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Only information that is clearly identified as applicable to the Fund is considered to form a","page_number":10,"box":{"x":69,"y":581,"width":822,"height":11}},{"id":"a316291c-8611-4b8f-ad4d-e84b0799533f","block_type":"box","text":"par t of the Fund’s SAI.","page_number":10,"box":{"x":70,"y":596,"width":158,"height":11}},{"id":"d32bad7d-64cb-4899-92ae-864942a7cb83","block_type":"box","text":"BlackRock Advantage Small Cap Core Fund","page_number":10,"box":{"x":634,"y":625,"width":255,"height":9}},{"id":"9a853c47-8397-401c-9a5e-677930f49c55","block_type":"box","text":"Asset-Backed Securities","page_number":10,"box":{"x":72,"y":645,"width":161,"height":8}},{"id":"da1fa0f8-9f26-4ce3-bac1-18acca68bdcf","block_type":"box","text":"Asset-Based 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(The Fund’s total assets include the amounts being borrowed.) To limit the risks attendant to borrowing,","page_number":15,"box":{"x":70,"y":793,"width":815,"height":11}},{"id":"ba43f21d-d076-42a6-bab3-0697e06175e7","block_type":"box","text":"the Investment Company Act requires the Fund to maintain at all times an “asset coverage” of at least 300% of the","page_number":15,"box":{"x":68,"y":808,"width":825,"height":11}},{"id":"8c422e1f-0b40-4b80-9fce-8ab83e79efbd","block_type":"box","text":"amount of its borrowings. Asset coverage means the ratio that the value of the Fund’s total assets (including","page_number":15,"box":{"x":69,"y":823,"width":777,"height":12}},{"id":"ee62b15d-33fa-4a94-8afc-ac77afee3db7","block_type":"box","text":"amounts borrowed), minus liabilities other than borrowings, bears to the aggregate amount of all borrowings.","page_number":15,"box":{"x":69,"y":838,"width":776,"height":12}},{"id":"844ce348-d94e-4230-ad09-8a2d0a70d319","block_type":"box","text":"Borrowing money to increase por tfolio holdings is known as “leveraging.” Cer tain trading practices and investments,","page_number":15,"box":{"x":70,"y":853,"width":828,"height":12}},{"id":"acf7d229-141e-4e06-8e59-e477cd4f5c76","block_type":"box","text":"such as reverse repurchase agreements, may be considered to be borrowings or involve leverage and thus are","page_number":15,"box":{"x":69,"y":869,"width":788,"height":11}},{"id":"3de869d6-477f-49b2-8182-552d53d2d459","block_type":"box","text":"subject to the Investment Company Act restrictions. In accordance with Rule 18f-4 under the Investment Company","page_number":15,"box":{"x":69,"y":884,"width":813,"height":11}},{"id":"3a70d6eb-6e0d-44db-aceb-1b7ba0d5bae0","block_type":"box","text":"Act, when the Fund engages in reverse repurchase agreements and similar financing transactions, the Fund may","page_number":15,"box":{"x":68,"y":899,"width":802,"height":11}},{"id":"30603414-b3fc-4bad-8b86-87739b5cfb2b","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"10621072-3d73-4548-a952-cd515b5803f6","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2eda3131-d6de-4b42-8c8c-7f8381179d0c","block_type":"box","text":"either (i) maintain asset coverage of at least 300% with respect to such transactions and any other borrowings in the","page_number":16,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"fcfcff47-c819-4d9b-ad34-6db3aad54524","block_type":"box","text":"aggregate, or (ii) treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to","page_number":16,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"00987f01-e424-4898-9a14-3d865227dab4","block_type":"box","text":"such transactions. Shor t-term credits necessary for the settlement of securities transactions and arrangements with","page_number":16,"box":{"x":69,"y":75,"width":831,"height":11}},{"id":"549bb366-bd6c-407d-95c2-4f5f7cfaa334","block_type":"box","text":"respect to securities lending will not be considered to be borrowings under the policy. 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Those circumstances currently are that the","page_number":16,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"be4cbdd2-be49-4e32-8e3b-8a134a6395cf","block_type":"box","text":"amount of the Fund’s underwriting commitments, when added to the value of the Fund’s investments in issuers","page_number":16,"box":{"x":69,"y":188,"width":796,"height":12}},{"id":"3264c9a9-976f-491b-be2c-6ff349afca0a","block_type":"box","text":"where the Fund owns more than 10% of the outstanding voting securities of those issuers, cannot exceed the 25%","page_number":16,"box":{"x":68,"y":203,"width":818,"height":12}},{"id":"8178cff0-8cff-4f05-8cdd-9d26d030caea","block_type":"box","text":"cap. A fund engaging in transactions involving the acquisition or disposition of por tfolio securities may be considered","page_number":16,"box":{"x":69,"y":218,"width":833,"height":12}},{"id":"4ef52b5b-85f4-4e13-9f87-75ddae128d4a","block_type":"box","text":"to be an underwriter under the Securities Act of 1933, as amended (the “Securities Act”). Although it is not believed","page_number":16,"box":{"x":68,"y":234,"width":831,"height":11}},{"id":"7e9eef8a-fb74-4219-ad10-213965011e30","block_type":"box","text":"that the application of the Securities Act provisions described above would cause the Fund to be engaged in the","page_number":16,"box":{"x":68,"y":249,"width":799,"height":11}},{"id":"cf2e4641-3dcf-42a0-89fa-61c87c587ba2","block_type":"box","text":"business of underwriting, the policy in (5) above will be interpreted not to prevent the Fund from engaging in","page_number":16,"box":{"x":69,"y":264,"width":769,"height":11}},{"id":"faedc115-bac3-4dfe-ba30-2c68d3a0b161","block_type":"box","text":"transactions involving the acquisition or disposition of por tfolio securities, regardless of whether the Fund may be","page_number":16,"box":{"x":68,"y":279,"width":811,"height":11}},{"id":"7531a767-4dfe-40ae-9079-6bfe037c8d6d","block_type":"box","text":"considered to be an underwriter under the Securities Act or is otherwise engaged in the underwriting business to the","page_number":16,"box":{"x":69,"y":294,"width":834,"height":11}},{"id":"19c5963d-61e9-4a73-8011-49cfc8321255","block_type":"box","text":"extent permitted by applicable law.","page_number":16,"box":{"x":69,"y":309,"width":245,"height":11}},{"id":"fb798f57-72eb-462a-b5ce-026964320eea","block_type":"box","text":"With respect to the fundamental policy relating to lending set for th in (7) above, the Investment Company Act","page_number":16,"box":{"x":101,"y":332,"width":778,"height":11}},{"id":"231bd144-f2a6-40cf-96c8-254899e0a6cc","block_type":"box","text":"does not prohibit the fund from making loans (including lending its securities); however, Commission staff","page_number":16,"box":{"x":69,"y":347,"width":756,"height":11}},{"id":"f0a45e4a-8ad2-44d6-9d06-b5deb3febf50","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its","page_number":16,"box":{"x":70,"y":362,"width":807,"height":11}},{"id":"6527eeb1-56cd-419f-a491-cfbc97de1a37","block_type":"box","text":"securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition,","page_number":16,"box":{"x":69,"y":377,"width":784,"height":12}},{"id":"7c38726b-f8ce-4b19-9651-e283426b9488","block_type":"box","text":"collateral arrangements with respect to options, forward currency and futures transactions and other derivative","page_number":16,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"558659a9-12f8-40eb-ba8e-06ba383aea59","block_type":"box","text":"instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered","page_number":16,"box":{"x":70,"y":407,"width":803,"height":12}},{"id":"c5a6b176-f989-4c88-a27d-4d93ef88daf0","block_type":"box","text":"loans.","page_number":16,"box":{"x":70,"y":423,"width":40,"height":9}},{"id":"8d42bbad-c929-4ec8-99e5-b0c03e4b8725","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":16,"box":{"x":101,"y":445,"width":777,"height":11}},{"id":"09770234-fd4d-4969-88c6-9977d8228420","block_type":"box","text":"Fund may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S.","page_number":16,"box":{"x":70,"y":460,"width":751,"height":12}},{"id":"6a9aedd8-bcdd-4d0c-a4c0-261d0e396982","block_type":"box","text":"Government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":16,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"f00e8cfd-16d8-46f7-8a48-9c7b525ced15","block_type":"box","text":"75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or","page_number":16,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"1cdc8ef2-bf32-4402-b279-6083767841e8","block_type":"box","text":"(b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":16,"box":{"x":69,"y":506,"width":781,"height":11}},{"id":"54604927-f731-476a-9cfb-5f691b0d127c","block_type":"box","text":"remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the","page_number":16,"box":{"x":69,"y":521,"width":759,"height":11}},{"id":"b0b96451-a658-4b29-ac00-45fba0622f9f","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":16,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"989e8859-3117-4168-9d79-d6c3c84b7b37","block_type":"box","text":"shareholder approval.","page_number":16,"box":{"x":69,"y":551,"width":153,"height":11}},{"id":"7aaf79ff-317c-451d-8df0-61321026b5ac","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":16,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"7289ccda-759c-4121-aec5-41c981e06783","block_type":"box","text":"approval, the Fund may not:","page_number":16,"box":{"x":69,"y":589,"width":197,"height":11}},{"id":"a9053a4b-9284-4dff-a854-511a0973d264","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":16,"box":{"x":102,"y":612,"width":742,"height":11}},{"id":"411150c1-f0fb-432a-998e-f6a66111263f","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":16,"box":{"x":69,"y":627,"width":759,"height":11}},{"id":"d9de7a64-b0cc-45d2-afdc-2481f4f15f48","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":16,"box":{"x":70,"y":642,"width":829,"height":11}},{"id":"0acb791c-db99-4807-8e31-5ef08afd2dd5","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":16,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"b76451ba-2546-446c-8884-e65c643be326","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":16,"box":{"x":69,"y":672,"width":763,"height":11}},{"id":"72dc8280-b342-455c-b96f-c224fe1d023f","block_type":"box","text":"b. Make shor t sales of securities or maintain a shor t position, except to the extent permitted by the Fund’s","page_number":16,"box":{"x":102,"y":695,"width":765,"height":11}},{"id":"70ef8a3e-9bc6-44cf-a4b2-8f560e78e357","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":16,"box":{"x":69,"y":710,"width":510,"height":11}},{"id":"4aaaebf0-24a8-499d-9ddd-41a20febd3be","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 adopted under the","page_number":16,"box":{"x":102,"y":733,"width":750,"height":10}},{"id":"207318ad-8144-47ed-ad07-4c0fbadf35e4","block_type":"box","text":"Investment Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions","page_number":16,"box":{"x":70,"y":748,"width":810,"height":11}},{"id":"d2a28161-6713-403c-9d56-b7a92a33fc45","block_type":"box","text":"apply only at the time that a transaction is under taken. Any change in the percentage of the Fund’s assets invested","page_number":16,"box":{"x":69,"y":763,"width":824,"height":11}},{"id":"17a38cf5-2fbf-4bac-a902-f7484925feef","block_type":"box","text":"in cer tain securities or other instruments resulting from market fluctuations or other changes in the Fund’s total","page_number":16,"box":{"x":70,"y":778,"width":797,"height":11}},{"id":"4089ee7a-d7ab-44ca-8d79-5477547588be","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":793,"width":823,"height":11}},{"id":"c6d550c7-eacb-4d7e-8fc3-88eb285bcc3f","block_type":"box","text":"or close out the investment without undue market or tax consequences.","page_number":16,"box":{"x":69,"y":808,"width":511,"height":11}},{"id":"6f014831-e36d-4d7f-86fd-e4730360b48a","block_type":"box","text":"III. Information on Trustees and Officers","page_number":16,"box":{"x":69,"y":838,"width":290,"height":9}},{"id":"6a39a287-0af7-42c6-8c16-7dadeaa87671","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":16,"box":{"x":101,"y":861,"width":788,"height":11}},{"id":"80dbd865-674f-4128-8507-8086b3b0eadc","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":16,"box":{"x":68,"y":876,"width":779,"height":11}},{"id":"3304ef38-7b9b-49af-8d8a-146b3f72553d","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":891,"width":837,"height":12}},{"id":"0a74129a-2382-4e71-a4d2-4f8f1e07a43f","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":906,"width":793,"height":11}},{"id":"9cd674f3-2d57-4973-a037-ebd19860607f","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"0330480c-76bb-43c9-bcc9-e0cd4544f297","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0facf97d-64ba-4966-b451-770680309420","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":17,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"22148b48-fd13-468d-ac3b-1859eb05f095","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":17,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"a726ec1d-bd36-4335-948a-9f9778dcb051","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":17,"box":{"x":70,"y":75,"width":335,"height":11}},{"id":"e74aa26a-9f90-423b-bf3a-88b39102baab","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board is an","page_number":17,"box":{"x":101,"y":98,"width":769,"height":11}},{"id":"41b4d60d-4d7a-482d-b9b9-c65d209e37be","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":17,"box":{"x":70,"y":113,"width":827,"height":11}},{"id":"cdf5f253-0cf3-4add-a7a9-977fae97fd79","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":17,"box":{"x":70,"y":128,"width":821,"height":11}},{"id":"37c47896-65ab-4317-89c4-e8c938694308","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":17,"box":{"x":69,"y":143,"width":835,"height":11}},{"id":"eded6402-e623-4d19-8b49-fc03b0e70de6","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":17,"box":{"x":70,"y":158,"width":830,"height":11}},{"id":"3ab8d658-a2c2-44a0-b140-76e025fd7ad8","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":17,"box":{"x":68,"y":173,"width":789,"height":11}},{"id":"33b7d7b5-df62-4f08-9431-f236e03d3719","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":17,"box":{"x":69,"y":188,"width":810,"height":11}},{"id":"110731d6-6b67-4f37-80ee-134b090c3ca6","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":17,"box":{"x":69,"y":203,"width":809,"height":12}},{"id":"1ed08151-97c5-4285-85ec-067e4aa85b49","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":17,"box":{"x":70,"y":218,"width":794,"height":12}},{"id":"1261cf81-f3e7-40f0-b51b-e06a31a9e4e1","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":17,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"bf471851-ee4d-48aa-8d64-fe8781910952","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":17,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"700542aa-a9b4-4758-a373-fb8d32ed5246","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":17,"box":{"x":70,"y":264,"width":811,"height":11}},{"id":"7923e30e-3949-4d66-8a44-5b7a1f9d93e5","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":17,"box":{"x":68,"y":279,"width":809,"height":11}},{"id":"d342985c-dd71-4fe1-9daf-6dc539bd1624","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":17,"box":{"x":69,"y":294,"width":825,"height":11}},{"id":"918680c1-2137-4dbe-882e-199031d29cc0","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":17,"box":{"x":69,"y":309,"width":441,"height":11}},{"id":"b30c8849-38fd-4457-a0a1-408a2fbc29db","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":17,"box":{"x":101,"y":332,"width":777,"height":11}},{"id":"6ad1ea5f-8220-4f1e-ab9a-0aa884ba65ba","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":17,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"a8f82b9f-9ba2-4225-97e3-4a4826fadf2c","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":17,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"6d4597ca-db2b-41c0-b1dc-0e92061811af","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":17,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"dcdea937-04ed-4b13-b4f0-01b2e7795d34","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":17,"box":{"x":69,"y":392,"width":819,"height":12}},{"id":"1bf89193-3c8d-49b2-868c-25061996aa27","block_type":"box","text":"the operations of the Fund.","page_number":17,"box":{"x":68,"y":407,"width":192,"height":11}},{"id":"000e8af9-05f8-4226-9aa6-fbeb6dd27da5","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":17,"box":{"x":102,"y":430,"width":785,"height":11}},{"id":"b31f80b6-7828-44a1-93c9-38351a8e11d6","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":17,"box":{"x":69,"y":445,"width":828,"height":12}},{"id":"e25ba5e6-2671-41e8-8934-94783038bb9a","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":17,"box":{"x":69,"y":460,"width":832,"height":12}},{"id":"e580d3e5-678e-4afd-b950-dfb314f7b094","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":17,"box":{"x":68,"y":475,"width":820,"height":12}},{"id":"2b393c19-10b5-44c3-bea7-2ecc1453010b","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":17,"box":{"x":70,"y":491,"width":811,"height":11}},{"id":"545c93cb-e954-47bc-ab7f-24e75e740013","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":17,"box":{"x":70,"y":506,"width":767,"height":11}},{"id":"6d43dc7f-2740-4bf1-8078-acf0eedcc483","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":17,"box":{"x":69,"y":521,"width":815,"height":11}},{"id":"b146f175-d135-4976-9593-66f2effd189a","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":17,"box":{"x":70,"y":536,"width":803,"height":11}},{"id":"c0340b56-f478-4742-8b21-7fd32ba089ee","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":17,"box":{"x":69,"y":551,"width":840,"height":11}},{"id":"9e23c532-6565-4d04-89f6-6fd2f693a004","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":17,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"74cd01d0-320d-47af-92c3-1469b428735c","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":17,"box":{"x":69,"y":581,"width":817,"height":12}},{"id":"d06bfa71-a02f-4eb0-959e-0960aa711cbf","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":17,"box":{"x":69,"y":596,"width":812,"height":11}},{"id":"4e351410-d308-456f-805d-8c94c23736e9","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":17,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"4bdbf8d1-e638-44aa-a1b5-3248fc8bebbe","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":17,"box":{"x":70,"y":627,"width":759,"height":11}},{"id":"a6477391-bc5e-40bb-ae02-e23fff28e404","block_type":"box","text":"per forming their oversight responsibilities.","page_number":17,"box":{"x":70,"y":642,"width":299,"height":11}},{"id":"80cce644-0ae8-4ea9-82a9-cb2e73688340","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":665,"width":122,"height":8}},{"id":"a036385d-c3f6-4855-8c2a-cd2d46db609f","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":664,"width":673,"height":12}},{"id":"7bd09746-f3af-45ae-ac25-c934df3e721d","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":17,"box":{"x":68,"y":680,"width":831,"height":11}},{"id":"bd67eb10-cc09-4efd-b55b-04a346e18358","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":695,"width":820,"height":11}},{"id":"9fd40be1-c1ee-43cc-aec3-cc12b8ff4f7b","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":710,"width":823,"height":11}},{"id":"182544a3-2445-437e-8669-361e64fb9c5a","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":725,"width":830,"height":11}},{"id":"70287a14-05cf-495e-97fd-c272fc9107f6","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":740,"width":825,"height":11}},{"id":"9407d8de-79bc-431e-8db3-5d1b1764f987","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":755,"width":807,"height":11}},{"id":"f8f50534-89aa-4690-8fcb-1d7703e886c6","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":770,"width":781,"height":11}},{"id":"6ae0c31b-fd4b-4393-af3b-27003d90112e","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":786,"width":834,"height":11}},{"id":"9d101b0d-58bd-4a3d-a3a6-c55b28a4b090","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":17,"box":{"x":69,"y":801,"width":838,"height":11}},{"id":"db851c60-2c4e-43bc-8510-caad1f6624f5","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":816,"width":825,"height":11}},{"id":"71fc174e-8333-4dfc-92c1-8891764e60ac","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":831,"width":809,"height":11}},{"id":"6a4afb60-0938-4d5c-8169-412b417e8434","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":17,"box":{"x":70,"y":846,"width":815,"height":11}},{"id":"2c2555bf-cb56-4dbb-b881-9ecd06ff7cea","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":17,"box":{"x":69,"y":861,"width":774,"height":11}},{"id":"04390bde-99c8-4159-87c2-efd9378d3e03","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":876,"width":815,"height":11}},{"id":"484f3de6-66c2-485a-8a48-71d1a323db55","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":17,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"ccfb31d8-e10d-4d20-ae01-7351677f076f","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"aa70e1db-7bec-4244-8c29-faa9bedb9682","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b88df471-20e4-4901-bb84-0381493b319d","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":18,"box":{"x":69,"y":45,"width":812,"height":11}},{"id":"932c9985-1768-4344-9cb1-a2b01cd83bb5","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":18,"box":{"x":70,"y":60,"width":574,"height":11}},{"id":"ad6312d8-d870-4e9a-8e1f-ad202d2d49de","block_type":"box","text":"Governance and Nominating Committee.","page_number":18,"box":{"x":102,"y":83,"width":286,"height":11}},{"id":"40a3d2ac-214d-4019-b634-ede020f0f037","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":18,"box":{"x":394,"y":82,"width":464,"height":12}},{"id":"00142213-96c5-476b-a146-bfd7048f27a5","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":18,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"3ea2c6c8-e613-45e0-91b5-d01d1f4cb77d","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":18,"box":{"x":70,"y":113,"width":784,"height":11}},{"id":"3a0865bf-0020-4796-8411-b77927fc3210","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":18,"box":{"x":69,"y":128,"width":803,"height":11}},{"id":"84f5b44c-9ad7-4c93-a097-4fb6c8c3773c","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":18,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"c5f009db-9376-4d06-a8a6-cad5d8a85bbd","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":18,"box":{"x":70,"y":158,"width":828,"height":11}},{"id":"f685052e-add9-4c47-a3eb-6ecd83af00b4","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":18,"box":{"x":70,"y":173,"width":809,"height":11}},{"id":"a455c54a-d4f0-494b-b93b-b324a471c210","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":18,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"79d9d03a-8a0b-4c1a-aba4-ae76804cee66","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":18,"box":{"x":69,"y":203,"width":800,"height":11}},{"id":"dc47f820-1a98-4cd2-b615-5eba89cbe3e3","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":18,"box":{"x":70,"y":218,"width":813,"height":12}},{"id":"83fcccab-e7e5-43c7-9c6d-18257180746b","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":18,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"a0fae1a0-d925-4e28-8d22-035136f7cbbb","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":18,"box":{"x":68,"y":249,"width":804,"height":11}},{"id":"c1d5d33e-128f-453a-aa33-3aa9f4411907","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and","page_number":18,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"b0418f47-dc92-4969-a089-2f27611ccc2b","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":18,"box":{"x":70,"y":279,"width":801,"height":11}},{"id":"2d02c05b-08ed-4b09-9b77-9dd4a40a4e03","block_type":"box","text":"election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice","page_number":18,"box":{"x":69,"y":294,"width":799,"height":11}},{"id":"19b0f079-059e-4d95-a853-8e087f9f18ef","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and","page_number":18,"box":{"x":70,"y":309,"width":776,"height":11}},{"id":"64ceb978-2411-4496-b250-8c54065251bf","block_type":"box","text":"received at the principal executive offices of the Trust not later than the close of business on the fifth day following","page_number":18,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"308ef566-1e90-40d7-a9d3-e22a6ab72b0a","block_type":"box","text":"the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":18,"box":{"x":68,"y":339,"width":812,"height":12}},{"id":"5cc4117d-dac4-490c-aa01-4bc818ed64c9","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":18,"box":{"x":69,"y":355,"width":823,"height":11}},{"id":"fd863e3c-25e4-4871-b0fc-931b0cdbbd38","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":18,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"4b2b25f6-e68d-4433-a2f7-560035adf60f","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board","page_number":18,"box":{"x":69,"y":385,"width":811,"height":11}},{"id":"2b0a5653-a3da-4d0b-b057-aa4c1b5e69aa","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the fiscal year ended May 31, 2026, the","page_number":18,"box":{"x":69,"y":400,"width":783,"height":11}},{"id":"b6a7e7c8-e562-482b-bc28-ead75ed73420","block_type":"box","text":"Governance Committee met ten times.","page_number":18,"box":{"x":69,"y":415,"width":274,"height":9}},{"id":"b212c59c-e9d7-4d51-92bf-94f54f30ce5e","block_type":"box","text":"Compliance Committee.","page_number":18,"box":{"x":102,"y":438,"width":168,"height":11}},{"id":"c0b49213-22db-4678-bb67-118eee625d0d","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":18,"box":{"x":276,"y":438,"width":629,"height":11}},{"id":"8a261f14-f034-4233-a5be-0203ea3e714d","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":18,"box":{"x":68,"y":453,"width":828,"height":11}},{"id":"df1feea4-880b-4ba2-94dc-4153ecaba40c","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":18,"box":{"x":68,"y":468,"width":771,"height":11}},{"id":"86c48f8d-90a9-4ee1-b3a6-48227544d3e1","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":18,"box":{"x":69,"y":483,"width":835,"height":11}},{"id":"17e9d905-a5f6-48f3-9292-19bbc1905ea2","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s","page_number":18,"box":{"x":70,"y":498,"width":754,"height":11}},{"id":"8b084833-4c30-41a5-b0f7-c297419eead4","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":18,"box":{"x":69,"y":513,"width":834,"height":11}},{"id":"f76d9449-98f4-42bf-bb6b-d6736189d5ee","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":18,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"9d5a92a0-f39c-4dda-b764-2ed4b3bb3d4c","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":18,"box":{"x":69,"y":544,"width":785,"height":11}},{"id":"18c8cdf1-2b2c-4749-8096-7a3c9abc6a46","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":18,"box":{"x":69,"y":559,"width":811,"height":11}},{"id":"7b3a8b7a-cc6d-4450-bb45-f410f0ecf75b","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":18,"box":{"x":69,"y":574,"width":812,"height":11}},{"id":"bac25c93-d738-4cf0-b0fc-badc6ac17a16","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":18,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"5009e48f-59c9-4386-a537-607ad0bc69ce","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":18,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"92fdbfed-4191-4314-9045-cd9681468908","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the fiscal","page_number":18,"box":{"x":69,"y":619,"width":811,"height":11}},{"id":"d0e19045-d1f0-4ad7-8386-de20b5a0c66f","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":18,"box":{"x":68,"y":634,"width":502,"height":11}},{"id":"cc654c2a-b690-4661-a476-019665b32312","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":657,"width":248,"height":11}},{"id":"0f5b986f-312b-42a6-a294-ec2b3b4ba2ca","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":18,"box":{"x":356,"y":657,"width":531,"height":11}},{"id":"2700f9ab-76d1-4f50-b34c-3ced62289024","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":18,"box":{"x":69,"y":672,"width":829,"height":11}},{"id":"61f58c48-40dc-4433-8854-7cd094702bcd","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":18,"box":{"x":69,"y":687,"width":830,"height":11}},{"id":"95dd0b0a-d9f8-4eba-8246-0cbc4661b520","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":18,"box":{"x":68,"y":702,"width":832,"height":12}},{"id":"a77f0a20-9a25-41ad-985d-22df69125b89","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":18,"box":{"x":69,"y":717,"width":816,"height":12}},{"id":"30cf87c5-2e83-4265-8835-7def2a712533","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":18,"box":{"x":69,"y":732,"width":782,"height":12}},{"id":"4a07dbe3-0549-4321-8443-0b4c67861e42","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":748,"width":829,"height":11}},{"id":"f2caf222-77c1-4b20-95ae-020e32cdb61f","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":18,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"483bfb70-2abf-469e-8872-bf311003d81c","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":778,"width":803,"height":11}},{"id":"8b8804a0-207c-413b-9e3e-aaf20bdcd752","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":793,"width":827,"height":11}},{"id":"f3f8efb4-bb85-4af8-a379-ea43b631fa05","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":18,"box":{"x":68,"y":808,"width":811,"height":11}},{"id":"d72a695c-4223-4c1f-9230-6b97826c8638","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":823,"width":757,"height":12}},{"id":"d957a61d-3427-4c88-9953-dd3248a3c8d4","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":838,"width":835,"height":11}},{"id":"87868652-4bd8-4baf-ab74-61c292a96be5","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":18,"box":{"x":68,"y":853,"width":800,"height":12}},{"id":"c570b024-a1d5-4fd1-ae44-f1ed71138b7b","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":18,"box":{"x":69,"y":869,"width":780,"height":11}},{"id":"bc84ee47-7a12-4c7c-a197-fd7fa5cb1d97","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the fiscal year","page_number":18,"box":{"x":69,"y":884,"width":838,"height":11}},{"id":"a7547dc7-4c0a-42ca-80ac-e560ddc07c9d","block_type":"box","text":"ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":18,"box":{"x":69,"y":899,"width":544,"height":11}},{"id":"2a44b449-f80f-409b-aa05-a9755ab3c9d6","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"1122e8e6-2771-4460-a546-5a417f7c274e","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4b78812a-745a-452f-b396-96cef6a2db4d","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":19,"box":{"x":101,"y":45,"width":186,"height":11}},{"id":"c9375372-6bd6-42d4-83e7-27226eee60e3","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":19,"box":{"x":293,"y":45,"width":598,"height":11}},{"id":"597feb96-4c38-4035-9214-827b7bca3149","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":19,"box":{"x":70,"y":60,"width":817,"height":11}},{"id":"761c4478-dba4-42f0-8667-28edc8bedcc9","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":19,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"39087ff2-dd3f-460e-8e8d-fa9701317999","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":19,"box":{"x":69,"y":90,"width":788,"height":11}},{"id":"4f7f90fd-79ad-488a-8d47-611644cf553c","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":19,"box":{"x":69,"y":105,"width":813,"height":11}},{"id":"06795c19-e707-41db-9925-eeb5a3ed7022","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":19,"box":{"x":68,"y":120,"width":816,"height":12}},{"id":"4bf5bf2d-2bab-4b71-9b85-e278d7819acd","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":19,"box":{"x":68,"y":135,"width":575,"height":11}},{"id":"f2a209c1-fadb-4060-9df9-db9b9573f437","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":19,"box":{"x":101,"y":158,"width":771,"height":11}},{"id":"5f4abd93-1504-461f-8b64-7dbbb6a7c2d7","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":19,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"1a62abb0-f83d-4c1d-9e42-c5f3d3275b1c","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":19,"box":{"x":69,"y":188,"width":830,"height":11}},{"id":"3e0bb0a6-75a3-49a3-bee1-4bcf53071f2f","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":19,"box":{"x":69,"y":203,"width":825,"height":12}},{"id":"4aa4c46f-3d90-4277-a4d3-57485e51ef15","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":19,"box":{"x":70,"y":218,"width":807,"height":12}},{"id":"73a1dae2-3dc0-47f1-9892-f551ea679461","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":19,"box":{"x":70,"y":234,"width":787,"height":11}},{"id":"0a5fafd5-438f-4a76-ae7a-0378c3d26543","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":19,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"f5c1aa75-8ffd-42cc-8b90-c1e0ea02c218","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":19,"box":{"x":68,"y":264,"width":794,"height":11}},{"id":"7546d256-b60c-48c5-9855-ead6e95c2219","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":19,"box":{"x":68,"y":279,"width":829,"height":11}},{"id":"4fe8297f-1f8d-4f82-a5d6-6e4df79db535","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":19,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"20f21ac0-8f73-44bf-9460-7c8806ccc0bb","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":19,"box":{"x":69,"y":309,"width":771,"height":11}},{"id":"73f86f5e-3f68-4b0d-b3c1-1d5684b4189e","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":19,"box":{"x":69,"y":324,"width":473,"height":12}},{"id":"20f9a54f-6821-4d37-8ddc-1b42d01adc02","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":19,"box":{"x":102,"y":347,"width":792,"height":11}},{"id":"8a9078f8-9c51-490e-855e-4f4c3fa23a99","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":19,"box":{"x":69,"y":362,"width":807,"height":11}},{"id":"9df1034c-ddd9-4794-a178-6a95d260218d","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":19,"box":{"x":69,"y":377,"width":837,"height":11}},{"id":"2e2e16c0-02fe-44f4-8f27-74e23b428824","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":19,"box":{"x":70,"y":392,"width":759,"height":12}},{"id":"bca3bdfa-e4ec-4e80-b028-2cd0209cd876","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":19,"box":{"x":70,"y":407,"width":685,"height":12}},{"id":"f85ee771-f811-4a30-8474-f7d1afe073d5","block_type":"box","text":"ad hoc","page_number":19,"box":{"x":762,"y":408,"width":47,"height":8}},{"id":"d3f474a4-53a5-4e0b-bf7c-1be5b163e4b5","block_type":"box","text":"committees","page_number":19,"box":{"x":814,"y":408,"width":82,"height":8}},{"id":"87ec54f5-5a32-4723-8887-85d8987c9ec6","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":19,"box":{"x":68,"y":423,"width":395,"height":11}},{"id":"e21e9cd6-b1ba-4b3f-a2b8-206320e41c0e","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":19,"box":{"x":101,"y":445,"width":751,"height":11}},{"id":"7bec5cdc-7a64-4714-84c7-fe68f0418e8f","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":19,"box":{"x":69,"y":461,"width":492,"height":10}},{"id":"7e2c0152-1b30-40cf-b345-e137f5bcb7d8","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":19,"box":{"x":68,"y":489,"width":409,"height":8}},{"id":"9cd8eab3-0fc0-42ee-9e5b-82f6a9de9ca7","block_type":"box","text":"Independent Trustees","page_number":19,"box":{"x":70,"y":505,"width":154,"height":11}},{"id":"986ec293-ee4b-443f-b47a-e7da0e0b48a7","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":520,"width":781,"height":11}},{"id":"e3fd471d-6317-47db-b0a8-db2648a02497","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":19,"box":{"x":265,"y":535,"width":604,"height":12}},{"id":"97e7635b-7734-472b-9882-183bd30eb165","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":550,"width":623,"height":12}},{"id":"9b0920af-71a6-4980-96a1-61cb4d8db38a","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":566,"width":637,"height":11}},{"id":"bf1bbb5d-1238-424b-a6e9-9d85e30cdf2a","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":581,"width":631,"height":11}},{"id":"6b2e262a-0413-413d-b0a7-a20e6ec9ccfd","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":19,"box":{"x":264,"y":596,"width":626,"height":10}},{"id":"4875694d-04f2-4fa6-b13d-4b3934349ab2","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":611,"width":639,"height":11}},{"id":"961fc278-8fe4-4847-9025-a02b4dce4f2f","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":19,"box":{"x":264,"y":626,"width":637,"height":11}},{"id":"dd4bb376-19b7-46bd-8e2f-6629c6712a7c","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":19,"box":{"x":265,"y":641,"width":586,"height":11}},{"id":"ce8552f0-a1c5-4967-a28d-d45a191e6442","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":656,"width":640,"height":11}},{"id":"7f7e040e-06ba-4459-ab37-83995ee950ce","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":19,"box":{"x":265,"y":671,"width":389,"height":12}},{"id":"aa74f31a-af6e-4ae0-9ecb-3033b1700457","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. She has","page_number":19,"box":{"x":69,"y":694,"width":806,"height":11}},{"id":"bc9084e7-71f7-445d-a80b-4afa017a7b36","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":19,"box":{"x":265,"y":709,"width":604,"height":11}},{"id":"24f7b24d-7fd8-47e7-87ff-b00deec62856","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":19,"box":{"x":265,"y":724,"width":632,"height":12}},{"id":"d1981f66-e091-48bd-90e1-0951cbfba835","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":739,"width":562,"height":9}},{"id":"4ea8ffc1-4267-4755-89da-0220861e387b","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":19,"box":{"x":265,"y":755,"width":616,"height":10}},{"id":"ea77d35e-f825-4295-bc46-033515582ead","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":19,"box":{"x":264,"y":770,"width":591,"height":11}},{"id":"062b63bf-9d43-4c14-b1e7-26b3b0a9bbdf","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":785,"width":641,"height":11}},{"id":"ad8025f2-26fe-443f-8f3e-73fa383ac54b","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":800,"width":638,"height":11}},{"id":"fcb49dc1-0582-444a-aefb-3789800d52c5","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":815,"width":584,"height":11}},{"id":"5d59e18f-ecce-4bfb-9c67-c6d41240c9e4","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":19,"box":{"x":265,"y":830,"width":630,"height":11}},{"id":"74d9418f-3a48-427b-92c0-45ba892205fb","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":19,"box":{"x":265,"y":845,"width":634,"height":11}},{"id":"60dedf3c-cf8e-4ae4-881e-08d3ab5ba959","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":19,"box":{"x":265,"y":860,"width":599,"height":11}},{"id":"04e3cfa7-1ba1-4c9f-ba8d-3f43d6e97267","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":876,"width":407,"height":11}},{"id":"a2cb9531-e77f-49ce-8a29-706abb7acfa9","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a6c045b3-64a3-400f-9916-18c34a67aab0","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b0fe5ca8-43d8-4831-8057-a9a22cd445c1","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":20,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"ee4455df-e734-404a-bfa3-da3cfe04ee30","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":20,"box":{"x":69,"y":65,"width":837,"height":12}},{"id":"c5efbfb5-659b-4f66-b1ac-92df7ba04b9c","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":20,"box":{"x":265,"y":81,"width":638,"height":11}},{"id":"f877c037-78b1-4407-b753-f10204d6a91e","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":20,"box":{"x":265,"y":96,"width":642,"height":11}},{"id":"e2a695ea-b207-4253-80dd-b47805ae9d9c","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":20,"box":{"x":265,"y":110,"width":601,"height":12}},{"id":"25d7a26a-dc61-43a7-9aae-30ab0bd0eede","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":20,"box":{"x":265,"y":126,"width":595,"height":11}},{"id":"9dde01ed-f5af-4be2-b63d-e46bf4aee02e","block_type":"box","text":"perspective on the markets and the economy.","page_number":20,"box":{"x":265,"y":141,"width":323,"height":11}},{"id":"6444f0a8-75d5-4628-8206-0bc3f8faeb8d","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":164,"width":798,"height":11}},{"id":"fef19f6d-8654-49e9-8839-63f22371e75b","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":20,"box":{"x":265,"y":179,"width":631,"height":11}},{"id":"9685e0c8-1d7b-407b-a5ff-a21ed0901460","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":20,"box":{"x":265,"y":194,"width":633,"height":11}},{"id":"dfdf4bf4-dded-44e5-a813-b9f3e29c6d01","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":20,"box":{"x":265,"y":209,"width":628,"height":11}},{"id":"c24c9146-0b5f-4bad-b7b9-c95a3bdd3615","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":20,"box":{"x":265,"y":224,"width":596,"height":11}},{"id":"14cac919-5298-43db-9027-aefb882bb7a8","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":20,"box":{"x":265,"y":239,"width":616,"height":11}},{"id":"bbd0d64f-518c-425c-9c30-ba1922bc8fef","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":20,"box":{"x":264,"y":254,"width":368,"height":11}},{"id":"e9391014-5d4b-4831-bcd1-0681fbc9a0a7","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":20,"box":{"x":69,"y":277,"width":777,"height":11}},{"id":"15ce6f5d-6828-40b4-ace6-a779b2375874","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":20,"box":{"x":265,"y":292,"width":613,"height":11}},{"id":"d978c24a-70e6-4e67-aa2d-4b4ae6513b64","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":20,"box":{"x":265,"y":307,"width":563,"height":12}},{"id":"b3d4d9f7-592a-4c90-a37a-c5a852ec9e0d","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":20,"box":{"x":265,"y":323,"width":607,"height":11}},{"id":"d7a349d8-fd49-494b-a1fc-ddea771e299d","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":20,"box":{"x":265,"y":338,"width":638,"height":11}},{"id":"fe1d0ef1-4690-46ca-91a7-3e17db5e57c3","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":20,"box":{"x":265,"y":353,"width":626,"height":11}},{"id":"2c994899-8502-46a1-a0d9-da4c748db926","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":20,"box":{"x":265,"y":368,"width":563,"height":11}},{"id":"0623a182-783e-4aed-a1a2-81f84745a18c","block_type":"box","text":"Mr. Jarczyk also served as a consultant to the Independent Trustees prior to becoming an","page_number":20,"box":{"x":265,"y":383,"width":639,"height":11}},{"id":"d5facf53-72f5-4386-8d27-a16e21f26d3d","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":20,"box":{"x":265,"y":398,"width":625,"height":11}},{"id":"e0f77148-f11a-4c00-8b50-ae612cb6b975","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":20,"box":{"x":265,"y":413,"width":623,"height":11}},{"id":"ea908108-531b-4d43-b098-299bbc3e7099","block_type":"box","text":"rules.","page_number":20,"box":{"x":265,"y":428,"width":38,"height":9}},{"id":"d666f51e-aaa3-45e6-8ff6-e1e81de095d1","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":451,"width":806,"height":11}},{"id":"f2c1a70e-20ba-4c7d-b036-6e26ce45cfeb","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":20,"box":{"x":264,"y":466,"width":584,"height":11}},{"id":"edd2902c-6b72-425b-9625-047d575300f1","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":481,"width":622,"height":11}},{"id":"5f42e3cd-5671-4ec9-ac2d-cd56bf7a00d0","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":20,"box":{"x":265,"y":496,"width":638,"height":12}},{"id":"0dd80ad7-07ce-4bda-904f-22359a9a8042","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":20,"box":{"x":265,"y":511,"width":570,"height":12}},{"id":"42845fbb-9306-4548-baff-eee88bd1c065","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":526,"width":642,"height":12}},{"id":"4b237a19-00da-4d5c-b8e5-964e113eb634","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":20,"box":{"x":265,"y":542,"width":626,"height":11}},{"id":"463a797e-bfa4-4168-be8c-1d5150e1f65b","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":20,"box":{"x":265,"y":557,"width":630,"height":11}},{"id":"65254e43-1993-4508-a590-afb38ad462b9","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":20,"box":{"x":265,"y":572,"width":602,"height":11}},{"id":"8e5d03d1-d23e-4d48-a414-fe8ca32e591b","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":20,"box":{"x":264,"y":587,"width":643,"height":11}},{"id":"b679c050-69d9-48c0-b65d-a3d11ac13263","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":20,"box":{"x":264,"y":602,"width":639,"height":11}},{"id":"78ce908a-2929-4604-9401-31b665c4619d","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":20,"box":{"x":264,"y":617,"width":641,"height":11}},{"id":"47027e63-710c-42d6-b71c-965e525887c5","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":632,"width":208,"height":11}},{"id":"856385ac-065d-4a24-879c-1b20bd3a9331","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":655,"width":769,"height":11}},{"id":"a40e1a1c-121d-4845-805d-f1feae167aa4","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":20,"box":{"x":265,"y":670,"width":621,"height":11}},{"id":"bbe6d03d-68e3-4730-b307-546433acc086","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":20,"box":{"x":265,"y":685,"width":599,"height":12}},{"id":"fcf5643c-6c27-4523-bda9-181de20e7b45","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":700,"width":641,"height":12}},{"id":"a7e02771-8eae-46f8-a42c-28cc412cd285","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":20,"box":{"x":264,"y":715,"width":602,"height":12}},{"id":"d91fbb59-7564-4b75-a5a8-15addcb472a9","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":20,"box":{"x":264,"y":731,"width":617,"height":11}},{"id":"bbeeef20-51dc-4135-ad2b-e395929420d5","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":20,"box":{"x":265,"y":746,"width":629,"height":11}},{"id":"3f1f2e9c-e744-4094-b298-10d79472fc12","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":761,"width":628,"height":11}},{"id":"a3a1934f-9535-4139-b829-49cf8f6d494e","block_type":"box","text":"ar ticles and books on these