,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"2e94d4c1-38d0-413c-89c3-97e0847dc866","block_type":"box","text":"about our stewardship efforts on their behalf through a range of","page_number":210,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"4f590648-38fd-4762-a939-4b6587537353","block_type":"box","text":"publications on our website and direct client communications.","page_number":210,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"80ba798a-76cb-4573-ab70-3f2c7c0d873d","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":210,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"d5f23a12-5fd4-434e-b0b5-2b933a6ef501","block_type":"box","text":"voting on corporate governance matters and other material risks and opportunities under BIS’ Benchmark Policies.","page_number":210,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"6fa91177-24b6-4a75-8672-6d2513b50cf5","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":210,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"1bfbc9bc-8396-4b30-934b-20db891dc33e","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":210,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"89fd740c-2694-4548-9312-1e648422a5ff","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":210,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"0a7e2820-327e-4116-b4c3-3ea06d1abc92","block_type":"box","text":"2","page_number":210,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"c9b08a57-5574-465b-9afb-4ca3ebc19eb8","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":210,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"e1dc3fba-1f0f-46cc-b4c8-8c815b2abefe","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. 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Our role, on behalf of clients as long-term investors, is to better","page_number":210,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"aaf3a603-86e7-44b3-9d97-b039bd8e5da0","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on opportunities to help protect and","page_number":210,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"d61025b6-cef9-4351-99a5-c5fecfb2dd91","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":210,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"a5340a30-66e3-47fa-b00f-fbc665bdac94","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":210,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"b8d16f0e-e825-427d-be4b-ff4607d8a74b","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":210,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"4d00c870-559a-43c4-943b-0683fe1505f2","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":210,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"625bf6ef-4ba0-4603-9fe8-28844eaa13f4","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":210,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"14c0484e-7d9e-4343-8f75-6d280818a461","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. Our stewardship","page_number":210,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"01bd7c98-818b-48d5-830d-ecfa2cccd341","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":210,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"17b1c622-ebbf-4cf1-85bf-c3f748f4c2cb","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":210,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"7a1c8d37-79ea-407b-ab66-8d5ab50eefee","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":210,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"ee935619-8e05-43a5-a31b-be62eabf7f67","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":210,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"80a417ac-2436-4e93-9c72-b329f2bbc769","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":210,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"b0af12c3-f5be-4bd2-88fc-edd23a47910c","block_type":"box","text":"opportunities over time, and to help inform our voting on behalf of clients. Engagements provide companies with the","page_number":210,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"70917e5d-3402-4dbb-af70-61f86df7a603","block_type":"box","text":"opportunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":210,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"da40798f-c68a-45a8-ab61-020221679534","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":210,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"d718d4c9-1113-45ad-a76f-a2380ea32857","block_type":"box","text":"1","page_number":210,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"5b7e50b3-d856-4f2c-9278-35d3708084ad","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":210,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"861ac39e-88ee-432a-a427-0fb29f4242d3","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":210,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"264d593f-f9ba-41b6-91b6-6d0334134e4a","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":210,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"fa91ec8a-cdfd-4a72-9cb5-4c43e0e58606","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":210,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"807d78b0-7133-44c5-98fe-38f23b213bdb","block_type":"box","text":"2","page_number":210,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"81d29580-a6b6-4e63-9363-30b7dad553e2","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":210,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"365fdc85-d132-43ea-9f28-c499832e7101","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":210,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"ffac2b82-bcf7-4b33-8ef3-8ec268368a12","block_type":"box","text":"material business risk or opportunity.","page_number":210,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"e5f9b23d-b452-41bf-8a86-042308807556","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d0c49c2b-fc92-4e08-a31c-dd678f64cee8","block_type":"box","text":"Global Principles | 3","page_number":210,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"abbf38d3-04fb-4e69-8360-38d224f40706","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":210,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"9605d028-7540-4764-8c7c-f94c019792b5","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":211,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"83aff428-b249-48b0-849b-a90d5d41515f","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":211,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"9fdcd70a-c840-4c1a-9aa1-90298a94466a","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":211,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"2dc93076-8d7b-4cab-9260-d797815600ab","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":211,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"5c1c1c52-f959-468d-a73d-221eadc1c772","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. 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When we determine it is in our","page_number":211,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"16bbec97-3d04-4822-a598-866ae4a5406d","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":211,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"53d64e5d-54e1-47e5-ae27-0921083c7a3a","block_type":"box","text":"support the election of directors or other management proposals, or we might not support management’s voting","page_number":211,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"615c7ba5-05ca-453a-b772-15a33cb771cb","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":211,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"2fd46369-70ab-4387-be3d-50d4140630c3","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":211,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"00ada40e-4809-4547-9134-69799afc8267","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by certain rights attached","page_number":211,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"d7eeae1f-4b66-44c4-9500-6a511280f353","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":211,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"b5b1dd5c-7044-4bfd-b56d-21d0b1f3a43d","block_type":"box","text":"3","page_number":211,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"df6b171c-d624-4709-8ede-c75897325a6f","block_type":"box","text":"For example, in","page_number":211,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"f9a48b01-ff58-4f84-bee6-9cb7f7232daf","block_type":"box","text":"most markets, shareholders have the right to:","page_number":211,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"8d9cd7b7-8059-489b-80c5-f05e633c5f65","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"3d0c2454-1b93-40ce-8cc9-d4881c212eb3","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":211,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"d0196ed3-caf8-4351-943d-f20f3c9b138d","block_type":"box","text":"charter or bylaws.","page_number":211,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"f68b4751-8ba8-4be0-9eb4-e27c89781fd3","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"785cdab5-acfd-4ec5-99c4-15f506527fbb","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":211,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"c0e60bd2-825c-48e1-aca2-c8d327346cc5","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":211,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"5cbd23f9-2aba-447b-9d3f-5daf31e103d1","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"891989d5-b4b1-4d8e-aba5-8a970e68d1e6","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":211,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"08e36db2-80a8-4a31-ab15-3fa0ebe187b1","block_type":"box","text":"are material — to make informed decisions.","page_number":211,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"67632cc0-7bb0-4308-af66-697ec2419d6d","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":211,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"c165f243-b9aa-4dc0-9bbf-8d74c7c18f28","block_type":"box","text":"In our experience, there are certain globally applicable elements of corporate governance that contribute to a","page_number":211,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"92ae7064-52ae-4a20-bad3-29908a5bc2e0","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":211,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"07db4702-3837-4faf-97f2-437b451961cf","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":211,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"7a6ec156-81a0-4d05-bf33-94f88ddb8d6c","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"09e3fb30-42a8-4318-970c-91725e6dd7f1","block_type":"box","text":"Boards and directors","page_number":211,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"e633602a-ab5b-4977-90dc-43ad154ef5c6","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"4f9c4cf1-fab1-4d85-93b7-cc5c1dfb3d66","block_type":"box","text":"Auditors and audit-related issues","page_number":211,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"3544d857-5631-4ce3-bc8d-f564594fbd3d","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"5c001fb5-c995-4304-b7db-51f02809d843","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":211,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"2a683e9d-47f1-438d-8ec0-8b6d7bb58363","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"aeb817b4-fe63-413b-9a52-18f69001226f","block_type":"box","text":"Executive compensation","page_number":211,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"41c722b9-07a1-4627-a1be-211ace8376bb","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"8758255d-24c9-4f1d-ae96-79064e853598","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":211,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"e4dfef0b-584e-4dba-9264-d789039abb81","block_type":"box","text":"•","page_number":211,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"ab8841b7-4982-4a6a-9777-d6f17e230e09","block_type":"box","text":"Shareholder proposals","page_number":211,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"52086c2a-35af-4135-94f6-cd092dca7dfc","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":211,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"61203bc6-fe5d-4b0b-a93a-5fd518435796","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":211,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"8b085c03-a6a7-463d-ace5-4421a86061d7","block_type":"box","text":"which companies operate.","page_number":211,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"77e8b957-21c2-47a9-a117-470728079f42","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":211,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"f8f53b6a-66e1-4aac-a5cc-945ace6110af","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":211,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"df7d3c8f-f009-498c-9812-b5803817f6a8","block_type":"box","text":"supports durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":211,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"1e5bdcf3-7635-480e-8bfb-6baada7de47f","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":211,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"54ce9a75-da38-43db-8a08-1c7b3f63d9f9","block_type":"box","text":"4","page_number":211,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"2b341e4c-27f2-415e-849d-b06efc273a72","block_type":"box","text":"3","page_number":211,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"5d151397-8fb9-43f9-88c0-46a5aba4e433","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":211,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"962d1b56-0e7a-4a3a-9515-325e773a50fc","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":211,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"6df9673f-b89a-49c6-a2b5-6130fba7ac85","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":211,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"0ad351f4-3a22-4f04-aae7-1e924a100c96","block_type":"box","text":"4","page_number":211,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"3475add3-7886-4b1a-b0d2-9255b35a38b0","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":211,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"6a2c8b30-89db-4720-8123-3e79398f1bda","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":211,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"9b41e855-62e9-42e8-b0c3-6c06f25b9a7b","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":211,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"8c0a978a-39f6-493f-ba3a-aa1d8de41b28","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":211,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"61a0f203-94b4-45dd-8ca1-30e1282ebd1a","block_type":"box","text":"guidelines.","page_number":211,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"ed280e8a-3751-4444-98a1-83702aa7ee95","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"30945b6f-8b21-426e-8848-ae64dce35740","block_type":"box","text":"Global