topics.","page_number":20,"box":{"x":265,"y":776,"width":251,"height":11}},{"id":"05542376-3481-474c-9009-c4e84d2fae61","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":799,"width":764,"height":11}},{"id":"9e211055-02d5-4023-ac07-41717e31dbce","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":20,"box":{"x":265,"y":814,"width":642,"height":11}},{"id":"63c58ded-de47-4b5b-97ef-67806d1e8627","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":20,"box":{"x":264,"y":829,"width":593,"height":11}},{"id":"0862a676-9f52-4014-8bb6-eea3a9b18187","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":844,"width":603,"height":11}},{"id":"cc5aa2d3-1f22-47a6-91d0-8bdbb0346e6e","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":20,"box":{"x":265,"y":859,"width":629,"height":11}},{"id":"8a87a4e8-91d3-439c-9433-42bf096e3863","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"cf244d14-5b70-48fd-91a0-420489757dc9","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":20,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86035d28-5788-4bdd-b75f-3898b6e26e7c","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":21,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"0d1451e7-3360-4019-91b4-1d87823ca260","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":21,"box":{"x":70,"y":65,"width":804,"height":12}},{"id":"7977ee58-f448-4788-a0fa-e0ccb8982cd3","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":21,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"37796d06-ecf0-4250-8f8e-0ca3b8c777a0","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":21,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"bcb31828-f3df-4d32-b9c9-199c6ec8b45b","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":21,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"dd38e06a-2a81-43da-9b28-1014f8c6094e","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":21,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"c05a2d50-6eb0-426f-9f72-0d53ace7b3b1","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":21,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"c87b82ff-2048-41d7-98e4-4360c5f2bbd5","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":21,"box":{"x":265,"y":156,"width":592,"height":11}},{"id":"eb7e82d9-1405-45d0-9b54-73180fca9acb","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":21,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"6dadf821-495b-42bd-a8c6-c4d1d81dcfdb","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":21,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"65df0e92-6d23-4079-8ad8-b07b2a89cfe5","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":21,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"9c513f37-a65e-4fe1-a619-f2a0e39a26b3","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":21,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"31a92009-ca79-46e9-97d0-ed5b9dc4ef63","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":21,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"4dab0274-50ff-42a1-bb33-ff14987c37af","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":21,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"ddf1695e-369c-4edd-a985-0a17de5532ea","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":21,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"f26ab91f-4291-408c-b404-92d458bbd090","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":21,"box":{"x":265,"y":277,"width":607,"height":11}},{"id":"08c7db1f-c4f2-44b8-b4b8-8afc76e7d47a","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":21,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"6789ab7a-f707-49c9-8fa5-b1ad7e7409b1","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":21,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"a64c772f-a64a-4329-b8b3-86bc56a901a1","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":21,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"f47bb2cd-35bd-4f91-ac0e-fb2e667bbc17","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":21,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"a78f3672-8a72-433b-8894-9f753e430cd3","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":21,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"550a3741-cb6a-48d8-b913-48af6ab883a9","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":21,"box":{"x":265,"y":368,"width":628,"height":11}},{"id":"06a23bba-6609-423d-9c3f-5e29b34f41b2","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":21,"box":{"x":265,"y":383,"width":460,"height":11}},{"id":"5abcba87-e1e2-43a9-ae09-3f7bd4149185","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":406,"width":818,"height":11}},{"id":"791e49e0-c62f-4c9b-ac2d-f7c378329935","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":421,"width":603,"height":11}},{"id":"ae09501c-71f1-4aca-ace8-c35e6383b7ab","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":21,"box":{"x":265,"y":436,"width":606,"height":11}},{"id":"9ece8ac9-e531-4a3d-81cd-b82a37fd338f","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":21,"box":{"x":265,"y":451,"width":608,"height":9}},{"id":"694862af-a9e3-4043-b3e8-9b784eab8310","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":466,"width":626,"height":11}},{"id":"f09d5af1-7af5-4797-98e8-4f7098ee865c","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":21,"box":{"x":265,"y":481,"width":591,"height":11}},{"id":"4c88851d-2ca2-4676-b33b-39f4f79fc096","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":496,"width":265,"height":11}},{"id":"558ce38d-472d-41f5-8da4-c3f6b1459ab7","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":519,"width":833,"height":11}},{"id":"3b90aee4-ecdc-41e6-9107-41af6ce09a43","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":534,"width":638,"height":11}},{"id":"cf9b25df-0e4c-44bb-8941-0bbc26185269","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":549,"width":608,"height":11}},{"id":"2289886b-738e-4668-9003-ea47e243b519","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":564,"width":645,"height":11}},{"id":"e548f744-b9a9-4de9-bb8c-3a85f5cf5bb2","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":579,"width":639,"height":9}},{"id":"420c4a99-4fb4-4071-b94e-79f8a56d8fb8","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":21,"box":{"x":264,"y":595,"width":573,"height":11}},{"id":"4327caa2-4cb1-47f3-9d2e-ffbfed8f4dad","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":21,"box":{"x":265,"y":610,"width":625,"height":11}},{"id":"c0817eee-5a1a-40f3-9bf5-0dbdf9eb81dd","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":21,"box":{"x":265,"y":625,"width":610,"height":11}},{"id":"883cfccc-1b06-4f8f-92e9-f2b059c6ac3c","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":21,"box":{"x":265,"y":640,"width":642,"height":11}},{"id":"08b93235-31c0-4c60-997b-4d086d9094b6","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as a consultant to the Independent","page_number":21,"box":{"x":265,"y":655,"width":597,"height":11}},{"id":"620fb093-a2a1-4e63-bd76-12d0667de736","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":21,"box":{"x":264,"y":670,"width":369,"height":11}},{"id":"39963f6e-c1eb-4989-92a3-27169b134fbf","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":693,"width":807,"height":11}},{"id":"b357148d-d916-483c-88ea-d66902306351","block_type":"box","text":"companies, most recently as a member of the boards of cer tain BlackRock-advised Funds","page_number":21,"box":{"x":264,"y":708,"width":641,"height":11}},{"id":"beb9df78-0eee-4e07-ba49-f650d0e577e0","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":723,"width":618,"height":11}},{"id":"a112453b-3a85-4c6d-a48b-f427ad4cfe34","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":738,"width":594,"height":11}},{"id":"68384ef8-e51d-4731-8556-5429345ec6fd","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":753,"width":639,"height":12}},{"id":"d737e5f3-36d8-40a3-b571-2a2cbd99d656","block_type":"box","text":"be an audit committee financial exper t, as such term is defined in the applicable","page_number":21,"box":{"x":265,"y":768,"width":575,"height":11}},{"id":"da3a51bf-ee32-4b94-b17d-66c123405be7","block_type":"box","text":"Commission rules.","page_number":21,"box":{"x":265,"y":784,"width":131,"height":9}},{"id":"68a03737-c3c1-405f-b7c4-f3ec0bb9d921","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"f0f67cb2-6eae-4b0e-8ade-43527c81bf2d","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4356bf2f-82a5-436f-a4cc-1783c20c592c","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":22,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"72b90c10-2f1b-4832-905b-b8c35050d033","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":22,"box":{"x":69,"y":65,"width":808,"height":12}},{"id":"ceb35d78-8e88-4ffc-ad6d-c7db0922dd01","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liber ty Square Asset","page_number":22,"box":{"x":265,"y":81,"width":630,"height":11}},{"id":"a546a2a3-e15d-4742-9c80-4b5dce61406f","block_type":"box","text":"Management, LP / Steel Par tners Japan Asset Management, LP from 1998 to 2015, an","page_number":22,"box":{"x":265,"y":96,"width":627,"height":11}},{"id":"b009730a-6f36-4bae-b026-47b57595e4b8","block_type":"box","text":"investment manager that specialized in long/shor t non-U.S. equity investments, and was","page_number":22,"box":{"x":265,"y":111,"width":632,"height":11}},{"id":"fb458801-ecfa-46dd-819f-4941257b0616","block_type":"box","text":"an owner and General Par tner of Neon Liber ty Capital Management, LLC from 2003 to","page_number":22,"box":{"x":265,"y":126,"width":615,"height":11}},{"id":"234d1213-ad59-408e-9051-6acf20a3cadb","block_type":"box","text":"2023, a firm focusing on long/shor t equities in global emerging and frontier markets.","page_number":22,"box":{"x":265,"y":141,"width":608,"height":11}},{"id":"15ba2d98-a737-42f6-a39b-a9811ba79b15","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":22,"box":{"x":264,"y":156,"width":620,"height":11}},{"id":"063fec9c-1181-41d3-84b3-dcf703bdffca","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":22,"box":{"x":265,"y":171,"width":584,"height":11}},{"id":"bbcaa915-c097-4064-96e1-c19bcb8d57ac","block_type":"box","text":"committee financial exper t, as such term is defined in the applicable Commission rules.","page_number":22,"box":{"x":264,"y":186,"width":629,"height":11}},{"id":"590a124b-b337-423b-a680-54e85b750dc9","block_type":"box","text":"Interested Trustees","page_number":22,"box":{"x":70,"y":209,"width":138,"height":9}},{"id":"8d8e19bc-18c5-4a8f-9118-bb09ebd05d33","block_type":"box","text":"Rober t Fairbairn Rober t Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":22,"box":{"x":70,"y":224,"width":823,"height":11}},{"id":"989f73ae-2ab0-40ab-8da7-ba55e3460256","block_type":"box","text":"years of experience in finance and asset management. In par ticular, Mr. Fairbairn’s","page_number":22,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"1d4eaf0e-bc9b-48e5-8006-8a4a5eb84b7d","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":22,"box":{"x":265,"y":254,"width":629,"height":12}},{"id":"2718a399-d6ba-4f8f-8e94-f8fcb06443ec","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":22,"box":{"x":265,"y":269,"width":639,"height":11}},{"id":"f7b5f1d6-ea54-491a-a820-8396d18828c0","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":22,"box":{"x":265,"y":285,"width":617,"height":11}},{"id":"c25dbdba-5b18-4762-ac66-f55c88544fc9","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":22,"box":{"x":264,"y":300,"width":634,"height":11}},{"id":"545be293-0a99-43c7-9d85-3c815d81c4e6","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":22,"box":{"x":265,"y":315,"width":624,"height":10}},{"id":"2f2d4da0-a4c9-4133-a840-a9025b80451c","block_type":"box","text":"and iShares","page_number":22,"box":{"x":265,"y":330,"width":84,"height":9}},{"id":"c315de64-d4dc-4d96-8db6-8078fd4a8129","block_type":"box","text":"®","page_number":22,"box":{"x":350,"y":330,"width":6,"height":5}},{"id":"7926e986-214e-4c61-8a23-42e34e5aa3a9","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":22,"box":{"x":362,"y":330,"width":478,"height":11}},{"id":"39a3f217-810a-4533-a994-b92ac52500b2","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":22,"box":{"x":265,"y":345,"width":585,"height":11}},{"id":"266a959a-fbb0-4c8c-b92c-b9a36e555a26","block_type":"box","text":"Strategic Par tner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":22,"box":{"x":265,"y":360,"width":620,"height":12}},{"id":"31e8be83-40c7-4e01-ba0d-b843a2ec07cc","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":22,"box":{"x":265,"y":375,"width":578,"height":11}},{"id":"6a04c75f-c36c-4463-b9ae-e4924bffe483","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":398,"width":800,"height":11}},{"id":"d5eb60a1-ad71-41cc-b8d5-593aec6fad27","block_type":"box","text":"2026, as Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":22,"box":{"x":265,"y":413,"width":593,"height":11}},{"id":"20ada7e8-5785-41b0-9fa2-5c351ca6b447","block_type":"box","text":"BlackRock Global Business Operations Services since 2009, and as President and Chief","page_number":22,"box":{"x":265,"y":428,"width":633,"height":11}},{"id":"ebaed6fd-000b-47d3-b25f-7e753e40571d","block_type":"box","text":"Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":22,"box":{"x":265,"y":443,"width":542,"height":12}},{"id":"898a2525-d8c4-45c7-9f65-06894d01c074","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":22,"box":{"x":265,"y":458,"width":617,"height":12}},{"id":"19ae695a-c1ee-4c6b-974c-3bbfaeaa11b4","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":22,"box":{"x":265,"y":474,"width":620,"height":11}},{"id":"28579cf9-dfeb-462e-8505-233f877fa720","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":22,"box":{"x":265,"y":489,"width":616,"height":11}},{"id":"cf9d5447-6a71-492c-8d2c-5c2e1aaf18e8","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":22,"box":{"x":265,"y":504,"width":639,"height":11}},{"id":"324fa3f1-56ed-46f2-857d-f17c5aa32bf7","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":519,"width":603,"height":9}},{"id":"ead8029c-92be-4585-a778-956d2fa58a2a","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":22,"box":{"x":265,"y":534,"width":582,"height":11}},{"id":"3ccd4921-a0c4-4b65-a944-aa820dd37118","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":549,"width":632,"height":11}},{"id":"baf9d07a-452f-48bc-9093-cf20760b47c9","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":564,"width":572,"height":11}},{"id":"e2662d9e-3726-4cd2-ac34-41b6cd687c25","block_type":"box","text":"BlackRock’s Global Executive Committee.","page_number":22,"box":{"x":265,"y":580,"width":294,"height":8}},{"id":"249d91d8-3429-4a0b-96f1-1b45ad416f1e","block_type":"box","text":"Biographical Information","page_number":22,"box":{"x":69,"y":611,"width":178,"height":11}},{"id":"6ad5ab8e-30f9-49a6-90bd-1362378832fb","block_type":"box","text":"Cer tain biographical and other information relating to the Trustees of the Trust is set for th below, including their","page_number":22,"box":{"x":102,"y":634,"width":798,"height":11}},{"id":"4933ad76-baba-4139-bac9-e38f14861a9a","block_type":"box","text":"address and year of bir th, principal occupations for at least the last five years, length of time served, total number 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Stern* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":360,"width":448,"height":9}},{"id":"de8500b2-3f89-4ad6-ba65-22db21862577","block_type":"box","text":"None None","page_number":27,"box":{"x":632,"y":360,"width":226,"height":9}},{"id":"13866156-7db1-4c64-84e5-59f5a8dcb399","block_type":"box","text":"Kenneth L. Urish","page_number":27,"box":{"x":79,"y":376,"width":117,"height":8}},{"id":"3417839c-3287-4cfb-a5c7-8723b40c01db","block_type":"box","text":".........................................","page_number":27,"box":{"x":199,"y":383,"width":328,"height":1}},{"id":"327127e5-2093-4384-bda0-f835dd525ac1","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":632,"y":375,"width":262,"height":11}},{"id":"1dc51ffc-b620-44e9-86dc-c02855d4b745","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":391,"width":448,"height":8}},{"id":"a1e9a2c1-c24a-415c-83ec-96791811cb05","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":632,"y":390,"width":262,"height":11}},{"id":"6721b300-87c8-43aa-b11e-845a74a9f7e8","block_type":"box","text":"Interested Trustees","page_number":27,"box":{"x":70,"y":406,"width":138,"height":9}},{"id":"f9374255-f950-45d3-bf23-ed3fa2b34e43","block_type":"box","text":"Rober t Fairbairn","page_number":27,"box":{"x":79,"y":421,"width":113,"height":9}},{"id":"054fb191-28d4-45c3-90f5-85dad9c24383","block_type":"box","text":".........................................","page_number":27,"box":{"x":199,"y":428,"width":328,"height":2}},{"id":"94a61c62-9cbd-422f-9063-2c955648e556","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":632,"y":420,"width":262,"height":11}},{"id":"a4fa74e7-2159-41de-aac9-d3d66fa66a75","block_type":"box","text":"John M. Perlowski","page_number":27,"box":{"x":78,"y":436,"width":127,"height":9}},{"id":"e4bd6313-8781-4921-bdc9-ad9dcfbe3a6a","block_type":"box","text":".......................................","page_number":27,"box":{"x":215,"y":443,"width":312,"height":2}},{"id":"4a450700-1252-4e2c-8c45-de954525ee2b","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":632,"y":435,"width":262,"height":11}},{"id":"4476bd9a-5bee-4a1c-82cd-09b6d473583a","block_type":"box","text":"* Information is provided as of April 1, 2026, the date Mr. Jarczyk and Mr. Stern first served as consultants to the Independent Trustees.","page_number":27,"box":{"x":70,"y":460,"width":782,"height":9}},{"id":"ce6b6051-2660-4cb5-8f2c-b5f8d5fc5dca","block_type":"box","text":"As of September 3, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially","page_number":27,"box":{"x":101,"y":481,"width":767,"height":11}},{"id":"e83d8fff-cb94-434f-ab75-fe7df8adbc54","block_type":"box","text":"owned an aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025","page_number":27,"box":{"x":69,"y":496,"width":819,"height":12}},{"id":"fe28342d-aed8-44bf-8739-c8aa69b6df73","block_type":"box","text":"(and, with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent Trustees of the Trust or","page_number":27,"box":{"x":69,"y":511,"width":839,"height":12}},{"id":"1065deee-c42e-4a7d-b0f5-10b173c53b9e","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":27,"box":{"x":68,"y":526,"width":798,"height":12}},{"id":"6b2da0b5-1313-440e-8189-7a11292fdbbc","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":27,"box":{"x":70,"y":542,"width":831,"height":11}},{"id":"c6d5eda0-5852-4a5e-84cd-d1f83d59f0c2","block_type":"box","text":"entities.","page_number":27,"box":{"x":69,"y":557,"width":56,"height":9}},{"id":"d627215f-5fb3-41fe-bf2b-ca4797fbf01a","block_type":"box","text":"Compensation of Trustees","page_number":27,"box":{"x":69,"y":587,"width":190,"height":11}},{"id":"4dfc5117-ae60-4503-a1a1-9f8e212ea84c","block_type":"box","text":"Each Trustee who is an Independent Trustee is paid as compensation an annual retainer of $375,000 per year","page_number":27,"box":{"x":102,"y":609,"width":791,"height":12}},{"id":"65027898-dd64-4262-8c65-744c209be4f1","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":27,"box":{"x":68,"y":625,"width":810,"height":11}},{"id":"632116ca-baa4-4a0c-9cce-bb36b6079b65","block_type":"box","text":"including the Trust, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":27,"box":{"x":70,"y":639,"width":838,"height":12}},{"id":"58836c73-3361-483a-b435-99b58ab8bb7c","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":27,"box":{"x":69,"y":655,"width":807,"height":11}},{"id":"42fc9385-e575-4459-b982-2559240a852d","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":27,"box":{"x":69,"y":670,"width":791,"height":11}},{"id":"70b86dbf-c19b-4047-a3bf-b11b0cd4c3d3","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":27,"box":{"x":68,"y":685,"width":786,"height":12}},{"id":"fb9eb168-76e2-41fc-a1c2-e32041342f03","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":27,"box":{"x":69,"y":700,"width":769,"height":12}},{"id":"b8635bf3-4951-4104-b752-ff0a55bceeb9","block_type":"box","text":"Committee and Per formance Oversight Committee are paid as compensation an additional annual retainer of","page_number":27,"box":{"x":69,"y":715,"width":778,"height":12}},{"id":"4e26f030-ac54-4dd3-9ca1-a8ca54659679","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":27,"box":{"x":69,"y":730,"width":689,"height":12}},{"id":"cb0b9589-8261-4fe2-9bdc-561720582066","block_type":"box","text":"The following table sets for th the compensation the Trust paid to the Trustees, on behalf of the Fund, for the","page_number":27,"box":{"x":101,"y":753,"width":776,"height":12}},{"id":"daf86e78-1e9d-48c4-9fed-a244779f670e","block_type":"box","text":"fiscal year ended May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for the","page_number":27,"box":{"x":68,"y":768,"width":841,"height":12}},{"id":"0a277e0f-4bc7-4495-9167-43d86ee4a82c","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":27,"box":{"x":69,"y":784,"width":298,"height":11}},{"id":"5f6cc495-2fe7-40d3-9bf8-b5b8a7ed4591","block_type":"box","text":"Name","page_number":27,"box":{"x":69,"y":852,"width":32,"height":7}},{"id":"0fb6e864-d515-4bda-a099-315a3b2295db","block_type":"box","text":"Compensation","page_number":27,"box":{"x":551,"y":842,"width":83,"height":9}},{"id":"e4121a7e-0fe8-421e-8a31-2cdcf377a4c7","block_type":"box","text":"from the Fund","page_number":27,"box":{"x":552,"y":852,"width":81,"height":7}},{"id":"89661df6-1ba7-4dd8-8b07-63fba46b8b5e","block_type":"box","text":"Estimated Annual","page_number":27,"box":{"x":664,"y":832,"width":102,"height":7}},{"id":"67ef2fc0-5a17-47b5-a174-6c45084551a5","block_type":"box","text":"Benefits upon","page_number":27,"box":{"x":676,"y":842,"width":79,"height":9}},{"id":"113e3479-9c51-4daa-a97a-0ee465a35838","block_type":"box","text":"Retirement","page_number":27,"box":{"x":683,"y":852,"width":64,"height":7}},{"id":"48d83059-639f-482a-b4ba-011a6d225193","block_type":"box","text":"Aggregate","page_number":27,"box":{"x":822,"y":812,"width":61,"height":9}},{"id":"9501c482-2afd-41ab-aacf-ce5430e76de5","block_type":"box","text":"Compensation from","page_number":27,"box":{"x":796,"y":822,"width":113,"height":9}},{"id":"c179d53a-b7c0-4781-9b4a-997092b614f7","block_type":"box","text":"the Fund and","page_number":27,"box":{"x":815,"y":832,"width":75,"height":7}},{"id":"0618473b-7025-4780-92ca-00495e105bc2","block_type":"box","text":"Other BlackRock","page_number":27,"box":{"x":802,"y":842,"width":102,"height":7}},{"id":"c3ac3fce-1640-41be-a972-9e430949c938","block_type":"box","text":"Advised Funds","page_number":27,"box":{"x":809,"y":852,"width":84,"height":7}},{"id":"ae3a08aa-9fad-45fa-ab08-d1dbb184de79","block_type":"box","text":"1","page_number":27,"box":{"x":893,"y":852,"width":4,"height":4}},{"id":"826851cd-22bc-4928-8139-c9ea99fbf190","block_type":"box","text":"Independent Trustees","page_number":27,"box":{"x":70,"y":870,"width":154,"height":11}},{"id":"fca999f4-ab29-423b-859c-bebba49601e7","block_type":"box","text":"Christopher J. 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Urish . .","page_number":28,"box":{"x":79,"y":243,"width":131,"height":9}},{"id":"89f06e01-615c-4c38-803d-5b9757336235","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,918 None","page_number":28,"box":{"x":217,"y":242,"width":516,"height":12}},{"id":"29532538-4ce7-4857-a18f-8b3b8aa6a907","block_type":"box","text":"$445,000","page_number":28,"box":{"x":817,"y":242,"width":72,"height":12}},{"id":"3031214d-ec5a-4912-bd3a-8d0ad708fc4b","block_type":"box","text":"Claire A. Walton","page_number":28,"box":{"x":79,"y":258,"width":111,"height":9}},{"id":"9cb7d590-c81b-44af-8350-eb7d22bbbe59","block_type":"box","text":"7","page_number":28,"box":{"x":192,"y":259,"width":3,"height":4}},{"id":"1a449b7d-6eaf-45ec-bf28-c0a2bd505a50","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,206 None","page_number":28,"box":{"x":200,"y":258,"width":533,"height":11}},{"id":"57b2a282-2427-4bf9-8c88-53a6ec762063","block_type":"box","text":"$490,000","page_number":28,"box":{"x":817,"y":258,"width":72,"height":11}},{"id":"01e756cc-243f-4a9f-bdce-9a8b4724f9db","block_type":"box","text":"Interested Trustees","page_number":28,"box":{"x":70,"y":274,"width":138,"height":8}},{"id":"1258d2df-26d0-4196-b5b2-17848efabb8c","block_type":"box","text":"Rober t Fairbairn . .","page_number":28,"box":{"x":79,"y":289,"width":131,"height":8}},{"id":"7e1b9fdc-b5b8-4107-987a-dfd459a07e43","block_type":"box","text":"......................................","page_number":28,"box":{"x":217,"y":296,"width":303,"height":1}},{"id":"f68cabe5-f553-4d71-a3c7-2ecb056fb4ec","block_type":"box","text":"None None None","page_number":28,"box":{"x":575,"y":289,"width":296,"height":8}},{"id":"0b6e5e75-91d6-4b00-8d21-29f1ffacb5e8","block_type":"box","text":"John M. Perlowski","page_number":28,"box":{"x":78,"y":304,"width":127,"height":9}},{"id":"f88f7d58-b559-4b56-a9a8-4147c347aaba","block_type":"box","text":".......................................","page_number":28,"box":{"x":208,"y":311,"width":312,"height":1}},{"id":"bb6a99d4-8f7c-4ca7-beae-a76304cbfe23","block_type":"box","text":"None None None","page_number":28,"box":{"x":575,"y":304,"width":296,"height":9}},{"id":"12ff01f8-d417-4212-93c7-472679b052a9","block_type":"box","text":"1","page_number":28,"box":{"x":69,"y":328,"width":3,"height":4}},{"id":"c86fee6f-b9f9-4ae5-ae98-4c6896786236","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":28,"box":{"x":94,"y":328,"width":786,"height":9}},{"id":"1893fff6-3337-4738-bc1f-c8912546a803","block_type":"box","text":"page I-13.","page_number":28,"box":{"x":94,"y":338,"width":55,"height":9}},{"id":"ea12d17f-6f2b-426b-9dd0-3eaecc25bb29","block_type":"box","text":"2","page_number":28,"box":{"x":69,"y":351,"width":3,"height":3}},{"id":"8a34d1e5-b812-4d44-bf8a-7845251024c1","block_type":"box","text":"Compensation includes $644 earned as a consultant to the Independent Trustees for the period April 1, 2026 to July 1, 2026.","page_number":28,"box":{"x":93,"y":350,"width":724,"height":10}},{"id":"559730b1-7555-403e-bb34-44c73d871c40","block_type":"box","text":"3","page_number":28,"box":{"x":69,"y":363,"width":3,"height":4}},{"id":"20ab118b-219e-4bfc-835b-43d6d8c39fd6","block_type":"box","text":"Chair of the Audit Committee.","page_number":28,"box":{"x":93,"y":363,"width":168,"height":7}},{"id":"a4acc74f-1809-4bb3-b455-5a7a5681a6bd","block_type":"box","text":"4","page_number":28,"box":{"x":68,"y":376,"width":4,"height":3}},{"id":"aa19ec67-fb25-467a-bfbb-81df575b3580","block_type":"box","text":"Chair of the Governance Committee.","page_number":28,"box":{"x":93,"y":376,"width":206,"height":7}},{"id":"1b500ee1-fd48-4d3f-a85b-3f54ee586a3a","block_type":"box","text":"5","page_number":28,"box":{"x":69,"y":389,"width":3,"height":3}},{"id":"b15137f5-f43b-495c-bdb4-0520f649ecc1","block_type":"box","text":"Chair of the Per formance Oversight Committee.","page_number":28,"box":{"x":93,"y":388,"width":269,"height":9}},{"id":"1c8f9f42-8674-4219-8f43-d110081eaa99","block_type":"box","text":"6","page_number":28,"box":{"x":69,"y":401,"width":3,"height":4}},{"id":"44033cee-84ff-4496-8f39-00bcf7c345b3","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":28,"box":{"x":93,"y":401,"width":352,"height":9}},{"id":"4518d090-656f-4cfc-b8ed-0ba51755e1c0","block_type":"box","text":"7","page_number":28,"box":{"x":69,"y":414,"width":3,"height":3}},{"id":"68d3dc11-b835-4830-85df-83e563b7f895","block_type":"box","text":"Chair of the Compliance Committee.","page_number":28,"box":{"x":93,"y":414,"width":205,"height":8}},{"id":"aeff589f-93c8-42c0-9826-474d5e9141d1","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":28,"box":{"x":69,"y":442,"width":432,"height":11}},{"id":"76b9d21a-a528-4fb1-b892-634fa1f03c95","block_type":"box","text":"Management Agreement","page_number":28,"box":{"x":69,"y":473,"width":180,"height":10}},{"id":"971f151d-f321-4628-8338-3f1672da9fa7","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into a management agreement with BlackRock pursuant to which","page_number":28,"box":{"x":101,"y":495,"width":791,"height":11}},{"id":"93d0336c-284e-41cc-859d-52fab0873f00","block_type":"box","text":"BlackRock is entitled to receive fees for the services it provides (the “Management Agreement”).","page_number":28,"box":{"x":70,"y":510,"width":689,"height":11}},{"id":"b5a00e00-f4fa-4955-af03-86250c1a8612","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":28,"box":{"x":102,"y":533,"width":762,"height":11}},{"id":"df587bc0-d876-4965-93cd-eb8c22d3c726","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":28,"box":{"x":69,"y":548,"width":799,"height":11}},{"id":"51ed4e52-eaa7-42be-8d7b-0f682c4d257d","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":28,"box":{"x":68,"y":563,"width":726,"height":11}},{"id":"61b5a1ce-9bb2-4c8d-af82-46d2c9069075","block_type":"box","text":"June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of","page_number":28,"box":{"x":69,"y":578,"width":799,"height":11}},{"id":"8f048e0a-0d8b-47a5-ac2f-27cf224c3246","block_type":"box","text":"investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds","page_number":28,"box":{"x":70,"y":593,"width":780,"height":12}},{"id":"fbb1ed17-c0a0-4411-ab0e-6a996c511651","block_type":"box","text":"managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon","page_number":28,"box":{"x":69,"y":608,"width":835,"height":12}},{"id":"f6c1b0e3-0201-4e0d-9197-7d5bc79fab9d","block_type":"box","text":"90 days’ notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting","page_number":28,"box":{"x":69,"y":623,"width":774,"height":12}},{"id":"cf74d73a-7098-4a2d-a931-d77596853e4d","block_type":"box","text":"securities of the Fund.","page_number":28,"box":{"x":69,"y":639,"width":158,"height":9}},{"id":"472f5c14-fd94-4c32-bc90-f4ca78c8493d","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual","page_number":28,"box":{"x":102,"y":661,"width":778,"height":12}},{"id":"2dd5957a-b2dd-445c-ad09-f248ec950a08","block_type":"box","text":"Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest","page_number":28,"box":{"x":70,"y":676,"width":824,"height":12}},{"id":"21862cc2-e99c-4723-885d-079fdd2a5b43","block_type":"box","text":"Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses) to 0.75% (for Investor A Shares),","page_number":28,"box":{"x":70,"y":692,"width":795,"height":11}},{"id":"c47d6289-7417-4b87-aacc-fedd84f6d33d","block_type":"box","text":"1.50% (for Investor C Shares), 0.50% (for Institutional Shares) and 0.45% (for Class K Shares) of average daily net","page_number":28,"box":{"x":70,"y":707,"width":817,"height":11}},{"id":"4b4fd2a4-e4d5-4264-9d6b-0edf053faa3b","block_type":"box","text":"assets through June 30, 2028. The contractual agreement may be terminated upon 90 days’ notice by a majority of","page_number":28,"box":{"x":69,"y":722,"width":827,"height":11}},{"id":"5b843d32-938b-49d7-a7cd-90cd91b76d5e","block_type":"box","text":"the Independent Trustees or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":28,"box":{"x":68,"y":737,"width":710,"height":11}},{"id":"9c10f083-0b62-4855-ac4e-0e0c608e0380","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":28,"box":{"x":102,"y":760,"width":784,"height":11}},{"id":"0e362a34-d074-479f-aba9-306d9e10d30b","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":28,"box":{"x":70,"y":775,"width":838,"height":11}},{"id":"2db915b3-7c74-4be6-8a0e-2426c68f5367","block_type":"box","text":"per form investment advisory services with respect to the Fund. In addition, the Manager may delegate cer tain of its","page_number":28,"box":{"x":70,"y":790,"width":826,"height":11}},{"id":"cb52b575-e4c2-44ff-a8d7-b7347caa64cc","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":805,"width":779,"height":11}},{"id":"c8e9f4b7-f21e-4bc3-96b6-27abab40b977","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":28,"box":{"x":70,"y":820,"width":827,"height":11}},{"id":"e5d6fa52-4676-44b3-85fb-fcf64c68b059","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":28,"box":{"x":69,"y":835,"width":486,"height":11}},{"id":"894ce84c-1be2-4b86-aefc-e63346f03257","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Trust, on behalf of the Fund,","page_number":28,"box":{"x":101,"y":858,"width":806,"height":11}},{"id":"6f9b76ac-5f48-456a-9dbe-c1cbcb4737ec","block_type":"box","text":"to BlackRock and the fees waived and/or reimbursed, for the periods shown.","page_number":28,"box":{"x":68,"y":873,"width":548,"height":11}},{"id":"013d0377-5fba-44fd-ad7a-47402ac5b364","block_type":"box","text":"I-19","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"93b7026c-cacc-4bde-9d51-68c4da930e06","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d0ae4ff-0fb7-4ac8-8473-3b2bfd389e5c","block_type":"box","text":"Fees Paid to","page_number":29,"box":{"x":578,"y":49,"width":72,"height":7}},{"id":"8e2c01ae-889a-47bb-8ff8-edba6667f59e","block_type":"box","text":"BlackRock","page_number":29,"box":{"x":583,"y":59,"width":62,"height":7}},{"id":"1829155b-7ed9-4a01-a6f1-b79f9a77368d","block_type":"box","text":"Fees Waived","page_number":29,"box":{"x":700,"y":49,"width":72,"height":7}},{"id":"738bd7f1-c501-437c-a097-5580c703d07d","block_type":"box","text":"by BlackRock","page_number":29,"box":{"x":696,"y":59,"width":80,"height":9}},{"id":"fee1abca-83f0-401d-b608-c2319db8b66f","block_type":"box","text":"Fees Reimbursed","page_number":29,"box":{"x":810,"y":49,"width":99,"height":7}},{"id":"773298ee-6b20-42be-ada9-6e87d7eeef01","block_type":"box","text":"by BlackRock","page_number":29,"box":{"x":820,"y":59,"width":80,"height":9}},{"id":"f9da7eb1-9c6a-44c5-8d17-ea013e003895","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,644,759 $1,442,463 $1,636,980","page_number":29,"box":{"x":70,"y":76,"width":833,"height":12}},{"id":"4fdf15c3-c105-4489-85c7-a12d44b9a249","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,647,373 $1,224,648 $1,078,890","page_number":29,"box":{"x":70,"y":91,"width":833,"height":12}},{"id":"a6aca535-a83b-4619-9c89-c5f97787210e","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,999,433 $1,331,037 $ 745,899","page_number":29,"box":{"x":70,"y":106,"width":833,"height":12}},{"id":"ab922d7a-4817-4a92-8d70-861f0b7cd934","block_type":"box","text":"Administration Agreement","page_number":29,"box":{"x":68,"y":139,"width":191,"height":11}},{"id":"3b762fd1-55d9-44ad-b2c6-e18a2362ad06","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":29,"box":{"x":102,"y":161,"width":711,"height":11}},{"id":"0086dde9-5f5d-4729-a472-66a8080f473b","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":29,"box":{"x":69,"y":176,"width":838,"height":12}},{"id":"259f435b-cb3d-4ff4-b153-f91d7621de0e","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":29,"box":{"x":68,"y":191,"width":830,"height":12}},{"id":"9fb96ed1-9542-43aa-87f7-951112fb193d","block_type":"box","text":"publication of the Fund’s net asset value; oversee the preparation and filing of Federal, state and local income tax","page_number":29,"box":{"x":70,"y":206,"width":813,"height":12}},{"id":"6958a38f-de7f-4fc8-ac97-89e92f3e9163","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":29,"box":{"x":69,"y":222,"width":837,"height":11}},{"id":"05204e48-3a1e-42d0-b015-ac9b532a0d1b","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":29,"box":{"x":68,"y":237,"width":836,"height":11}},{"id":"5293fb93-a3a7-4d74-a1d5-39efe1a41e9b","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":29,"box":{"x":68,"y":252,"width":785,"height":11}},{"id":"4af8f6b9-ad38-4d8e-ab43-d9e21b0f1c30","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":29,"box":{"x":69,"y":267,"width":765,"height":11}},{"id":"a6da7533-21e4-46c2-b3fb-af5cba57a7fd","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":29,"box":{"x":70,"y":282,"width":819,"height":11}},{"id":"db34fa8b-4fb8-40a2-93b5-5c4ca81c13ae","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":29,"box":{"x":69,"y":297,"width":818,"height":12}},{"id":"9b2977c7-e905-4a56-9f20-5d6cfe0b4378","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":29,"box":{"x":68,"y":312,"width":840,"height":12}},{"id":"825a0ac2-65d0-4f79-bbb4-733a55760afb","block_type":"box","text":"reimburse the Fund for expenses.","page_number":29,"box":{"x":69,"y":327,"width":238,"height":11}},{"id":"4e8d1209-cb08-48e7-8a56-fa646cbc58d0","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Fund, pays to the Administrator a fee, computed","page_number":29,"box":{"x":102,"y":350,"width":802,"height":11}},{"id":"62ad572e-d767-442c-9d03-07e5effd4634","block_type":"box","text":"daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the Fund’s average","page_number":29,"box":{"x":69,"y":365,"width":830,"height":12}},{"id":"68b83b91-3fcd-40e7-aa26-06807489da00","block_type":"box","text":"daily net assets, 0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of the next","page_number":29,"box":{"x":69,"y":380,"width":788,"height":12}},{"id":"eeba647f-7e12-4849-badc-dca9c52c9c71","block_type":"box","text":"$1 billion of the Fund’s average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily net","page_number":29,"box":{"x":69,"y":395,"width":785,"height":12}},{"id":"f84f2613-8439-4c4f-9c07-f36547ac55b4","block_type":"box","text":"assets, 0.0325% of the next $9 billion of the Fund’s average daily net assets and 0.030% of the average daily net","page_number":29,"box":{"x":69,"y":410,"width":816,"height":12}},{"id":"1df16744-1bbe-4f56-aac3-15b2618352c9","block_type":"box","text":"assets of the Fund in excess of $13 billion and (ii) 0.020% of average daily net assets allocated to each class of","page_number":29,"box":{"x":69,"y":425,"width":805,"height":12}},{"id":"fe89f9c4-12b1-4c5b-a934-5b509677c9f7","block_type":"box","text":"shares of the Fund.","page_number":29,"box":{"x":69,"y":441,"width":137,"height":9}},{"id":"2c533270-9095-4855-8478-c8224f5cdbbc","block_type":"box","text":"The table below sets for th information about the combined administration fees paid by the Trust, on behalf of","page_number":29,"box":{"x":101,"y":463,"width":782,"height":12}},{"id":"62868eeb-8487-4f01-85a5-053935c4b826","block_type":"box","text":"the Fund, to the Administrator and the amounts waived, for the periods shown.","page_number":29,"box":{"x":68,"y":479,"width":561,"height":11}},{"id":"0e8b0045-c1e2-4796-8521-9f274cfacd62","block_type":"box","text":"Fees Paid to","page_number":29,"box":{"x":691,"y":507,"width":72,"height":7}},{"id":"a69fa30b-3990-48d5-a998-ee363e52e6a6","block_type":"box","text":"the 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of","page_number":29,"box":{"x":68,"y":619,"width":800,"height":11}},{"id":"83ccc07c-bc90-4148-a8b7-c9f3c82f01f1","block_type":"box","text":"shares of the Trust.","page_number":29,"box":{"x":69,"y":634,"width":138,"height":9}},{"id":"9929af50-9fb5-4ec1-b9a4-97cb98ea7da7","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides cer tain","page_number":29,"box":{"x":102,"y":657,"width":740,"height":11}},{"id":"b3a57ae7-d629-497f-bf27-4990c68741bb","block_type":"box","text":"shareholder liaison services in connection with the Trust’s investor service center. The Trust, on behalf of the Fund,","page_number":29,"box":{"x":69,"y":672,"width":824,"height":11}},{"id":"9685e667-3fa4-4086-87a1-1a377e72b64d","block_type":"box","text":"reimburses BlackRock for its costs in maintaining the service center, which costs include, among other things,","page_number":29,"box":{"x":69,"y":687,"width":787,"height":11}},{"id":"805b2d50-f70e-44c5-bd0c-eff63a61d9a2","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":29,"box":{"x":69,"y":702,"width":531,"height":11}},{"id":"32aaa3ff-a2a9-4d5b-afb8-f65c4f78fe81","block_type":"box","text":"For the periods shown below, the Trust, on behalf of the Fund, reimbursed BlackRock for shareholder liaison","page_number":29,"box":{"x":102,"y":725,"width":769,"height":11}},{"id":"de651c6d-4c61-4f10-8987-a382d55c58a9","block_type":"box","text":"services pursuant to such agreement in the amounts set for th below.","page_number":29,"box":{"x":69,"y":740,"width":494,"height":11}},{"id":"7ad1f665-acc0-4597-b66e-7973a7b8562a","block_type":"box","text":"Fees Paid to BlackRock Fees Waived by BlackRock","page_number":29,"box":{"x":583,"y":768,"width":327,"height":9}},{"id":"a195b25f-024e-4618-930a-a638cf491777","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . .","page_number":29,"box":{"x":70,"y":786,"width":253,"height":11}},{"id":"5332b416-0045-4623-abbe-920544495164","block_type":"box","text":"............................","page_number":29,"box":{"x":329,"y":794,"width":222,"height":1}},{"id":"eb29ef61-67b6-4895-bc93-08356f1cb7c0","block_type":"box","text":"$39,123 $39,123","page_number":29,"box":{"x":621,"y":785,"width":241,"height":12}},{"id":"f8dbd316-3dd4-40e8-b994-67e04107d2a7","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . .","page_number":29,"box":{"x":70,"y":801,"width":253,"height":11}},{"id":"02368584-3440-4388-8b47-709a5c4f8fce","block_type":"box","text":"............................","page_number":29,"box":{"x":329,"y":809,"width":222,"height":1}},{"id":"74ebf19a-ed69-44f5-bbdb-563ee7f37e7a","block_type":"box","text":"$22,996 $22,996","page_number":29,"box":{"x":621,"y":801,"width":241,"height":11}},{"id":"f75583a0-1aa1-4ac8-a37c-ee0d4cb0f3d7","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . .","page_number":29,"box":{"x":70,"y":816,"width":253,"height":11}},{"id":"6c870435-45e3-4175-825d-04009b1e8f5a","block_type":"box","text":"............................","page_number":29,"box":{"x":329,"y":824,"width":222,"height":1}},{"id":"44099a5d-cea0-4e6d-b2a4-b009a615fa09","block_type":"box","text":"$39,167 $39,167","page_number":29,"box":{"x":621,"y":816,"width":240,"height":11}},{"id":"42cc3431-7041-45f1-a17f-d6574989dd7c","block_type":"box","text":"Accounting Services","page_number":29,"box":{"x":68,"y":848,"width":150,"height":11}},{"id":"cc730441-416d-486d-9841-8acc20e22cff","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”), which has its principal place of business at 240 Greenwich Street,","page_number":29,"box":{"x":101,"y":870,"width":803,"height":11}},{"id":"e855425a-e132-4052-be60-68528fa67acb","block_type":"box","text":"New York, New York 10286, serves as the accounting services provider for the Fund. BNY Mellon (the “Custodian”)","page_number":29,"box":{"x":70,"y":886,"width":820,"height":11}},{"id":"566bbf7a-938c-4292-b071-c97cc351807b","block_type":"box","text":"records investment, capital share and income and expense activities; verifies and transmits trade tickets; maintains","page_number":29,"box":{"x":69,"y":901,"width":828,"height":11}},{"id":"89023ec4-cb07-4925-9e88-933e09d5f590","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"88f10478-6a33-486e-9480-68e63fdde4ba","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db28fa1f-9211-409e-9b9c-47cf3b80a827","block_type":"box","text":"accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; repor ts","page_number":30,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"7bddb869-c2c6-4053-9e73-7483d05ae5fc","block_type":"box","text":"cash balances to BlackRock; prepares cer tain financial statements; calculates expenses, gains, losses and income;","page_number":30,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"502cf9b4-b5f5-432a-a2ed-5ba277e6d168","block_type":"box","text":"controls disbursements; works with independent pricing sources; and computes and repor ts net asset value. In","page_number":30,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"9c3f1b7a-8c79-439b-a19c-8719bc56e2a0","block_type":"box","text":"connection with its accounting services, BNY Mellon (the “Custodian”) also provides cer tain administration services.","page_number":30,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"b1b8724e-1792-47a3-8b22-66ecdd07de10","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY Mellon for accounting services for the past three","page_number":30,"box":{"x":101,"y":113,"width":786,"height":11}},{"id":"589af894-d474-472d-86e0-50f1e044847a","block_type":"box","text":"fiscal years:","page_number":30,"box":{"x":68,"y":128,"width":85,"height":11}},{"id":"76596b8f-542c-4284-8632-6591de2a549a","block_type":"box","text":"Fees Paid to BNY MIS","page_number":30,"box":{"x":781,"y":156,"width":128,"height":7}},{"id":"2c6cab80-6fb3-49a0-b4d3-9ef21b22ed0d","block_type":"box","text":"Fiscal Year Ended May 31, 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Fund.","page_number":30,"box":{"x":69,"y":273,"width":395,"height":12}},{"id":"c1d407d2-524e-4742-8139-aee8d4529764","block_type":"box","text":"Other Funds and Accounts Managed","page_number":30,"box":{"x":70,"y":304,"width":265,"height":11}},{"id":"393d3f7a-3075-4e94-9202-0d69fbd37e44","block_type":"box","text":"The following table sets for th information about the funds and accounts other than the Fund for which the Fund’s","page_number":30,"box":{"x":101,"y":326,"width":806,"height":11}},{"id":"a370a7b6-d98c-48f0-b299-dac10bb48842","block_type":"box","text":"por tfolio managers are primarily responsible for the day-to-day por tfolio management as of May 31, 2026.","page_number":30,"box":{"x":70,"y":341,"width":755,"height":12}},{"id":"c0a23a86-fadd-4e5e-927d-47c13873b139","block_type":"box","text":"Number of Other Accounts Managed","page_number":30,"box":{"x":365,"y":370,"width":211,"height":8}},{"id":"c7ee29f9-885d-4251-a773-a75fcb2ad05a","block_type":"box","text":"and Assets by Account Type","page_number":30,"box":{"x":388,"y":380,"width":165,"height":9}},{"id":"760b4192-c581-4916-abc0-f412a64ec8d8","block_type":"box","text":"Number of Other Accounts and Assets","page_number":30,"box":{"x":655,"y":370,"width":222,"height":7}},{"id":"d7fe7be8-c2f0-44f4-bb97-88d42d409020","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":30,"box":{"x":633,"y":380,"width":265,"height":9}},{"id":"660086d3-bbfb-451b-80e4-eac5a8c46323","block_type":"box","text":"Name of Portfolio 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Pooled","page_number":30,"box":{"x":720,"y":402,"width":75,"height":8}},{"id":"fe781688-e034-46cd-bfb4-4f2019171c48","block_type":"box","text":"Investment","page_number":30,"box":{"x":726,"y":413,"width":64,"height":7}},{"id":"1211ccb9-db4c-4b44-8925-43dfec52e954","block_type":"box","text":"Vehicles","page_number":30,"box":{"x":734,"y":423,"width":48,"height":7}},{"id":"f840f557-4552-4a83-a567-13dd53ebb4c0","block_type":"box","text":"Other","page_number":30,"box":{"x":843,"y":412,"width":32,"height":8}},{"id":"a2f9d920-d1e1-4a6e-ad87-73029207a3fe","block_type":"box","text":"Accounts","page_number":30,"box":{"x":832,"y":423,"width":54,"height":7}},{"id":"57aa13db-5b22-4497-8c8a-9c514afb020f","block_type":"box","text":"Travis Cooke, CFA 30 129 20 0 4 6","page_number":30,"box":{"x":73,"y":436,"width":789,"height":9}},{"id":"772e89ab-81e7-470b-b28f-701e8e1ebac4","block_type":"box","text":"$26.98 Billion $32.31 Billion $20.01 Billion $0 $8.44 Billion $6.67 Billion","page_number":30,"box":{"x":329,"y":448,"width":566,"height":9}},{"id":"9185fba7-188a-47db-9980-e2ebab3ac38c","block_type":"box","text":"Richard Mathieson 35 420 46 0 5 9","page_number":30,"box":{"x":74,"y":462,"width":788,"height":7}},{"id":"524a7fe9-78fb-449d-8e0c-5745b1c0e606","block_type":"box","text":"$39.69 Billion $50.87 Billion $81.28 Billion $0 $3.46 Billion $15.63 Billion","page_number":30,"box":{"x":329,"y":474,"width":570,"height":8}},{"id":"22b4a1ef-f254-419f-81ed-817c48804588","block_type":"box","text":"Raffaele Savi 38 67 19 0 12 3","page_number":30,"box":{"x":74,"y":487,"width":788,"height":7}},{"id":"8016568e-c503-48b6-a623-7f86d498f3a5","block_type":"box","text":"$50.80 Billion $58.02 Billion $42.55 Billion $0 $22.75 Billion $4.93 Billion","page_number":30,"box":{"x":329,"y":499,"width":566,"height":8}},{"id":"198b6726-4757-4679-8cff-485c9b96bae1","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":30,"box":{"x":69,"y":533,"width":304,"height":12}},{"id":"4e18768a-d840-4362-86a8-5896545e4594","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":30,"box":{"x":101,"y":556,"width":656,"height":11}},{"id":"33443797-f89a-4090-946c-33c86865e944","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":30,"box":{"x":102,"y":579,"width":774,"height":11}},{"id":"2629faa4-2f6c-4aeb-9bbd-5b3f478464e3","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":30,"box":{"x":70,"y":594,"width":837,"height":11}},{"id":"aabfb755-1285-4931-9ab4-0e07b82789b4","block_type":"box","text":"a variety of components and may vary from year to year based on a number of factors. The principal components of","page_number":30,"box":{"x":69,"y":609,"width":823,"height":11}},{"id":"f1b9744c-09ac-4944-9e44-db00e367dba7","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":30,"box":{"x":69,"y":624,"width":799,"height":11}},{"id":"672e39ea-2a4b-4dca-ade4-6a94b7037252","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":30,"box":{"x":70,"y":639,"width":670,"height":12}},{"id":"8e4dbe22-2e48-45ff-8ae6-635c31eac3e4","block_type":"box","text":"Base Compensation.","page_number":30,"box":{"x":102,"y":662,"width":148,"height":11}},{"id":"5d595732-3ac9-4db2-9ab1-6ba8f7d60d0c","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":30,"box":{"x":257,"y":662,"width":640,"height":11}},{"id":"44ec3bab-a18c-473a-b920-c63c0d58d238","block_type":"box","text":"firm.","page_number":30,"box":{"x":68,"y":677,"width":32,"height":9}},{"id":"c5dd35a4-1582-47c6-af86-9ab71c1e8fcf","block_type":"box","text":"Discretionary Incentive Compensation","page_number":30,"box":{"x":102,"y":707,"width":277,"height":11}},{"id":"6b529c32-8664-49fb-b392-c7bf791df747","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the per formance of BlackRock, Inc.,","page_number":30,"box":{"x":102,"y":730,"width":792,"height":11}},{"id":"601afa33-ea69-439c-9d43-b792540630c3","block_type":"box","text":"the per formance of the por tfolio manager’s group within BlackRock, the investment per formance, including risk","page_number":30,"box":{"x":68,"y":745,"width":800,"height":11}},{"id":"d22c5876-4db8-4a99-a862-6a76aba78164","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that por tfolio manager relative to","page_number":30,"box":{"x":69,"y":760,"width":777,"height":12}},{"id":"ffbf57ad-2cd2-4203-b670-d05ccbcd9d4d","block_type":"box","text":"predetermined benchmarks, and the individual’s per formance and contribution to the overall per formance of these","page_number":30,"box":{"x":70,"y":775,"width":817,"height":11}},{"id":"4c5c031f-a30c-4201-bc3c-af72d5c0de8c","block_type":"box","text":"por tfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":30,"box":{"x":70,"y":790,"width":741,"height":12}},{"id":"6272a815-09a5-4372-813f-ba43dfd57b5d","block_type":"box","text":"determination with respect to each por tfolio manager’s compensation based on the per formance of the Fund and","page_number":30,"box":{"x":69,"y":806,"width":809,"height":11}},{"id":"be859aef-8205-4b73-8311-e90d95a66b0d","block_type":"box","text":"other accounts managed by each por tfolio manager relative to the various benchmarks. Per formance is generally","page_number":30,"box":{"x":69,"y":821,"width":806,"height":11}},{"id":"54ec7e74-b90c-45c7-998a-a8461800584f","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The per formance of Messrs. Savi,","page_number":30,"box":{"x":69,"y":836,"width":836,"height":11}},{"id":"61536705-3117-4bc8-8e61-fc6916e9ed1c","block_type":"box","text":"Cooke and Mathieson is not measured against a specific benchmark.","page_number":30,"box":{"x":69,"y":851,"width":493,"height":11}},{"id":"a34d6ab7-e27c-468e-80cd-04a89b5d60ff","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":30,"box":{"x":102,"y":874,"width":389,"height":11}},{"id":"381af2cb-cee4-4962-a264-cca6c19296da","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":30,"box":{"x":499,"y":874,"width":383,"height":11}},{"id":"b5169659-f861-4012-bacc-601efaf5a5e7","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":30,"box":{"x":70,"y":889,"width":815,"height":11}},{"id":"c3d60d49-0260-4da6-ad27-8976ee594eb7","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":30,"box":{"x":68,"y":904,"width":522,"height":11}},{"id":"97f96938-800b-4e48-a22a-9cc58b5d6508","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"987b49bd-dbc3-46ee-8ecb-325ca35909e8","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c209ec06-67d9-4e77-af3a-53619fff9f45","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":31,"box":{"x":102,"y":45,"width":760,"height":11}},{"id":"483c4705-9283-46f2-a7d2-ecdac56637bd","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":31,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"4b9a7645-a0b8-4463-8ab2-62ca61d65c4a","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":31,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"1e176435-0b6b-4bf7-bc41-aba42a5a0626","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":31,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"6fe2324e-0f14-4942-8819-b03d17bf82ac","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":31,"box":{"x":68,"y":105,"width":839,"height":11}},{"id":"5c6d5ece-b505-4822-821e-50e4953cc075","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":31,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"c6638974-f17b-47ff-b534-cf4625be4d94","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":31,"box":{"x":70,"y":135,"width":820,"height":12}},{"id":"23d71544-fd5e-4294-b39e-d4b72e8fe6fd","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":31,"box":{"x":70,"y":150,"width":801,"height":12}},{"id":"a760a4c7-3e99-46f6-bc59-b61b470438a2","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":31,"box":{"x":70,"y":166,"width":831,"height":11}},{"id":"898a36ba-a43b-4a94-9d4a-ab18c973991d","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":31,"box":{"x":69,"y":181,"width":479,"height":11}},{"id":"684dc589-c301-4493-a6f4-a61a583a72d3","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":31,"box":{"x":102,"y":203,"width":785,"height":12}},{"id":"d44a1d0b-a18a-4f02-9428-44308a6ca375","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":31,"box":{"x":68,"y":218,"width":836,"height":12}},{"id":"e2228b31-42be-4934-839a-8efd0a2e9cbc","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":31,"box":{"x":68,"y":234,"width":821,"height":11}},{"id":"9eab1494-2e97-4df6-95b5-2007ddb14a8b","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":31,"box":{"x":69,"y":249,"width":829,"height":11}},{"id":"e2fe4e14-bdd5-48fc-a500-bdbf5f7fbe56","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":31,"box":{"x":70,"y":264,"width":835,"height":11}},{"id":"0be9bf24-cdc7-4154-8d75-6c4f7144d9aa","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":31,"box":{"x":69,"y":279,"width":414,"height":11}},{"id":"d3f0e7eb-2543-465f-9507-efe9c570428c","block_type":"box","text":"Other Compensation Benefits.","page_number":31,"box":{"x":101,"y":302,"width":218,"height":11}},{"id":"1a59f810-568e-4863-8522-b7c377113e30","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":31,"box":{"x":327,"y":302,"width":552,"height":11}},{"id":"a87c2ca2-3a4f-4113-8217-820287532124","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":31,"box":{"x":69,"y":317,"width":582,"height":11}},{"id":"4a3572d4-e79a-48d3-a22e-f83a8de1170a","block_type":"box","text":"Incentive Savings Plans","page_number":31,"box":{"x":102,"y":340,"width":167,"height":11}},{"id":"1a31a2d5-bd0d-41bc-a29a-40ba0e4f39ce","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":31,"box":{"x":274,"y":339,"width":614,"height":12}},{"id":"90c12601-7cc7-4abc-bc80-158bfd1f8534","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":31,"box":{"x":69,"y":355,"width":831,"height":11}},{"id":"748403de-10e5-488e-a3e7-13199dc662f9","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":31,"box":{"x":70,"y":370,"width":785,"height":11}},{"id":"6b23557e-aa32-4884-b55b-30908e1342fd","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":31,"box":{"x":69,"y":384,"width":830,"height":12}},{"id":"7b712498-3e4d-4388-8f99-07df610ec1a6","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":31,"box":{"x":69,"y":400,"width":799,"height":11}},{"id":"2a882e81-5b3a-4c3b-82eb-4dea5413da4e","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":31,"box":{"x":69,"y":414,"width":831,"height":12}},{"id":"3b7e0fc0-3b4d-4fd7-b5e0-e0b1f851cd74","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":31,"box":{"x":69,"y":430,"width":798,"height":11}},{"id":"ea6ac79c-df8a-4680-a7d4-3aa15a1a56b7","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":31,"box":{"x":70,"y":445,"width":809,"height":12}},{"id":"6617e945-07c6-4b6d-bbaa-761ce96c8888","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":31,"box":{"x":68,"y":460,"width":793,"height":12}},{"id":"74186f8d-15f6-4001-9a8c-bffafb87a044","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":31,"box":{"x":70,"y":475,"width":832,"height":11}},{"id":"0ba6f0cd-3de4-4e17-b878-79dbb7690839","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":31,"box":{"x":68,"y":491,"width":805,"height":11}},{"id":"519639a2-d4b2-417b-b99b-04423bb54496","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":31,"box":{"x":69,"y":505,"width":808,"height":12}},{"id":"e608a6d8-9f0a-4588-9485-fab9e624dde7","block_type":"box","text":"par ticipate in these plans.","page_number":31,"box":{"x":70,"y":521,"width":185,"height":11}},{"id":"ad1ed6ac-b493-4481-b247-07850022c66b","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":31,"box":{"x":69,"y":551,"width":268,"height":11}},{"id":"235a2452-86aa-4104-b661-2d40fafc96fc","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":31,"box":{"x":101,"y":574,"width":731,"height":11}},{"id":"d81814e2-0d75-4818-80e7-b5ad8eec34b0","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":31,"box":{"x":69,"y":589,"width":519,"height":11}},{"id":"d6f2735d-0687-4773-bca3-9c6963202119","block_type":"box","text":"Portfolio Manager","page_number":31,"box":{"x":69,"y":627,"width":105,"height":9}},{"id":"36af082c-f0af-4138-aadf-b69c5f2116c0","block_type":"box","text":"Dollar Range of Equity","page_number":31,"box":{"x":759,"y":617,"width":129,"height":9}},{"id":"e9c61811-4c17-4bd8-be0f-41e0985ae53e","block_type":"box","text":"Securities Beneficially Owned","page_number":31,"box":{"x":736,"y":627,"width":173,"height":9}},{"id":"b426d2d8-ef2b-4cfb-8771-4fb056ebc2d0","block_type":"box","text":"Raffaele Savi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1,","page_number":31,"box":{"x":70,"y":644,"width":750,"height":11}},{"id":"6ecfb730-d267-4f89-b75b-c2e9dd9a3b73","block_type":"box","text":"000,000","page_number":31,"box":{"x":822,"y":645,"width":63,"height":10}},{"id":"33238af6-c903-4a0a-bee0-90f076794aea","block_type":"box","text":"Travis Cooke, CFA","page_number":31,"box":{"x":68,"y":660,"width":127,"height":11}},{"id":"dc55f73a-5044-41e5-a352-ae315e5d4edd","block_type":"box","text":"...............................................................","page_number":31,"box":{"x":198,"y":668,"width":507,"height":1}},{"id":"baccb01d-c065-486a-a305-36c91e4cac18","block_type":"box","text":"$100,001 - $500,000","page_number":31,"box":{"x":744,"y":659,"width":158,"height":12}},{"id":"54dd1b33-3eea-48ab-8c0d-522bafebf943","block_type":"box","text":"Richard Mathieson . . .","page_number":31,"box":{"x":70,"y":675,"width":154,"height":9}},{"id":"6f4748d1-da7a-41ef-825c-e9754efbe271","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 -","page_number":31,"box":{"x":231,"y":675,"width":572,"height":10}},{"id":"df3c6d7d-e4f7-4c31-a275-9f49f253c86c","block_type":"box","text":"$10,000","page_number":31,"box":{"x":808,"y":675,"width":62,"height":11}},{"id":"1d47bf02-9b9f-43a5-ae97-e526331b81bc","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":31,"box":{"x":69,"y":707,"width":403,"height":11}},{"id":"f856714a-d1b8-4ae6-8b89-2449992b6493","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":31,"box":{"x":102,"y":729,"width":727,"height":12}},{"id":"62a938da-4a2c-4d53-95cc-7c4dfead9fa7","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":31,"box":{"x":70,"y":744,"width":814,"height":12}},{"id":"9f586686-dc7b-4b57-8694-b010dc76c22e","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":31,"box":{"x":70,"y":760,"width":837,"height":11}},{"id":"8037802f-62c2-4180-bbc5-48a60daf83fa","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":31,"box":{"x":70,"y":775,"width":810,"height":11}},{"id":"32c7b1ed-7730-4a64-ac60-91808b888464","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":31,"box":{"x":69,"y":790,"width":782,"height":11}},{"id":"2b6502d0-3412-4141-a45c-676665eb1de1","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":31,"box":{"x":69,"y":805,"width":830,"height":11}},{"id":"bc52938c-3661-4919-9505-2964d964f3b9","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":31,"box":{"x":69,"y":820,"width":828,"height":11}},{"id":"7fb40f77-75ac-4886-9735-80476b880160","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":31,"box":{"x":68,"y":835,"width":834,"height":11}},{"id":"c1a59321-01f9-409b-b83b-6fd80d771098","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":31,"box":{"x":70,"y":850,"width":777,"height":11}},{"id":"ffa610a2-6632-46af-8504-044c6249555f","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":31,"box":{"x":70,"y":865,"width":821,"height":12}},{"id":"b672babb-10c5-4a1d-b88f-699effa285df","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":31,"box":{"x":69,"y":881,"width":819,"height":11}},{"id":"4afa50f3-e25b-42c9-bdd9-f2206ed3fc05","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":31,"box":{"x":69,"y":896,"width":832,"height":11}},{"id":"d9a524f7-545c-4450-9048-5e66c1c583de","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":31,"box":{"x":68,"y":911,"width":804,"height":11}},{"id":"4411b5c3-6c96-4ac1-bda8-68e02e2f8424","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"bd215ba2-2b93-4975-b070-8e950fedd94f","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"28aa56f2-6af0-4b53-b890-85fe68b49acc","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":32,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"7542a947-381e-4b26-8a79-11b606c38519","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":32,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"db6637a2-3752-4fd8-b63c-43194f7d1e35","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":32,"box":{"x":69,"y":75,"width":836,"height":11}},{"id":"77ec2689-949c-4a69-bb6a-e2023b59766b","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":32,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"6874cdc4-3345-4c81-8f9b-c983b40666f5","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":32,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"63d92007-6ded-42dc-95d6-6ddc03aeef54","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Messrs. Savi, Cooke and Mathieson","page_number":32,"box":{"x":69,"y":120,"width":806,"height":12}},{"id":"e2ddb902-5ad5-4da0-b026-52648712d00e","block_type":"box","text":"may be managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long","page_number":32,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"fcdd71ef-24df-4e05-a437-08a5a0e891f5","block_type":"box","text":"only accounts, subject to incentive fees. Messrs. Savi, Cooke and Mathieson may therefore be entitled to receive a","page_number":32,"box":{"x":69,"y":150,"width":822,"height":12}},{"id":"bf8a4e99-b6ce-4c27-b41f-a990ea42cc12","block_type":"box","text":"por tion of any incentive fees earned on such accounts.","page_number":32,"box":{"x":70,"y":166,"width":390,"height":11}},{"id":"c8145cca-efb0-4dbd-b044-574736a0b854","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":32,"box":{"x":101,"y":188,"width":788,"height":11}},{"id":"eadb515e-8584-491c-bf7e-4aa352e50605","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":32,"box":{"x":70,"y":203,"width":839,"height":11}},{"id":"9a308ccf-3929-4ab1-944a-ca2b689ebe6a","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":32,"box":{"x":68,"y":218,"width":823,"height":12}},{"id":"13b3d788-9f0b-48c5-a7a8-479b7262cbe8","block_type":"box","text":"with no account receiving preferential treatment. 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The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":32,"box":{"x":70,"y":649,"width":771,"height":12}},{"id":"da69a818-608a-4e8f-864d-e424a69ca419","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":32,"box":{"x":69,"y":664,"width":833,"height":12}},{"id":"52c0d6b9-8e0c-4b63-afc1-523173411a3b","block_type":"box","text":"charged interest at a variable rate.","page_number":32,"box":{"x":69,"y":680,"width":245,"height":11}},{"id":"8416adec-5cc2-420b-abe7-098095184025","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":32,"box":{"x":68,"y":710,"width":491,"height":11}},{"id":"35d61b6c-27e3-44d5-99a2-10df1d745a6f","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":32,"box":{"x":102,"y":732,"width":773,"height":12}},{"id":"faf9e116-e90d-400b-a6bf-1d2860a19fba","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the past three fiscal","page_number":32,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"b947dd53-f8c8-47c2-9d8a-2a507e76bef7","block_type":"box","text":"years. 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BRIL","page_number":32,"box":{"x":649,"y":862,"width":44,"height":9}},{"id":"4ce0d76f-2362-4335-ae51-4fa7dcd30553","block_type":"box","text":"Sales","page_number":32,"box":{"x":748,"y":832,"width":31,"height":7}},{"id":"1afe5448-64b0-43b6-a8cd-b27e4ef9b72d","block_type":"box","text":"Charges","page_number":32,"box":{"x":740,"y":842,"width":47,"height":9}},{"id":"6b78cda1-1351-4279-8554-5eefe8a6cd8d","block_type":"box","text":"Paid to","page_number":32,"box":{"x":744,"y":852,"width":40,"height":7}},{"id":"ab6dc84a-0003-42e6-9d6b-63c5804de35d","block_type":"box","text":"Affiliates","page_number":32,"box":{"x":738,"y":862,"width":51,"height":7}},{"id":"14de34dc-57fa-416c-8784-601d2ec443e5","block_type":"box","text":"CDSCs","page_number":32,"box":{"x":847,"y":822,"width":40,"height":7}},{"id":"1ce3b89c-56f1-4a95-8b69-cd991f59e90e","block_type":"box","text":"Received 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$2,855","page_number":32,"box":{"x":70,"y":894,"width":823,"height":12}},{"id":"cd2a6b8e-05d7-4f9a-b964-79eea8dc42f4","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"c98fad39-bcd7-4e8c-8879-21f664e81edd","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"689265ca-fd17-47be-a2fd-48075145bf69","block_type":"box","text":"Investor A 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BRIL","page_number":33,"box":{"x":649,"y":105,"width":44,"height":9}},{"id":"496a91ed-e45e-4d46-888b-7040abf958fc","block_type":"box","text":"Sales","page_number":33,"box":{"x":748,"y":75,"width":31,"height":7}},{"id":"88202dbf-a229-4c0a-b7b7-c6937810cc01","block_type":"box","text":"Charges","page_number":33,"box":{"x":740,"y":85,"width":47,"height":9}},{"id":"485c64af-3dfe-4b94-9e24-06d667759403","block_type":"box","text":"Paid to","page_number":33,"box":{"x":744,"y":95,"width":40,"height":7}},{"id":"2327fc42-94dc-4734-83d5-6cc4a9efd38a","block_type":"box","text":"Affiliates","page_number":33,"box":{"x":738,"y":105,"width":51,"height":7}},{"id":"a22d5ffa-a813-4cb7-9a4c-8fe390784b98","block_type":"box","text":"CDSCs","page_number":33,"box":{"x":847,"y":65,"width":40,"height":7}},{"id":"f3fda76f-bf55-4816-af13-7c746e91cead","block_type":"box","text":"Received 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.","page_number":33,"box":{"x":70,"y":206,"width":452,"height":11}},{"id":"d861ed3b-66b5-460c-bab2-b23803f93449","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . $2,517 $2,517","page_number":33,"box":{"x":529,"y":205,"width":372,"height":11}},{"id":"bd3b446b-ce1e-43c2-8ff0-e0fac66dd71f","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":221,"width":452,"height":11}},{"id":"4edff1d8-8dff-421e-a503-d53c79acbd1c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . $3,582 $3,582","page_number":33,"box":{"x":529,"y":220,"width":372,"height":12}},{"id":"07469121-96b9-4c92-ab99-e498d1490cbc","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":236,"width":452,"height":11}},{"id":"97456116-159a-4f4a-a522-65093231e6e4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . $1,106 $1,106","page_number":33,"box":{"x":529,"y":235,"width":372,"height":12}},{"id":"6959c269-1f32-485f-9819-c5e630516baf","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund paid","page_number":33,"box":{"x":101,"y":260,"width":805,"height":11}},{"id":"9eb87ddb-498b-413f-bee6-712b2eec64a8","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A por tion of the fees collected by BRIL was paid to affiliates for providing","page_number":33,"box":{"x":68,"y":275,"width":790,"height":11}},{"id":"0bbc3f26-1fd0-4a2f-b112-4acf40388c5c","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution related","page_number":33,"box":{"x":69,"y":290,"width":827,"height":12}},{"id":"1bb6d131-0af9-4141-bcf4-2af87b66b6c8","block_type":"box","text":"activities and services for Investor C Shares.","page_number":33,"box":{"x":69,"y":305,"width":318,"height":9}},{"id":"9b3d9c94-307e-4467-8f3e-4e4cdda696e2","block_type":"box","text":"Class Name","page_number":33,"box":{"x":69,"y":334,"width":68,"height":7}},{"id":"98b1806f-f431-4787-a8f7-a9b8760d1d44","block_type":"box","text":"Fees Paid to BRIL","page_number":33,"box":{"x":806,"y":334,"width":103,"height":7}},{"id":"41ea03fd-844b-4c90-bb21-d8fffb7f9610","block_type":"box","text":"Investor A Shares .","page_number":33,"box":{"x":70,"y":352,"width":134,"height":8}},{"id":"76acd928-e98d-46bd-bbd1-674e494863b1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":33,"box":{"x":210,"y":351,"width":626,"height":11}},{"id":"1fe79e29-cafb-4959-b473-7a20276e78de","block_type":"box","text":"855,795","page_number":33,"box":{"x":838,"y":352,"width":62,"height":10}},{"id":"385dd3e1-cfbd-4261-a54f-a67226e0015f","block_type":"box","text":"Investor C Shares . . .","page_number":33,"box":{"x":70,"y":367,"width":150,"height":9}},{"id":"63db1a30-d4de-4e42-87ce-2c621007cb0c","block_type":"box","text":".................................................................... $","page_number":33,"box":{"x":226,"y":366,"width":596,"height":10}},{"id":"f3893ca5-4ef0-4876-90ab-cef932418d5f","block_type":"box","text":"109,121","page_number":33,"box":{"x":839,"y":367,"width":62,"height":10}},{"id":"7a1c48a3-d997-48ad-b74f-e85126fdb702","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":33,"box":{"x":68,"y":398,"width":318,"height":11}},{"id":"5aff11de-4bbc-4c1a-8e50-2064fbc3fa3b","block_type":"box","text":"An illustration of the computation of the offering price of the Investor A Shares of the Fund based on the value of","page_number":33,"box":{"x":101,"y":421,"width":805,"height":11}},{"id":"fc7e063c-9134-4ab2-a668-49c0898e9890","block_type":"box","text":"the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on May 31, 2026 is set","page_number":33,"box":{"x":68,"y":436,"width":823,"height":11}},{"id":"7f643d9a-c508-4af2-bf5e-28e470ad6030","block_type":"box","text":"for th below.","page_number":33,"box":{"x":68,"y":451,"width":83,"height":9}},{"id":"03210bb5-df7a-40d2-8384-0e19accd6604","block_type":"box","text":"Investor A","page_number":33,"box":{"x":827,"y":479,"width":58,"height":7}},{"id":"081f8670-878d-4868-bf58-91d7702e84c1","block_type":"box","text":"Shares","page_number":33,"box":{"x":836,"y":489,"width":39,"height":7}},{"id":"c93263a9-6521-4623-82b2-2ac4120ff515","block_type":"box","text":"Net Assets","page_number":33,"box":{"x":70,"y":507,"width":76,"height":9}},{"id":"f5a87f5d-8fa7-4318-a765-e9b8cd479d76","block_type":"box","text":".............................................................................","page_number":33,"box":{"x":150,"y":514,"width":621,"height":2}},{"id":"52839d4b-f092-4e7e-9105-24c4e36f7fed","block_type":"box","text":"$760,374,482","page_number":33,"box":{"x":803,"y":506,"width":106,"height":11}},{"id":"65cfaddb-9892-4e17-9f29-112568adc7a4","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":33,"box":{"x":70,"y":522,"width":245,"height":11}},{"id":"85e60fb5-cb74-42bb-91e8-d7d884b8ea4e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,","page_number":33,"box":{"x":321,"y":522,"width":524,"height":11}},{"id":"e21f2aa3-57ee-4e2f-8e1e-7c6242c7e300","block_type":"box","text":"095,264","page_number":33,"box":{"x":847,"y":522,"width":62,"height":11}},{"id":"762e80ce-35be-413e-ba4d-288953c1056c","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":33,"box":{"x":70,"y":542,"width":571,"height":11}},{"id":"fef7ca59-9837-4096-b391-3635c7311824","block_type":"box","text":"................","page_number":33,"box":{"x":647,"y":549,"width":124,"height":2}},{"id":"652ae1d0-b469-46ba-9398-01c94bc3d739","block_type":"box","text":"$23.69","page_number":33,"box":{"x":857,"y":541,"width":52,"height":10}},{"id":"d2b0c9ce-7b31-4cc8-bb80-96ea62406e85","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":33,"box":{"x":69,"y":557,"width":534,"height":11}},{"id":"f9433c11-83a6-4470-be33-fa4e41b3d6c1","block_type":"box","text":"1","page_number":33,"box":{"x":604,"y":557,"width":4,"height":5}},{"id":"f9158400-ca7c-413c-b6c5-3634c5e3fe0e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $1.31","page_number":33,"box":{"x":615,"y":556,"width":294,"height":11}},{"id":"2ad7c4fb-c83c-4f7d-baef-2a98fdbd1e63","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":69,"y":576,"width":702,"height":12}},{"id":"abe11241-d298-4c9a-ac82-5e80e733ede8","block_type":"box","text":"$25.00","page_number":33,"box":{"x":857,"y":576,"width":52,"height":10}},{"id":"91580e50-80aa-4ebb-85e2-1963103297c9","block_type":"box","text":"1","page_number":33,"box":{"x":69,"y":608,"width":3,"height":4}},{"id":"d187e0f0-20d1-4645-80e7-92fae52e8429","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":33,"box":{"x":94,"y":608,"width":541,"height":9}},{"id":"f2685979-ed27-4edf-a1d5-e9dea2b7d40b","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":33,"box":{"x":101,"y":629,"width":787,"height":11}},{"id":"cfde016d-0cae-4288-82f2-5701a0b4a7ba","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":33,"box":{"x":69,"y":644,"width":833,"height":12}},{"id":"1cfc9ed6-d88f-4dbc-896f-2f4eaa3916ca","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":33,"box":{"x":69,"y":659,"width":813,"height":12}},{"id":"398b3136-1858-4b9c-b6b7-b8092bf0a522","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":33,"box":{"x":69,"y":675,"width":377,"height":11}},{"id":"6137eb89-b2b1-4720-8ca3-02af3c7a455c","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":33,"box":{"x":68,"y":705,"width":302,"height":11}},{"id":"d5cf0f8a-e1a3-4c76-b8ff-f950942086b5","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":33,"box":{"x":102,"y":727,"width":609,"height":12}},{"id":"7e8780c6-8db4-4333-b041-da32dde39d05","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, for the","page_number":33,"box":{"x":102,"y":750,"width":800,"height":11}},{"id":"e4eca0a5-132e-44e8-a003-7295b398fe91","block_type":"box","text":"periods shown is set for th below.","page_number":33,"box":{"x":70,"y":765,"width":234,"height":11}},{"id":"b246e0b4-36bd-4b41-9635-bcbe4c1b5215","block_type":"box","text":"Aggregate Brokerage","page_number":33,"box":{"x":613,"y":794,"width":125,"height":8}},{"id":"f902d516-a9df-4549-91a7-a3cebc59202a","block_type":"box","text":"Commissions Paid","page_number":33,"box":{"x":623,"y":804,"width":106,"height":7}},{"id":"aa36dcf1-8550-459d-9ea9-0a6723d4498d","block_type":"box","text":"Brokerage Commissions","page_number":33,"box":{"x":769,"y":794,"width":140,"height":8}},{"id":"40c98d6a-1886-423e-ba88-4a7c7ebcea34","block_type":"box","text":"Paid to Affiliates","page_number":33,"box":{"x":791,"y":804,"width":96,"height":7}},{"id":"e3bad3f1-330d-461d-8423-cfb73b99e1bf","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":33,"box":{"x":70,"y":821,"width":292,"height":11}},{"id":"f4a4cd45-8a6c-4c43-b7b9-0b4a4684d2d7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":33,"box":{"x":369,"y":821,"width":286,"height":11}},{"id":"7301ea33-97ff-46d3-80dc-9bfd437a1f7c","block_type":"box","text":"825,983 $0","page_number":33,"box":{"x":657,"y":821,"width":191,"height":11}},{"id":"942c0e09-1db2-425a-880b-b61ef90a026b","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":33,"box":{"x":70,"y":837,"width":292,"height":11}},{"id":"51c5af0f-4c9e-4929-8ede-cdd29557c158","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":33,"box":{"x":369,"y":836,"width":286,"height":11}},{"id":"2ceeaa63-6668-4ae9-9871-dbe96b206538","block_type":"box","text":"418,743 $0","page_number":33,"box":{"x":657,"y":836,"width":191,"height":11}},{"id":"d35af85b-5bd9-4049-b181-7396a856819d","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":33,"box":{"x":70,"y":852,"width":292,"height":11}},{"id":"f091c433-a1e8-4945-8a47-14d177911971","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":33,"box":{"x":369,"y":851,"width":286,"height":11}},{"id":"028cfd59-722a-46cc-8c80-59a354cffbda","block_type":"box","text":"498,758 $0","page_number":33,"box":{"x":657,"y":851,"width":191,"height":11}},{"id":"18ec375a-49f8-46e5-b1ad-1a5dd96ebdc8","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":33,"box":{"x":101,"y":875,"width":770,"height":12}},{"id":"b989f15d-62ec-4028-80b5-088c8e83b4b9","block_type":"box","text":"28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and","page_number":33,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"2bdff337-5523-4cba-9c22-67ad2db6415f","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. The provision of","page_number":33,"box":{"x":68,"y":906,"width":829,"height":11}},{"id":"2dc25eae-6fab-410b-a71b-2b0795f7a67c","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"f8442084-4112-4836-9ed3-1cbcf48edcbd","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4f9cedf0-700f-426a-b559-c1984fc90fe0","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":34,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"709cba39-80de-40c3-b577-1cf008aacad7","block_type":"box","text":"with such brokers.","page_number":34,"box":{"x":68,"y":60,"width":130,"height":9}},{"id":"ef624c50-05dc-4345-9d58-6017c7c4570b","block_type":"box","text":"Amount of Commissions","page_number":34,"box":{"x":357,"y":88,"width":141,"height":7}},{"id":"c7a1067e-a6b0-4ab3-8be9-0b7e74ea21b2","block_type":"box","text":"Paid to Brokers for","page_number":34,"box":{"x":374,"y":98,"width":109,"height":7}},{"id":"cc479482-410e-4f2b-aa37-e73d14bc261d","block_type":"box","text":"Providing 28(e) Eligible Research Services","page_number":34,"box":{"x":304,"y":108,"width":249,"height":9}},{"id":"ba4e6289-b2aa-4615-b3bf-da3d0a1c7593","block_type":"box","text":"Amount of Brokerage","page_number":34,"box":{"x":593,"y":98,"width":124,"height":9}},{"id":"b27635ea-9948-4658-94b4-08aec2559f41","block_type":"box","text":"Transactions Involved","page_number":34,"box":{"x":592,"y":108,"width":126,"height":7}},{"id":"c5ef56f0-22fd-430e-864e-53af0ece59cd","block_type":"box","text":"$1,421,813 $2,919,794,473","page_number":34,"box":{"x":385,"y":125,"width":331,"height":11}},{"id":"d6d7d523-2fe3-4276-9bc7-65e0613893c6","block_type":"box","text":"The value of the Fund’s aggregate holdings of the securities of its regular brokers or dealers (as defined in Rule","page_number":34,"box":{"x":101,"y":150,"width":796,"height":11}},{"id":"b319f326-1319-4fac-997a-e13c036e3694","block_type":"box","text":"10b-1 under the Investment Company Act) or their parents if any por tion of such holdings were purchased during the","page_number":34,"box":{"x":69,"y":165,"width":830,"height":11}},{"id":"2029da49-bf83-4747-b731-3354bb048ec1","block_type":"box","text":"fiscal year ended May 31, 2026 is as follows:","page_number":34,"box":{"x":68,"y":180,"width":326,"height":11}},{"id":"594d347a-54dd-4489-9497-a5c799e35016","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":34,"box":{"x":265,"y":208,"width":488,"height":9}},{"id":"f07b85cf-25d2-48b3-8c51-af1d297637b5","block_type":"box","text":"Jefferies LLC E $11,159","page_number":34,"box":{"x":284,"y":225,"width":419,"height":12}},{"id":"468c0dd1-6582-483d-bee7-16c815625244","block_type":"box","text":"Securities Lending","page_number":34,"box":{"x":68,"y":258,"width":135,"height":11}},{"id":"4893c94c-eecb-43ed-929f-befb22124b02","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":34,"box":{"x":101,"y":280,"width":807,"height":12}},{"id":"925aa464-b9f0-420b-9a01-d9d7b5cad607","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":34,"box":{"x":69,"y":295,"width":817,"height":12}},{"id":"11c0314f-fb1f-40d6-a48f-f52df5bf3f5c","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":34,"box":{"x":69,"y":310,"width":813,"height":12}},{"id":"c1dff5f4-9d03-4406-be68-6c9fceade95c","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":34,"box":{"x":70,"y":326,"width":838,"height":11}},{"id":"30a810b1-be66-4c02-9bca-c550a134bd3b","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":34,"box":{"x":69,"y":341,"width":813,"height":11}},{"id":"6c8daa97-9fe7-46be-9fcb-4a66960364ae","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":34,"box":{"x":70,"y":356,"width":646,"height":11}},{"id":"8ea403e7-5e06-4d03-9923-148a47915a02","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":34,"box":{"x":101,"y":378,"width":735,"height":12}},{"id":"e090387b-99f0-4017-8eff-2f72084fcf83","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":34,"box":{"x":69,"y":394,"width":834,"height":11}},{"id":"770d2726-e9c6-473d-ac48-64a776d05e12","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":34,"box":{"x":70,"y":409,"width":822,"height":11}},{"id":"20bbf532-5d5b-4a76-83c6-ccd2ae2bde5a","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":34,"box":{"x":69,"y":424,"width":787,"height":11}},{"id":"b870b05f-060c-4d09-987a-ee90664366e7","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":34,"box":{"x":69,"y":439,"width":783,"height":11}},{"id":"db28e776-32f5-46b2-8806-67cd7f8abf7d","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by the Manager (the","page_number":34,"box":{"x":70,"y":454,"width":816,"height":11}},{"id":"b00835f2-9ba2-414b-ac7e-e4e1f4b6db48","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":34,"box":{"x":70,"y":469,"width":813,"height":11}},{"id":"2a23d213-678b-4561-a001-bbb0fdfd77a5","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate","page_number":34,"box":{"x":70,"y":484,"width":830,"height":12}},{"id":"accffd64-6c93-4492-a308-2f74f345c10c","block_type":"box","text":"of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":34,"box":{"x":69,"y":499,"width":773,"height":12}},{"id":"cf319cb6-ff08-4b67-bb0f-27fe5a17a671","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":34,"box":{"x":101,"y":523,"width":776,"height":12}},{"id":"e51b707e-6646-4f22-a92c-504db41a62d0","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":34,"box":{"x":69,"y":538,"width":831,"height":12}},{"id":"9d43bdee-98c7-49db-95b7-247fe032d00a","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":34,"box":{"x":68,"y":554,"width":812,"height":11}},{"id":"225a5bb6-890f-4280-ab96-857dc6a9e53f","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":34,"box":{"x":69,"y":569,"width":799,"height":11}},{"id":"730dba4d-0ffc-4013-b78a-36ae648363d3","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":34,"box":{"x":68,"y":584,"width":835,"height":11}},{"id":"29339609-ffb7-40fa-8004-def79c5ce234","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":34,"box":{"x":69,"y":599,"width":818,"height":11}},{"id":"ddcaf724-cfc6-4617-ba46-173a292b653d","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":34,"box":{"x":68,"y":614,"width":789,"height":11}},{"id":"48864767-7af6-433f-b151-89274eb80577","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":34,"box":{"x":69,"y":629,"width":829,"height":11}},{"id":"fc664aea-514c-4c03-a847-f4f0d416709a","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":34,"box":{"x":69,"y":644,"width":839,"height":11}},{"id":"12f58eeb-ccb4-4868-91b8-4d332f3dc589","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":34,"box":{"x":69,"y":659,"width":802,"height":12}},{"id":"ce8a460b-a1ff-48f3-9c82-27921b22d13b","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":34,"box":{"x":70,"y":675,"width":830,"height":11}},{"id":"4f696272-6283-46ef-9eb3-1af971017afe","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":34,"box":{"x":69,"y":690,"width":838,"height":11}},{"id":"8e041519-293e-4346-a7ec-2be62f41989e","block_type":"box","text":"Fund’s returns on securities lending.","page_number":34,"box":{"x":70,"y":705,"width":258,"height":11}},{"id":"80ddddae-6b1c-4180-9ee5-ab83ad8960a7","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":34,"box":{"x":102,"y":727,"width":774,"height":12}},{"id":"d1d5823b-4026-4576-b2bc-4a6db28eb524","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":34,"box":{"x":69,"y":743,"width":794,"height":11}},{"id":"53d48ece-7e48-4026-b3e6-600b634d9741","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":34,"box":{"x":68,"y":758,"width":809,"height":11}},{"id":"8dbea152-9f83-496b-accd-6c36b85b82b0","block_type":"box","text":"Trust and BIM.","page_number":34,"box":{"x":68,"y":773,"width":103,"height":9}},{"id":"c5b0be21-dbbe-4de2-8788-b69ee98a7e2e","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":34,"box":{"x":102,"y":795,"width":783,"height":12}},{"id":"13e8d93f-e64e-4434-a14c-bd53ad2a4755","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":34,"box":{"x":70,"y":811,"width":815,"height":11}},{"id":"bd79ae2e-e2b3-4028-948b-f81c82e1f315","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":34,"box":{"x":69,"y":826,"width":463,"height":11}},{"id":"ee17ce69-1a0f-4a2c-9114-d689dcf9c34d","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":34,"box":{"x":102,"y":848,"width":753,"height":12}},{"id":"7775104f-0707-49f6-8cb3-9a69192127bd","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":34,"box":{"x":69,"y":863,"width":778,"height":12}},{"id":"6e4c53bc-4c99-40e9-8aa4-438023b7646e","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":34,"box":{"x":70,"y":879,"width":817,"height":11}},{"id":"8c9e952c-036c-4dd8-b017-7fe9a5ed9c24","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":34,"box":{"x":70,"y":894,"width":794,"height":11}},{"id":"69a02a8e-eb07-4f68-abdc-a8f752b4ce65","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":34,"box":{"x":69,"y":909,"width":825,"height":11}},{"id":"ad5abfe4-8109-4cda-9c94-d30d3e7dbae0","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"bc323676-b115-4a60-a08b-375c54470a82","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b36275ae-716e-4a0b-a2fe-8a23f3f5b6db","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":35,"box":{"x":102,"y":45,"width":683,"height":11}},{"id":"43be2b71-b894-4053-b085-66a672d15bee","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":35,"box":{"x":101,"y":67,"width":803,"height":11}},{"id":"ff93121a-55cd-49aa-8c3d-aa1071d3c67f","block_type":"box","text":"the following:","page_number":35,"box":{"x":68,"y":82,"width":93,"height":12}},{"id":"5af8e379-92b3-4f30-82fd-dd4887488a7c","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":35,"box":{"x":69,"y":103,"width":818,"height":11}},{"id":"13e3d7be-a452-4560-8e6a-a76fb639add0","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":35,"box":{"x":102,"y":118,"width":333,"height":10}},{"id":"21449993-bb18-492a-9518-c5dd676227e3","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":35,"box":{"x":69,"y":138,"width":538,"height":11}},{"id":"37567b02-c3d6-4d2d-9bbd-f24092f28a14","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":35,"box":{"x":69,"y":158,"width":330,"height":11}},{"id":"c5942b90-7cf8-4217-8ca3-015753ac2f1d","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":35,"box":{"x":69,"y":178,"width":834,"height":11}},{"id":"cce0a50e-e6f8-4b1a-8714-f7eab0dcf097","block_type":"box","text":"of excess collateral, as necessary;","page_number":35,"box":{"x":102,"y":193,"width":246,"height":11}},{"id":"b837e0d3-3223-489a-b314-2c4853d7775b","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":35,"box":{"x":69,"y":214,"width":562,"height":11}},{"id":"d0b07beb-2b8c-4b76-a705-8adf92aa18a9","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":35,"box":{"x":69,"y":234,"width":665,"height":11}},{"id":"4248d21c-2e48-4323-b7b9-98f2df538763","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":35,"box":{"x":69,"y":254,"width":822,"height":11}},{"id":"b132207b-bde5-48d5-921a-6557a4d0fd38","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":35,"box":{"x":101,"y":269,"width":803,"height":11}},{"id":"d219aebc-8a6e-4eab-bba7-b4b06d77131b","block_type":"box","text":"of the loaned securities; and","page_number":35,"box":{"x":102,"y":284,"width":203,"height":10}},{"id":"b10e427c-cc26-4861-adbe-42531a1cb6e4","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":35,"box":{"x":69,"y":304,"width":808,"height":11}},{"id":"9aaf98d5-9364-4103-bc69-8cdb54f7099e","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":35,"box":{"x":101,"y":327,"width":805,"height":11}},{"id":"cc102658-e4c1-4846-b2a6-cf012eeb90e7","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":35,"box":{"x":69,"y":342,"width":546,"height":11}},{"id":"75918980-1908-4d86-812a-b6017af395ae","block_type":"box","text":"Gross income from securities lending activities","page_number":35,"box":{"x":69,"y":370,"width":343,"height":11}},{"id":"25676c47-c4c9-49b1-8f1f-49d47883f19b","block_type":"box","text":"................................................","page_number":35,"box":{"x":416,"y":377,"width":385,"height":2}},{"id":"2a87c3ad-fbb2-45da-b1c6-3aa90772d941","block_type":"box","text":"$8,012,014","page_number":35,"box":{"x":822,"y":369,"width":87,"height":12}},{"id":"60e94c74-640f-47e9-a9c0-7784378cdd48","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":35,"box":{"x":70,"y":389,"width":565,"height":11}},{"id":"70bc0c04-c37c-49ee-9f2e-cd9378dd4fb9","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":35,"box":{"x":79,"y":404,"width":599,"height":12}},{"id":"9a913caa-cd7d-40fd-90ab-3f9f503a1a0a","block_type":"box","text":"............... $","page_number":35,"box":{"x":685,"y":404,"width":145,"height":10}},{"id":"2162a574-858f-40a5-aebe-4b991f2a1281","block_type":"box","text":"330,778","page_number":35,"box":{"x":847,"y":404,"width":62,"height":11}},{"id":"44fab8cd-d283-4625-a13a-f75be9b553f7","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":35,"box":{"x":79,"y":420,"width":673,"height":11}},{"id":"7e2c2f28-04a5-4202-a99c-d0c4e72c75cf","block_type":"box","text":". . . . . . $ 69,162","page_number":35,"box":{"x":758,"y":419,"width":151,"height":11}},{"id":"e5ff197b-4af4-44e7-a4c8-808450705a63","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":35,"box":{"x":78,"y":435,"width":551,"height":11}},{"id":"ce103df7-6f31-44e2-84f1-8d50a484ba4e","block_type":"box","text":"..................... $ 0","page_number":35,"box":{"x":636,"y":434,"width":273,"height":10}},{"id":"760f360f-89a4-4e8f-b0a2-bc75c780633d","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":35,"box":{"x":79,"y":450,"width":567,"height":11}},{"id":"9891a017-3a0e-4c39-9397-c7aeaadf5901","block_type":"box","text":"................... $ 0","page_number":35,"box":{"x":652,"y":449,"width":257,"height":10}},{"id":"985d64d9-8fef-41fc-9fa8-5848933b7791","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":35,"box":{"x":79,"y":465,"width":289,"height":11}},{"id":"0971c63c-c488-48a4-bf6b-07513e9970ea","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,","page_number":35,"box":{"x":375,"y":464,"width":470,"height":11}},{"id":"da21c129-ea6b-4c41-8085-f03a9017000e","block_type":"box","text":"194,559","page_number":35,"box":{"x":847,"y":465,"width":62,"height":10}},{"id":"7e3aa905-52a7-4dfa-953f-5ebe44aec057","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":35,"box":{"x":79,"y":480,"width":542,"height":11}},{"id":"319f5ae7-968b-4a78-b7dd-886ea0a1092b","block_type":"box","text":"...................... $ 0","page_number":35,"box":{"x":628,"y":479,"width":281,"height":11}},{"id":"dec11792-2027-4c2e-864d-aa363b3ef875","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":35,"box":{"x":68,"y":495,"width":455,"height":11}},{"id":"f56b522d-e532-423d-ba40-26bbc1b5004a","block_type":"box","text":"..................................","page_number":35,"box":{"x":530,"y":502,"width":271,"height":2}},{"id":"0f878e0f-75a0-4a07-ae94-e7ac8c79d3ad","block_type":"box","text":"$6,594,499","page_number":35,"box":{"x":822,"y":494,"width":87,"height":12}},{"id":"54dc9221-72f5-452e-b5b3-7e888a76ef21","block_type":"box","text":"Net income from securities lending activities","page_number":35,"box":{"x":69,"y":515,"width":327,"height":11}},{"id":"2d09949e-5d4e-447b-a3b1-52eb1adebe37","block_type":"box","text":"..................................................","page_number":35,"box":{"x":399,"y":522,"width":402,"height":1}},{"id":"44482427-5707-40e2-ae14-b9b47ee2b5e2","block_type":"box","text":"$1,417,515","page_number":35,"box":{"x":822,"y":514,"width":87,"height":11}},{"id":"c6dbf019-302f-4b49-b9b7-ae460c3947fb","block_type":"box","text":"VIII. Additional Information","page_number":35,"box":{"x":68,"y":551,"width":195,"height":8}},{"id":"0d2ca8f5-aa3b-4724-a41c-6d84b21afe27","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":35,"box":{"x":102,"y":573,"width":352,"height":11}},{"id":"7e1237b7-0980-439c-bdd7-afcb15015e84","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":35,"box":{"x":461,"y":573,"width":412,"height":11}},{"id":"93606648-6ca0-41e7-9771-7c1ed8a36047","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":35,"box":{"x":69,"y":588,"width":772,"height":12}},{"id":"7844d13d-162d-4b0a-93df-db737752f36f","block_type":"box","text":"Counsel.","page_number":35,"box":{"x":101,"y":611,"width":62,"height":9}},{"id":"22801d0e-47bf-4eb9-bd00-b31c442c52e5","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":35,"box":{"x":170,"y":611,"width":736,"height":11}},{"id":"744512f9-bbe9-4d10-8dee-a049b7550cbf","block_type":"box","text":"the Fund’s counsel.","page_number":35,"box":{"x":68,"y":626,"width":139,"height":9}},{"id":"e865fcb6-3515-4806-915d-a731108dfadb","block_type":"box","text":"The Trust","page_number":35,"box":{"x":68,"y":657,"width":69,"height":8}},{"id":"d45eaf50-5bc2-4784-b15f-8308ac414268","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":35,"box":{"x":101,"y":679,"width":807,"height":11}},{"id":"c3392606-7708-4cf3-8fd5-a8a5f61a4dc7","block_type":"box","text":"Investment Company Act as an open-end, management investment company. The Fund is classified as diversified.","page_number":35,"box":{"x":70,"y":694,"width":811,"height":11}},{"id":"205e6d7f-e95d-4e28-99cf-e1ccf793af4f","block_type":"box","text":"Effective January 31, 1998, the Trust changed its name from Compass Capital Funds","page_number":35,"box":{"x":70,"y":709,"width":609,"height":11}},{"id":"58651962-ae1d-4ff0-95bd-63c87e67661b","block_type":"box","text":"SM","page_number":35,"box":{"x":681,"y":710,"width":10,"height":4}},{"id":"b37eddfe-9d9b-42aa-a7e3-5ec2ea3c67bb","block_type":"box","text":"to BlackRock Funds","page_number":35,"box":{"x":697,"y":709,"width":139,"height":9}},{"id":"de2be909-e1ed-46ad-8b29-153a3b9877ad","block_type":"box","text":"SM","page_number":35,"box":{"x":837,"y":710,"width":11,"height":4}},{"id":"df4b2607-1c3b-41eb-bed8-1402b7b82cbb","block_type":"box","text":". The","page_number":35,"box":{"x":850,"y":709,"width":34,"height":9}},{"id":"105a0b91-e4c3-4c82-9bc1-3c6b411f78bf","block_type":"box","text":"Trust is authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per","page_number":35,"box":{"x":68,"y":724,"width":792,"height":11}},{"id":"70bb189f-fddd-466a-b088-dc67c5e0ef58","block_type":"box","text":"share, which may be divided into different series and classes.","page_number":35,"box":{"x":69,"y":739,"width":441,"height":12}},{"id":"cb935153-0f83-4d89-8638-b33b35505607","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":35,"box":{"x":102,"y":762,"width":734,"height":11}},{"id":"133b573b-64c0-4eff-99dc-1aa01a712dd2","block_type":"box","text":"personally liable as par tners for the obligations of the Trust. However, the Trust’s Declaration of Trust provides that","page_number":35,"box":{"x":70,"y":777,"width":822,"height":12}},{"id":"2b90c371-d162-4788-8c4a-051f2f7834ee","block_type":"box","text":"shareholders shall not be subject to any personal liability in connection with the assets of the Trust for the acts or","page_number":35,"box":{"x":69,"y":792,"width":814,"height":12}},{"id":"56a56ea8-57bb-4e48-b2f0-0fd7020c434c","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other under taking made by the Trust shall","page_number":35,"box":{"x":69,"y":807,"width":794,"height":12}},{"id":"79aadd90-2e60-4645-b89c-b7b40614f2ca","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. The Declaration of Trust","page_number":35,"box":{"x":69,"y":823,"width":824,"height":11}},{"id":"d6643fd5-a844-457b-aa84-a390764db030","block_type":"box","text":"provides for indemnification out of Trust proper ty of any shareholder held personally liable solely by reason of his","page_number":35,"box":{"x":70,"y":838,"width":804,"height":11}},{"id":"1961d9da-efaf-4dfc-9427-1ff381c28dff","block_type":"box","text":"being or having been a shareholder and not because of such shareholder’s acts or omissions or some other reason.","page_number":35,"box":{"x":69,"y":853,"width":830,"height":11}},{"id":"e05f7fb6-abf7-4ec7-9e8b-1e5e976fec20","block_type":"box","text":"The Declaration of Trust also provides that the Trust shall, upon request, assume the defense of any claim made","page_number":35,"box":{"x":68,"y":868,"width":807,"height":11}},{"id":"0e4251ca-f7d1-4b60-8486-74e0d03ac805","block_type":"box","text":"against any shareholder for any act or obligation of the Trust, and shall satisfy any judgment thereon.","page_number":35,"box":{"x":69,"y":883,"width":719,"height":11}},{"id":"8d289bc0-a11a-4e6a-9d39-344672d4cec6","block_type":"box","text":"I-26","page_number":35,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"71877998-e150-4ffd-95f2-73037eca1dfc","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a2ffeb5f-be10-4295-a534-8a72495be106","block_type":"box","text":"The Declaration of Trust fur ther provides that all persons having any claim against the Trustees or Trust shall","page_number":36,"box":{"x":101,"y":45,"width":777,"height":11}},{"id":"c2d57202-e2e0-4c7c-b346-4e7288f02857","block_type":"box","text":"look solely to the Trust proper ty for payment; that no Trustee of the Trust shall be personally liable for or on account","page_number":36,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"293fdf48-90da-42d5-a242-9ec488a3ccca","block_type":"box","text":"of any contract, debt, tor t, claim, damage, judgment or decree arising out of or connected with the administration or","page_number":36,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"183d34a2-7783-42df-817f-4901561279e9","block_type":"box","text":"preservation of the Trust proper ty or the conduct of any business of the Trust; and that no Trustee shall be","page_number":36,"box":{"x":70,"y":90,"width":762,"height":11}},{"id":"e37b7a13-1720-45b0-aebd-994e39c1d19b","block_type":"box","text":"personally liable to any person for any action or failure to act except by reason of such Trustee’s own bad faith, willful","page_number":36,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"73b59b89-7d0e-4fa7-bab7-a5d257fbc218","block_type":"box","text":"misfeasance, gross negligence or reckless disregard of his duties as a Trustee.","page_number":36,"box":{"x":69,"y":120,"width":567,"height":12}},{"id":"f9e8c752-05c0-4e9f-bd0d-75ef4021c5c9","block_type":"box","text":"With the exception stated, the 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For ease and clarity of presentation, shares of common","page_number":38,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"b1f662a8-996b-49c2-9e0c-32773999a8d2","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":38,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"389c7602-7ac1-41f9-8766-639f9346c07a","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":38,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"8a3605e7-fa45-41d5-8884-ab7ded4c604e","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":38,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"71dbe6b7-9412-4b6c-a710-ebc0ab3f6f59","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":38,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"5681374a-0c5f-48af-a7c4-34e1e85742a5","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":38,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"cdb9a55d-caaa-42ce-bf2d-7e8b55da1f4d","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":38,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"49a321af-579d-4cfb-94ec-8911b610e15b","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":38,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"3e85350a-46cd-4514-b362-a5a57364fb58","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":38,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"4b34ec43-8e68-4004-a41d-44fc14e63267","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":38,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"37094f3f-4bb2-479b-93c4-cd1d6b99ea91","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":38,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"eb5b8d1f-e2e4-4929-b4a7-1776b1927992","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":38,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"c0387a98-0232-41fe-a88a-c14f152fe7c3","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":38,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"c79e9c00-6986-4f24-a238-fe881abee2bd","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. 