Principles | 4","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"5e9bce9f-f52e-4b05-8589-e061cb049dd7","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":211,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"b74ed4eb-5163-458c-b453-fe2e3bfd2cad","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":212,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"56cc76c4-711e-4e06-b4d6-551dd010706a","block_type":"box","text":"Oversight role of the board","page_number":212,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"f6f8fba9-d32b-4682-a587-f962f3e26bf5","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":212,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"568e5f4a-ebff-449e-aa86-bb86aa7b29ae","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":212,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"52d6fdad-eb46-41fc-af7a-18f4b5806b4f","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":212,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"51c982c0-ea10-49ae-a796-5971baa5e351","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":212,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"0ca1b235-bd5a-448b-95fe-0d9fd6dcc82c","block_type":"box","text":"long-term financial performance.","page_number":212,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"ae7bcf73-54fb-4bc1-9c95-a796ccc54f2e","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":212,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"7250a077-9a35-4b13-af08-63095674761b","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":212,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"5d28e631-03af-40bb-8dce-892d5a54cd7c","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":212,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"1c3f83e2-9d0d-4cd7-b67b-a9eabb22c56e","block_type":"box","text":"the business environment in which a company is operating.","page_number":212,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"31c204ef-b453-43ff-ab90-7a94fde48ba2","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":212,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"837d92c9-539a-4292-8a9a-3e63b4bd85f8","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":212,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"eee4ca6b-b97d-4777-8734-c59aed5eebde","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":212,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"2b4daac3-77f1-43f4-b8dc-1385a8962dd5","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":212,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"a2694007-801a-4b1f-bbdc-cabcf4f9010c","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":212,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"401de6ba-f289-48c9-b2e2-8086c3907d70","block_type":"box","text":"mitigating such risks.","page_number":212,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"6bf6f402-19fe-4d65-9671-ea8aeed0232d","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":212,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"b014474c-73ae-4906-8e4e-165ea4ac2e4c","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":212,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"00633c36-58af-42d9-80fd-3f0dfec347d7","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":212,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"9f5c57fa-7b3a-4bef-9452-0f8384fd879f","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":212,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"bd183cd5-e404-45b7-bb1f-494a975d0c2f","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":212,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"9722ace6-aacc-4d74-ba07-caa6b956082a","block_type":"box","text":"strategy.","page_number":212,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"5691d65b-b72d-40b4-887c-4ff7962b0442","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":212,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"e89f99c4-e184-4fa1-ace1-b5cdc10b009c","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":212,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"64fa24a3-ee4d-48f1-b7bc-95afaefddf8c","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":212,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"0ce81cc5-471e-43af-b9f5-8f52bc02b4a1","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":212,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"bcab4bed-a62f-4483-8d22-bfc4eee613ba","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":212,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"bee7213f-4f8f-4c9c-b38c-adfbb3c45656","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":212,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"97ca783b-bb4b-4799-b641-5d53edf0a4d9","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":212,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"87499ba1-3c47-4f5b-83a5-5946f6171fe3","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":212,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"432bc381-0236-458e-9891-b918e47f58e6","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":212,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"c2f9d3b4-67a0-4129-9150-7842bb39a0c6","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":212,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"9182e64b-00fb-4e61-9b9f-e81bdcecd420","block_type":"box","text":"Regular accountability through director elections","page_number":212,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"6487ee7f-7059-4f37-b7cb-fe2847e840cb","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":212,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"ba4ade6e-5b99-402d-90e7-2ad1ff96fc45","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":212,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"dd75a55c-7edc-44f4-a72e-cd2aeaa71c60","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":212,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"b796c0a9-3f93-40bb-bbfe-364415a2e6f1","block_type":"box","text":"5","page_number":212,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"8e86d793-9e58-4efc-ad71-2702a2ab8395","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":212,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"a65fbed1-ce2f-4be6-a912-093e52c29d75","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":212,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"7c0904ff-7a4e-4442-af89-ff8c6374c641","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":212,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"8bb80a08-4460-4721-ba17-c599b4b37f71","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":212,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"5f4f98f8-36db-4d14-b3ba-1d37afeb13c8","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":212,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"58f2d1e5-bbc1-4539-bc43-6e6fbaf5f3ac","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":212,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"1b429099-0aef-445c-957d-4f4eb5c0ff46","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":212,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"8f8fe6ee-af4f-4b6c-a369-bbecb2c37ee0","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":212,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"b7ec6c7a-acdf-4293-afe4-f486bc722d39","block_type":"box","text":"5","page_number":212,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"37ae0d82-4629-4cde-a79d-e7d8db712fa6","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":212,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"ecf5a72d-b562-4b98-bef9-416155f219ab","block_type":"box","text":"market regulation or voluntary best practice.","page_number":212,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"421fbba0-0956-4d39-a86f-3084b7629dc1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"dbe27415-9c1a-4b0f-b90f-a50d4e210cd1","block_type":"box","text":"Global Principles | 5","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"553f030e-7437-4187-ab13-f997db2845e0","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":212,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"968e43e9-9002-4e49-a932-e3f2515f7d2a","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":213,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"f5715197-414b-48a2-bbc3-e74572bcfebf","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":213,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"71719611-1898-4bca-9f9e-63d0e23bfb19","block_type":"box","text":"recently.","page_number":213,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"8938990f-1cf5-405f-8a1b-d5706015fc5a","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":213,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"7b1989fc-4ee6-4bab-9cbf-55627b87bf99","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":213,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"b27faafb-83bd-4488-a79c-d395615f0486","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":213,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"de36edf8-785d-477f-bce3-98f2fe893301","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":213,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"a851e8f9-ae96-484f-9c90-ebb467f4b159","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":213,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"e5aaca78-075d-405b-9ebd-c0d93178ad25","block_type":"box","text":"Director independence","page_number":213,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"42519848-4b10-4ceb-98f6-4871a340ea3c","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":213,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"fbb69933-420d-4784-b150-e6de533cdf4b","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":213,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"e059a1f0-3516-4581-8580-89c08ba091c7","block_type":"box","text":"6","page_number":213,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"203ef59b-f839-4cb3-84d0-66878b154ab6","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":213,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"979e9d3e-4df0-4f77-a6f8-5de0946f3a36","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":213,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"7a78109f-3055-4db3-bd28-4dd5ef62219a","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":213,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"59b4208f-5300-42f6-9adc-2eda3c1008ee","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":213,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"13500590-92dd-4ddc-9232-4ff1252713cd","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":213,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"686c82d6-5f19-411d-8194-ded7fb01e26c","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"4ca70cba-0a91-4d62-93fa-2680372f0483","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":213,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"3afc3902-af24-4a6a-a97d-62095777c399","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"9181a434-ddc6-41c7-935a-9ee74d928734","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":213,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"4c847270-66bc-4785-a5b6-ba9a6973cb7d","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"6294d205-e5eb-4b8b-9473-8b26dac340ba","block_type":"box","text":"Interlocking directorates","page_number":213,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"4e5dde2c-6f49-43c9-95db-ad31ccd10cdb","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"d84dd6eb-b1d3-473b-a786-70b9b7384fd8","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":213,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"2def7b4e-38db-4463-b39a-1c33d318046c","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":213,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"eef7b66e-5b31-4b48-96c0-3dcf5ecaf369","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":213,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"da516dd0-0d6b-48f9-85c2-ae72889b8c6d","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":213,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"65cff1e6-5bc2-41fb-8b37-28f40a9965db","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":213,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"b008a00c-aa88-4195-a7ed-2097bcdd0592","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":213,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"aba723db-0c4c-485d-ab8c-ff60f244e140","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":213,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"80ee6853-afe1-4030-8a7e-cd2bfd5a47c6","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":213,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"829510d3-e778-4c1c-841e-4709dbca32d2","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":213,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"033c26b2-fa3a-4fc6-8734-b135b5f51534","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":213,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"0679032a-207e-4e72-a396-2f1427b61e22","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":213,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"64866ba8-bb3f-41cd-8ef8-ea186b9a73b5","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":213,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"adfb56e1-b776-485c-af31-633cf11533cf","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":213,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"c33dfec5-4790-48a9-86c3-cef1e49ffa64","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":213,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"2f44a556-5b77-4250-9b80-e931cd29095f","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":213,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"ee20c4bc-c7d1-40e0-b2e5-0ac71fe7d453","block_type":"box","text":"Sufficient