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For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":38,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"25668e87-f680-40ff-8f78-2e3705c0c7e6","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":38,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"2a7c0255-b736-4b09-b286-4cce9a91964f","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":38,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"9abe9596-4bac-4a95-9338-4755a74d0153","block_type":"box","text":"par ticular Fund.","page_number":38,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"3e81b636-c1b2-4b8c-867a-1b66ccd21bc3","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":38,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"33bb7c54-7c1d-481b-95ea-ff2897d1c0b0","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":38,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"6b54edef-8c90-4395-b9f7-992363123e54","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":38,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"a27f0361-3c2c-486d-9672-3ceb6eda2a7e","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":38,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"72bd2f78-4368-4882-90b6-98b18197f968","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":38,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"cdd6b04d-86e2-4fb5-ac9d-3c0cd39fcbb4","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":38,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"3e108b1f-3cd5-463e-93bf-f2992199c6ce","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":38,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"6366939e-d772-4853-b0ca-6c1bfbad84fe","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":38,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"9cb3fe98-154b-40f0-b091-cb4c040d99cc","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":38,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"f523d46b-4d24-4d46-871b-e559a9616a04","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":38,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"e751852e-1328-4aac-a32e-93f9664ec790","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":38,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"e998daaa-ff11-476b-af56-6e54842ef61d","block_type":"box","text":"Asset-Backed Securities.","page_number":38,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"c03577b1-c698-4d98-b64f-8cc73af6bf21","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":38,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"9f6cdcdb-e3f9-4ecd-b1aa-d332a9d88b26","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":38,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"151c7b98-14f9-43e2-bda5-2b33825d5b34","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":38,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"df68524f-57fc-4384-9e41-df59f6e5d5a4","block_type":"box","text":"credit card receivables) are passed through to a Fund. The value of asset-backed securities, like that of traditional","page_number":38,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"75dd00d4-d77c-48a7-922b-43a5ee5be06a","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":38,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"992b207f-1c57-4a00-b2e9-ee83ccb76afa","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":38,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"f72623f7-6f06-4256-aaad-15e004b0d7e5","block_type":"box","text":"price paid by a Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and","page_number":38,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"0b9ef127-8450-4c6c-8f5f-702fac4e68fa","block_type":"box","text":"the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of","page_number":38,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"04a6828b-b91d-4ebe-993a-0c4e4a6399d5","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":38,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"30e83ed3-d4a4-4294-b0a5-76a295f9a93b","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":38,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"ee67f621-43a1-44c3-af93-f83a722701d0","block_type":"box","text":"Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of","page_number":38,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"a8dee47d-219a-406b-a345-8adc99511960","block_type":"box","text":"interest that is lower than the rate on the security that was prepaid. To the extent that a Fund purchases asset","page_number":38,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"05bf255e-3d82-47ba-bee6-d36d56708d1d","block_type":"box","text":"backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If a Fund buys","page_number":38,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"4cfa4367-5299-42e7-9415-0fef445caf3a","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":38,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"2622b349-fc89-4f13-a3b9-2198663bbe70","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":38,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"2c88a457-a626-4e97-97e8-b2a89fcaa2b9","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":38,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"0cacbebb-2647-45c5-bcb3-2f0892825665","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":38,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"40c33e0e-89f6-4bea-a1ee-ff69ec6d8951","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":38,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"e6d8b325-bd5c-4681-a603-5e3c436e5303","block_type":"box","text":"II-1","page_number":38,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"ac89ba61-ab6c-49b5-94ad-442222df40cc","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1fe716b5-6b2f-4b4f-855e-626e54b42dea","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":39,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"7ee95959-263b-4adf-be7d-2c790debf8e4","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":39,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"03a78327-abee-4802-9ea7-e96845f4e8fd","block_type":"box","text":"interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as","page_number":39,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"79060e81-5502-4eaa-ad89-e5415d4c06ef","block_type":"box","text":"that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or","page_number":39,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"909248ef-764e-40a2-a956-590ba1abca7b","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":39,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"5dd700b4-198c-4e78-96d4-89aced9901b3","block_type":"box","text":"Asset-Based Securities.","page_number":39,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"af77d49e-9461-45d4-89fe-497cb662bdb2","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":39,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"a505934e-0898-4144-8bba-4b28338fca29","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":39,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"26663ce0-ad44-4633-ad8b-142717d882df","block_type":"box","text":"asset such as gold bullion. These securities are referred to as “asset-based securities.” A Fund will purchase only","page_number":39,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"1ba7182f-83ae-4056-adba-eaaca92a4ac6","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":39,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"5c067422-e023-4086-a31c-4c1f8f8ab3e2","block_type":"box","text":"investment grade (for example, AAA, AA, A or BBB by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by","page_number":39,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"d8d8699d-0c88-4e75-a8f7-f8de3cf9fe18","block_type":"box","text":"Moody’s Investors Service, Inc. (“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by","page_number":39,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"30232769-308b-423e-9cad-329384b4532c","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":39,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"7d683d5b-781e-498e-9410-43bd1ac4d26e","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":39,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"37cfdb66-bfbc-4875-8bac-fd80b1888595","block_type":"box","text":"likely to be downgraded than securities rated in the three highest rating categories. If an asset-based security is","page_number":39,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"64d1ed49-4aab-4ec7-9ff8-6fb063ab0c7c","block_type":"box","text":"backed by a bank letter of credit or other similar facility, the Manager may take such backing into account in","page_number":39,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"bfc26705-e45b-4bb4-9a81-f20b106b7f07","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":39,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"53f9eb82-fe5c-4f02-a815-6e5a32db000a","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":39,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"36eea2c2-1a08-4748-8290-ad207720ee91","block_type":"box","text":"the two price movements. Asset-based securities may not be secured by a security interest in or claim on the","page_number":39,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"5e0dd47a-4a07-4d5f-894a-706664512dca","block_type":"box","text":"underlying natural resource asset. The asset-based securities in which a Fund may invest may bear interest or pay","page_number":39,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"f1153701-5133-45dd-ad7d-4c1cd6198282","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":39,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"d790340a-dee7-4671-b103-83c85bf9b78d","block_type":"box","text":"at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the","page_number":39,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"c8f67837-eae8-43ee-b416-e6005d61b38b","block_type":"box","text":"asset to which it is related. In such instance, because no Fund presently intends to invest directly in natural resource","page_number":39,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"56b7bc78-ada3-447a-8a84-a59a4d629471","block_type":"box","text":"assets, a Fund would sell the asset-based security in the secondary market, to the extent one exists, prior to","page_number":39,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"bbad3615-59fb-48f1-8b71-68830d33b1cb","block_type":"box","text":"maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the","page_number":39,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"f3647bd9-4b57-4b68-8353-5b76f343a581","block_type":"box","text":"appreciation in the underlying asset.","page_number":39,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"d3e8d032-b72a-47f7-873e-56ce8ed4130f","block_type":"box","text":"Precious Metal-Related Securities.","page_number":39,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"ce7b6f12-6384-4771-b405-04b861a251a8","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":39,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"f09f1072-1e85-48ac-bbf7-f8bf7265e556","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":39,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"578a394d-feac-4f5b-bf2e-cec15d86ff80","block_type":"box","text":"e.g.","page_number":39,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"28149c67-9c1b-4eb4-9785-f37a480703ba","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":39,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"f5f9a2f5-2024-44bb-87d8-61d7df9afeaa","block_type":"box","text":"indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively","page_number":39,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"b7ccac9a-2afd-4ad1-8da2-3f95b6f1a28f","block_type":"box","text":"priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals","page_number":39,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"ca73e6a3-c648-468b-8f5f-0f72c261078d","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":39,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"288b3f56-f0ed-4c08-953d-45e23b5853f0","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":39,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"5060f7b1-5520-4233-9d01-20d382522b75","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":39,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"a4afb5f8-541d-4bd4-977e-86026d3f4966","block_type":"box","text":"metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":39,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"68ee1c5a-6a51-4e58-963e-f7a69f7c2814","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":39,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"ba515d0c-8ab8-4133-836f-b67f03ecb391","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":39,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"63f86522-9914-40b7-8363-15fe52eb5c71","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":39,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"e8b7ab4a-498b-488f-b30d-5a9215143eb9","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":39,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"310c98d4-11c2-4f76-902d-c6ca94321569","block_type":"box","text":"South African gold production.","page_number":39,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"028433ce-75bc-4e58-9671-58f420a5731b","block_type":"box","text":"Borrowing and Leverage.","page_number":39,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"317905bc-de8f-49c0-b766-3ef228461d2f","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":39,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"8f6a28f3-9e5a-4ace-b340-20f7e8ed4e8e","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":39,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"c2c849c1-6157-4b23-b24d-c1b08d7cd4f3","block_type":"box","text":"securities at any time when borrowings exceed 5% of their total assets, except (a) to honor prior commitments or","page_number":39,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"9fff08fa-b6f8-4656-aef9-03976a1a1f86","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":39,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"5354ed0d-6e9c-4cf4-8aa1-71e87f8f56a9","block_type":"box","text":"other securities transactions.","page_number":39,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"03a5153c-9fe8-4f87-8ff3-ef2641c46686","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":39,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"80e53443-5504-4c74-8d86-36100e9e8700","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":39,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"a55db716-7f08-4c20-95c5-b6bf9d5f24ac","block_type":"box","text":"leveraging increases the Fund’s exposure to capital risk, and borrowed funds are subject to interest costs that will","page_number":39,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"e82bde71-1577-4845-8137-b1e53c20a479","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":39,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"3dddfd68-dbe0-4479-bb7f-0a02d7665d99","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":39,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"37471898-e143-4132-8f26-8c057420b953","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":39,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"51dc3125-03ba-45de-9ae7-3a2b40027c0f","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":39,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"1a175fea-bdce-473d-85cc-ca7bc822e476","block_type":"box","text":"for the Fund that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":39,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"568c49ae-44ac-4fa8-9068-5e9c18199a26","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":39,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"815bb0c1-3820-4f8f-a381-fe04c9e4d52d","block_type":"box","text":"pay on the borrowings, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income","page_number":39,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"807b342c-fe48-4a80-8bec-4283bcbdc930","block_type":"box","text":"or capital appreciation from the securities purchased with such borrowed funds is not sufficient to cover the cost of","page_number":39,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"d8c13499-43ad-443c-9080-cd28d22fcd6e","block_type":"box","text":"borrowing, the return to the Fund will be less than if leverage had not been used and, therefore, the amount available","page_number":39,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"c03311fb-2e8b-404e-8245-b269fac5d667","block_type":"box","text":"for distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best judgment","page_number":39,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"e6f5dbf2-b936-49cc-a01e-d3ecd940880c","block_type":"box","text":"II-2","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"90a1bff7-2668-4d3a-ad3b-769cda806604","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f4b7d8ab-c2a8-48fd-8631-ac8f272d31e0","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":40,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"dea05213-5f06-4423-be62-016372791b77","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":40,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"ec050777-e9bf-4b3e-9353-3429838d5b7d","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":40,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"cd3040ea-5a7f-49b3-bfc1-880708abc433","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":40,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"3dc28acd-a772-4e8d-9161-ffd7707c6674","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":40,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"f8f050f8-a92c-4977-b4ca-59d3b23a51bf","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":40,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"864785b4-de18-41b3-a1ba-25f79811a8b0","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":40,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"6fac1340-73b1-46eb-81dc-eb7a0cd2a532","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":40,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"b1e41fab-d926-429f-a1c0-162c6e0c9620","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such borrowings are","page_number":40,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"e83b46e4-a5be-4f1c-9ce7-bcd25fa9018b","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":40,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"071d1bc7-9f3d-4721-8889-ba9c50f1a6e1","block_type":"box","text":"Cash Management.","page_number":40,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"cac60b7c-d591-4576-ab27-713a15809c97","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":40,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"2f971d24-8d58-4f83-a2e0-5686f0495e0d","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":40,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"afaaf892-ab45-4a56-8cb5-c25ffb637b05","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":40,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"a7230009-b481-45fc-a43e-8d2dc9c0edee","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":40,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"4e399d3a-7085-4aff-b660-7f36e498b92b","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":40,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"b1b0134d-3044-43b6-b480-52535b95ab92","block_type":"box","text":"Securities”); (ii) other fixed-income securities rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of","page_number":40,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"deede2fd-df52-4f82-8ff8-a86203ecec4d","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":40,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"f10f70c3-ef28-47d2-9b80-06b643455452","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":40,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"1fbfa5e1-c40a-4461-bc04-0e63ccb03a1a","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":40,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"b063f66c-f419-4863-a40c-f2d4a3144def","block_type":"box","text":"have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or outstanding commercial paper, bank","page_number":40,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"5802f6fd-b8c7-480b-a64a-4c4e025a5ec3","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":40,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"ddbe2317-38e1-453d-a0ed-35493ed97160","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":40,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"e3a73a9c-f641-4a2b-bbe1-6cf2a9a387b5","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":40,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"9c048acc-1173-4beb-b54e-55ecb5ea531e","block_type":"box","text":"Collateralized Debt Obligations.","page_number":40,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"b3d8585c-fa92-4b5c-87a3-3e784d2cbfc7","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":40,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"562ddbd3-78b0-49a7-8f8f-6d17ea060b63","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":40,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"b29722ec-6c89-4e5b-866e-c1dd7f43bad0","block_type":"box","text":"structured securities. CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other","page_number":40,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"c1332dcf-9539-441d-9719-31e9aa4787d7","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":40,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"51509713-01a1-4190-930c-ce93a89e44d8","block_type":"box","text":"include high risk, below investment grade securities) held by such issuer. A CLO is ordinarily issued by a trust or","page_number":40,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"4a990159-3589-4017-b0f7-50eadcf44de1","block_type":"box","text":"other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S.","page_number":40,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"323a2c43-cdc2-4cd5-ba9d-c5f782a1f700","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":40,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"1e73cb0c-15f7-4d3d-9146-e271f57f3f90","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":40,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"5af0cdcd-f97d-473d-809e-51f14d4016d6","block_type":"box","text":"the United States may not be deemed to be foreign securities if the CLO is collateralized by a pool of loans, a","page_number":40,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"d5bb0b92-2896-41f8-8c48-678be52060aa","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":40,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"8a8240ab-d460-42b1-9fca-c58facc41d30","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":40,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"745d833f-ef96-478b-a9ac-a39baa74dfc5","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":40,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"bf15029e-1ed6-42c7-b52e-ade0fb30e487","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":40,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"abe1fbf7-82af-4fd7-a8de-8fe36d4a5704","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":40,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"86b59cec-04e9-42fc-a756-e773ee79207d","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":40,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"4adfb8e4-82b5-40c3-b2f9-d2ccd0ae0e01","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":40,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"de1a3abc-1ed5-4e44-8335-5dd40be8f232","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":40,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"196499f6-d267-4800-8bcb-68e0b243c2a6","block_type":"box","text":"bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection","page_number":40,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"3e326047-0fde-424a-8b4f-8dc2fb5bc12f","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":40,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"0882f3d0-f150-4f18-9585-08604203475c","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":40,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"536b4e57-95b6-4d64-b39c-8224b439f9c5","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":40,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"e4887a37-b2af-4999-b9ba-d07f1cace37a","block_type":"box","text":"of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage","page_number":40,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"0df59477-d984-42e6-ac0f-5d424a1b4c9f","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":40,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"f5c31f73-1195-4410-a057-ba17b12ddd72","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":40,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"a84c2e99-75f5-4784-a653-fbc5e6f744a9","block_type":"box","text":"of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than","page_number":40,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"8484febc-2cb2-4082-84b7-99e10e6859d5","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":40,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"d26a83a6-7be6-4e60-ba5d-a10eb28ceeff","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the","page_number":40,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"c3e69dd8-8ee6-4ba9-a2c6-3916f456300a","block_type":"box","text":"CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not","page_number":40,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"9ddba70a-7616-4640-a474-334b40a2c1b9","block_type":"box","text":"registered under the securities laws. However, an active dealer market may exist for CDOs, allowing a CDO to qualify","page_number":40,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"020d54f8-3f9c-43d8-b70d-c08a97972007","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":40,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"95100013-cc9a-45f2-9b55-84f41ceb500b","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":40,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"707b6b6b-b131-4b4e-a724-407a2964e423","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":40,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"9d651ae9-8e29-4fb6-8265-fa824fde8b97","block_type":"box","text":"II-3","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"8b5d7f95-c15a-448d-8d70-0afd9a64359d","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f815625f-397d-4fa1-868a-0f8cd829095c","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical","page_number":41,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"d5af3fef-d116-416d-9813-84639d1aa5c6","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":41,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"15f9672d-4a3e-4a61-8286-da63296c9059","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":41,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"3fbf592a-f399-4e06-aa0d-cbb472d13ba9","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":41,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"5b1e0bd8-4ab4-40e1-a582-40471aba5460","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":41,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"1aad7198-2010-418e-8e9b-9a702a5a3c4d","block_type":"box","text":"(vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the","page_number":41,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"13b5a456-63b7-414c-baa5-83a30e8f6b2d","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":41,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"a33fd138-29ce-42f7-9adc-64aab990be31","block_type":"box","text":"Commercial Paper.","page_number":41,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"80b83bc8-2f85-46c0-ac48-690e370dfc29","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":41,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"3452cf84-c85e-4d63-a172-0dbde5045a13","block_type":"box","text":"Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance on the “private","page_number":41,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"da52a1d9-6c58-4e3f-b36a-a5532c6b5952","block_type":"box","text":"placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act. Section 4(a)(2) paper is","page_number":41,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"42d42144-b3cd-409e-b053-97b81b3972a5","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":41,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"4a7b0aea-74ff-479d-8dee-9105242cbff2","block_type":"box","text":"investors such as the Fund through or with the assistance of investment dealers who make a market in the Section","page_number":41,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"9f68d549-03d8-4260-9586-2995e6170561","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":41,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"94451d9b-9e9f-4a39-b39c-4c813fec51d5","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":41,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"84882a2c-d3cf-42a8-958d-c188690a1833","block_type":"box","text":"time of purchase) “A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub","page_number":41,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"0233b46a-3470-406a-80f0-e6df4193ce3d","block_type":"box","text":"adviser, “high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":41,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"709ff350-7adb-4c1b-82db-9097b1c720d7","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":41,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"dd4b7a10-c67f-4c3b-bcd0-61215d0394c2","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":41,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"43c564b9-9103-4318-b569-7b569d2c08ff","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":41,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"0f388d65-45a4-4259-acbc-d1e19eaa03ec","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":41,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"aab94566-d9d0-4cbc-b7eb-2b5dd7d6e6a5","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":41,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"76a62973-dcb1-4ed6-9c4b-9cd40cadca80","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":41,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"bf02fccb-9daa-42a8-87ce-bf1b4a13757f","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":41,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"50393186-7dbe-42ea-9af2-4ad74f8214fb","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":41,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"a5a2bae1-69e5-4ac3-bd6a-7af49acb6c30","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":41,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"77dbe73a-7673-43bb-af8e-1f682b0edaa4","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":41,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"bbfbc8f2-4f94-4ecd-b11d-e744d515eabb","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":41,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"21e96df6-733a-47a3-a686-bc3493bf66c5","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":41,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"264961df-6a83-4da5-860b-cad85594a6b4","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":41,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"70c096c0-162d-4d9a-b442-d04796ac7f8a","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":41,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"e6a44ae4-c6b4-4f3b-aca4-21e512405ef6","block_type":"box","text":"variable.","page_number":41,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"3dc6e21a-96cb-479d-9775-e4d6da158ab5","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":41,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"0cc0c052-461c-49a8-8a85-5e6e9611c8ed","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":41,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"082c759f-8826-4b5d-ab4f-69f73457134c","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":41,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"5a993197-ec74-4986-a5c4-cbc32c0f2fb1","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":41,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"7d0c290f-d946-4330-b201-cd4709b0ee9f","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":41,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"ba908075-16a2-449e-b25c-1797dc70e3d9","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":41,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"c6589570-35eb-4262-9cf8-960ab807a2c7","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":41,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"4f50a838-b997-4d61-9da6-afefc00270b1","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":41,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"c30f1742-2a23-401f-b48d-9a14891e0db0","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":41,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"d2ce5963-0cde-42dd-b421-16a8e085799e","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":41,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"5d7cf333-7ef3-451d-ad5f-abe95bb39de6","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":41,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"0d2e85e0-42dd-42b0-a2a4-00129e7987e3","block_type":"box","text":"securities. Over the long term, the returns on the Fund’s investments are expected to exhibit low or negative","page_number":41,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"6d7dd6ac-e85f-4316-b42e-a54330336572","block_type":"box","text":"correlation with stocks and bonds.","page_number":41,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"14e55d12-5406-4368-a25a-df1a0cec1416","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":41,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"c12a6cec-1e10-4ae2-9be3-280fa8c5d4d0","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":41,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"77260a3f-c282-4832-bc83-aaf1d934cafc","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":41,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"c9870d18-1094-45c7-a207-9d5d1905ddf4","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":41,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"a473390b-8d67-4630-bf2a-4e78df0d1d1d","block_type":"box","text":"be predominantly a security if (a) the issuer of the hybrid instrument receives payment in full of the purchase price of","page_number":41,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"bbe5ae36-e81d-428d-a7fc-381e401160d0","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":41,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"c312d588-1dcc-41b4-81a8-5b4840f3ea94","block_type":"box","text":"holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase price","page_number":41,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"314d3c9e-0d5e-4a7f-ada0-47e5953d21d4","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":41,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"39cd762f-7147-4931-8e84-622ff9231194","block_type":"box","text":"instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the instrument to","page_number":41,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"7f9d2575-2da5-4c16-b4f7-b8245c9a802c","block_type":"box","text":"mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as a contract of sale of a","page_number":41,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"2f0a1e58-120a-4302-898d-62134a2fae2a","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":41,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"a18ec381-4c4c-4144-a951-f9ec76c32fb7","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":41,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"63a5f022-fcbc-4040-9278-f067a8898d8e","block_type":"box","text":"principal protected hybrid instrument means that the issuer will pay, at a minimum, the par value of the note at","page_number":41,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"1b01d89d-6434-45de-81ec-988fb95f7e0c","block_type":"box","text":"II-4","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"3245abe5-7d45-4f14-a943-38df484d0f56","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e05fcf9-6da8-4fc0-a875-b732c3f08caf","block_type":"box","text":"maturity. Therefore, if the commodity value to which the hybrid instrument is linked declines over the life of the note,","page_number":42,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"46416d49-d0d1-4ec4-b44c-a467cb5f043b","block_type":"box","text":"the Fund will receive at maturity the face or stated value of the note. With a principal protected hybrid instrument, the","page_number":42,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"cc0302fa-7e48-4295-ab96-1c23e4f8a621","block_type":"box","text":"Fund will receive at maturity the greater of the par value of the note or the increase in its value based on the","page_number":42,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"60c2f4f6-9c61-4785-87f4-1cc50bf6a7d5","block_type":"box","text":"underlying commodity or index. This protection is, in effect, an option whose value is subject to the volatility and price","page_number":42,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"8b359d9c-ebf4-404f-a1fd-d3aba84da9e2","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":42,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"a0cb6365-281c-48df-9fe5-14398f13d106","block_type":"box","text":"cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation","page_number":42,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"6d490acc-d72d-43cf-9ca9-4da846fa7069","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":42,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"9da4a17d-6efa-476c-b691-5be79811ba27","block_type":"box","text":"the Fund will receive at maturity of the hybrid instrument either the stated par value of the hybrid instrument, or","page_number":42,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"3ec7a214-e333-4cee-ac05-0fdec6df2cc8","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":42,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"0cdbfcb2-07cc-4c36-96d4-d023ce9ebb78","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":42,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"dc3bc030-79d4-488b-8f2e-11f617ab8a76","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":42,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"4dac69ae-784c-41d2-816b-ce3982d41db9","block_type":"box","text":"variable to which the hybrid instrument is linked declines in value during the term of the hybrid instrument. However,","page_number":42,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"f66fb4f9-5771-43dc-aa26-07d0bf228cd7","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":42,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"5f73c2de-21ab-4ab3-a555-39659a82cfe5","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":42,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"634f3f9b-d9c6-40c6-ac5b-795359b63d84","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":42,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"e69b501a-eb1d-4f7c-bc66-8868e4597c50","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":42,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"b51a8f15-7413-4297-bbb5-e3d723aa1878","block_type":"box","text":"economic variable may have declined sufficiently in value such that some or all of the face value of the hybrid","page_number":42,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"2da7eae7-c3ab-4695-82b6-0f9403a815b1","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":42,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"bb19d9a5-2da7-4d7a-8d92-ffc11469c3a5","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":42,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"6c879212-bed5-4e46-872b-7e9eee461910","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":42,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"839ad6c9-d9b0-4fc8-9373-f1ce729f11f7","block_type":"box","text":"index or other economic variable over the term of the note, the cost of the note, and any other economic factors that","page_number":42,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"707260c8-991e-47e5-b53b-5501aee33351","block_type":"box","text":"the Manager believes are relevant.","page_number":42,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"bd94101e-b853-40d5-9bcd-3f03a7ecff53","block_type":"box","text":"Limitations on Leverage.","page_number":42,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"e3195ee9-c206-4a1f-a31f-0bbfc9b87bed","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":42,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"106f028c-fc6b-4514-94fa-2b4d39f94be9","block_type":"box","text":"avoid being subject to undue leverage risk, a Fund will seek to limit the amount of economic leverage it has under any","page_number":42,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"58b0d6d5-f09f-4d9d-ab80-a4b5012b9c9e","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":42,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"4aae4c4a-d0e1-4747-8497-34b2d65784b9","block_type":"box","text":"instrument if, at the time of purchase: (i) that instrument’s “leverage ratio” exceeds 300% of the price increase in","page_number":42,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"4c764148-f98c-45d8-84e3-45d9066dfa43","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":42,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"3173d4a9-ec0b-4586-a031-3fc7e3bb63de","block_type":"box","text":"ratio” exceeds 150%, measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a","page_number":42,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"46e54db9-3fa1-4ea3-b20b-0288e50745e5","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":42,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"db8c2211-90cf-460b-830e-85c52e4be05a","block_type":"box","text":"other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1% gain in the","page_number":42,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"75849e12-8388-4bbb-a186-34760515e84a","block_type":"box","text":"underlying economic variable would be expected to result in a 1.5% gain in value for the hybrid