capacity","page_number":213,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"e76cd73f-cad3-44f2-b10e-baa483f1b611","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":213,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"093a2419-0c67-4c1f-832d-c92cddc21241","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":213,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"2f5c84d7-5101-4328-a3a8-aa1e98a17c88","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":213,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"d29f483a-d49b-46ec-8baa-7b166b6f2f61","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":213,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"f5fffbb3-503c-4be5-aa1b-c8291102f3e5","block_type":"box","text":"Board composition","page_number":213,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"51a0baea-d474-48b2-923c-08e0fec87f06","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":213,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"ada3bbd7-0d48-4edb-b716-3a8f21da7f70","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":213,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"6a17f35a-7a4b-4fa2-8153-a358caff2efe","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":213,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"ac296390-3c09-4b18-ba69-48489cbe6d8c","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":213,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"1d000c47-31a7-4050-b23b-bcbc37e37341","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":213,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"d90a80ac-2269-4b94-8f26-f55cf7ffdba0","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":213,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"065aa08e-8a42-4864-acc4-19b33d2d2653","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":213,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"06adf892-92e1-4e16-99ec-357df5edcf38","block_type":"box","text":"6","page_number":213,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"0bcbeecd-942f-4ff5-8642-f58be50f8308","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":213,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"61b6d774-61af-48a2-b947-3dbb2b0dc29e","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":213,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"2bd8829c-7a32-4e28-b1f2-4765291c9c71","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2bcd5b3f-9118-4c2c-b09a-564f975336e7","block_type":"box","text":"Global Principles | 6","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"b2ef3150-3073-4b38-8762-dc7cbaf0f90d","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":213,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5b3ffbaa-2ed6-4e0b-9a4f-cc99d8bc5123","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":214,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"75f0ab22-13c6-4ff4-a150-ac47ae4c8922","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":214,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"0503faf3-4008-4cef-8071-a29c65d17912","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":214,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"8ea3e72b-56b0-46d0-9691-3f70d1766087","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":214,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"ef6732c6-139e-42b4-88e0-38a6aa9ef1f9","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":214,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"6ed71af7-d496-4c0e-b9cf-1bdbe95b86e8","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":214,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"d2c9f886-2379-49fb-b5dd-9287830c8b3f","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":214,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"97d3b883-5d49-4c67-b4a3-c9c98bc3b70c","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":214,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"f02b4c0e-df91-4b21-bf6a-f8f0348de772","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":214,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"9dafc8f7-da2a-4cdf-8c58-bc0bdb788d27","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":214,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"319b6211-5f21-4336-a584-fba55be87c8c","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":214,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"8d77bd5b-fafc-456c-8a7f-7e60866ed0ab","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":214,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"7ff31f79-89b7-4d47-9d9d-f48dc07c8178","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":214,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"3ed544ec-36b7-429c-b176-4707bb7017f2","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":214,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"2558aead-783c-4a60-a5f8-b3de1d62089a","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":214,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"30818645-574e-44c5-99c7-7b67ecb9bcfa","block_type":"box","text":"systems.","page_number":214,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"2653b806-fe7f-4d27-9099-943564d13607","block_type":"box","text":"7","page_number":214,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"2f1e6f3b-7e3c-4a3d-885e-261a37cf9cf6","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":214,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"4be9221c-f1dc-4460-b1e1-0670b40b7968","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":214,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"c1c7fbb6-7b1e-405f-8694-5d1939ce0bb4","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":214,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"974e2c41-9fa1-4c92-b6f5-75cfcd402dd0","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":214,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"9b55d824-2d38-4dd1-b8b5-2c41a4306186","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":214,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"98389a1d-9592-43cb-bb3d-8c43968a988a","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":214,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"dbb47f7c-7047-4afc-9edd-d9a89086b44f","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":214,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"e1d01b3b-443c-4448-846c-fcab4629d736","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":214,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"5df7dafb-e059-48cf-a9a1-8bc9850053c4","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":214,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"727142f9-9a79-416e-8a6a-a6eb90c7a260","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":214,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"4642ab47-ccae-4ccb-b85d-c1ab9148e69c","block_type":"box","text":"or internal audit function.","page_number":214,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"220d76ec-4f80-4689-8328-afdff49232ac","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":214,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"01e3d1f9-ed89-4b07-971d-8a8eb7fc9100","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":214,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"e1a7bc5a-2eeb-4d38-96dc-c98da96eb02d","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":214,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"e32fdee7-9926-4ab8-8aa7-05ff4e6776b4","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":214,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"a6519aaa-d2b5-4b7a-83cc-82090cc18db9","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":214,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"0882ff91-dbaf-409b-a626-ebe90f46bb28","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":214,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"07bf5225-691d-4d5b-b30e-11155a0a5b91","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":214,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"3b4ecffa-e5ce-4888-b616-b607da06715b","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":214,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"dad2a319-acfb-47aa-8b89-0c16bf083e4f","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":214,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"9aaf50ec-981b-40be-b39b-b270aa82503a","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":214,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"c5cbed70-d0c7-4b4e-9bed-b6f67adc8c49","block_type":"box","text":"risk.","page_number":214,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"6e912d89-275f-4ae9-8ada-8a8a9c9d1274","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":214,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"5b31d4fb-aa5e-43da-81c6-390631bc0834","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":214,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"e60efef8-6483-447c-8a7d-c8d590b17a5c","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":214,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"7778423b-99c8-4dba-ba09-1baf5d1aceda","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":214,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"2d4b0d7d-20bb-4dd2-b035-8695e1b06f2f","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":214,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"08d9ceab-290e-41e5-bf52-320be26eb2d8","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":214,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"b6eaf6ed-e4ef-4af8-b532-8beb84ba4d30","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":214,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"43759705-ff43-48d5-b46b-24cbb8c008a7","block_type":"box","text":"7","page_number":214,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"41d1cb3b-7b8e-4ca6-b73a-59ca10ae62c0","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":214,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"fc314dd1-c306-4bc0-9043-cb70a8d6b305","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":214,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"ed4bd725-f8ba-484b-9b61-1fbedb907022","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":214,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"8216b602-948c-42a5-9eb6-cdd53b724afe","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":214,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"f9feb104-04f5-45f9-922c-a04a5e5b717d","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":214,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"5e05e638-0b4d-4c74-b6c8-f8cb112dd121","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ccbe39bb-d5f1-4830-9ca3-820cf495d5d2","block_type":"box","text":"Global Principles | 7","page_number":214,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"bc864dc5-e51e-4ac1-bc2f-c84f2def9050","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":214,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"5edf0870-88c3-48e3-8625-8e61e2613021","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":215,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"5beb5433-94c8-4eed-a605-237d3e4f2ced","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":215,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"54cb5962-3e35-4c92-a304-33e960e1a8cd","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":215,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"dc980b53-fc1c-4845-ad01-70682d4d5839","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":215,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"4634475f-e50a-4304-8427-6ad30b892cdb","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":215,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"2496edc3-7b11-4ed4-ad66-2d182e8ce103","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":215,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"b6a11d72-d3fc-499f-aaae-fa6c1ffc3b20","block_type":"box","text":"minimizing costs to