instrument.","page_number":42,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"a57efe85-2210-474e-9466-2f730ada1a7d","block_type":"box","text":"Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5% loss if the underlying economic","page_number":42,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"9a2ac28f-c540-4937-8623-60c5bc1f9574","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":42,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"8a3285a1-a924-42ef-9dcb-dd93c075e8cf","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":42,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"f2839e60-134d-4348-9c72-fedd3602daa6","block_type":"box","text":"contracts, their notional values. A Fund may at times or from time to time decide not to use leverage in its","page_number":42,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"06dd486c-c461-4d73-9e18-5464d17ef262","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":42,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"66e0a062-4604-4b10-8749-64dabd1bbaf8","block_type":"box","text":"Counterpar ty Risk.","page_number":42,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"49e2b245-5d28-4d8e-bf95-af934983c433","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":42,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"bdf87469-b31d-4fb1-a40b-2f023dbff291","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":42,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"f6a2c48f-0760-483d-8204-312ef55048f1","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":42,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"9bdb6886-1177-428e-8809-a7ef22229f16","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":42,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"479a3750-4431-441f-9de3-6e25e20e2cee","block_type":"box","text":"e.g.","page_number":42,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"fa1c967a-7732-4512-8bc6-e24fbadbbcd8","block_type":"box","text":",","page_number":42,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"0d8bd9c2-f73a-473d-a854-60b0d3eed556","block_type":"box","text":"ratings of AAA or AA by S&P). Therefore, the risk is small that an exchange clearinghouse might be unable to meet its","page_number":42,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"3b75e7e8-1a6c-4d31-9576-6eb72f68181f","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":42,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"29b56ad7-4ddc-4a80-9bb4-15aaf4452fe6","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":42,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"dae33820-186a-4075-94b1-92eff8f84d9f","block_type":"box","text":"obligations under the structured note.","page_number":42,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"9cc1844c-3f6a-43c4-b077-45e823b12411","block_type":"box","text":"Convertible Securities.","page_number":42,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"c456a2fd-f8e4-4377-9654-b9e270b69577","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":42,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"a7df17a7-4a4d-4ea9-a6e1-9a124908f8c8","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":42,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"f15dc760-8ac1-4fe6-bd23-e6afcd74f95e","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":42,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"3435896f-2c8e-4453-bb8f-a510cff8d175","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":42,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"714bde34-31aa-4e22-bf3c-7a6a84dcde0b","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":42,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"cbacf519-1165-4173-a0c5-d8db2d0fb70d","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":42,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"9bcdfc6e-91c2-44ff-9521-85486fcfd0e7","block_type":"box","text":"with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than","page_number":42,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"749e26f0-1951-4e4f-81ea-3d168be992e7","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":42,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"70b8a17b-ab77-491f-92dc-0ec16d4e6711","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":42,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"5c678b98-66cd-4ef2-8ea1-f2f1325f6c21","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":42,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"8fbad180-8441-4562-84ba-24ac58d5fac9","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":42,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"9a4a3a65-ad24-45d1-a798-7a2b2fc75498","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":42,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"f6b85c01-ccfd-4a3f-ac02-52d4068893df","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":42,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"26cd3aba-75c3-46b2-b2a5-4d8970ab54d0","block_type":"box","text":"II-5","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"6999b96a-49e0-4e62-9e50-70c999385f47","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"98b0ba97-05b0-4a12-9ef0-ece2b530801d","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":43,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"189bd75e-ed42-4f76-a71d-35ea30645153","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":43,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"f9baee42-c509-4a82-8a21-e1621e42d6d0","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":43,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"0504ace5-ee9d-45a1-a11b-c7f6dad7608b","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":43,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"ab0be05a-fa02-41d1-a28f-ef0aadcd554b","block_type":"box","text":"in value relative to the underlying common stock due to their fixed-income nature. As a result of the conversion","page_number":43,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"806c5417-e692-47c6-86d0-49103ec2c808","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":43,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"e980b69b-b842-4116-9b25-99599d95ccaf","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":43,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"27764cd4-27b3-45d9-9e06-759805d11e77","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":43,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"10405009-a98f-43cd-9424-bfd563975c60","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":43,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"dbb9cd4e-963f-44d6-998c-a695218783d9","block_type":"box","text":"things.","page_number":43,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"19b43ec1-b87d-44b1-ae56-69701946855a","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":43,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"7113aa02-03fc-4a15-92f1-9d544cf3bb9a","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":43,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"97a14197-1153-4a25-b021-73aeec3b7d23","block_type":"box","text":"securities may be quoted in the currency of the country where the issuer is domiciled. As a result, fluctuations in the","page_number":43,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"71a92b13-0060-4daa-8e58-41506549052c","block_type":"box","text":"exchange rate between the currency in which the debt security is denominated and the currency in which the share","page_number":43,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"9d0311dc-1492-4444-8110-e15047bc780f","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":43,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"0167597d-d375-4cec-aa51-1953e69e5ec9","block_type":"box","text":"a currency different from that of the underlying equity securities, the conversion price may be based on a fixed","page_number":43,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"196f6f5a-179a-4cd1-bc67-5b4a336820d5","block_type":"box","text":"exchange rate established at the time the security is issued, which may increase the effects of currency risk. As","page_number":43,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"828afda7-dd65-411c-b136-ac52de632e62","block_type":"box","text":"described below, a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to","page_number":43,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"5fdb3f36-2bcf-4974-a36c-062a46777cd6","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":43,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"36ba91bb-e01f-4705-8c02-566c8123aa99","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":43,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"9a617970-abf0-4f38-b862-50b896e2422f","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":43,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"531ef89e-1d3e-4482-9b80-e7ab338f8d30","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":43,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"030d3a0d-a7ae-4c1d-abe9-5c4032c1716e","block_type":"box","text":"i.e.","page_number":43,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"2002ba12-0263-4c44-87ef-8563b3ba4190","block_type":"box","text":", strictly on the basis of its yield) is","page_number":43,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"dc00765a-bb83-496d-8885-29c3f7cf8391","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":43,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"aebbfbcb-71cc-48d9-bb1c-19bfdd244d3f","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":43,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"ad7d629e-4ddb-4951-98b5-994fa568447c","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":43,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"854b4824-e66f-4993-9eee-f60a142b5c3e","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":43,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"4cda198d-ac53-4725-b927-1f8cd9f5cac6","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":43,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"b46e03c6-a4ab-41c3-b93d-aecd36fb8a59","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":43,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"393b205b-c100-46fc-9870-7198c56b2474","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":43,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"a3ec4749-89c0-4581-8ee4-855507bdffe5","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":43,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"f7048618-0e1e-4513-81e0-e7c455ce4952","block_type":"box","text":"over the conversion value to the extent investors place value on the right to acquire the underlying common stock","page_number":43,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"5a4135f5-e87f-4d3b-a300-de51a4f92677","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":43,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"a706ce0a-5704-4e3c-b7e5-0744d4522d85","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":43,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"572d9f5e-3f4f-4508-bd4d-eb1c9723bcc3","block_type":"box","text":"than the securities’ investment value.","page_number":43,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"eb364a06-aa45-46a6-bce3-36a893c1b951","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":43,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"a9de7a22-2b7d-4bcc-a335-f53a265a39eb","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":43,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"e8621d36-1085-4fa1-a8a2-6e85a6229638","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":43,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"c24fc469-4970-4b63-8847-e978ef4d8362","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":43,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"3c227a34-cc4a-44be-83bc-a118706e1011","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":43,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"0569283f-dbcf-4866-ba61-d81d8933a337","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":43,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"ccc84234-04d1-48d9-bea1-949db2ece560","block_type":"box","text":"holder to cause the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":43,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"8c6ed4c5-d245-4b42-bb04-69052615d219","block_type":"box","text":"security under cer tain circumstances.","page_number":43,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"44665348-29ea-4451-a7a3-3cd0306a95f6","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":43,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"4ab6bc8b-5cce-432a-adbd-25ca1afe25cb","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":43,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"6cd90032-50b8-4124-a1d6-ea37d7862e99","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":43,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"83d3d651-77cb-4f70-9f18-d378809d2c9b","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":43,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"c6a86c5f-086f-4827-bf05-2ff0250decc0","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":43,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"da6a1dc1-dcf6-4085-bf38-78b9509a8ae1","block_type":"box","text":"public offering of its common stock prior to maturity and otherwise pays a cash amount to reflect any equity","page_number":43,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"b6535cd8-6eab-46f2-aa2b-5baa3ec282b5","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":43,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"a7a63a3f-9047-48e3-8d29-449fb7c24581","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":43,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"1caadc4f-94b2-4bdb-8e7c-70bed09f3b7c","block_type":"box","text":"i.e.","page_number":43,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"5a3e99e9-97c0-45ef-a007-ad18ad101ea6","block_type":"box","text":", fixed-income (“fixed","page_number":43,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"19b849f7-2ee3-42b1-89da-6c29046802b7","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":43,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"796719bd-6c51-4358-8fbe-9b612b1a025c","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":43,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"a60ef609-beac-4600-98fd-9edb082d05e6","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":43,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"9796fe76-d969-43e0-8a6d-1115fe0f17d5","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":43,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"1252435c-c22d-4d34-8cc1-a6088f162f04","block_type":"box","text":"II-6","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b9ebe400-b172-4c5b-ad04-fed506f6a525","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0e29d02a-37d8-4879-afba-94d7cdb6b731","block_type":"box","text":"specified quantity of the underlying stocks within a specified period of time at a specified price or, in the case of a","page_number":44,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"3e7a65e1-60e1-493a-bfdf-8942bc97b4bf","block_type":"box","text":"stock index option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":44,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"dbfaa2d0-349b-4d69-b185-99541c824af3","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":44,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"5c04d6a2-5e92-4473-915e-35dd5f56b2a4","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":44,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"ced3d24e-9213-4859-8053-e20cfc9029d9","block_type":"box","text":"comprised of two or more separate securities, each with its own market value. Therefore, the total “market value” of","page_number":44,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"96af17c1-08ad-41c6-adf6-4ce50e46e996","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":44,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"c8cab672-46e9-4682-958c-cd693d22b0a7","block_type":"box","text":"component.","page_number":44,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"4875ef1e-0a1c-4c3f-b9f2-59ebd367d075","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":44,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"ee58c9ae-08c8-4840-b1ef-81b3fc63ad05","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":44,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"61d11e98-6080-4885-bdea-77f89d57d4be","block_type":"box","text":"fixed-income instrument and an equity feature with respect to the stock of the issuer of the fixed-income instrument","page_number":44,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"7c5714ab-32ea-4475-9ac9-6fcc50e9bb45","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":44,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"b33419d0-a2c9-4816-b758-196524618dac","block_type":"box","text":"fixed-income instrument of an issuer with an equity feature with respect to the stock of a different issuer when the","page_number":44,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"a32ff09d-df26-43f1-bcf6-23ce6a2a2c0f","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":44,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"524f78f2-1e71-45c9-8010-16010b4c3ad7","block_type":"box","text":"investments. For example, the Manager may combine an equity feature with respect to an issuer’s stock with a fixed","page_number":44,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"e9dc35cb-b5f2-4200-93f3-8ac6a6bc7681","block_type":"box","text":"income security of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":44,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"35840bef-a04e-4c19-8860-0f45906fbc9f","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":44,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"2923b2e0-800e-4d46-a0aa-221fb04c8763","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":44,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"f525071a-327d-4891-8fbd-f74e34e58bbb","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":44,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"e14b8136-fe43-45ea-a55e-5f1cb39953c2","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":44,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"9b356822-aa4a-4428-8c2b-137d0dfd5bad","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":44,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"b050648c-ca98-46fb-8c20-aefff14b2f45","block_type":"box","text":"favorable market conditions.","page_number":44,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"e7cf40b1-eb80-44fe-94d1-454691764318","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":44,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"101a8360-efec-4ef9-9840-c38c85a48eb7","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":44,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"0111323e-f892-4758-a6d2-8b219361f3cd","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":44,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"ee1dd0c1-2d9c-4299-9b08-b68494a80e4c","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":44,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"5fb98d9f-a47a-4fc7-aa24-17bdbafbd214","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":44,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"1972ef6f-ef15-437e-bf05-70b47a98b2a2","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":44,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"d737991d-f962-486f-bd6f-7f0e60928fea","block_type":"box","text":"Corporate Loans.","page_number":44,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"34b40d1b-e2c8-4e6c-a686-0e8309a10c34","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":44,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"aef8136c-e364-4225-802a-5d19110083aa","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":44,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"db0a2c15-acdd-4010-9f91-8e194975b35e","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":44,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"87d24cad-8112-479d-801b-bb4bb81929dc","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":44,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"069a6b17-ea52-46df-b118-74d2715a085d","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":44,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"3ec9fa62-7190-4a33-8e8b-68e56e9e4660","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":44,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"d44abf37-bb2a-4d81-a68e-cd9b14ee423f","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":44,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"5c1f4784-4ad0-45f0-a0f7-0bb69b4c30ca","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and","page_number":44,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"b4c7c0e0-dd6c-4ec9-b05d-b57f50f85ead","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":44,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"54fdcd58-eca4-4e53-ab49-80e1a09a4743","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":44,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"2a859596-488c-4372-9924-37f84932d5cc","block_type":"box","text":"enforce compliance by the borrower with the terms of the loan agreement relating to the Loans, nor any rights of set","page_number":44,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"93c8e974-e3c7-4be0-a38b-c12e712aed7d","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":44,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"4621d062-e3e1-41aa-8a10-d44ebb32bed5","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":44,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"e8c3dd73-89e7-4d56-a9cd-2c8d97d874c2","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":44,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"5d9dbd17-ea46-4769-bb17-6b1abd695474","block_type":"box","text":"treated as a general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":44,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"30df7ddb-5602-4198-9627-e832cbb56c7a","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":44,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"7a487ccf-54cd-4459-afdb-0ac648aa7c9a","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":44,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"5a9cf3e6-d053-43c7-8d37-7704085f7cd2","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":44,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"879b9676-715f-476e-b592-243bc315bc86","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":44,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"3e20ddc5-b8e4-4523-b6e9-eb446512af0c","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":44,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"870b54a1-b50c-4354-a5cb-1ecb019d9030","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":44,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"d329b731-bef7-4f1b-a670-8b1531289500","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":44,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"7bb23738-e561-4705-a6d6-3faf33c75e16","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":44,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"9f24a42f-63e7-4ebe-b4a4-2f5280594407","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":44,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"7d32d259-17b9-4ad0-aaab-136831dc9ba0","block_type":"box","text":"could be sold only to a limited number of institutional investors. The lack of a sufficiently liquid secondary market","page_number":44,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"76824028-ccca-452a-a7e0-ed0b85328bbf","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":44,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"12d723eb-5db4-4b56-a7c2-049605051cdb","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":44,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"42ed3b51-cd38-4644-8db2-ab95435dafb0","block_type":"box","text":"of the borrower.","page_number":44,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"be297799-4a16-464b-866d-63e0d2ee3151","block_type":"box","text":"II-7","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"9fc272df-561c-40b3-982a-67a4f0018aac","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a985743-5501-4f4b-97bb-f779ef5f3238","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":45,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"eccd8771-83ff-42ec-bf43-aad456b8c4db","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":45,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"08f2d2c0-48d9-497a-b09c-267ed79cda72","block_type":"box","text":"Failure by the syndicate agent to fulfill its obligations may delay or adversely affect receipt of payment by the Fund.","page_number":45,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"c98706b0-bed1-42c9-91a7-d778ea5505c1","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income. Although","page_number":45,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"c5b71ad0-e519-4d57-9dd8-f0c4ec65e387","block_type":"box","text":"borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do","page_number":45,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"7f6002f8-1aea-4993-95e3-150fbc7e4e27","block_type":"box","text":"provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a","page_number":45,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"0d460721-69a1-4ec8-a3d6-87054c26f596","block_type":"box","text":"default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit a","page_number":45,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"77ce1e88-60a2-41a1-8d4e-cdf59a207645","block_type":"box","text":"Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of","page_number":45,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"aeae336b-6271-490e-90ee-be0114d71b4d","block_type":"box","text":"a bankruptcy, the holder of a Loan may not recover its principal, may experience a long delay in recovering its","page_number":45,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"a52870b0-3e88-43bc-90b0-fcfa70860085","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":45,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"e05cc167-cb0d-4227-b1d6-028636766dce","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of","page_number":45,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"12e1ee1a-fbaa-475a-8725-aa84b90a28a9","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":45,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"2607968b-a3b4-490b-a014-9990f2dcf3e7","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":45,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"443f5cb1-aa62-4a5a-94cb-2ac31cb66331","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":45,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"ac5484d6-c5b5-4038-a4fa-151b1226934e","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":45,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"9dc9ead7-81ff-4f8e-b201-cbfc208a003d","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":45,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"23bd3271-8dd9-4fc5-a1ec-d419611fe007","block_type":"box","text":"interests in Loans, such as the Funds, may not have the protection of the anti-fraud provisions of the federal","page_number":45,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"551376fc-3271-4676-ad8c-6643e94b15ab","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":45,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"4b7a1107-7b5c-44a9-a7c6-c04a188b26d5","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":45,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"523ddeff-0d0a-4f3b-9ec7-d18f989c441b","block_type":"box","text":"state law.","page_number":45,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"42b72972-7b0b-465e-83e4-fea67225d80a","block_type":"box","text":"Direct Lending.","page_number":45,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"384aba04-42f4-432b-ad1d-0a5d97fa0cb8","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":45,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"51d3b0cc-e702-45a6-8634-0b4061911e83","block_type":"box","text":"between the Fund and a borrower may not be administered by an underwriter or agent bank. The Fund may provide","page_number":45,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"a880714b-8cba-4410-9a64-0a5cb911f9eb","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":45,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"48230871-c1bb-4080-bcd3-3db14fae0c05","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":45,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"7fb014fa-f50d-4b78-8a3d-7b44c869ecdc","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":45,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"16f3a836-c141-4ac9-948c-2b81d166ecb7","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":45,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"a79c0bea-80a6-4c4a-a051-3ea4f3e8617e","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":45,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"1fe6224a-73f0-4711-96b7-39536bb5c9d3","block_type":"box","text":"loans are substantially similar to those associated with investing in corporate loans. In making a direct loan, the Fund","page_number":45,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"5ddde879-8b58-4ed3-81af-b237184e7183","block_type":"box","text":"is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose","page_number":45,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"ebfaa047-5188-44ab-8bdd-45320b350844","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":45,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"47207ac7-9bfe-4647-a73a-2a316a754655","block_type":"box","text":"direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The","page_number":45,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"7c7c3d1f-e5ac-430e-8f3e-46ecac9f25ee","block_type":"box","text":"lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a","page_number":45,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"7a072a86-39d2-4c75-8a78-adb03418ea46","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":45,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"a04db76b-7168-4a79-ad65-fba5edf4ce3a","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":45,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"fab8a6e0-0ec3-44bd-a716-ae0d839b91bc","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":45,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"05f17344-09ee-4eec-8e65-f1401a9f78ad","block_type":"box","text":"Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on","page_number":45,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"d7c20f93-5b1b-4c05-9500-9d3c07993d50","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":45,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"2d811617-b9ff-4790-ae01-9573e0d7a64b","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":45,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"1fb3b46c-17f8-419d-a089-0cb998c29414","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":45,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"f7a88e36-d97e-4c11-b010-9363bba4c34e","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":45,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"cfd1e1aa-c32c-4c5e-b53e-4dd9b53c57b2","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":45,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"171a40d1-a82d-48cb-8b73-ce5664090988","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":45,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"2bfb1e91-4e67-46a8-9a39-761b356cde8e","block_type":"box","text":"Credit Linked Securities.","page_number":45,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"0edc8bdc-00b3-4738-9be1-7675c4cc1719","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":45,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"eb33ac88-10e4-4836-8de1-84ad2f29cac3","block_type":"box","text":"securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument","page_number":45,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"957fa365-b071-488f-9ea9-b531bbb1c4d2","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":45,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"d6c984b8-b779-4102-823b-9bb85bef5a5a","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":45,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"3bc66a5c-0f6e-47a3-875c-fd9299887669","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":45,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"d156f7fb-6ae3-4840-b0f3-829a9bb882ff","block_type":"box","text":"traditional income producing securities are not available.","page_number":45,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"379ca081-89e5-4596-be50-26778bcf4d06","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":45,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"fcf196b9-304c-4703-8f05-beb36997c645","block_type":"box","text":"income payments (in the form of distributions) and payment of principal at the end of the term of the security.","page_number":45,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"c86d55eb-c0bf-4cda-b1ac-d39c927e3966","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":45,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"ac199f65-9121-4e81-9292-39885dd28050","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":45,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"c19c6818-7a61-4de2-9fa8-d41de02a5928","block_type":"box","text":"instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of","page_number":45,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"f70f216b-9913-457f-be18-3e376f002ddb","block_type":"box","text":"II-8","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"81c0c450-cc9d-45f3-ba0c-c0666d3b5bec","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9f60986d-da0a-47f7-b544-c16eb5d88c18","block_type":"box","text":"payments over the term of the swap agreements provided that no event of default has occurred with respect to the","page_number":46,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"9bce4fff-226e-4c6b-923b-f8ec440422f6","block_type":"box","text":"referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and","page_number":46,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"5083dbd6-0f9c-4823-9bc4-13a89d05194b","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":46,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"8ac43a3b-33ac-4ba8-9318-bd1cb338f60d","block_type":"box","text":"obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive. A Fund’s","page_number":46,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"96eda26f-95ff-49fc-8a3b-ecae84ac1b11","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":46,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"0a2d0e36-cf8c-46cd-8155-17ef1fa026be","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":46,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"9690ecc2-31b2-420c-9b7c-753f4581b8f9","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":46,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"76a415a1-871f-4884-872c-42ab66b9e50a","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":46,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"b8c98949-260a-4250-a792-7d6b01990ac5","block_type":"box","text":"investments.","page_number":46,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"9d3dd4a9-2976-4c72-aae5-2987567db983","block_type":"box","text":"Debt Securities.","page_number":46,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"6a699185-7399-442c-a98f-ca036bc500dd","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":46,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"c39f6b43-ab17-486b-bde8-5e9d8b4d40f1","block_type":"box","text":"timely payments of principal and interest. The degree of credit risk depends on the issuer’s financial condition and on","page_number":46,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"b3615dd9-f919-4959-9486-5c6ebad17793","block_type":"box","text":"the terms of the debt securities. Changes in an issuer’s credit rating or the market’s perception of an issuer’s","page_number":46,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"2d1a5012-a8e6-4793-8fb1-3b536f1ca329","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":46,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"84b4c59b-9ebe-4f74-b208-21fcd2ce1aed","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":46,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"e9d9a75d-55f5-47a8-ab33-95d70dcdc70a","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the security may","page_number":46,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"21c2e841-d296-4332-b7ad-123cf87fb688","block_type":"box","text":"fall when interest rates rise. If interest rates move sharply in a manner not anticipated by Fund management, a","page_number":46,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"8e0dee3e-66dc-4bea-897e-0b41a5ebf6db","block_type":"box","text":"Fund’s investments in debt securities could be adversely affected and the Fund could lose money. In general, the","page_number":46,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"f9f45c67-d7ae-41e1-83fc-d19d3df41173","block_type":"box","text":"market price of debt securities with longer maturities will go up or down more in response to changes in interest","page_number":46,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"00b6cb72-97b9-4046-963b-28894a28b9f7","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":46,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"f0ad9631-00b4-4b96-af01-5dd757d77251","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":46,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"6d33f8d7-0ac7-4634-bcf4-224a4cf4ba1e","block_type":"box","text":"slower than expected principal payments. This may lock in a below-market interest rate and extend the duration of","page_number":46,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"15950cd0-defd-47a1-b7ea-f0c2c2401474","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":46,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"b0c270e6-6504-4354-8bea-1002cfd69eab","block_type":"box","text":"interest rates. As a result, in a period of rising interest rates, these securities may exhibit additional volatility and","page_number":46,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"fe1e7333-9fcd-4153-baff-930e0f68c4d9","block_type":"box","text":"lose value. This is known as extension risk.","page_number":46,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"78b3d97a-e4ad-49fe-b6f1-61101da1bcc5","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in prevailing","page_number":46,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"6804fb02-8950-4570-ae8c-904573b3d793","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":46,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"e35f942d-53bf-4ebc-9bbc-59b43a3a53c9","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":46,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"116b1528-1c12-44b5-b912-27afb984754c","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":46,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"2ecd36ac-b402-415f-a69d-afca5b9705e4","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":46,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"786f116d-f09a-42b8-9269-54967c8a2d28","block_type":"box","text":"Floating and Variable Rate Securities","page_number":46,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"553dedbd-682e-44e9-8349-99ad0644c186","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":46,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"9af0638e-0919-4c10-853d-afe2f29a6e5a","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":46,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"159bac21-3ae1-49b7-91a2-2113bd90098a","block_type":"box","text":"with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest","page_number":46,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"fea02f07-aa09-41ed-a5fb-57c65313be0d","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":46,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"fa6f6ff9-7374-42af-926b-6fc716bdc23e","block_type":"box","text":"impact of interest rate changes on floating rate investments is typically mitigated by the periodic interest rate reset of","page_number":46,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"53a87945-4aba-4456-be93-8c5ab6a8afba","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":46,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"6cb11310-16c4-46b0-8aeb-a777659f1a8c","block_type":"box","text":"market interest rates.","page_number":46,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"d33fd673-d9b6-469a-b180-48a088df282b","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":46,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"cb3eb139-9108-4b05-90c4-442253073ae6","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":46,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"8bba4120-dae3-42cf-b31b-e33b802c99ab","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":46,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"ea17fc52-2c8e-4c3d-b538-b530a32dd088","block_type":"box","text":"common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of","page_number":46,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"a8d85eb1-ec6c-4bf0-918a-b3efb5ebe9a1","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":46,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"dfee9daf-f353-4d3c-8f69-c97f3e3e2188","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":46,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"76343f6f-b3c9-4f4a-b6ec-8bfba972bf98","block_type":"box","text":"possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on","page_number":46,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"12ecaf6a-db1c-45a4-97f1-08cbc0a935bc","block_type":"box","text":"a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund","page_number":46,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"f0385f2e-43d7-4032-848c-4012cb5abe62","block_type":"box","text":"purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%","page_number":46,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"5dc375f6-da07-4bc9-9fa3-f4f5cb884c83","block_type":"box","text":"semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010","page_number":46,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"fb80eed4-07cd-4c25-a419-f2b9957b2819","block_type":"box","text":"and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half","page_number":46,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"bff3973a-a704-4653-9335-12c6a1ee629f","block_type":"box","text":"of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030","page_number":46,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"f11802c2-8bc0-4626-a194-3107d1031382","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":46,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"01226fa7-c0b4-41c0-ba8c-aac4eb54df03","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":46,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"e1072ab7-ece9-428e-881e-c8d0b4c16fd3","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":46,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"d9b11bac-17d0-440b-b60f-6c93ac872efd","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":46,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"ebac7550-444b-439d-b0ed-e38b35241515","block_type":"box","text":"guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the","page_number":46,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"15742ad4-e7a8-44e8-ab4b-760baf6368a9","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":46,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"41444804-e2c7-428c-9ad2-964a695562c0","block_type":"box","text":"inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided,","page_number":46,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"46b21f21-44c8-4a57-8e74-2a3c1b14bf7c","block_type":"box","text":"II-9","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"54571e7f-c8bb-4462-b4a8-e13abd6fa5b0","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2805ba97-b12f-4ac5-8694-d94d49969b00","block_type":"box","text":"the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the","page_number":47,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"5fcfe536-9ce1-400b-99f0-59caf3800491","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":47,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"beebcac9-9601-4994-88ea-92ca0ef88866","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":47,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"9b3d5999-3f8f-4b8f-be53-6c38029a03d3","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real","page_number":47,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"b7ea9550-c35d-40da-ae0d-0c6a0260aef9","block_type":"box","text":"interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore,","page_number":47,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"f3bdac97-00de-4ec3-9e0b-033c6c362161","block_type":"box","text":"if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an","page_number":47,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"098cdbaf-268a-4722-9642-4cb278f30bb0","block_type":"box","text":"increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than","page_number":47,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"120a9479-c94d-4eac-aa67-5dd2c9323431","block_type":"box","text":"inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no","page_number":47,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"f326826a-b548-44ce-82cc-809cb73d1d2d","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":47,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"060a049e-bc74-4e46-9d2a-d5943932f50c","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":47,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"781aa3cf-cdcd-4818-9bf9-b0c09006c4a9","block_type":"box","text":"inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to","page_number":47,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"3584c8be-28c0-410d-a4da-3a79e43ed56e","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":47,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"7d93520f-4853-47d5-ac2e-c9295af9c981","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":47,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"cb83e84a-a910-4fbe-a3a7-65633a744dd4","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":47,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"3ad234cc-0486-4718-856e-b43cb50cac08","block_type":"box","text":"Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor","page_number":47,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"2f729221-136d-434a-ab9f-43074f117977","block_type":"box","text":"Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing,","page_number":47,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"9fef94c1-38ba-4aa4-a1ec-565753db3f6d","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":47,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"a6fc4f28-c8b1-44b4-a7a9-80c1d76689e8","block_type":"box","text":"reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any","page_number":47,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"aa3f07b4-1e1f-44be-a085-0fa23d9f25da","block_type":"box","text":"foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover,","page_number":47,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"87d25f12-4268-4759-a5d4-556fb3bccd57","block_type":"box","text":"there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":47,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"f684f5f5-180d-4614-a16d-aea20c5f3966","block_type":"box","text":"United