shareholders.","page_number":215,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"ee998e7d-0a90-4c72-8a94-5d452b08df28","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":215,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"082f6fcc-0583-4575-a059-7315aa3eebcf","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":215,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"86df50b9-18f3-4262-ac87-e9e55a33a6b1","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":215,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"fc14f72c-8762-46e4-ab0f-f4dc9d0898c4","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":215,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"3b1719a3-0c59-4234-b4a0-723c1246b8e7","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":215,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"2dd26b08-8d06-4850-abdb-f47f818e4e96","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":215,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"b2096783-cc52-4126-bac0-b0800ca58bfa","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":215,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"8dae9d5e-c664-4807-9cd5-14a92dcba6b5","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":215,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"d635419a-4831-4fe4-b02d-17150dee4c5d","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":215,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"36305cbc-57cf-4577-9772-864985378520","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":215,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"dd4ee265-9fb0-4f73-845f-11cbe54c21c3","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":215,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"c03cbf32-e303-4683-9f5b-c50fcf73e4ab","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":215,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"c90f7379-2e7c-4a08-a1e9-613a9c4d24e0","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":215,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"08df8829-54bf-48b3-ab2e-9c5f4176ecb6","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":215,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"6abb8af7-ccc8-455b-b16c-604c6ae8387c","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":215,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"0f5b837d-17f9-4da9-aa50-0c4456ff00c1","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":215,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"a9a21609-bde3-46a1-a3a5-ae6e29c96bdd","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":215,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"b4595578-b47e-46ec-996d-9fa5e7938fe6","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":215,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"1415bf60-1558-4da9-8f9f-681542705fd1","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":215,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"fdba7914-f43f-4594-8d88-4196113c6b0a","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":215,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"e91c3dfb-df0b-42ff-8545-dcf131f68ebe","block_type":"box","text":"ownership.","page_number":215,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"09082f83-bc6e-4d52-95d6-67b451ede096","block_type":"box","text":"8","page_number":215,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"05f7275e-4e59-42ae-889b-f96b7b152ce4","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":215,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"c1faf606-52c0-4296-85cf-b9b83375db71","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":215,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"86aaf9da-e65b-4703-9807-0e9f9436d081","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":215,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"d1953101-212d-44e6-9ef9-e18801ddaa19","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":215,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"f81d0016-e9cd-41a1-99bc-665eb63811dc","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":215,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"ac66cbbe-8560-4d75-aab1-78e903278a8a","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":215,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"6bf055bc-feed-42f5-a525-ad0e4140a2c4","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":215,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"fcedd4ea-d9bf-413f-907a-7416869946ea","block_type":"box","text":"results over a period of years.","page_number":215,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"218d7b65-c098-4830-8399-c1474b88e745","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":215,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"19ce6409-cef6-42a0-ae2e-8fc8627350c2","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":215,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"fd3d76f2-56ac-433d-aac7-94a96304750e","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":215,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"26b11b31-05f6-410f-830b-b809a3688055","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":215,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"4891f588-8ec9-457a-9565-93ff7338c25c","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":215,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"4c8393ff-2768-45b9-bbe7-a013abd6fd5f","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":215,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"a7c36477-1b31-4848-9030-201305243222","block_type":"box","text":"executive compensation strategies.","page_number":215,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"2c2e3c20-f67d-4784-922f-a034effd13c7","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":215,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"771a381c-2daa-4869-8157-e6adf117a6e2","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":215,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"b5b7ef2d-3634-4eaa-954c-6a28aaae3e80","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":215,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"4b6a4428-6597-4daa-81b5-7fbef6c382c0","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":215,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"1f695fb7-0798-4469-8fd4-ae50f5f2ef3d","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":215,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"03562e76-4496-4330-b2e0-fb93158fe9d5","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":215,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"2e2302c3-aa8a-4df3-8229-1511b66f4904","block_type":"box","text":"8","page_number":215,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"5de247ef-7ca4-4874-a476-653659fa8883","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":215,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"5cdd1e98-6a21-46e8-b120-5841f61cd933","block_type":"box","text":"different markets.","page_number":215,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"9763afbf-4d2b-4251-9171-f85a094ef6cf","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"96babd86-6a87-4354-a7a4-58dd8ceb5d25","block_type":"box","text":"Global Principles | 8","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"831c7bad-4dbc-477e-8744-730d060454ac","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":215,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"49cd7fcc-cfcb-4679-ae2e-5239094372a9","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":216,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"ba92309c-481b-4371-a752-ae01919bdf79","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":216,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"ec801d4e-36de-4f08-beec-65f615d2fa1b","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":216,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"da4f7531-a41c-4a1a-a6f1-1f2b3af39edb","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":216,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"d502d826-5818-42e5-a9c3-ba7e85919698","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":216,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"b8bd9f4e-8adc-4906-8f99-d74bbcee3951","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":216,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"1796a7a8-5a94-42c4-ab84-b7e1127d1728","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":216,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"b505ccea-2952-44b9-84d5-ba290ef64e6a","block_type":"box","text":"whom they are charged with overseeing.","page_number":216,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"70adc428-e703-4220-877c-74b3ba722ddf","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":216,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"468c2cf1-9fa6-4c65-97b7-3fc56e64af4e","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":216,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"719a55c2-45e0-4ff9-b735-d31483913e60","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":216,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"6c549356-2049-45cb-b5ab-261b9faa7184","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":216,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"009838c0-c957-4370-9bb7-03a7749a3dcf","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":216,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"3fff2267-2e5b-4ef9-aa2a-7451c0ed28bd","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":216,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"69965641-38ca-4d6c-bcf4-f269320136c6","block_type":"box","text":"structures.","page_number":216,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"92b48644-460c-4079-9275-b13e2a59ff24","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":216,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"77a8701b-1b64-4d1f-aa53-c4dff73dbc4a","block_type":"box","text":"Corporate form","page_number":216,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"91e15bcc-e1ce-4c43-9c13-83313e58ecc5","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":216,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"4ecb6326-dd97-497a-94fd-b547ccad2b5c","block_type":"box","text":"the company’s purpose and business model.","page_number":216,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"44c66f62-f80f-4732-9c61-3c668904025d","block_type":"box","text":"9","page_number":216,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"c5b024e0-5022-42a0-b1bf-7666dad65eaf","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":216,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"0fe706ba-f5b0-4b40-bdc0-1ce589c0a21e","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":216,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"57351e17-d37f-4dba-9155-863941a0e363","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":216,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"4edddb5e-6aae-445b-98db-2d15682622c5","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":216,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"944d8545-149a-4e77-ac06-eb30d9a8f7b5","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":216,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"7eb1026c-06bd-4e5e-a2b6-a9403db9047a","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":216,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"3126833d-b725-4c00-a191-2fdb0a5d2788","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":216,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"2e72a237-ec59-487e-b6b2-fdd856c03a48","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":216,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"bb630579-0542-44bd-b0c1-243020490daf","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":216,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"456fefa7-1aa1-40e5-957b-b1fc91c1858b","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":216,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"c19553b0-3767-4ce5-8aea-e0fdd1605b4f","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":216,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"6152a205-7b6f-40a0-b921-6d6abd9d70b8","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":216,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"44801478-7c47-4934-98b8-2ced81b9144c","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":216,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"d556e778-f24f-47c9-b115-77875f4c7ad1","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":216,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"1cc66714-6d20-47fc-9ce9-8e57346c5242","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":216,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"6f34fd4e-057b-49fb-a84f-62994140d511","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":216,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"f975528e-2d42-4c8b-aa77-4113bf62efd7","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":216,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"8ccf0ba8-c17c-462d-a148-c9fdb4db8927","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":216,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"0042bf1d-4ebe-4b47-8e5a-254d2cf1957d","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":216,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"252c34ed-1d8a-452b-bfb2-07bd222bafbe","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":216,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"d0c14e06-c4b3-42dd-bfb6-e4deb574c292","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":216,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"68821fbb-5fbb-4619-a921-664ece8a5122","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":216,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"d854a57a-0a6a-46ed-92a4-d6703196a157","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":216,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"1ac5dc73-359f-4afe-ad33-bee761b76ec2","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":216,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"b349fbe1-070d-4483-9f42-fd5075a4e75f","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":216,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"eb6c1b8f-0bb6-4464-81a4-7112dd3fef41","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":216,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"cb82ccbd-1ad5-4e47-9d5c-d437a86cd0cd","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":216,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"43a83c42-0420-4202-9e62-c8ab47e29553","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":216,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"49f49603-c4ab-4db4-b008-1a5f3cc81f1e","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":216,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"d68cc83d-37af-49fc-984c-ae25c590f00d","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":216,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"e5cc804e-60e1-4d67-8e49-a3ca19da4c06","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":216,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"7bdde674-c1ac-480f-99ff-18e77668ac25","block_type":"box","text":"9","page_number":216,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"737625c5-9c51-4a9e-b1e9-97e4ec72aac7","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":216,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"5a154f38-4c2c-471c-ae49-cf1f08d1554e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"45106fbd-77c8-4121-9a4b-8e43ba90b7c3","block_type":"box","text":"Global Principles | 9","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"c4c164db-9d28-461b-aee7-5488b36b54be","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":216,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"06bdbae7-9bbe-4a38-97c3-04d960e39c81","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":217,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"71e8bd8e-f52b-4216-8cfa-2bdfe93b18a5","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":217,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"00726ebd-7b6c-4960-ba47-647f3483c64b","block_type":"box","text":"long-term financial interests.","page_number":217,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"4055611d-6fee-488a-8542-ab40187c6880","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":217,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"e36a3dcd-236b-4d09-803a-225f20bfb3fb","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":217,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"4ae45832-61fa-4efa-8308-15718efb3783","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":217,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"c3dcf4ab-4846-44c8-8c6f-687a066b08e8","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":217,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"24adc08b-1e61-43a4-90f2-ce41614bf06b","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":217,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"16bc06c0-c796-4643-a2c0-1e5f568c6278","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":217,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"87124be1-d43b-497c-ad5e-3f05964fb85d","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":217,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"11b76b1a-5842-46f1-bb5d-b4b0d914c85b","block_type":"box","text":"term financial value creation.","page_number":217,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"7fec7c6c-a08f-43d8-97bd-890baa441b3c","block_type":"box","text":"10","page_number":217,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"a6c68c9f-3e4e-4780-9de5-bf935ff83d18","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":217,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"467dac25-5cfd-4cd1-a608-cade57678ac8","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":217,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"d1655055-92cf-42f4-84b3-39887944a2fa","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":217,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"251560a7-2996-4d6d-ae58-95e03c8b555c","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":217,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"ebb64c85-17bd-43b3-9085-cd6c14929b75","block_type":"box","text":"industry-specific metrics.","page_number":217,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"6c19e92d-a740-4a66-aeb1-32e77b48027e","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":217,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"494cd336-cfb8-4c15-abf5-55144e830b7e","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":217,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"79b7b810-8bac-4725-98e9-5e712d339701","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":217,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"8e2167f0-e0d5-4331-90e8-2a065d6cfa62","block_type":"box","text":"11","page_number":217,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"3bb77ac3-e80f-425d-ab85-315db2f5c1d0","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":217,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"6da3d1d1-a6cf-433d-a972-06f7c4b764c4","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":217,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"a088a1f5-bab8-43d1-b54c-f452691e79de","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":217,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"ab7bd897-f41b-437d-a4d7-f91d80e8b3f6","block_type":"box","text":"specific.","page_number":217,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"cc12de61-29ba-495a-a04e-d8c445c51e40","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":217,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"9d7d2c95-8a80-466e-8e81-5fed5533b7e7","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":217,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"173c0870-83fb-42ae-9796-f8fe6c4eaf61","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":217,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"ef95257e-85c8-4a43-8f42-ca5dea003382","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":217,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"d572a48d-7376-46ee-b1c1-f9b69e566f5c","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":217,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"76f1a817-34b6-49e8-bf78-3268e534a931","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":217,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"c6a13bb2-06c7-4e25-ab8a-9b537cbacb44","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":217,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"19ab0422-5f6f-406b-9d4c-0cdf8d8078d3","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":217,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"f2b9f2e7-08ab-49ed-8ff6-ed76e6ef5f48","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":217,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"6fb7b6cc-6aec-4107-8bec-9bc5b85b0f96","block_type":"box","text":"10","page_number":217,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"d0482913-41af-4ded-a739-bf0bf3f546e2","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":217,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"84fb562f-9c75-4d34-a093-21295388bf44","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":217,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"cefbabcd-a6ce-4e4c-b872-9c6b9dbd3555","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":217,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"b240930d-8e59-4f99-81a4-297379bf1a9f","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":217,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"7cfa4c79-5468-4294-abb8-062f0e91ad2b","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":217,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"46e0d3b3-fa69-479a-bc02-b775ce02f175","block_type":"box","text":"11","page_number":217,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"94d43032-9342-4b01-a8ac-495dbd558ff6","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":217,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"07ac383a-ceff-4fdf-bf89-04c14d3fb6a2","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":217,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"b1a552d5-a25b-4eb1-b9f9-b1a2e69050de","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":217,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"3e1667fb-e3b5-42bd-ab86-84401aac2274","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":217,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"f881153b-d4f3-4d11-8710-122e7e91c7c1","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":217,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"212c8de1-1b75-4f10-a9e7-902e7fc93a23","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":217,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"dbd1e69d-b2af-4742-9d94-59f9ac2a8fd7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e9495fd3-84a9-4c45-914b-e91e43b67c19","block_type":"box","text":"Global Principles | 10","page_number":217,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"9d0857f3-8f7c-4fe8-b0f4-e80ef323884a","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":217,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"bb7f9b8b-4b96-40b6-b02b-2e4d5f9c1ee5","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":218,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"8e0e9b7a-8410-4042-b7a1-108f20a60c3e","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":218,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"b86794a5-2106-4b59-bd4a-375cda3d071e","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":218,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"71890b67-b3c1-4462-a135-046e20d834ab","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":218,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"9f9150fd-468b-4052-b6f0-60b426d9ec86","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":218,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"bd0eae18-98c5-4b9d-9e39-d3d62d5414c1","block_type":"box","text":"12, 13","page_number":218,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"01b7a36e-c618-42a0-81d7-a4356332f638","block_type":"box","text":"From company disclosures and","page_number":218,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"cdcd590e-2e02-4998-9462-566643aae94e","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":218,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"f60a2a7a-f783-47b4-8727-c686f55f91ff","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":218,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"d3560334-ffb8-4d4e-aaa5-c7617da13d17","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":218,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"42e2c5c4-72f7-4dd2-9a3b-11fe5c719eb3","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":218,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"b65ab894-0584-461f-92e7-d0bd2d0bb4cd","block_type":"box","text":"viewed as best practice in the market.","page_number":218,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"1b15940e-d949-4b89-a7cd-744ec38c2e92","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":218,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"16db01f8-55e7-4300-a383-19e3be175e66","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":218,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"e39606b4-ad46-45d3-96f7-dc85f38bd009","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":218,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"3373608d-5cf8-4959-81e6-bf2bd1a8b86e","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":218,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"729b8220-a353-4925-ad58-d7f94f1b4283","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":218,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"844f0940-acfa-4102-82bc-89af3beb5c21","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":218,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"4bdaa3b5-6707-4962-8717-61928121baaa","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":218,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"77ac31f0-e7b9-4438-89a2-f681fc00cb8a","block_type":"box","text":"interests of their investors.","page_number":218,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"186dd8e2-3f7b-45bc-879c-a3af7b9c202b","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":218,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"2a1410b2-ac9b-4e6a-bcc8-73b4e2c3ac30","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":218,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"a64df719-facf-4d8b-b249-82838062dbc2","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":218,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"24813777-4843-4e33-925a-b8c0a0bc6552","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":218,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"ccf81d59-8618-4e39-8ce8-9ace4486bf0d","block_type":"box","text":"good-faith basis as methodology develops.","page_number":218,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"64c01ad3-a248-4d89-9d3f-8933c3e563b2","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":218,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"a6780091-d0ef-46d5-b2bc-083250f031e1","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":218,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"666624f3-7c60-41fa-8430-4a2f1a505498","block_type":"box","text":"generate long-term financial returns.","page_number":218,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"4da4c185-4d88-4edb-bb72-45527792dc7c","block_type":"box","text":"14","page_number":218,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"bd8f5aa0-3ab8-4a18-a6e8-1807bca9dd93","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":218,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"b8bbcbeb-4f09-444b-b3b4-ac50cd97dca0","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":218,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"5f069b3d-df24-44d3-9776-627bebdceed8","block_type":"box","text":"15","page_number":218,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"3b7fde43-a252-432d-b36a-0c98983c8066","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":218,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"804e4cc1-cd9d-42bd-bb32-e9fa2b2e5cd3","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":218,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"1418ab33-96b9-4610-b0f1-b20917559a06","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":218,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"bc726366-b0ec-4cfa-8739-7fb9f1a332d8","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":218,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"785b8465-a2c2-4127-ade4-ffb597a170f5","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":218,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"e01c4eb9-cd92-4cd4-9415-64285b3cccee","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":218,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"2561ad95-34b2-4172-99c9-cbef15216f7a","block_type":"box","text":"12","page_number":218,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"2a99d1bf-4e67-42cc-90a2-8de3567f0805","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":218,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"e67400cd-e3d6-40b2-a30f-afd041d08469","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":218,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"16d53cd9-17cd-4a20-bb27-0ee4800949e6","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":218,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"aa453ffc-1b65-4640-9c36-e1d817f2a38a","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":218,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"694498d9-63d2-45ee-94db-e82fad025d04","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":218,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"046cd0ad-184c-46b5-9fe0-