States.","page_number":47,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"4f9e0105-84e7-468b-8f90-56257240eb54","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":47,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"ac5fb497-6b6a-4cd7-8253-4b9e9efe1f5f","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":47,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"f0e1c80b-a88e-4863-a5da-170b99e094dd","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":47,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"5acbfab4-a82c-4eba-8e95-18c321d7bb7d","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":47,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"9546f977-5fc5-44e6-8a96-0e51231ee784","block_type":"box","text":"securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent quality by a Fund’s","page_number":47,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"46703b0a-3cd3-4d09-8ef0-3826dfff5a19","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":47,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"1c25bc69-686e-4b81-8975-1e3fbad8ec88","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":47,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"f86fc58f-dc49-4927-88ee-6768ebaf9b9a","block_type":"box","text":"i.e.","page_number":47,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"9b717e3a-113d-4ade-a226-5f8637bf8efa","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":47,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"d92c99f1-7f92-4bd1-9fed-e3ee64a72bf6","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":47,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"cdf2f680-a26a-4a63-b286-16f8e4691cab","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":47,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"541c1939-9611-4a51-8fc0-6d48f9fb8614","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":47,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"d034e086-1391-447a-aa54-7d966cb149a0","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":47,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"db543463-42f4-4084-8d2a-c240ba64540b","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":47,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"00d6f676-24c0-4155-9a65-254f199e04c7","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":47,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"38039f76-bb16-4dc8-8dc2-e3644ab697a9","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":47,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"45b4805d-4c70-4641-89d1-a0798cf914dd","block_type":"box","text":"“junk bonds” are debt securities that are rated below investment grade by the major rating agencies or are securities","page_number":47,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"951957a6-1d35-4a9d-a5ab-03880d774e32","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":47,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"76e370bd-037f-4d88-a084-d598fdc26907","block_type":"box","text":"for gain, non-investment grade debt securities may be subject to greater risks than securities which have higher credit","page_number":47,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"9a87b3f6-e663-43af-86ac-b2a47007c94b","block_type":"box","text":"ratings, including a high risk of default, and their yields will fluctuate over time. High yield securities will generally be","page_number":47,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"dc087317-d0a1-4e06-a3d8-0c96046f0afa","block_type":"box","text":"in the lower rating categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P)","page_number":47,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"3e81f293-22fe-44d5-9cdd-25793fcdd6d2","block_type":"box","text":"or will be non-rated. The credit rating of a high yield security does not necessarily address its market value risk, and","page_number":47,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"b0f27c1e-4ee6-4734-a516-42a5a68c1fc4","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":47,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"039c5f72-3b02-4afd-bfa3-e41238aaead8","block_type":"box","text":"condition. High yield securities are considered to be speculative with respect to the capacity of the issuer to timely","page_number":47,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"12d453ba-03f3-450e-b8b1-89910190b34a","block_type":"box","text":"repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit","page_number":47,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"9f43e5c9-ca83-4984-b967-07b335cadf5a","block_type":"box","text":"risk than higher rated securities.","page_number":47,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"f500a6be-7416-4927-b7fb-2a980c6d69d5","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":47,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"1aae26be-90af-4a6a-887f-2cf34bc16d30","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"1431d9dc-f9d0-4ccb-8611-9d555fa2e487","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":47,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"855c23bd-1f63-48b3-8b75-d04ec5d40977","block_type":"box","text":"in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their","page_number":47,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"a50b82cc-8a24-499f-8040-a441e2dc0d55","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":47,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"c86e889d-adfb-4b4a-abe5-da75b5000167","block_type":"box","text":"unavailability of additional financing.","page_number":47,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"b31e5d22-5bd6-4f4e-8519-212a2397e592","block_type":"box","text":"•","page_number":47,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"6b5a59ad-70d6-477a-9384-e45476715da0","block_type":"box","text":"The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of","page_number":47,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"b317bb4e-32d3-4973-824d-a59206877c94","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":47,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"2fe2a29c-9cf5-44e5-b2f5-a90d8de4e260","block_type":"box","text":"The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the","page_number":47,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"35cbe56d-18e7-476b-8423-387dcfc995a7","block_type":"box","text":"II-10","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8bcdd002-feaf-454c-a976-f92e8489a974","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9a9b801e-2cd6-4a8d-bdf0-33859d7d5fd0","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":48,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"c13e983b-2ff7-4e01-99af-8e193c4267aa","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":48,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"542e4510-067e-4fd9-8872-ffeae1f6f932","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"b580fab0-3d4f-4ed4-92db-4510b16a6f33","block_type":"box","text":"Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the","page_number":48,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"bf2b9626-d518-4f50-9203-448f46a2019d","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":48,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"73557611-ade2-40ac-a6ef-47f0668808a5","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":48,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"a592f9ff-4ca4-42f6-b9a2-88b13f22d579","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":48,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"70918a73-8713-43b3-896f-d268ea0ed4fe","block_type":"box","text":"investors in higher rated securities.","page_number":48,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"6017ea11-b57c-4741-abd6-feb6bcc747d4","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"38fe3a6f-5d70-4581-84dc-95303cd8b5e4","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":48,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"e7f29efb-35d6-4b29-8a2e-a77229c40e7a","block_type":"box","text":"before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with","page_number":48,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"c44ebcc3-a460-4623-a689-9414e7ac1f02","block_type":"box","text":"lower yields and may lose income.","page_number":48,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"19feaa45-b2d5-4869-9948-36f4c48c3ff9","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"b7cefc40-9661-4167-bcba-0c94e913286c","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":48,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"03806184-2e20-40d3-a626-ea0f8bdb8308","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":48,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"32446f41-e812-4d1d-b9cb-c46ef01f1827","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"74ae195a-32ca-4583-a8fd-b8686c783e76","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":48,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"996e5abe-9436-4303-9823-2849e5a1a4d5","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":48,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"31d7636e-02d2-40bc-a1df-1575230750f0","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk","page_number":48,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"eab438b7-227c-4b7f-b7fb-adb3602dc736","block_type":"box","text":"bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and","page_number":48,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"bca04b92-3043-43ae-8a40-cee7c83cbae3","block_type":"box","text":"such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less","page_number":48,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"59d39931-48ab-4817-9467-55c7d321b468","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":48,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"ecdcecf7-45f5-4cac-9e6e-e37ec39e9bf2","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":48,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"3a392bf3-f62f-4742-9e62-efa9f0dbb8a8","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"1cbe0569-d39e-4d69-a04f-d379ff7692b5","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":48,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"247ba1ca-c448-4aae-95d8-ffef025a3cfe","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":48,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"d5915ceb-6677-40aa-ae77-2799c364c910","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":48,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"825139bd-baa7-4144-8e82-9e61dec69cf6","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":48,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"9663f76e-5df0-482c-ba2a-f65ba6ffa032","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":48,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"cfd3bcc6-3891-4723-a844-630db9f371af","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":48,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"8ecc8cb2-10c5-4712-8d87-8c4f5fad5a8f","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":48,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"2e83934e-f418-4978-b1f7-40320c904820","block_type":"box","text":"due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely","page_number":48,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"39e9ac82-5b71-4af1-8673-c2b09678165e","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":48,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"7867d757-ae93-4a08-b210-f14f2c5dbc25","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":48,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"95793d06-3785-474c-9081-104734d3d1ae","block_type":"box","text":"on high yield securities are available only from a limited number of dealers, and such quotations may not be the","page_number":48,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"2c087f20-08d6-4ef9-9a79-577491b44077","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":48,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"907663e0-d74e-4608-a030-493fedd089fc","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":48,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"e79469e6-104e-4a95-ad62-959277218232","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":48,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"b4e4418a-4a50-488b-8c5b-fe877e36947a","block_type":"box","text":"role in determining such valuations.","page_number":48,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"12ba8fa0-b45b-40fe-b9d4-b15462234206","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"4ab47e5b-b7eb-49b8-9470-e6083f80dbbb","block_type":"box","text":"A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with","page_number":48,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"94f00863-d2f1-4e7f-a73f-b8e6d7664e55","block_type":"box","text":"a defaulting issuer.","page_number":48,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"a5e83bee-8934-4550-afd3-9c8f94ea1167","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"3a3c5c42-e454-4ddd-a334-3339c327c1e2","block_type":"box","text":"The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception","page_number":48,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"f3eb6edc-c677-439a-bd20-3db50cbba4e6","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":48,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"7eb62b68-7766-4273-bf29-8cf202c766db","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":48,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"2c96b76c-7bc3-43e5-bb60-7f2fe7a2b1f7","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":48,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"89a16fa5-0944-4da9-8020-ec31ce932a26","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":48,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"f9f913a8-0f7d-4cc7-a56b-0e2a6d903834","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":48,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"7ad4e15c-ae95-4e8c-89cc-9d24ca66383f","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":48,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"46439f60-99fb-42ed-b35d-209ca833cccb","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":48,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"d9d48ce1-5436-441a-8b56-45944e3ea1db","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"6e895d8d-c903-477a-a209-cbd23a1fa4f8","block_type":"box","text":"The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non","page_number":48,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"8caf9e31-bdcd-4731-91f6-5062ae5efcae","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":48,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"f3539a31-cab3-44b8-bb96-6a8b3215aa9d","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":48,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"ab492809-79f4-4350-94e2-a3efce4a456b","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":48,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"42aa8ef0-92f4-48aa-91d5-f6e53d172de2","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":48,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"fbe03c56-ae2d-4601-a0c9-e3bdc09780ce","block_type":"box","text":"depend more on the Manager’s or sub-adviser’s own credit analysis than in the case of mutual funds investing in","page_number":48,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"c1cbac46-eb60-408a-9783-c59b49fb8599","block_type":"box","text":"higher-rated securities.","page_number":48,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"573426f4-ae1c-4bb6-a279-2b83858cd8cb","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":48,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"9df4d74b-a5f6-46ea-8bb8-115d56e53411","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":48,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"481adeab-f6b2-46fc-a8c6-e60351c0bac4","block_type":"box","text":"the securities and the diversity of the Fund. The Manager or sub-adviser continuously monitors the issuers of non","page_number":48,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"b59de563-0ac4-482f-b62b-dfb546246366","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":48,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"32421996-24ee-43c3-b256-2698943204c8","block_type":"box","text":"II-11","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0feb0ac8-fdf9-4e38-be69-6c55c07984cb","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"66201ee6-7565-441f-85bc-244186675c84","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":49,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"835afe9c-a177-4c04-a7a7-dacde5053478","block_type":"box","text":"is reduced below the minimum credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will","page_number":49,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"cdbc078e-554e-4898-9483-5313baba085f","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":49,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"21226b27-f928-4bfa-aafb-fc5900718c3d","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":49,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"bb86a831-74b8-4dac-8d98-3dc6e1a3ce8a","block_type":"box","text":"the Fund could be forced to sell its holdings without regard to the investment merits, thereby decreasing the assets","page_number":49,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"80b2f004-3a89-4249-be41-356a3e3fe3af","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":49,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"c8e9145c-ff90-442d-ae0e-496c769e03ca","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":49,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"c684f42b-f119-462d-8602-1e55fa08349a","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":49,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"64813de5-34e9-4d2e-92b2-2125e72e0da3","block_type":"box","text":"Mezzanine Investments.","page_number":49,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"41716387-d386-47a5-97a8-ef347e0539ed","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":49,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"598d17ea-a54f-48b2-8876-c193fecc8b56","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":49,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"8de35adc-961b-42e4-be44-98fbb3da6e2e","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":49,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"919d70a5-1bb2-4c5d-a49c-a6955816de45","block_type":"box","text":"e.g.","page_number":49,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"b215d193-7df6-472e-becf-591e95617c8b","block_type":"box","text":", with","page_number":49,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"3cf25345-9ead-4186-bb8d-24092a37c81f","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":49,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"d37a9352-0459-47e9-9259-c5e837af550b","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":49,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"4d23196f-30a5-4696-8e30-d7e6e5c8cf8a","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":49,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"dfe62e80-29e6-4105-80e6-b7df59cdd7f5","block_type":"box","text":"other obligations of the issuer.","page_number":49,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"98fd1653-2bea-46ed-9a4b-bc6795733cb4","block_type":"box","text":"Pay-in-kind Bonds.","page_number":49,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"7f8ccaba-8e41-484f-a610-af73066bf1b5","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":49,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"449a0217-6aa5-46b3-bcfa-d3f7ff2b8a0d","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":49,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"017dcd06-9004-49f0-98ae-0722c13075a1","block_type":"box","text":"bonds also carry additional risk as holders of these types of securities realize no cash until the cash payment date","page_number":49,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"7dd889b3-7509-4a10-a4db-df99d9ec88a7","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":49,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"9e78812e-ddc4-44b4-848a-8f937cf8fe4a","block_type":"box","text":"investment. The market price of pay-in-kind bonds is affected by interest rate changes to a greater extent, and","page_number":49,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"2bf2c17f-5874-4427-9f7c-16cc5662fabc","block_type":"box","text":"therefore tends to be more volatile, than that of securities which pay interest in cash. Additionally, current U.S.","page_number":49,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"6b097987-de8f-4ffc-9f17-5ec825445341","block_type":"box","text":"federal tax law requires the holder of pay-in-kind bonds to accrue income with respect to these securities prior to the","page_number":49,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"f2105823-735f-4d03-90e0-cd3e289d1c16","block_type":"box","text":"receipt of cash payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":49,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"c4ee3b36-7fc9-4579-97c6-79afc44cf236","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":49,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"1d05ca87-1574-45ab-b32a-dfeeb1190fc9","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":49,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"1fe205cb-d3b5-4022-8791-384b9efb99a9","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":49,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"d1ace05a-8b9d-47d6-b8d0-fc464d08ea9a","block_type":"box","text":"Supranational Entities.","page_number":49,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"576b5e4b-5776-4e27-876a-eee44a507137","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":49,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"ae08c9b4-7924-43bc-9c3b-9945d3f81059","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":49,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"927fd4a6-4933-4db9-a937-a9159ea993dc","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":49,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"3f968291-9447-4729-bb9a-0baecaeb1442","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":49,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"0ab5762b-7d6b-407f-85cd-825a457c6720","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":49,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"e054fe3a-53c5-43dc-ab66-05887f73bce2","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":49,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"4c29ddd3-37e5-453a-af68-0a1f405d614e","block_type":"box","text":"additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay","page_number":49,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"429d4e1f-2051-4f9d-9f44-9df7ce2ca4f3","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":49,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"d266662e-4e8d-4ee5-ad46-87104226815e","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":49,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"5825e771-d67d-40da-a60e-34c58b755c57","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":49,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"84e26622-c3f9-44b7-a379-50e750465f9e","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":49,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"fbb4bde4-689e-45a0-848e-58f0149a6950","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":49,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"02a57490-e95a-43e5-9033-3fb2668ba377","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":49,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"5358b259-7e72-467f-8796-9a1fd2a9bc0f","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":49,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"70542c56-442d-4d0e-ba95-2fd1e553d729","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":49,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"aa2e9d34-414c-400b-8f50-d888561a84fa","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":49,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"ef80a087-6e74-4f65-9cb4-f4e6d9b37fc4","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":49,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"010c983d-13fb-4e6f-837e-2856ad4e561c","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":49,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"04333bee-34e4-4469-bbab-adca424ed268","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":49,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"9568935b-677f-45de-bec0-04a71a066f1b","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":49,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"7c1e5e93-f317-432d-8ce2-09224dc33f7c","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":49,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"d0301668-ec57-4bec-a6a6-860fc511a5ad","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":49,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"ad026c63-8593-49e8-abad-e5f429cdfeec","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":49,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"59c40849-be99-45e0-a648-f8a71f555c73","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":49,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"f8da2764-65a9-48b5-8031-a01a23208fb0","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":49,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"5b025d8a-bc58-4c86-b224-d31efdc21cfd","block_type":"box","text":"Available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the","page_number":49,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"ac66a88f-3b59-4111-9a96-e0a91689f266","block_type":"box","text":"prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the","page_number":49,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"595ce47d-abd8-47cf-b357-75a72c741d04","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":49,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"edd5cc94-db0a-4059-b8cb-3424e5bd8f8a","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":49,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"95f043e3-5550-48cb-b7dd-78e2b86baf67","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":49,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"8bec003d-9f18-421d-8140-c7b9ab0c14fe","block_type":"box","text":"II-12","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"99bfa5ea-53b1-41b2-a1d1-30aa55e144d2","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1ae6489c-a1d5-4eee-8258-4b2ca3ef8524","block_type":"box","text":"Derivatives.","page_number":50,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"2a972e38-04d5-4a1d-bd2b-0ac0b0114f48","block_type":"box","text":"General.","page_number":50,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"7f4aba6b-3106-41ce-ba32-bc013ac46960","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":50,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"9f554640-7d3c-4517-ab9e-6eb2d4cbce1e","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":50,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"84de86a4-90bd-4423-bda8-dd388bfae73a","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":50,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"110a34ef-3dd1-47ce-b8a3-092020d40229","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":50,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"60d4007b-6f47-4b8a-9b19-538f60d1517e","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":50,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"b00e0679-219d-4baf-8726-5dd280bc8928","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":50,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"69397b98-ab49-4a82-919a-6a0fd2c20a81","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":50,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"08f88c70-4778-4555-9abf-3b1fe6ded76f","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":50,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"e4bbfd5d-bc47-4e6f-96ab-fd6240881b18","block_type":"box","text":"i.e.","page_number":50,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"e5383e77-1a33-4a2c-9334-a97316e33828","block_type":"box","text":", the payment","page_number":50,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"47807bc2-ccab-49bc-b027-8beec15e736d","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":50,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"ff08925b-52e1-43ef-9d2a-a7337a81c41d","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":50,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"bbcff0f9-f91a-479f-be7c-904070f31d8f","block_type":"box","text":"Hedging.","page_number":50,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"e8c7142b-f0f9-4b76-aef8-b175049d4a8c","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":50,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"6492c518-cd52-48b6-b6ae-0471badf13e6","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":50,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"f8abc078-b3e8-4d65-91b8-5c77c6a77413","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":50,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"01e6e76d-2879-44c8-8950-c7fc236dd0d9","block_type":"box","text":"reduce or eliminate gains. In addition, hedging may cause losses if the market moves in an unanticipated manner, or","page_number":50,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"8afb63cc-20b8-4bf3-8733-933aea497224","block_type":"box","text":"if the cost of the derivative outweighs the benefit of the hedge. The effectiveness of hedging may be reduced by","page_number":50,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"64a60ce7-b3e1-4e26-860f-24bed83d28eb","block_type":"box","text":"correlation risk,","page_number":50,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"b8e37371-cea8-465e-9eca-7fd5f77bffaa","block_type":"box","text":"i.e.","page_number":50,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"033849c3-f686-4058-86f0-1f9e6f2c94a2","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":50,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"1111ec69-b6f6-45e5-9090-3b0942b746e1","block_type":"box","text":"hedged as expected by a Fund, which may result in additional losses to the Fund. The inability to close or offset","page_number":50,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"3cd738d9-03ad-400c-92b1-a73b39afe5d3","block_type":"box","text":"derivatives could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging will","page_number":50,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"5c782055-8bdc-4bfe-940e-b7e97e7619a7","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":50,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"65ace99b-2763-4c79-bf77-3d5965cec892","block_type":"box","text":"Speculation.","page_number":50,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"6a504cef-f87c-460f-85ab-2d919101bc26","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":50,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"bd3f62f6-03ab-4996-978a-625aa6ce3a21","block_type":"box","text":"use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather than offset the risk of other","page_number":50,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"f80cd05a-f0cc-4d92-ba0e-4f928e325423","block_type":"box","text":"positions. To the extent a Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the","page_number":50,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"a57685ae-0887-4b49-9667-97408fef7a33","block_type":"box","text":"risks of loss of that derivative, which may sometimes be greater than the derivative’s cost, and the potential for loss","page_number":50,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"505e7541-beb2-404c-a28c-047b85940ef3","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":50,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"ea9e9c71-32dd-46eb-9429-0ff0a9211ee3","block_type":"box","text":"Regulation of Derivatives.","page_number":50,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"8c758f94-e58a-4662-8064-a367bb1cb947","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":50,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"4ade18cd-4be1-41bf-a9ef-d1edf70e7bc8","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":50,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"abed6037-196b-434e-baac-73dbdc37d8f4","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":50,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"80cfef7f-07da-4de3-af06-cda0c48d1e2f","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":50,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"6374bd6e-83a9-4a2b-87f3-550eec7bc2b8","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":50,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"01dabc85-4f53-4b59-9f01-dfc7f350d17a","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":50,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"6309b8de-9f25-417c-bb9b-bb91c666c33b","block_type":"box","text":"coverage”).","page_number":50,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"070fc2ba-82ee-4439-9cb1-e6359ee4ee08","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":50,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"8f9d7490-446b-4942-bfb6-ff21839157fa","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":50,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"d2e23113-052f-4353-bcde-8d111a364ab4","block_type":"box","text":"of the foregoing, or any similar instrument, under which a Fund is or may be required to make any payment or delivery","page_number":50,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"6cde125a-d734-4cc4-8310-3663288643a0","block_type":"box","text":"of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or","page_number":50,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"4aceb1fd-c198-4115-86a5-e19154ad88eb","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":50,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"8608b8a8-ca9e-4218-90eb-e02990fae2ba","block_type":"box","text":"financing transactions (","page_number":50,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"33e872f9-20a6-4433-a91f-6061ae508489","block_type":"box","text":"e.g.","page_number":50,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"5acb0a47-349d-40c9-be0a-520bf773a7f2","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":50,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"47f71ace-b6d7-41e1-a184-11dd58ba8b08","block_type":"box","text":"treat all of these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":50,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"3dfbe9a0-28c2-4b3c-9b7d-c3815bdc522b","block_type":"box","text":"securities (","page_number":50,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"1890e76e-1f93-4a2e-8900-38c2b1a3ecd6","block_type":"box","text":"e.g.","page_number":50,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"4fab29ca-809f-4000-a5b7-7a82b40a3afb","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":50,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"b1ccf318-9cdd-4de6-a378-f0c4f8a5006d","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":50,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"4cc20175-0c5e-47e6-aea5-d6603735bf4a","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":50,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"d29eb50f-d37a-4bf0-8663-310a63f97da1","block_type":"box","text":"Commitments”).","page_number":50,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"3e303c74-cffa-4699-83d2-b74323a7b35a","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with","page_number":50,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"e30cfe87-23b4-46c2-8546-de6d025108a5","block_type":"box","text":"Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a Fund to adopt and","page_number":50,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"2e855d0e-9e98-46e7-be77-22d7fef9b5ae","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":50,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"696e19dc-00bb-4bbc-9f6b-9c9f510e2bd0","block_type":"box","text":"absolute limit on Fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is administered by a","page_number":50,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"a0314f2b-7c69-4779-b867-e9a37581dbf7","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":50,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"68416864-917c-4fce-91f6-16bd1353e2c8","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":50,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"4095993d-04c2-4c80-bf85-b6c70c1a55ab","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":50,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"d7a3b7e1-9abd-483c-bbe5-805bd89d42fe","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund","page_number":50,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"27272b90-90ac-41a5-8882-2f909dc5cb98","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":50,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"190d79e6-90e5-43f9-96e1-e4a0bbcd47e8","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":50,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"3f067860-b176-4089-bbd2-78fdbac6a41b","block_type":"box","text":"II-13","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3fec8e79-4948-4ccf-8da9-1636da2916c6","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f63571b-0b18-4da3-bc99-291ac9cea536","block_type":"box","text":"Dodd-Frank Regulations.","page_number":51,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"902672ac-01c8-4616-aa2d-aee2c6759115","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":51,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"239116de-fa6d-4b09-989e-3680e427c2aa","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":51,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"c2a751b1-643d-45ac-82f3-57b4c1fae381","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":51,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"aba672b9-a2f2-46d5-8e00-e7559c720395","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":51,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"41d48513-5870-4ff6-8ce0-daa1bc5e3302","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":51,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"77410594-f17f-4558-a93b-cdd56a948349","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":51,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"53b20bae-aee8-4d84-a865-d6f7fadd173a","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":51,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"51e9a436-9097-459a-aa07-0526fb221c25","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":51,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"4fe87ab9-304d-4dac-8f8d-f04b54ce3811","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":51,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"c9f1364c-6aae-468b-b946-19673b52dc9f","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":51,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"8418381b-e02d-411a-bbff-76bb3d051efc","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":51,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"980fe8ab-bf1c-4cd6-9660-37f392f9ea8b","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":51,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"5153f86e-2920-4a3d-b567-dc3c47e23907","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":51,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"ddbb10bb-f949-4742-9e08-e6363774f905","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":51,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"4c37ea4f-dd22-4466-a2c2-9d9d14724807","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":51,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"be96073f-f1b0-49f1-b32c-9db1aabc35f0","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":51,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"46f432b4-b49f-48d9-88b6-64d0722a372a","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":51,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"159ce382-d0b8-4814-b9cb-3ccf6506be69","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":51,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"bd47bdac-9acd-49ea-9c5a-dd1a68437bcc","block_type":"box","text":"the FCM and the customer. These regulatory requirements may make it more difficult and costly for the Funds to","page_number":51,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"c08df627-11d0-43b2-8d25-94f80ef13ac4","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":51,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"571345b0-8004-4871-8bbe-332018ba2080","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":51,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"e0324121-ca1b-412d-9acc-cf8c3ee105a5","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":51,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"3f29b723-0f88-44ed-a4e2-d515fc503ba6","block_type":"box","text":"member FCM or as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":51,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"68f2b1d1-81b7-4a05-babc-b9469096470f","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":51,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"38227d83-1b6e-43d1-b98d-b23c6af11dff","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not face a","page_number":51,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"95b5f727-2236-46f6-abc1-8153db9c71ef","block_type":"box","text":"clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/or SEC and that acts","page_number":51,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"699c2ab9-df0d-4889-b2b7-88c3df3efd66","block_type":"box","text":"as a clearing member. A Fund may face the indirect risk of the failure of another clearing member customer to meet","page_number":51,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"c261361d-9dec-47b8-89aa-82920e0756a8","block_type":"box","text":"its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its","page_number":51,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"bad7c4a6-665d-4b72-a4b9-221c3c8189ce","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":51,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"4e00ffe4-3de9-4669-8d3e-59a01a101fd0","block_type":"box","text":"member.","page_number":51,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"fe0d388b-80e5-44a9-9eff-5fea84da13f8","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":51,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"e2111b56-1669-4b7e-862b-99e05fd604b6","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":51,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"92aca4f0-4b1e-4c8f-9236-6c11686cc54b","block_type":"box","text":"was widely permitted for OTC derivatives before Dodd-Frank. While an FCM may require its customer to post initial","page_number":51,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"6cd7c317-2201-4472-a8de-7f78a35aec82","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":51,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"345e3170-24cb-462d-9888-ecf2318e66c9","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":51,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"3e5c2605-9905-4ce8-9cc5-44ac50e7fb36","block_type":"box","text":"clearinghouse does not generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on","page_number":51,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"072e36b7-ed57-4b7f-bf75-01295d81c7b2","block_type":"box","text":"initial margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives may cause","page_number":51,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"20d28da7-51ac-4525-99a0-809bf4c2bf95","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":51,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"1b5ecd3c-de69-4cff-a1ce-f2a24de1aee1","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":51,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"e01447c0-72e6-4035-ba9e-5542200e56cf","block_type":"box","text":"payable to FCMs with respect to cleared OTC derivatives, which may raise the cost to Funds of clearing as compared","page_number":51,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"ce9fa776-ed29-431e-8dc2-78b372de78c0","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":51,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"c056e3a1-82ce-4c7b-986a-243b4e53c3ba","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":51,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"e69d7935-a646-4769-bd43-18f6bed2f058","block_type":"box","text":"exchange variation margin with a Fund and may be required by applicable regulations to collect (and in some cases","page_number":51,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"895d08ad-7798-44e5-94bb-f5f16286076c","block_type":"box","text":"exchange) initial margin with a Fund. Both initial and variation margin may be comprised of cash and/or securities,","page_number":51,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"42be8cc5-368e-4919-a178-d9365bca4dd8","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":51,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"add75ea2-f187-4ea7-b9f4-87733790bc67","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":51,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"e7bf8989-b061-4f61-9d0e-763609012848","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":51,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"2124dca4-ef51-4159-be5b-342fae5b8c77","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":51,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"39031592-d482-4db7-b178-aa6ce1d80c36","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":51,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"840c2df1-d7c7-4f64-9737-c7899d8bedd1","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":51,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"1676f926-3718-4e24-bdad-39780f99bb8b","block_type":"box","text":"commodities. All positions owned or controlled by the same person or entity, even if in different accounts, must be","page_number":51,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"dc99e050-bc1f-4f58-bc3c-a0784a40de17","block_type":"box","text":"aggregated for purposes of complying with the speculative limits. Thus, even if a Fund does not intend to exceed","page_number":51,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"6fd41156-fd94-4c0f-8030-ea3ab1a2bf15","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":51,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"252fd138-6163-439a-804e-a44bf7a0705a","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":51,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"53abdc11-349b-4008-955b-24a65e6b8877","block_type":"box","text":"held by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions or the","page_number":51,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"b89cafae-a5bf-495a-b353-ab7c335c34d6","block_type":"box","text":"II-14","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"17d7ce68-7373-4e62-9279-e7dbaacadd61","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f76e829-b01c-418d-88f7-30597e2228c2","block_type":"box","text":"elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A violation of position limits","page_number":52,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"03ce4841-b47c-4646-9407-c28347aec492","block_type":"box","text":"could also lead to regulatory action materially adverse to a Fund’s investment strategy. A Fund may also be affected","page_number":52,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"b866d8fd-706d-4da7-89e1-278ac041d27e","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":52,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"3398639e-7608-4f68-9ab4-b319fc79d2bb","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":52,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"42184d53-b683-4e5f-aac9-707caa5e9920","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":52,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"0adfe4d2-e9d9-499d-a625-b943fe063b61","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":52,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"7b99907a-23be-452c-a561-65d16dcfd35d","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":52,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"70724e10-4e61-4402-9355-f52fe2605ba3","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":52,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"2ae930c4-b334-4c4c-8aff-0f537e3017c0","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":52,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"21f8fce3-f9a4-432d-bcbd-0d089edfb487","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":52,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"2711180d-0d88-47f5-9102-ca942f529135","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":52,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"2fc69bd4-b322-437e-9d3f-10308caa177f","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":52,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"5bea4244-9dc4-4715-8142-dc55f14543f4","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":52,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"65f0de73-c455-44e6-83b4-593946c6680b","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":52,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"4b69349c-d477-4bcf-beac-28c54d233555","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":52,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"fbbe7af0-072b-4ea6-9fac-2762a74b4462","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":52,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"258496cc-31cb-466a-91f6-b9470a60934f","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":52,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"c2e58ec7-5ac7-4033-892c-689c3766ab26","block_type":"box","text":"Member States to apply position limits to the size of a net position a person can hold at any time in commodity","page_number":52,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"de2d3002-ccaf-46ef-9335-ff5d2b2a8cbb","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":52,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"fe75c3b9-a9bf-4425-b270-48a280f6d72a","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":52,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"fc1c1c3f-03d1-4753-9b12-c43dbd4e1926","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":52,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"6f59dbe4-ef5c-4372-bd1b-7a7662f55447","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":52,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"02507928-9e04-4724-b873-5cb0cef432f2","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":52,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"5ad6d476-2115-4a2e-8e67-921c25cf1677","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":52,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"fea914cc-1787-4694-a698-96e36812dc87","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":52,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"c7285414-5cae-419b-ac88-3ed97a409b34","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":52,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"59b4b1e2-4f83-46d3-8b80-246115acc4a5","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":52,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"cfcee419-f91e-460f-9026-78073cf1daa3","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":52,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"56e463df-5eae-4935-8353-c6934d81727e","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":52,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"cfb2616c-83eb-45bb-a40b-21f03607b3f4","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":52,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"40bc54d8-7a06-4977-b631-6e573ea946ac","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":52,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"bc882f86-7bf7-4ae9-9e53-b6c2f46ca7a3","block_type":"box","text":"collateral received under such contracts.","page_number":52,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"8f9cc0b0-aeff-4658-9361-0f067533384a","block_type":"box","text":"Risk Factors in Derivatives.","page_number":52,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"bce5ac0b-a4a3-425f-97ff-5281809e0532","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":52,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"18322075-3cd1-46cf-aadd-5926786a8f33","block_type":"box","text":"Correlation Risk","page_number":52,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"02fc0470-6974-4d31-b03e-3165383dcced","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the value of","page_number":52,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"b5e936b1-3c02-4d31-bed5-d486d3186575","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":52,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"d9b6ff6c-ac64-43fa-8b97-a1e02c4ef951","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":52,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"a042efce-913d-485e-8711-8c03be7d5ca8","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":52,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"191a8c6d-ee99-473f-ac43-5fd4c3737f43","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":52,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"1c537959-d36f-4a0a-a76f-d35173dae118","block_type":"box","text":"Counterpar ty Risk","page_number":52,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"77449b48-2919-43c3-8d09-52b3d8ec5958","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":52,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"1b58af8a-d071-4056-ac8f-ef2ff3fc09df","block_type":"box","text":"payments or otherwise honor its obligations to a Fund and the related risks of having concentrated exposure to such","page_number":52,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"01465d2a-ea83-44bc-918f-b9f9b1022bba","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":52,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"f40c07d6-3248-483d-ad70-1bfbdca372a3","block_type":"box","text":"corporation and often do not require payment of margin, and to the extent that the Fund has unrealized gains in such","page_number":52,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"bd6451c6-ffd1-45b8-a7c4-ec410e0849ea","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":52,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"e9253ae5-8046-4641-a67f-bc92fb4bbb25","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":52,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"bb7e0cdb-40dc-451e-a825-6a71d61b80ce","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":52,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"c6df00f0-85ae-4da4-9086-9e197bc5b10f","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":52,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"597bbf83-2a8a-4b87-b45c-6d51b6173ed0","block_type":"box","text":"transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is subject to the credit risk of the","page_number":52,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"bd0f4762-79e2-49b9-965f-acd526df0571","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":52,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"e96bb5e1-73f9-4a71-8e3c-0e53c2e2131a","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":52,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"ffe27634-dafb-4f67-842b-2a13c7189efb","block_type":"box","text":"clearing members. It is not clear how an insolvency proceeding of a clearing house would be conducted and what","page_number":52,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"73c83809-e795-4f72-95ba-f974826f1032","block_type":"box","text":"impact an insolvency of a clearing house would have on the financial system. Also, a Fund will not be fully protected","page_number":52,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"05581bcd-b58b-4b61-a104-bec56deac814","block_type":"box","text":"in the event of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":52,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"e8e6ffe2-2920-4fd5-8486-25b3b85d0039","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for cleared","page_number":52,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"d89c7492-3a89-4895-a24b-b10a97de392c","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":52,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"a9f9a285-5636-4090-bbb4-cb53c1764caf","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":52,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"0233adab-8545-4946-8879-49c3891f4df0","block_type":"box","text":"II-15","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"924ef35f-93b7-4036-a485-41d66a822b08","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb637ac5-2fe9-4987-aaad-edc5dbaf4a3a","block_type":"box","text":"applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing member, a Fund","page_number":53,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"bd5cb09e-65fe-4881-8157-238df575033d","block_type":"box","text":"could have only an unsecured creditor claim in an insolvency of the clearing member with respect to the assets held","page_number":53,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"c4a45653-4c39-4be3-a0f7-85a3650c3046","block_type":"box","text":"by the clearing member.","page_number":53,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"a17fbfe1-e055-4d58-88e6-03101ffc2dfe","block_type":"box","text":"Credit Risk","page_number":53,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"7220e1bd-08af-4873-9a99-624cb9eb2c09","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be able to","page_number":53,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"18ae2d2e-b0ab-4ed3-9c1e-dfcb7bce406c","block_type":"box","text":"honor its financial obligations.","page_number":53,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"91ebd848-1e5b-4e5d-8779-152ac0fea3a2","block_type":"box","text":"Currency Risk","page_number":53,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"e3c0aa01-0efa-433b-9fd6-1c9c18241014","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":53,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"3d8864de-888b-4f8e-8d64-719f3d6dc0ab","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":53,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"9af67e72-a016-4961-b85c-21471952a71e","block_type":"box","text":"Illiquidity Risk","page_number":53,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"1a37b775-c0de-4889-ae73-ee66ecef652b","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":53,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"4ba8a267-8e36-416a-bba0-b18b1cb88589","block_type":"box","text":"or at the price desired by a Fund in connection with payments of margin, collateral, or settlement payments. There","page_number":53,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"5ffb2e0c-8ed3-4650-aa44-6d95c62b91d1","block_type":"box","text":"can be no assurance that a Fund will be able to unwind or offset a derivative at its desired price, in a secondary","page_number":53,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"460a3a50-ebd3-4957-bb80-5e96c1206936","block_type":"box","text":"market or otherwise. It may, therefore, not be possible for the Fund to unwind its position in a derivative without","page_number":53,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"5aae214d-155b-46b1-bf7c-ab7ef5520e74","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":53,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"d2764727-47b3-4ee1-8636-ff2b98d5d5b2","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":53,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"c07a79f6-d782-462c-a145-f57279373891","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":53,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"4bf1be5c-ff0f-4330-aac6-d021e4f560c1","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which the Manager","page_number":53,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"4c7f29ac-6a8d-4b12-9a84-3c1de6c8f03a","block_type":"box","text":"anticipates the Fund can receive on each business day at least two independent bids or offers, unless a quotation","page_number":53,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"a59e4632-1fe2-4598-83c1-1ef4a979bf80","block_type":"box","text":"from only one dealer is available, in which case that dealer’s quotation may be used. The illiquidity of the derivatives","page_number":53,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"e690da21-749b-4bc5-8d31-9ef011889c5e","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":53,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"7cf650ec-f99b-497e-a3aa-2a3876b5a8d0","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":53,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"2028fb05-a086-406b-8791-b29b11c90faa","block_type":"box","text":"failures. In addition, the liquidity of a market in an exchange-traded derivative contract may be adversely affected by","page_number":53,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"8f44a657-e1dc-4197-b33a-f013ba6684de","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":53,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"c27c9af8-381d-4dcb-a8c8-53f81a9c0220","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may","page_number":53,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"9f5b46a9-233a-4ce6-b7ec-27807197bb2a","block_type":"box","text":"be entered into at a price beyond the limit, thus preventing the liquidation of open positions. Prices have in the past","page_number":53,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"f96ec5cd-d4da-4257-afc3-3cc270b24854","block_type":"box","text":"moved to the daily limit on a number of consecutive trading days with little to no trading. If it is not possible to close","page_number":53,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"ce3b01a8-b801-46a1-ba2a-1f2000bedc28","block_type":"box","text":"an open derivative position entered into by the Fund, the Fund would continue to be required to make daily cash","page_number":53,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"7a24eb9c-c070-40aa-9494-6d36b582ebc2","block_type":"box","text":"payments of variation margin in the event of adverse price movements. In such a situation, if the Fund has","page_number":53,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"1229efc8-08e7-4825-9dd1-5ca28e4e1cbf","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":53,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"9941200b-7def-4315-b0ec-614c9509e571","block_type":"box","text":"may be disadvantageous to do so.","page_number":53,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"a1b1221e-05c6-4069-8556-76cb8764b7f6","block_type":"box","text":"Index Risk","page_number":53,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"35cde1b9-2d1d-44d4-a5a3-251931a4c7f1","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":53,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"95f839e5-a8ff-487f-8391-bdb86239e549","block_type":"box","text":"with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a","page_number":53,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"370bdc6e-7e5e-42e1-b35f-7c9875d01274","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":53,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"8630cf8c-ecb0-413c-8e2d-e43b259a9cb9","block_type":"box","text":"Legal Risk","page_number":53,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"73368f6b-5e75-4620-bdbe-b8499461d735","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":53,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"3308cd17-a837-48e0-993f-1ee6418c2a18","block_type":"box","text":"or enforceability of a contract.","page_number":53,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"03c643ca-c581-4e9d-b81f-780d5bfe830b","block_type":"box","text":"Leverage Risk","page_number":53,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"c4212c66-f8c5-4bc3-9355-9d9b37682ebe","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":53,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"25218f7e-7a05-46e2-89f5-036606007e84","block_type":"box","text":"Relatively small market movements may result in large changes in the value of a derivatives position and can result","page_number":53,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"db0db98b-4f2a-4a66-a8c7-040b0da0aee8","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":53,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"8fb7aed2-c267-4b86-b537-fce3a94ac9bf","block_type":"box","text":"Market Risk","page_number":53,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"0859784a-354d-453a-b87d-77be1ea02f03","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to the value of","page_number":53,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"36c8b507-5e76-4842-8e23-56cb9a8968d9","block_type":"box","text":"the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, a Fund may","page_number":53,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"d949c597-db4f-451f-a6da-9da86f3aa7ae","block_type":"box","text":"be required to pay substantial additional margin to maintain its position or the Fund’s returns may be adversely","page_number":53,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"6c31187b-606b-424e-99b9-73a4ffb61976","block_type":"box","text":"affected.","page_number":53,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"ae703cd7-c8d6-44fa-b2c3-8f12ee5a66b5","block_type":"box","text":"Operational Risk","page_number":53,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"80bf0576-8f50-4a6f-b234-f225ee45fe31","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":53,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"a4fefe37-312f-4564-97eb-9577434679e7","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":53,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"9e8a30be-1497-4496-ba07-9b0e1b7d31e7","block_type":"box","text":"Valuation Risk","page_number":53,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"a21e9c67-9775-40fc-ad93-2196009e97b1","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":53,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"a4daf245-de93-4786-8467-e94d06521899","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":53,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"61c297cd-9f41-4941-90a9-d5f40a587ba8","block_type":"box","text":"complex instruments or quote prices for them.","page_number":53,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"dac6a417-714d-4157-800e-4ece7af3daf8","block_type":"box","text":"Volatility Risk","page_number":53,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"2ce39b94-8381-44df-8d72-36aea82090c2","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":53,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"58044696-edb5-402b-bff0-f1f08b4cbaf1","block_type":"box","text":"Types of Derivatives Transactions.","page_number":53,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"6253ed14-1229-407b-991b-0cfb01a0b943","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":53,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"7dca565a-5297-4afa-9080-79c3131f8651","block_type":"box","text":"including the following:","page_number":53,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"cfe19c31-a0c1-4781-9a25-66fdaa7026fe","block_type":"box","text":"Futures.","page_number":53,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"0527d9d9-411d-4126-b49f-0d67ee86d763","block_type":"box","text":"II-16","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"66271281-3a49-4f5a-b242-2585b384049e","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fd18299a-29b8-4e6e-aaf3-a8aac07668b9","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":54,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"462efce1-cb76-4510-97a4-2346fd980ce6","block_type":"box","text":"exchange-traded contracts that require a purchaser to take delivery, and a seller to make delivery, of a specified","page_number":54,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"f42e6c20-39fb-4957-adcc-cbe2656e3b9f","block_type":"box","text":"amount of an asset at a specified future date and price. Upon purchasing or selling a futures contract, a Fund is","page_number":54,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"4017dc3e-06a4-493e-957f-b0185b3ef856","block_type":"box","text":"required to deposit initial margin equal to a percentage of the contract value. Futures contracts are marked to market","page_number":54,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"50144735-b894-4af3-a2b0-d3b2a9f7e027","block_type":"box","text":"daily for the duration of the contract, and the Fund will either post additional margin or be entitled to a payment, as","page_number":54,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"2ce6c7f8-ded8-4005-baed-2705a61b1ea0","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":54,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"8cd7dbbf-504d-45ea-893a-06759111f7e3","block_type":"box","text":"A Fund may sell a futures contract prior to the completion of its term to limit its risk of loss from a decline in the","page_number":54,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"c8c6bfbe-d400-4c7c-a5b6-96f5faac3d27","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":54,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"f7f1e927-92e1-4546-a087-003aba25ea14","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":54,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"9f307a01-4fc3-493f-8001-239d4a9cb5ff","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":54,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"4c07852f-338b-4ef1-a0ff-cfd538ace8ae","block_type":"box","text":"of the futures contract.","page_number":54,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"c7caf51f-e83b-43d3-afac-d11e8dd654d4","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":54,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"2e9bb20d-ee99-49f0-8428-fa9719328db2","block_type":"box","text":"commodities directly. In the event that such securities or commodities decline in value or a Fund determines not to","page_number":54,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"a19e86fc-f1b6-4a21-bfb7-9ac6f89475c2","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":54,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"6c4d6e5e-47bd-48ea-a370-f01ce12dbbb9","block_type":"box","text":"relating to the futures position.","page_number":54,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"905be393-c4ef-42ef-8e6e-222941ff209b","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may be","page_number":54,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"6f5bb8ff-7d76-4e6c-8a79-f1f94c4ce284","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":54,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"d29dd5ea-92c2-41bb-8f76-8aa1028354ec","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":54,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"645fd83a-b44c-4dcb-88b5-bd83c4c3b0f9","block_type":"box","text":"Regulations” above.","page_number":54,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"08582b17-9dfd-4544-9f9d-6d12c5a18112","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including financial futures","page_number":54,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"d2a504f0-21dc-43f7-be62-57fc20d698ed","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":54,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"e0bb9a6f-6c72-43ad-8533-4ab3e2c17b1f","block_type":"box","text":"(","page_number":54,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"ad189c33-bded-454c-979f-656acddf480f","block_type":"box","text":"i.e.","page_number":54,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"eba19801-cb88-4118-b8af-42f658b98377","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":54,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"d7fd1e7d-7d61-464a-8f32-f51266ab71cf","block_type":"box","text":"may purchase put options or write call options on futures contracts and stock indices in lieu of selling the underlying","page_number":54,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"56ec88a7-a71b-4cd8-8f43-8edb07ce092e","block_type":"box","text":"futures contract in anticipation of a decrease in the market value of its securities. Similarly, a Fund can purchase call","page_number":54,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"6144980d-a43a-47bb-97fe-4eec1672ea4e","block_type":"box","text":"options, or write put options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":54,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"bcf79aef-c42e-4442-90b7-8d06163e90d0","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of securities which the","page_number":54,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"7dda9bb5-a4a7-47eb-8a71-1663e1c82034","block_type":"box","text":"Fund intends to purchase.","page_number":54,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"507d0b88-6a45-4495-bcc4-4e443d01c2d0","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":54,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"82c63de1-d62a-429d-af60-a7369cee5e50","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":54,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"4fb9f642-facf-4b5b-8391-b4d0367dfbbd","block_type":"box","text":"determined by reference to the value of a security, an index of securities or a commodity at a future point in time. The","page_number":54,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"0f36cd11-fc97-424d-b55a-0399b9bd0fdb","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":54,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"c7211fdd-d0f3-4ff9-b54d-760f06730fd1","block_type":"box","text":"illiquidity.","page_number":54,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"87f98325-718e-4c3a-8fe8-a039b09e6eb6","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":54,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"126a531c-3622-4367-9699-3f80efa329fa","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":54,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"4000f1a3-12ff-46f1-849d-f9b85326456a","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":54,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"b3e2a458-eddf-415c-a3f0-fa923ee7f56b","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":54,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"4fb66e9c-a86c-44f8-a534-33205c196a6a","block_type":"box","text":"set by a regulator, such as a government entity, on the total amount of specific greenhouse gases, such as CO2, that","page_number":54,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"cec25b2f-2341-4208-bcfa-52475f9db356","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":54,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"8d766477-a0c3-44c5-9fdf-04dcee134349","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":54,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"12b03c5e-29f0-4c0a-a027-de2d5dd8d65a","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":54,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"f26f7967-6790-4671-9ba2-7611c226583b","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the demand","page_number":54,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"559ed087-7627-434d-925c-8f4d6d4ca424","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":54,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"e235036f-fedd-4b5a-ab4f-e344ff229668","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":54,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"94e5ef12-5a38-4798-bed3-e31550fa0272","block_type":"box","text":"for carbon futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be","page_number":54,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"9a784364-d74a-4176-9bff-0804bcea3c12","block_type":"box","text":"difficult or impossible to buy or sell a position at the desired price. Market disruptions or volatility can also make it","page_number":54,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"d904c04a-62a1-458c-a02d-048f2f152e45","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":54,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"abe691db-231a-4ba6-8726-17be21c3e6e1","block_type":"box","text":"Swap Agreements.","page_number":54,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"9f096593-2b31-44df-8c19-122f7de87125","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":54,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"2ee61ff0-d205-4a02-99a1-19efb6e99114","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":54,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"d4026938-1873-4188-b39f-014e7a72c1d6","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":54,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"87210bb8-f497-4aae-84a3-dc963d3277ce","block_type":"box","text":"earned or realized from one or more underlying assets or rates of return, which may be adjusted for an interest","page_number":54,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"ea026f03-1b49-472f-80f5-bef7da595fb5","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":54,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"576bb37c-db68-4c8d-aed4-8e951254a998","block_type":"box","text":"a “notional amount,”","page_number":54,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"21acd2ef-cf2e-4107-a370-2cd5b3bd6bac","block_type":"box","text":"e.g.","page_number":54,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"d71378d9-97ab-46f7-87e9-c6acfe1663c2","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":54,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"925d3168-7fc3-40c8-b0e6-edfa8f54a29f","block_type":"box","text":"II-17","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"112647cc-bdbf-4dbb-895e-2f7cbdc82be8","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7bf08c5b-d77a-4d0a-82e3-e41e709953ac","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":55,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"a59a65df-5db7-4cf9-82d7-4ca3558b403b","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":55,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"f9d16cf4-c12a-40b3-bbd9-e5346484f216","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will generally be equal","page_number":55,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"e751631d-61db-44ec-bd6e-d06b743abc13","block_type":"box","text":"only to the net amount to be paid or received under the agreement based on the relative values of the positions held","page_number":55,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"e7f6f1ff-8da5-4958-9f76-632110803fb6","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":55,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"2e55ad9d-d3d2-444a-94f4-66dbdc8c3ce2","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":55,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"72d66179-620e-4293-9a7b-87be60d5c21a","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":55,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"058e2bb3-8634-4be2-a8ff-8b4aff0fe6d3","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":55,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"036f3611-89d0-4041-9134-777fa40cf2ef","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":55,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"6be86ca4-4985-4bbe-9e0f-b59d8e5329c2","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":55,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"c709bb4e-df32-42e3-8884-fcda9ac864a0","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":55,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"e25c70a5-4bc9-4241-a8a9-81fe7d54bd6c","block_type":"box","text":"“seller” an up-front payment, or a periodic stream of payments, over the term of the contract, provided generally that","page_number":55,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"ac497e13-28ff-4f8c-927c-8e2950592b6b","block_type":"box","text":"no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the","page_number":55,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"9a5e175e-2c2a-41ee-8843-69db3a1709c9","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":55,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"4e787933-f7e1-4efa-9664-4995c02e9663","block_type":"box","text":"the reference entity. A Fund may be either the buyer or seller in the transaction. The Funds may enter into credit","page_number":55,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"8d1c871c-50d1-4edd-8c38-201497c0dfe4","block_type":"box","text":"default swaps that reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that","page_number":55,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"3616d7f5-61cf-4db2-a0d3-7ad0abe7fe97","block_type":"box","text":"make up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name CDS and","page_number":55,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"0a1742bf-a233-465b-8b35-df2ccfb26d4e","block_type":"box","text":"index CDS.","page_number":55,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"d163f4ab-e2bf-4fad-9f39-c2bb6f1e93ba","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not currently held by","page_number":55,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"620d37d0-5af1-4ee5-9f72-5acbb591ebf3","block_type":"box","text":"a Fund. In circumstances in which a Fund does not own the securities or loans that are deliverable under a credit","page_number":55,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"787decef-190a-4173-9a40-f8a372b827a3","block_type":"box","text":"default swap, the Fund is exposed to the risk that deliverable securities will not be available in the market, or will be","page_number":55,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"f8781d18-89a2-474d-8d74-f07ee2940d75","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":55,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"7eda19a1-f3fc-4ebc-82fd-4ab1473f3024","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":55,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"22260ec0-7a2c-42ec-b06d-c6cf78349c71","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":55,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"5036661c-a62d-46c2-8665-fe3819c1b274","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":55,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"dd8b13b3-9ee9-41a1-84a8-837e9592b118","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":55,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"170ee673-9751-47c3-b0b7-3b7667a8e8ec","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":55,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"d8aa3a86-01a7-444c-ada3-aeaac21d53cd","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":55,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"47c62f08-a177-41d7-8c50-0766e6eedbde","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":55,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"cd599e0f-68d3-49b9-bd44-823a69a6fda0","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":55,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"e5862826-10ba-4f51-a706-f5b5be3fcadf","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":55,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"5fddc6aa-af5d-40b2-9e50-baa264e8e121","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":55,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"b3b99857-eb49-4dc8-bae4-a27ca0640e41","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":55,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"807bfcc8-cb67-455e-b7d1-f34c2e91d9f2","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":55,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"7f31b08b-57d9-4ad9-a94d-5115e6986121","block_type":"box","text":"respect to a “credit event” or otherwise does not establish a cash settlement auction, a Fund may not be able to","page_number":55,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"6660733f-b2e2-4b14-85a5-9b49fff886c4","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":55,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"a0d0e792-b934-4777-8c1c-4f6f4d70ee3c","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":55,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"eb50a247-34f9-4fe8-9252-10816f454ba0","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and recover","page_number":55,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"321c2f1a-90b6-4c39-a2ca-6116837e35fd","block_type":"box","text":"nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value of any deliverable","page_number":55,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"0acc7d5a-2c15-4a54-896b-487b436464f5","block_type":"box","text":"obligation received by the Fund or the amount of cash settlement received by the Fund pursuant to the relevant cash","page_number":55,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"9463d26a-83b8-423e-a011-522eff2ab5dd","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":55,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"5d5647b2-c4d2-4ce3-9c43-834c682d4264","block_type":"box","text":"it pays to the buyer, resulting in a loss of value to the Fund. A Fund that sells credit default swaps incurs leveraged","page_number":55,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"6aa6bd83-5371-4fbd-9575-4c7ffa472bfe","block_type":"box","text":"exposure to the credit of one or more reference entities and is subject to many of the same risks it would incur if it","page_number":55,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"7b0a3a28-6364-4e34-bf80-8973f5d22c05","block_type":"box","text":"were holding debt securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":55,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"de63a2f4-912c-44c6-8519-893cfcb9669d","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In","page_number":55,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"c9711385-b006-46c0-954a-0699ffef3c45","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":55,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"ee21aa62-a19d-49ca-8440-7c235982032d","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":55,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"05f28b4c-25cc-4140-8ed0-4b00d8591e1c","block_type":"box","text":"which of the reference entity’s debt obligations to deliver to the Fund following a credit event and will likely choose","page_number":55,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"303761ee-1af5-437d-b899-5f3649f64936","block_type":"box","text":"the obligations with the lowest market value in order to maximize the payment obligations of the Fund. In addition,","page_number":55,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"70f0a22c-308c-4982-b959-661c5ffb90b6","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":55,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"87e9e80c-be81-4f9c-93a5-55fd7fdb4ac8","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":55,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"25cf1779-cbd4-4594-9ed6-a1f609101eb0","block_type":"box","text":"conditions.","page_number":55,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"ce31fc3a-d063-4d72-8642-b09ec229c70f","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":55,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"121f16ca-66ec-46c4-9093-45b940740869","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":55,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"97d77a64-ac86-434a-aa30-4b55ad511642","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":55,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"3869e6c9-6878-4fd7-ba83-eaf621a0263c","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":55,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"7bec71ec-08b6-4e41-aca3-3ea56a44d99a","block_type":"box","text":"clear some, but not all, of the other credit default swaps not subject to mandatory clearing. The Funds face","page_number":55,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"05c8523a-a21b-4697-bda9-56750ce120d7","block_type":"box","text":"II-18","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"617cc1fd-682f-4ae0-b9f3-a804e7faa242","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5a59abb6-2471-428a-991f-66f2c3d21010","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":56,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"561e7183-91fe-4e85-bb45-5d5da50c5612","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":56,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"90b785b5-7ee2-43c4-9ccc-768ab5d3c424","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":56,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"2fe0bb1f-d0ba-4060-8478-ee13af711183","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":56,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"17580c40-ec92-40fc-81d9-98f6af8656ae","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":56,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"c9a98c43-94ed-4c83-ae9e-388e696a5b30","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":56,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"5c5d9e09-3336-4f56-9ffc-0af7b1e2548b","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":56,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"cfd24b8b-a427-4e18-b582-40446edea704","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":56,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"95f90e7a-d49d-4d5e-b690-e257c87569a0","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":56,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"e725bcfa-7d54-4905-9635-a2d12e2156e5","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":56,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"394dee48-d1e2-419e-a0a2-4fd688a3943b","block_type":"box","text":"underlying security or loan to or by the Fund rather than by way of cash settlement, and there may be a wider range of","page_number":56,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"1dcfb42d-99f6-4d19-ab8c-7a2e155c5626","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":56,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"945f2008-9a18-47c4-9f93-050f5e0c8206","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":56,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"d7e6535e-a0b5-4c76-b8f3-a2115a890a71","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":56,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"2c889cf5-5a45-4ce5-a0b5-cf95b137331b","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":56,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"e24ea4c2-4d8d-4a48-a9c9-e41f51ca7cf4","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":56,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"8414e04c-f85d-4ead-b5f3-9db342593aba","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":56,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"bc06db6b-8a7e-47c7-80bd-a1ab8c8a308e","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":56,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"3f570fe6-440f-40db-ba80-13c41c37d8f1","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":56,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"1ad245c8-51bc-40d9-9138-392f3f13900a","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":56,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"eab42836-4962-4677-aa3e-2ccd8c6d866e","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":56,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"560631e8-7776-4589-9ac3-827cc02a9db9","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":56,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"c0fc83a7-4daf-4567-9774-0ec79c359365","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":56,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"1bbc04c4-aabb-4410-9899-6fb2ca5558f3","block_type":"box","text":"interest rate swaps are permitted, although not required, to be cleared. Most of the interest rate swaps entered into","page_number":56,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"94e33ca3-75b5-4ef6-bced-c472c6d0864f","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":56,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"77e3c2ea-3081-4fae-91e2-67837898caab","block_type":"box","text":"cleared interest rate swaps.","page_number":56,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"752e25da-5d80-4b0d-9b1a-f60b4c7c5a04","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":56,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"4183dee2-4c87-4970-8ad2-bc1be94d34d1","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":56,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"8e831f40-00a1-4760-a4a4-057ed57b05c3","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":56,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"ed7658ec-d853-46f1-bded-04c98e2dea2a","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":56,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"8f09ba36-28c6-44df-aa3a-5a81df903b67","block_type":"box","text":"Fund will have contractual remedies with respect to the transaction but there can be no guarantee that the Fund will","page_number":56,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"1bf70b25-2865-4acd-8ef8-69fa845d5ad5","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":56,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"1d68dbf7-3d0a-4f9f-aa35-eb8cc06547d3","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":56,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"82e83ef7-cb95-4a81-9050-493cfdb5f860","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":56,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"2f029410-25ee-4706-9700-9fad031b6d73","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":56,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"b2203ebb-3b14-43d8-8e98-96ee1c5e7195","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":56,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"e00414c8-fef6-4169-a09a-e4e1908e844b","block_type":"box","text":"or variable interest rate, index or