1bd38753479f","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":218,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"e27141e5-fafa-4599-9057-0839b3c57b25","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":218,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"6d5a0758-01b9-43eb-81a1-5911c5dea9bb","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":218,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"a0c05cfd-460f-4e91-bc1d-da8b43d3e219","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":218,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"29f71e19-6963-4746-8c46-b8e50f46397b","block_type":"box","text":"13","page_number":218,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"408c25d2-2ee4-4748-bab3-b94802f4d949","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":218,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"9e5d7172-4da1-4af0-afa5-78fd6c91b81d","block_type":"box","text":"2025.","page_number":218,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"bfd17c7a-f3ef-4fdb-bb27-3e11941c306a","block_type":"box","text":"14","page_number":218,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"46907292-50c1-400d-b0af-511b5e4824bc","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":218,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"4d0dbfe3-2cf8-4ef8-84fa-ae0b84842ba1","block_type":"box","text":"2025.","page_number":218,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"871b1494-d938-455b-b2b3-7081bc5d8844","block_type":"box","text":"15","page_number":218,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"1637588f-30b4-4269-84e2-54864c43c9ed","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":218,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"45e0b054-3516-45cc-a110-209a44226908","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":218,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"0fbd7eb4-3b75-4d2b-83b1-6a1220f04c27","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":218,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"46a80f39-cd54-4b15-b3b4-2bd28e1d3b06","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":218,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"260f4676-8c01-44e6-9264-89801ff995ee","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":218,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"991165f8-9a7b-4e76-b775-000306f6022e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0ba0c534-0969-4246-9ccb-d174de793e4e","block_type":"box","text":"Global Principles | 11","page_number":218,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"37460133-3204-43f1-9396-1895960c034f","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":218,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"c0f96387-86a7-4a88-ba2d-d9635b0f7190","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":219,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"912d37fc-bd36-4e72-9994-db8c532c8f6b","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":219,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"d9f4149b-351f-48c4-9ba4-92a729717c70","block_type":"box","text":"16","page_number":219,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"9eaf1160-3265-483a-96e6-9cae11b86588","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":219,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"df627035-d820-4cc2-b74f-25d06507523e","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":219,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"af14ea8e-9a51-41fb-8983-81f44a5f1373","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":219,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"d2b63d7c-b4fa-4e5e-b9c9-15738e7856e1","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":219,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"8856ec79-59aa-4a38-96c8-b7c9922022f4","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":219,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"56c0f91a-3e28-4e86-8058-cbe98b4e33c5","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":219,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"cdd1f28f-d79a-40a1-b7c0-054f73fb100a","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":219,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"84ead6c7-40dd-4e4a-b3cf-61af64795dbc","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":219,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"2b4ad8ad-949f-45cc-9987-721d08586204","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":219,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"5259d6c1-8f80-4f69-924d-2c0d8941078f","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":219,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"4aa49c82-8e4f-4a3d-aa75-1c18231813d9","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":219,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"617b48a2-29bc-4292-be1a-67896b6ce5ce","block_type":"box","text":"impacts.","page_number":219,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"cf20172c-546d-46ca-9f55-cdd23a2ddae4","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":219,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"412622e8-2a48-4c18-a797-9d2f3454cf67","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":219,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"b9d26d22-91f8-41d7-8547-644749f9293e","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":219,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"5645748a-bd1a-4a87-b69b-52cfde6feb12","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":219,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"9ab894bf-d939-4a1d-90b8-718c8dac5b20","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":219,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"4fc4517d-1b1c-4a13-b353-671c2bdae447","block_type":"box","text":"clients at the global and regional level.","page_number":219,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"50022e46-5d05-4ea3-bc27-ac971fbe5e47","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":219,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"a2d4c1a2-56f1-453a-9e12-115644f67f9d","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":219,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"43c52b51-2c19-4bf8-937d-984b9c3202de","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":219,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"222ae080-f23f-4a30-b8f2-523a666c8e20","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":219,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"d9de2bbd-8cfb-4733-bea3-e2116b7c1675","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":219,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"6b92af00-0bf8-4384-bce5-8c767f25c8da","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":219,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"f1a2c410-bc9a-4ec6-b419-e117e2033e1c","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":219,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"638ece72-bf87-4dbc-8243-0fe184bed798","block_type":"box","text":"are independent from the investment stewardship function.","page_number":219,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"8e0cc22c-ad4a-40cd-91e6-a489fbef4b33","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":219,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"83c5efe9-d0cf-48be-a837-434bb3ca51ba","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":219,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"bb0f7d52-0ead-4012-9636-5b1ec6b8edcf","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":219,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"ab39a090-18d4-4588-9ff2-ccbb9a3ce346","block_type":"box","text":"VOTE EXECUTION","page_number":219,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"5ed9a248-e09a-4688-8b73-00ad8adba236","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":219,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"035ccd4d-86b9-47d5-a740-6b0e2e064444","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":219,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"ee1e17f0-96c3-4e1c-a6d8-58407224c564","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":219,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"dd01b03c-f067-4625-8dde-cb64ef36ebca","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":219,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"f228c54a-b930-4162-b89a-7583f36e9a5d","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":219,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"b4e10db8-7a0d-4e70-94e4-2c51e01622c6","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":219,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"64ca0072-d8fd-4082-bac0-929e1ddb4308","block_type":"box","text":"management policies and procedures,” below).","page_number":219,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"99a304d0-369a-4d80-bb4e-6f87182c7d8f","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":219,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"9bb9aedb-537b-44f6-9574-886037c4c27d","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":219,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"81a70358-ce37-431c-a999-9a73a485ddde","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":219,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"9f839de8-5ea6-4f5d-924b-ef39ed87da2f","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":219,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"3498282c-cdaf-4d6b-893c-ca5542fadece","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":219,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"0d009bce-636b-454c-bd93-310830c83645","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":219,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"a7fe052c-7fa2-470c-b40b-566edc9333a8","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":219,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"77f74113-af73-4987-bc6a-c2b58ed5f9e7","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":219,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"d75c4dcb-2a3f-43e9-9676-fbd74d3e4964","block_type":"box","text":"16","page_number":219,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"cb7ead05-3727-4bb3-bccc-324d5ade10c1","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":219,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"5cb3668a-5608-4243-8683-8c64ca4721da","block_type":"box","text":"December 2025.","page_number":219,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"fc1ff7c8-f762-4699-88da-4967def97fa9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ec75b9d2-d43a-4460-9146-e0b7ed253a72","block_type":"box","text":"Global Principles | 12","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"b2939436-b3aa-4f2c-bb18-94c5d492a8d0","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":219,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"4cb0362a-9c9c-4728-b175-70290afe6326","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":220,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"e21592ed-1a7a-4cf4-baf1-a568a5b7b782","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":220,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"1bf1630a-45a5-4bc9-8031-d0fdcef95116","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":220,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"c177c996-e0b1-4630-9937-730d4fbefcc0","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":220,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"c97aca8c-bd16-4e83-975f-3f536ff89eff","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":220,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"68ce9f40-8f08-4747-be18-71b0e3aed7eb","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":220,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"27675b70-f1dd-4f95-9b83-f0f1d3d668af","block_type":"box","text":"enterprise-level vendor management activities.","page_number":220,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"58dea159-5a1a-4d4f-8830-e3e2fb2ab346","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":220,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"589806da-b368-49c9-ab0d-440e31a2b450","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":220,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"b1b93c98-cdfc-4b33-bd57-472ca091cd60","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":220,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"54281c17-2a8f-44e8-ac5e-e7c5b693dcd2","block_type":"box","text":"BlackRock employees.","page_number":220,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"1a4954e1-197d-4b35-bd4b-1a1230fb920d","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":220,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"ded86b67-79d0-4373-b0a3-6c2ae793e2da","block_type":"box","text":"SECURITIES LENDING","page_number":220,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"23fced02-a696-441e-ba29-f24a81e56f91","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":220,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"2ba450c0-532d-4f1b-a25a-b8fa9ed898cf","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":220,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"a179fedc-e593-4974-8f0d-f7810bedae33","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":220,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"2184e07e-b0bd-42e2-8290-4bbb739491e9","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":220,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"de47b709-13a3-4de6-8fef-a2ddac0edaea","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":220,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"48ded5cc-251b-4617-8953-7afa4dd25db8","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":220,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"8edf5db3-0c9a-4d00-9d84-8cf6ccbb5b42","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":220,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"75c81195-35dd-4c82-9f75-672d41889767","block_type":"box","text":"in helping them achieve their investment goals. 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All other trademarks are those of their respective owners.","page_number":222,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"8d6e4bf8-34b5-4e8a-b3c2-f86c954ea9e0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c67d863f-c953-47fa-9cf7-e6a31a871776","block_type":"box","text":"Global Principles | 15","page_number":222,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"2d0fa0ca-dc74-4640-b89d-122fff6a1c13","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":222,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"55dfdc24-e520-4137-92d3-625db687d46e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"2a970f5c-f0a6-4a8a-a9ec-8ee113a59ee6","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":223,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"7a622c3d-5377-402c-a6db-cb929ca993a9","block_type":"box","text":"Effective as of January 2026","page_number":223,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"0dbe3451-6fef-49b4-8a13-609290e7bf71","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":223,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"d1f1737d-c5c5-4803-bb09-8003abb454d1","block_type":"box","text":"Contents","page_number":224,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"a098d7f7-a894-4381-bfc6-d5c93824da76","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":224,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"52704dc1-b240-42ef-954b-d71c0871f0ed","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":224,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"f3885b46-bd46-4338-99e1-21b731473f3d","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":224,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"78785091-2635-406a-ba27-1d3053cefd32","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":224,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"8dbb029d-20c2-4184-a7b3-8a4e78bb4883","block_type":"box","text":"The Guidelines’ design principles","page_number":224,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"67f82061-dc69-4a19-adf2-33063b098a08","block_type":"box","text":"4","page_number":224,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"8f41c83a-9596-4a1f-b9a2-b9f95681882c","block_type":"box","text":"Voting approach under the Guidelines","page_number":224,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"6b316c9a-2d5e-4ef6-bf69-a2768d86a29e","block_type":"box","text":"5","page_number":224,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"4443bc43-b002-40dc-9061-48352666f191","block_type":"box","text":"Related matters","page_number":224,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"0b73c9cb-c394-4968-9986-43d0776ef31a","block_type":"box","text":"8","page_number":224,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"9d2b06f8-c9d2-42dd-9110-7dae82ff02aa","block_type":"box","text":"Appendix 1","page_number":224,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"6f81afa3-5e1c-47ae-94c4-1ed104097874","block_type":"box","text":"10","page_number":224,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"965b4b38-033b-42e8-b42c-c792a270f6ae","block_type":"box","text":"Appendix 2","page_number":224,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"e71225b3-af0d-41e8-8e1d-1c84246bfaf4","block_type":"box","text":"11","page_number":224,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"6199b221-bd21-4651-9d02-fbbe578d74e5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4e4d89bf-542e-4306-9e8f-593f08df80c8","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":224,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"b5b56e95-b09b-49e7-a364-77ab500b2e9b","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":224,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"2e48acee-fcf2-42fe-b904-16aa160ab0fd","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":225,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"8e4e4980-3d8a-4a96-a1d0-9d203124dd84","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":225,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"d2f67e78-5dad-41d8-b79c-8f34217976a3","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":227,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"a9026b71-b0c5-4f7b-b017-8ffc7d3b2d48","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":227,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"909cf676-bbd4-4ea1-9781-ee2996773c56","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":227,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"9f5b58fa-4659-4c0c-9b5a-8f6e389a0d5a","block_type":"box","text":"Voting approach under the Guidelines","page_number":227,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"507cef30-0b95-4864-a731-0118315ec414","block_type":"box","text":"12","page_number":227,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"f4e7cfef-e14d-445a-85d2-fbdb4307ebb2","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":227,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"43fe49f0-306e-4e2d-ac81-e0c669b388ea","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":227,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"ce4a16e9-a7c0-4396-8720-91e47f2da7dd","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":227,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"650107fe-a3ff-4f1e-8da1-9f5caf8a3c87","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":227,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"db8fa8fd-36d2-410a-9d9b-b8ce86e5b988","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":227,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"52ffb973-d0a1-4dfd-bd4c-12b3c7233e64","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":227,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"52d6165c-2990-4604-acee-3a11660da80f","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":227,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"370922c0-d75c-4f6a-afc2-baa015a66d74","block_type":"box","text":"Corporate Disclosures","page_number":227,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"7a815f27-f15d-4be0-8fb3-5f79e2e9fa79","block_type":"box","text":"13","page_number":227,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"401851c7-573f-40da-90dd-8378c7ecad79","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":227,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"456b8c16-8369-48a5-b42b-f3c846c86cd1","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":227,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"92a27894-7da3-45fe-82b9-5c1af495cbda","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":227,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"a202ee05-75fb-4627-b3ab-c408d6a1e378","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":227,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"2ba2d3ae-f460-4a7f-9045-b77127222821","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":227,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"ceebe293-726b-47f7-9792-f480b99e4d31","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":227,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"d9b5ea17-01fd-4258-a317-bb45fc5cf65b","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":227,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"7a7d6385-0187-4ce5-afd7-051af923db9d","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":227,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"f576b137-ebab-4d80-8c07-744bf1996253","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":227,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"b368d67a-3cc8-40f1-8e0e-c85cc1925711","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":227,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"6d960482-1fbb-43a7-8d25-6d97e155b2be","block_type":"box","text":"14, 15","page_number":227,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"8d83290a-b205-4f7f-ae2e-f502e87fd12a","block_type":"box","text":"IFRS","page_number":227,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"249c6306-69b1-4295-a174-8355e2561b72","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":227,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"2c3a4090-ae2a-4848-a5c3-f4cd352bbfbe","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":227,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"9956aa5a-7e77-4de8-9163-53ade07a3395","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":227,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"2a93b701-8b49-412c-a10d-c0e87fefbd5f","block_type":"box","text":"and assurance standards are developed.","page_number":227,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"304b2adb-562c-4ee6-949e-d52282f7cacd","block_type":"box","text":"12","page_number":227,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"adac2910-ca06-4b21-961d-6e435ff51633","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":227,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"2ee643ee-fc5e-456a-ba3c-f11a0f0e0f36","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":227,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"71203116-c885-42dd-b53d-21b450fa9d71","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":227,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"7e7bb73b-f17f-4bac-aeb5-0f2cb143063f","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":227,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"da4174ce-ac42-4b39-8bac-7fd40cc6d19d","block_type":"box","text":"13","page_number":227,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"def99ad5-039c-40a6-9e64-e70bd0d5cd26","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":227,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"4421f8ac-ec1d-431f-bb0f-e61c6555cc61","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":227,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"1022855d-d62a-4715-afb0-0599a8f6680d","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":227,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"ebc927ca-fcdd-46ff-a973-a0f6cc02c541","block_type":"box","text":"14","page_number":227,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"9e6d2c22-5ac6-497d-8788-4378824a3f96","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":227,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"82c76546-3534-481a-80e6-1640b41fbd62","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":227,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"335443d8-3748-4e2f-a7d5-a32ab95fb06d","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":227,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"231ebf9d-75e7-494e-93af-212769a61bee","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":227,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"1ba89a0d-689f-4d08-9162-115113791458","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":227,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"1aa67fcc-2769-4a72-88bd-4244e3aa453b","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":227,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"45e7923f-91cd-46a8-b6cc-ddc176fd86ac","block_type":"box","text":"15","page_number":227,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"4df2f3c4-4bba-42c6-8714-6cb8394d8073","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":227,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"be1d1c68-64bb-4a10-8863-cd09bd6130e0","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":227,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"cd295e67-9aa8-4cda-ad41-bbcab77ad30e","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":227,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"a9d18015-b035-4bc4-a2c9-bfe152565aeb","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":227,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"e552a268-c4ea-4bb7-b538-3d0686d421e9","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":227,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"3046aeba-3ca0-4e32-8086-966522950e28","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"afe0297d-275c-4bdb-97d3-03f106afa545","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":227,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"dc9ff053-eb9f-4c15-a6ea-aa6fb9bd99e9","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":227,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"f31427aa-8dfd-4be7-a6e3-af2cab9d4fce","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":228,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"f1056d7d-3256-4b52-80ff-ac92f6108441","block_type":"box","text":"16, 17","page_number":228,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"29b7b037-1afc-48a9-a4cb-49e247b60c00","block_type":"box","text":"In addition, the dedicated team looks to","page_number":228,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"8a3f44a2-d578-44f7-82c0-43f157bbdadf","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":228,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"4cd2127e-863c-442d-898c-7a3eb450d298","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":228,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"1f71dce8-dc77-4aa4-a275-6cd1ab006231","block_type":"box","text":"scope 3 emissions reductions. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":228,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"59a1cf69-0812-4740-8a84-3ddefb51ff6d","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":228,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"0b4fe3e6-3722-4188-af19-27305cee19b6","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":228,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"7ef78944-373a-453b-96cf-52776e97e90f","block_type":"box","text":"18","page_number":228,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"6a1af307-262b-45d9-bdef-b6410aee2346","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":228,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"90474c75-953b-443a-a847-f1d03b94d5e3","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. 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BlackRock views transition plans as a method","page_number":228,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"85f016f4-716e-4366-9ce4-3413975d455c","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":228,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"5997a4f6-3841-4638-ade3-41899425112f","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":228,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"e0cf97e9-ce6f-4d77-b7f0-78185e439df6","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":229,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"94017244-5868-4d6d-8023-43b5729a9b09","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":229,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"03af0a8d-3d95-4125-a9b6-23f2b9f0ee00","block_type":"box","text":"with the different constituents in their value chain.","page_number":229,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"d6020c6e-1c6d-4dc8-9ba5-16461188dc1a","block_type":"box","text":"21","page_number":229,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"8033f38b-3b60-4849-a5dc-84ca87fec120","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"1aa568e9-5373-4494-b9d6-be238b134827","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":229,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"04b10b89-6dd2-4b47-98a0-6f0a9b08ce8c","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":229,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"3c432839-a7e0-4777-b910-e889ff99b441","block_type":"box","text":"22","page_number":229,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"7d247b81-b313-420b-bf18-09ef6aa0e030","block_type":"box","text":"The dedicated team looks for","page_number":229,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"0b0e7484-d966-40fa-9e0c-b374b010cdd1","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":229,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"4d6ce5ae-a7b6-4c9d-9068-579786c12c18","block_type":"box","text":"related to the low-carbon transition.","page_number":229,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"5c2a4f09-736f-459b-ae31-670ea7f0eea5","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":229,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"b271b0fc-1248-4a6a-b500-ca35b063200d","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":229,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"0f7fe0e1-a037-4729-b8fa-a3aab56ff71d","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":229,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"58f7b477-cba1-4f79-8903-1e791754d2f1","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. 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The directors most likely to be in focus are the chair of the board","page_number":229,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"73934eda-51d7-41ee-b4be-31b55d34feda","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":229,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"12934f78-9711-4610-92c7-f654c7ba28b2","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The Guidelines consider these","page_number":230,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"7d88c40d-e1b6-4db7-bbde-21c716f72a94","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":230,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"166642e2-b907-48f1-9c25-53caadbad566","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":230,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"2bc24260-9ff6-4293-861a-a1924affca2d","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":230,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"761695b1-b863-4c96-956b-42e024752c35","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":230,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"b570e09d-455e-45bd-987e-7607a03e3dff","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":230,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"f20a29ef-2baa-417b-b7c3-5db2b35fdd73","block_type":"box","text":"transition plan and targets.","page_number":230,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"37440f9e-0767-4183-a4db-afa03a004e13","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":230,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"780667b0-b2d9-47f2-9d3d-f3aad9514ff8","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":230,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"fdb228ce-bfaf-4362-84a7-dd5a3d6e454b","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":230,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"a2766d11-9024-4041-a6db-8482b6ebb292","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":230,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"bdafc007-602d-4f0c-a59c-75abfd3ba591","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. 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The dedicated team will continue to take a","page_number":230,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"05992a2a-ec9b-471d-a3bb-6f5cb22627c9","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":230,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"51ed8085-315f-44bf-b917-d61dad6ef610","block_type":"box","text":"25","page_number":230,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"d3876e31-110f-4f6e-a6dd-2045a40613ff","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":230,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"bb64686e-202d-4517-97f5-3c72cb16359b","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":230,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"387c4824-bf57-4a44-85db-b8e20dba15c4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6b52dc63-ab6b-40d2-a009-802fa7af06a6","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":230,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"f0f338f9-7625-4e1a-a318-155f62c64268","block_type":"box","text":"BNM1026U-6032633-19203481","page_number":230,"box":{"x":647,"y":981,"width":170,"height":7}},{"id":"346aa90c-31e1-4f14-8578-f70db788e03f","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":231,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"f275aaae-96bc-422f-b226-281a2748c6f1","block_type":"box","text":"strategy and risk management.","page_number":231,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"884d9767-a68a-42db-a7f0-43541228a9dd","block_type":"box","text":"Auditors and audit-related issues","page_number":231,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"5543aafa-fdb2-414b-8914-4667b89228d4","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":231,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"b1b33a39-3f79-462f-bb66-48f320e73fdb","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":231,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"e2b9fcb3-c8cd-4c75-9f84-3342f1cb5a82","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":231,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"201958eb-d62c-466d-9716-b91b110ff58c","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":231,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"7a1a64da-a927-4874-8d42-67ca83f6553f","block_type":"box","text":"stakeholders.","page_number":231,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"2fdea5b0-7d30-4c8f-b56c-2cf736ab2d03","block_type":"box","text":"26","page_number":231,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"26256f64-0264-4aad-8baf-0fe9c4b680b9","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":231,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"8ba6b652-d67a-44b3-b73d-20e2fc9aac39","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":231,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"5c3cc28e-70bd-4e34-9077-8ba36264c8a0","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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The economic transformation is being driven by changes in","page_number":232,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"df2cd7ee-b6ad-4e6b-b444-0943276ec5ca","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":232,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"f11092b6-e92a-4d97-ad7d-063565e8b5cc","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":232,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"d3419a9e-4f3d-4e44-90cc-70b8cc6ba6ce","block_type":"box","text":"Decarbonization:","page_number":232,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"51a39159-becf-49df-8c2a-f365af038c54","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":232,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"00bb9506-2325-4e36-9881-549f8a4f3e19","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":232,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"deb2fba7-4c0c-4355-be5a-2f200cdc4614","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":232,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"20dfe9c3-059f-4ee3-80ca-0509f6d1356b","block_type":"box","text":"e.g., methane.","page_number":232,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"3fead4b7-5104-43ca-bf40-635e23272547","block_type":"box","text":"Climate-related risks and opportunities:","page_number":232,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"a789a3fb-0a19-42a6-859d-79c4b543fdfe","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":232,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"1babc517-0b03-48b0-bc07-db7f31dec7a7","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":232,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"e1286ec5-574a-47a7-a5ed-9f58637b728f","block_type":"box","text":"to physical climate change.","page_number":232,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"f4f4bc68-8cce-4cac-9e0b-dfee61711cb1","block_type":"box","text":"Climate-related transition plan:","page_number":232,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"55599956-620c-443e-93e1-30a62e8643d2","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":232,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"8088c5db-442b-490d-a380-89bd4fb44153","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":232,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"0ea73206-7165-41c0-9b9e-da7bc46c152e","block_type":"box","text":"greenhouse gas emissions.”","page_number":232,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"e6e80c9a-f4e6-4477-bcd5-5ca572babeb5","block_type":"box","text":"27","page_number":232,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"5c667a57-f90e-438f-b445-11e167359c84","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":232,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"1e01ac9b-adf1-47c7-9a27-502f5eb0a3cc","block_type":"box","text":"Targets that “","page_number":232,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"f5d8b4d0-ac4b-438e-bafb-2650b55cff5c","block_type":"box","text":"are in line with what the latest climate science","page_number":232,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"51609761-f30e-45f7-8dec-560047694dc8","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":232,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"196d283b-12ac-464f-a44f-053374b689aa","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":232,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"f4c126e4-a547-48f7-8686-3e909a2ceae6","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":232,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"31f2adf8-03be-414a-bb12-f65d93f28de0","block_type":"box","text":"with the Paris Agreement goals.”","page_number":232,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"f5fe9d0c-bd43-4d81-b749-294e68cd41f7","block_type":"box","text":"28","page_number":232,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"66f86ba4-0c94-425f-8bdc-286bbdc3a606","block_type":"box","text":"Scope 1:","page_number":232,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"e4ba3631-e758-407e-a859-5e4b86acb3db","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":232,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"8af7456d-a986-4178-b7d7-25aa9022840e","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":232,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"840cc446-065d-413c-8ddf-89a2c36af96a","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":232,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"0c4b68a9-41d9-45dd-b92e-8adf81653022","block_type":"box","text":"29","page_number":232,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"4b400bd5-654b-4da8-908f-fa4dc6cd84fc","block_type":"box","text":"Scope 2","page_number":232,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"4009bed8-7b3e-46f9-908e-1ec9de7d65eb","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":232,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"76f59556-1cc9-4db8-9d68-fce8f496825d","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":232,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"23a64ebb-bb24-4c06-a0df-5d2995cd213c","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":232,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"c6d71260-c035-433e-b021-d220ddf3601e","block_type":"box","text":"30","page_number":232,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"940e91ed-939b-427a-99ab-8e7ae9b5c1c4","block_type":"box","text":"Scope 3:","page_number":232,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"8201caef-a5ad-4cbf-9fab-58bc5b80c67b","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":232,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"0f01709f-89a5-4b5b-962b-3537f610f78f","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":232,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"93c38104-628b-422a-ab67-fffcde38ff7a","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":232,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"3f84b650-8639-4017-83df-74bd252f1a11","block_type":"box","text":"31","page_number":232,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"7013b0d6-043f-4b73-99bf-e7ba8f1f2078","block_type":"box","text":"27","page_number":232,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"4329291c-b890-4d9c-aff9-e90d133f54bd","block_type":"box","text":"As defined by the International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":232,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"c3b491bb-37fe-4268-8c1f-471aaa9e1e4b","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. 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