asset.","page_number":56,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"344875a3-e13c-4234-a87a-a8b7a88be594","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a","page_number":56,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"77d6eb28-1a16-48b5-823c-ef3fc0685e21","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":56,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"62688d87-cbd9-404a-867c-e0330e887941","block_type":"box","text":"such interest rate floor.","page_number":56,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"35c647b2-6beb-4b27-81e6-810404d2e4a4","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises above a","page_number":56,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"41ab7f5a-17ff-4462-bd11-782da94b8d36","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":56,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"418f5fd2-39fe-4a88-a531-cdf43b8c8551","block_type":"box","text":"such interest rate cap.","page_number":56,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"039bc90c-3f66-41d6-b1cb-16d3137ce129","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":56,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"7ecb54ec-ce48-4c27-b395-af67194f07e4","block_type":"box","text":"commitments to pay or receive interest,","page_number":56,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"f986c3f9-d204-43c9-9932-010084aa9847","block_type":"box","text":"e.g.","page_number":56,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"1cc64668-0e55-4967-8a5a-ee62b49f79b3","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":56,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"df9f9557-0b68-4d24-9a2e-112b17008ad9","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":56,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"13090bbd-7879-43cd-984e-fb207e0fbf90","block_type":"box","text":"swap the right to receive interest at this fixed rate for the right to receive interest at a rate that is reset every week.","page_number":56,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"2bb6abc5-138a-4229-b2f4-ee4f296c0c74","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":56,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"f3f613ba-92de-4fc3-b169-0661e812ce97","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":56,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"f3106823-ac36-4298-b2f8-d9d6a1df842f","block_type":"box","text":"security with an interest rate that is reset every week and it would like to lock in what it believes to be a high interest","page_number":56,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"2b273aea-0e85-457d-98f3-5503be07824b","block_type":"box","text":"rate for one year, it may swap the right to receive interest at this variable weekly rate for the right to receive interest","page_number":56,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"4e134905-7891-4d9a-ba70-795137d60319","block_type":"box","text":"at a rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to falling interest","page_number":56,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"ba145a84-d6d9-4bd9-8341-45e1f373db03","block_type":"box","text":"rates and may permit the Fund to enhance its income through the positive differential between one week and one","page_number":56,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"640c35cc-6f62-491c-91ec-d41abfbebfa6","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":56,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"136208ff-eaf3-49cb-a873-2153ea47f753","block_type":"box","text":"II-19","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"17a2fdd5-edc6-4523-ac13-94cc13d47a82","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c29aca70-0bad-40b5-9f44-4cc7ca48b2f0","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":57,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"ac5ef165-a59b-4dbd-8747-069d53404d9d","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":57,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"66848383-d649-4a20-874f-97ef064b7eaf","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":57,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"a985e43e-6df7-4d0f-9702-4051e4137b94","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"cd5de657-0dfd-4c99-b9ba-29b914276778","block_type":"box","text":"Total Return Swaps.","page_number":57,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"87ecf130-219f-4b60-8773-f4e5c647fa61","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":57,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"56dfc689-61b3-494c-9eaa-f836a01858b6","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":57,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"3b42dbac-3b5c-4b6e-8eda-e3eec4592839","block_type":"box","text":"a fixed or variable interest rate or the total return from different underlying assets. The return of the assets","page_number":57,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"b6b4ccfc-e626-4098-89f3-50aed66bea86","block_type":"box","text":"underlying the contract includes both the income generated by the asset and the change in market value of the","page_number":57,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"d1de1484-e291-4d9d-8f30-e3e21faa0f3e","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":57,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"57b0e96f-5a4c-4ab2-a0ce-5591b055b13c","block_type":"box","text":"Total return swaps on a specified security, basket of securities or securities indices may sometimes be referred to as","page_number":57,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"d91f74d4-1e49-4ebf-b098-0f52b350ce32","block_type":"box","text":"“contracts for difference.”","page_number":57,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"e9ad9dd6-3f64-4a35-b0a2-31f09ea7c2fb","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking physical","page_number":57,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"82c7e0e5-94fd-4ce4-a92a-20c394fc20a8","block_type":"box","text":"custody of such security or investing directly in such market. Upon entering into a total return swap, a Fund is","page_number":57,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"9f7bd2ad-32af-4776-9f0c-eaa24fa96aab","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":57,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"e37f7e0a-b20b-4da8-9907-61e73da83d3d","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":57,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"adfe8753-4a35-474f-9e50-87f325f93d73","block_type":"box","text":"the notional amount of the swap.","page_number":57,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"19566b11-c05c-4cfc-9719-2ae8e5a12584","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":57,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"f169ef7c-feec-40a7-8ff4-e39ab810ca2a","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"537e6304-583e-4d8f-8f65-dcd2bf5d6701","block_type":"box","text":"Options.","page_number":57,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"6a6771a4-b476-484a-9e78-8cd73c58dc06","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":57,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"47999eb7-2eb8-4455-bab7-c6473b5060b4","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":57,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"41b3960e-b6e8-4435-aa6c-f8048b8492b0","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":57,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"d6eb62a9-ddb1-4f96-bdb0-b93eba2e18da","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":57,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"2dbcf1c8-7af3-4491-a0df-c755d16af1d4","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":57,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"3a5f3c70-62dc-4b84-93c7-fd982be67cf3","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":57,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"d7130d0f-8d6f-4675-b625-f49c5234b8d9","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":57,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"15e22a7c-9faa-4ce1-a74f-2a07efd39528","block_type":"box","text":"OTC options have more flexible terms negotiated between the buyer and the seller, but are subject to greater credit","page_number":57,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"6622b18e-df52-4b2b-93d8-0198a3ed1532","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":57,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"7f198e3b-b4cc-4d95-a36d-fd212c60274e","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":57,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"deecc4a2-4b5a-47ec-bbcd-96314ef0c57f","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":57,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"5269a87e-c372-4f91-894b-918b436010de","block_type":"box","text":"exotic options that can only be exercised (or automatically expire) if the price of the underlying asset reaches one or","page_number":57,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"1b8db40b-a1f2-48ad-9f1d-fe7b9bbd861d","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":57,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"20d93bf4-414c-4e1d-a29c-c0f01e9ece2a","block_type":"box","text":"a fixed all-or-nothing payout if one or more predetermined conditions are met. Exotic options are typically traded in","page_number":57,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"0d09bcf6-44cd-4bc0-8184-f59afe469f60","block_type":"box","text":"OTC markets.","page_number":57,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"165fba8c-8f12-41f6-bc01-5b6f4d4c7631","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":57,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"03428d2f-2253-4cdb-af10-018ad764f229","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":57,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"ac84f246-e65f-4cac-aae0-d8b9ec7d1385","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":57,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"6251a121-0ea5-4b49-87aa-4b0f04bbc0df","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":57,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"da222d6e-eaea-4135-94ad-e7ba101178d9","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":57,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"b89d9b4c-1838-4bbe-aee0-f52f9060b68d","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":57,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"32568c43-5b04-4353-b31d-b785f53ab781","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":57,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"8a4c7359-6a10-4d5d-a08d-7fae9b5dacd0","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":57,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"4ac03d3c-87ff-4f4c-9035-a62132c08029","block_type":"box","text":"Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more","page_number":57,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"f7d2c937-69ee-40b3-b87d-fdb20d8e0fe4","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":57,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"8880c5f2-4925-4e5b-b382-7a532e54b787","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":57,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"5ec97fbf-0808-442d-894f-c1675fc16dd6","block_type":"box","text":"class or series of options) would cease to exist, although outstanding options that had been issued by the Options","page_number":57,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"29ae56c0-c718-4b95-9623-7659080610fa","block_type":"box","text":"Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their","page_number":57,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"51f63252-fdab-42e6-947a-133e0ada60a3","block_type":"box","text":"terms.","page_number":57,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"38b4962b-8b97-40d1-ae7a-63bc98a1fd8a","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":57,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"ef53250c-2deb-4650-9a2f-63de071911eb","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":57,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"96cec4dd-32b8-4673-96ab-680365005b15","block_type":"box","text":"(regardless of whether such options are written on the same or different exchanges or are held or written on one or","page_number":57,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"c530e0c5-09c8-4ad3-b89b-131437aa1656","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":57,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"2fe01160-2b70-4591-b9ff-87dccf6e806e","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":57,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"bfe9eb38-258a-4b43-b8fa-b8b55e98a6d7","block_type":"box","text":"II-20","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b018aace-6f66-4629-8efe-d7236a959838","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"464b276a-c546-43a4-92d2-25c62fc28b6c","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":58,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"009f7ab7-338b-498f-9944-f3907387b58f","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":58,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"5ddfe524-19c3-4282-8f3d-e693a4a6464e","block_type":"box","text":"Call Options.","page_number":58,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"dbde1a58-1ddf-4446-8321-5e142d88088a","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in which it may","page_number":58,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"4c12a339-792d-45f4-bf0a-959de28f0e40","block_type":"box","text":"invest. A purchased call option gives a Fund the right to buy, and obligates the seller to sell, the underlying security at","page_number":58,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"45cd1092-0e86-4561-8001-e91fb31379de","block_type":"box","text":"the exercise price at any time during the option period. A Fund also may purchase and sell call options on indices.","page_number":58,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"c898d52b-9627-4a2b-8a5e-c47af80a4460","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":58,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"b531d274-5fd0-454b-9be2-ebd65fbc3cda","block_type":"box","text":"underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash","page_number":58,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"fa327292-4ba8-41a2-ad8d-c4fea0868742","block_type":"box","text":"upon exercise of the option if the level of the index upon which the option is based is greater than the exercise price","page_number":58,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"cea0dd62-f4ea-4d60-997d-0508cfba5470","block_type":"box","text":"of the option.","page_number":58,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"eba76ece-f692-48af-9160-6d2f04c4fabf","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written where the","page_number":58,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"8cf5aaf9-653d-4ae0-ab00-156614df18de","block_type":"box","text":"exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the","page_number":58,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"e56bde27-a85f-4cbc-8ac1-fa2e31e6adbf","block_type":"box","text":"exercise price of the call written provided the difference is maintained by the Fund in assets which are not considered","page_number":58,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"f376ad6a-17b2-4e07-b64b-0ee9cbeb7977","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":58,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"286a6153-48eb-4441-b347-5a6aa0ce61c5","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":58,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"bfe4b989-185e-44cd-8c5d-4266e785968f","block_type":"box","text":"A Fund may write (","page_number":58,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"5c6e28de-3349-4774-956c-613c8b4f830f","block_type":"box","text":"i.e.","page_number":58,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"1e139c12-09a9-4fec-a726-4f26f95cbc1e","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":58,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"1cfb4ab4-c16c-432b-90e6-b649dd7a3468","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":58,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"7f74c9c3-3a0f-4bc5-a261-2e2bcf2ea85f","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":58,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"b55090df-d487-4601-90f3-4a8ad9200c9c","block_type":"box","text":"specified future date and price set at the time of the contract. The principal reason for writing call options is the","page_number":58,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"41bbfd08-c16f-4310-a48d-a59d61fc2799","block_type":"box","text":"attempt to realize, through the receipt of premiums, a greater return than would be realized on the securities alone.","page_number":58,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"7a3e0987-d5b1-45c3-a806-49f735360e46","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":58,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"31ed9d42-5d17-4d45-bd57-7e9ebdc85e7d","block_type":"box","text":"increase in the underlying security above the option exercise price. In addition, a Fund’s ability to sell the underlying","page_number":58,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"6f84d94c-deca-4f67-97a4-250ed472f931","block_type":"box","text":"security will be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":58,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"0683d8dc-0666-442b-9bf9-58d5e49ea93c","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an offsetting","page_number":58,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"cac6745c-ff43-4e28-b8bd-fa5679615840","block_type":"box","text":"purchase of an identical option prior to the expiration of the option it has written. Covered call options also serve as","page_number":58,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"b15beb7a-14bf-4089-a468-13855d8b4d5a","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":58,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"16c9c4c8-15ab-4139-b34f-83f31a507a6a","block_type":"box","text":"A Fund may write","page_number":58,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"a1d8188f-f046-4b4c-8c2d-2b4287409130","block_type":"box","text":"(i.e.","page_number":58,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"102a3a70-976a-4db8-a60a-5b3e7abb654e","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":58,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"9427a0e6-1080-4d90-bb10-2ea11c1bbe25","block_type":"box","text":"are not currently held by the Fund. The principal reason for writing uncovered call options is to realize income without","page_number":58,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"5f1a3e11-7fe3-4636-9474-c50435c1cbda","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":58,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"15f91ef8-3a42-4849-8082-6bee01673011","block_type":"box","text":"a Fund must deposit and maintain sufficient margin with the broker-dealer through which it made the uncovered call","page_number":58,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"6c775d8a-d731-4979-a483-2c74dd2894e6","block_type":"box","text":"option as collateral to ensure that the securities can be purchased for delivery if and when the option is exercised.","page_number":58,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"6fdcccb5-0eb2-42c1-bbff-ac6c7703ca6e","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":58,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"9c9b79fe-9dfe-4295-86ee-38968add0e96","block_type":"box","text":"strategy to increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls because","page_number":58,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"f60060c7-4649-4cfb-abcc-ab11812bcd04","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":58,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"fc8cc216-5545-4192-b42e-b3f5ca3c778c","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":58,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"e3e7b681-3a1b-4c53-be0a-d1175419edef","block_type":"box","text":"the underlying security to meet its call obligation. There is also a risk, especially with preferred and debt securities","page_number":58,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"639b2727-efb7-4996-9d6d-ba5b7826c3ee","block_type":"box","text":"that lack sufficient liquidity, that the securities may not be available for purchase. If the purchase price exceeds the","page_number":58,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"5b31752d-55bf-4448-b022-f742f219b1a8","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":58,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"50f389bb-9aec-4d0a-ac02-09d9c18b5b97","block_type":"box","text":"Put Options.","page_number":58,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"cbcf5edc-61b5-4445-b12f-b76f3384e475","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its securities or","page_number":58,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"45a764c3-ba6d-45ee-ab20-4733101a8450","block_type":"box","text":"to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying securities or instruments","page_number":58,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"4740d7e3-178f-4b49-a063-7e5e679008fc","block_type":"box","text":"at the exercise price, thus limiting the Fund’s risk of loss through a decline in the market value of the securities or","page_number":58,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"50ab55ed-5a95-4744-bf5c-7853bbd87c79","block_type":"box","text":"instruments until the put option expires. The amount of any appreciation in the value of the underlying securities or","page_number":58,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"48b5373b-d77c-454d-9ffc-b1a0d34d189e","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":58,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"0fc67d64-b86a-4e9b-b6b8-f749ca1e4bf5","block_type":"box","text":"costs. Prior to its expiration, a put option may be sold in a closing sale transaction and profit or loss from the sale","page_number":58,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"8c809652-4e4a-4a77-a84a-77dd4d13dcdc","block_type":"box","text":"will depend on whether the amount received is more or less than the premium paid for the put option plus the related","page_number":58,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"bf4d7a3a-d0c7-4f82-a81d-80ca343ec07a","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an option by means of","page_number":58,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"83da5eea-0602-4a65-9773-2f31e6ef74fb","block_type":"box","text":"an offsetting sale of an identical option prior to the expiration of the option it has purchased. A Fund also may","page_number":58,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"e7f494fb-908f-410f-bb2c-f4eb3337c337","block_type":"box","text":"purchase uncovered put options.","page_number":58,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"09d49fc3-d5bc-48f9-9d2f-23896ebcd842","block_type":"box","text":"A Fund also may write (","page_number":58,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"380c7a9a-63b2-43ec-9fb2-ec4970da608c","block_type":"box","text":"i.e.","page_number":58,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"437e689c-37e1-4933-9fca-6f4e1c13eda3","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":58,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"4261e063-b22f-4cd9-8393-bcc357bc86d8","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":58,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"7b23bc91-7e93-4cdc-b4a1-fd948b62e12a","block_type":"box","text":"A Fund also may write (","page_number":58,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"bfaec6f9-f152-4247-81b8-f9458d2db5b5","block_type":"box","text":"i.e.","page_number":58,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"5c3d4628-8faf-4da7-9c91-f0b24322e647","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":58,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"b8e549e8-6d28-4ca8-b378-6d196ddf07e5","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":58,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"d3bae9e5-ac6f-469b-987b-744f11a16935","block_type":"box","text":"collateral cash equal to the exercise value of the put option with the broker-dealer through which it made the","page_number":58,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"393330f5-11b5-4fef-bd9e-4942bbbd3f6d","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":58,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"149eab25-c454-45a6-b71c-c54d162f12ae","block_type":"box","text":"acquire such securities or instruments at a net cost below the current market value. A Fund has the obligation to buy","page_number":58,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"7c53d09c-cb51-4a86-9019-8b9294dd1a03","block_type":"box","text":"II-21","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9c9e61a4-6eb7-4409-861f-1e235419b2b2","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d1d30a21-ac4e-4244-9e62-36d95da69ed7","block_type":"box","text":"the securities or instruments at an agreed upon price if the price of the securities or instruments decreases below","page_number":59,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"63504533-9003-46fd-97ae-8ec5213501c6","block_type":"box","text":"the exercise price. If the price of the securities or instruments increases during the option period, the option will","page_number":59,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"e05b29e3-b83f-421c-b39a-968d3a4a9ff9","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":59,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"823fcf72-2553-446c-ae8d-729ca2ef4a31","block_type":"box","text":"the exercise price.","page_number":59,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"fcaf7b5c-bf36-4a83-b83a-322f868d2647","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":59,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"4cf96669-27ad-4c3c-ba02-713c274c856c","block_type":"box","text":"The following information relates","page_number":59,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"24537297-1201-47ae-85bd-35afbcde350c","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":59,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"0df89822-9031-433d-b7bb-52bc3cb0f7ec","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":59,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"d3c2e9d7-ece1-46f3-919f-48c4cf3fce6c","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":59,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"15fcf8cd-1731-4931-b1d3-10fe5c0c0e57","block_type":"box","text":"it holds no longer have a sufficient remaining principal balance for this purpose. Should this occur, a Fund will","page_number":59,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"63e00968-c53a-4537-9003-b178a8b6e436","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":59,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"34af015e-dff4-4689-8bd3-90e37546b7b7","block_type":"box","text":"market in order to maintain its “cover.”","page_number":59,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"879497e8-0d2a-44c8-9b48-f3b040887402","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":59,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"2c5e887f-80bd-4ba3-8e7c-22404b899dcb","block_type":"box","text":"to represent cover for the option in the event of a decline in the GNMA coupon rate at which new pools are originated","page_number":59,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"c82e6bbc-3548-4a55-890e-1d6ec336a8a0","block_type":"box","text":"under the FHA/VA loan ceiling in effect at any given time. If this should occur, a Fund will no longer be covered, and","page_number":59,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"c0d48919-52ec-4949-92ae-a126e872fd28","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":59,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"1cefb037-99e6-4121-8d5c-384e89047815","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":59,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"6bce5107-233c-4cbf-b1f4-b2baa8e3fb53","block_type":"box","text":"and incur transaction costs.","page_number":59,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"9212d5ce-5405-43de-a635-1d826f0f7765","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":59,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"9dd4e3b2-a0d9-4ed9-81c5-b95f5ebf4b13","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":59,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"cd19f87a-69df-4977-875a-3d37894fff67","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":59,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"37645a5d-62d8-45d3-8475-c2aac30cde5c","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":59,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"2523c291-7e92-4b8d-a2e3-2f762f30d676","block_type":"box","text":"i.e.","page_number":59,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"90429d1e-4941-41ed-857f-4c32ebf8d1e4","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":59,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"293dfe9b-a5cd-4d91-8e23-abdc5c40e796","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":59,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"659151ef-18cf-4d53-9c31-fb2a97d4d978","block_type":"box","text":"it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks","page_number":59,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"cc6a1ba6-fde7-48f0-a1a2-80b91b3ac10e","block_type":"box","text":"losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However,","page_number":59,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"a0f0ef3c-2a70-4b86-9353-0829c747b352","block_type":"box","text":"when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of","page_number":59,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"d0cd8704-7d3a-48bd-9ec6-039e7303e282","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":59,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"559413c9-cccc-4012-8a27-0781ff8944d3","block_type":"box","text":"required, to be cleared.","page_number":59,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"70328d97-1714-40d7-a247-7a8f11078874","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":59,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"79fff7a4-10b1-4f5a-be60-5ffbef7e4b21","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":59,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"9f2cba62-47eb-4e1b-8592-720c1df73b93","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":59,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"5a72d070-2ab5-4139-a320-7edbdfa0c26f","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":59,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"7a48cee2-cce1-4400-bdd0-4513b6df7ed5","block_type":"box","text":"Derivatives” above.","page_number":59,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"2d546d24-f452-4948-9945-567365a16743","block_type":"box","text":"FLEX Options.","page_number":59,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"fb8fbefc-248f-424a-9abd-99c36c9ff2eb","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":59,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"8bd32258-06fa-4a7d-b1af-96c9f782e948","block_type":"box","text":"are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX Options are listed on a U.S. national","page_number":59,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"1b3ae7eb-22b0-4027-9975-020122987f3c","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":59,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"b2e51346-bdce-4c9d-a269-6d13dcef7404","block_type":"box","text":"exercise prices, exercise styles (","page_number":59,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"25a6d71b-53eb-48c3-9fce-3ccb1c4831cd","block_type":"box","text":"i.e.","page_number":59,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"78b8418f-d2c3-4cb9-879f-0a78c6bef18f","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":59,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"5f4314b4-9efe-4ee2-b124-580cfe07f5d2","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":59,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"4d6338fa-fa6f-42d5-925e-659f982d0dd8","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":59,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"28e1b0e4-1796-4670-a45d-6776ac6d0b13","block_type":"box","text":"option contract entitles the holder thereof to purchase (for the call options) or sell (for the put options) shares of the","page_number":59,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"9ad0d966-bd74-4d7e-ad44-f8f627e4e5d0","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":59,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"c627d2b4-b6d2-4d78-81c3-42cd943d9fde","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":59,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"370b1ed2-9314-44a1-880e-244c4a63579c","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":59,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"89b632c6-492b-4cbc-b175-2f0953d1682d","block_type":"box","text":"FLEX Option’s expiration date.","page_number":59,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"68ce541d-2589-4183-9773-a88d3a7a6e0c","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":59,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"ee156f3e-bf50-4748-8e4e-5db25b6a4f53","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":59,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"ddcf5e1f-c0ee-4f90-9d34-3010d4b34e00","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":59,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"90655948-2eef-44bd-b715-1bc348be6ca7","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":59,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"bf6a1255-7120-4143-b68d-c47da4520b9b","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":59,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"94aff723-9391-44ce-9fcd-86aaed09a7a5","block_type":"box","text":"FLEX Options contracts.","page_number":59,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"95d5fcf3-06d3-4913-bbd4-74201d0fe685","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":59,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"ca9a0f6a-8c96-4c68-82b1-0f157d61337a","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":59,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"6581b1ac-3489-4215-b6b6-e20234a70a10","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":59,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"4bdd5170-f416-40b9-883e-fca33ac56f3a","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":59,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"5f8d81b2-2fc6-4d0c-be6e-2cbf8cdefd62","block_type":"box","text":"liquidation of the issuer of the underlying security. According to the OCC’s by-laws, the nature and extent of any such","page_number":59,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"a29579b5-f875-4f36-9a1b-fc652e7909fa","block_type":"box","text":"adjustment is to be determined by the OCC’s Securities Committee, in light of the circumstances known to it at the","page_number":59,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"ba1d8d0b-5723-4452-afc6-cc4ae376587d","block_type":"box","text":"II-22","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"66b87a30-9103-4a3c-90e8-255c7ade129a","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4b67962-bbca-4dad-b924-dca1dc08e35a","block_type":"box","text":"time such determination is made, based on its judgment as to what is appropriate for the protection of investors and","page_number":60,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"96d1f453-5731-48ae-bcd2-838d34f42e0a","block_type":"box","text":"the public interest, taking into account such factors as fairness to holders and writers (or purchasers and sellers) of","page_number":60,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"b2d3b232-e178-45e7-8378-3058ce407d93","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":60,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"57f3cf9f-715b-4e88-bc50-c24363e0eed6","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":60,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"0443b9a7-af35-4b23-8261-4dc23949c050","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":60,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"ad1723ba-5599-440e-8d7f-a203b0a29155","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":60,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"48b6cf2f-1703-45a6-b394-bc48340002e5","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":60,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"dc75b655-8f0c-4967-88a9-0ca0103c66d6","block_type":"box","text":"on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a “Reference Asset”). As","page_number":60,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"4c9af7bc-a44d-4872-b321-540977c83984","block_type":"box","text":"such, the value of a Fund’s FLEX Options will fluctuate with changes in the value of the securities held by the","page_number":60,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"a336f698-85d5-430c-83a5-d9c9e230ad04","block_type":"box","text":"ETF, and thus the ETF’s share price. In addition to the value of the ETF, the value of an option, in general, will","page_number":60,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"af266bba-a2c6-4cec-bc1a-4b5008a41947","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":60,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"0617493a-be04-4e43-ad9c-4ed973c0d8c2","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":60,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"4e3b4ea6-e7c4-461e-a141-7924e07b7796","block_type":"box","text":"expire unexercised have no value.","page_number":60,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"d9ab696b-22dc-4600-abcb-19331a17c78c","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase (for a","page_number":60,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"73b7f3d7-4a18-4537-a963-e857999f0be3","block_type":"box","text":"call option) or sell (for a put option) the Reference Asset at a predetermined specified price (the “strike price”).","page_number":60,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"b95c593d-4f3f-4bed-85f7-3ae04a927ac4","block_type":"box","text":"When a Fund writes a call on the Reference Asset, it receives a premium and agrees that the purchaser of the","page_number":60,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"1b64b602-c298-4b23-8649-3be2e259aa2f","block_type":"box","text":"call, upon exercise of the call, will receive from the Fund the delivery of a specified number of shares of the ETF","page_number":60,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"a00170f0-f1db-4d37-8716-2f751a7785e6","block_type":"box","text":"in exchange for the strike price. When a Fund buys a call on the Reference Asset, it pays a premium and has the","page_number":60,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"8986c9a4-ec9d-400c-ad61-423bb5be3ac7","block_type":"box","text":"same rights to such call as indicated above. When a Fund buys a put on the Reference Asset, it pays a premium","page_number":60,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"fe7477b3-7813-428b-949e-1a0c662bec6b","block_type":"box","text":"and has the right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":60,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"45058757-3982-4bca-87ac-676f143533dd","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the Reference Asset,","page_number":60,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"f1ca3f1f-cd2a-4049-9ab3-a02d7c3e3805","block_type":"box","text":"it receives a premium and the purchaser of the put has the right to require the Fund to deliver the specified","page_number":60,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"870af043-e7f2-4d20-b9b4-7c1bdc0f3a2b","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":60,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"21be2bad-7e32-4270-b19c-aebb60c2d09d","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":60,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"2bfc2b72-6da5-41bf-87e0-faa8fc3cb6ad","block_type":"box","text":"FLEX Options that are cash-settled. Cash-settled options give the holder the right to receive an amount (or owe","page_number":60,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"4bbaef35-d6a8-4829-8534-2479bcaf1366","block_type":"box","text":"an amount) of cash upon the exercise of the option. Gain or loss depends on changes in the value of the ETF’s","page_number":60,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"4170a851-6aa4-4a8a-bc59-75247b4110a3","block_type":"box","text":"share price relative to the strike price for a given option contract. The amount of cash is equal to the difference","page_number":60,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"3d2b98fb-9102-49d2-87db-6260457551b6","block_type":"box","text":"between the closing price of the ETF’s share price and the exercise price of the option contract times a specified","page_number":60,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"36c6b672-683e-44bb-a5b2-ef98537de472","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":60,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"418cfc5a-f840-4af3-8647-897eb5f74ce8","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":60,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"657b15f6-1c96-4bb8-a46e-ef810184059c","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":60,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"f40169da-c09f-44fd-86a2-8d5cb8f33860","block_type":"box","text":"closing value for that day is available, it runs the risk that the level of the Reference Asset may subsequently","page_number":60,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"161150b0-0992-4949-91f4-030cc34cf7e1","block_type":"box","text":"change. If such a change causes the exercised option to fall out of the money, the applicable Fund will be","page_number":60,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"4812e047-b505-4ed5-8136-a4475770b66e","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":60,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"6f0c9732-74a9-4c1a-96b0-03c745ffb6a8","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":60,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"976d8c1e-849b-48b4-875b-aa3d3d436722","block_type":"box","text":"Foreign Exchange Transactions.","page_number":60,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"2153609f-a15d-4abe-86fa-73cde982abc6","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":60,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"ccceb750-3969-4027-9887-ed0a20283e8c","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":60,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"7dfb3586-15be-481a-b533-3660d4d22584","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":60,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"33195eb2-2d41-4374-94dc-f499b2e013fd","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":60,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"717d55ae-f2eb-401f-a631-874cfd391ab4","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":60,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"b61a2496-f114-4e03-a3f2-252cda3ee27c","block_type":"box","text":"Fund, sold by a Fund but not yet delivered, or committed or anticipated to be purchased by a Fund. As an illustration,","page_number":60,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"b651377c-35f0-495a-8415-4cc84600cd13","block_type":"box","text":"a Fund may use such techniques to hedge the stated value in U.S. dollars of an investment in a yen-denominated","page_number":60,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"05c85601-726b-4511-ba9f-f4857c7e0ec2","block_type":"box","text":"security. For example, the Fund may purchase a foreign currency put option enabling it to sell a specified amount of","page_number":60,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"729f6fb8-be75-4377-8415-e95413389cf5","block_type":"box","text":"yen for dollars at a specified price by a future date. To the extent the hedge is successful, a loss in the value of the","page_number":60,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"f318d21a-b088-497a-ac6f-42da8b0531c4","block_type":"box","text":"yen relative to the dollar will tend to be offset by an increase in the value of the put option. To offset, in whole or in","page_number":60,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"54b0e6b9-8150-41ff-b5db-ab50839384a7","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":60,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"69ff7337-0a98-498b-921b-cd27513c2b25","block_type":"box","text":"sell a specified amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":60,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"672dd6c1-02b2-4d25-bf81-6feca19d91d7","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":60,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"c80d7d6a-c42e-45c9-8cad-1661a2783bed","block_type":"box","text":"the relative value of the yen to the dollar. “Straddles” of the type that may be used by a Fund are considered hedging","page_number":60,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"8dd7393e-d885-4a36-b3af-22258a419e84","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":60,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"3841d0fb-3cf9-4915-a9b6-8948b1971842","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":60,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"e13ad352-5465-4380-a486-81b4a0275bdf","block_type":"box","text":"use of Currency Instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s","page_number":60,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"d87daa4f-da23-471e-aacd-6d4d0474f1e0","block_type":"box","text":"shares; however, the use of such hedging strategies will not prevent the NAV of the Fund’s shares from fluctuating.","page_number":60,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"c592ed14-841c-4b6b-9127-9fa1e7aaebc0","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":60,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"67ab4985-42ed-480c-8b8e-173588dc7e42","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":60,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"e0cd89f5-d8be-403b-b2e3-c2e81d0fcac2","block_type":"box","text":"II-23","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dbd793ab-794d-4be6-a3a4-1710e7fc910a","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5a281de5-b552-4d91-80e6-b435b9a1d9ea","block_type":"box","text":"accurately predicted and that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges","page_number":61,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"3f06a84d-6ae8-44c4-a33c-3e9fd45eef81","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":61,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"280a098e-3d9d-4cff-89ed-0ab07e2247ec","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":61,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"41af3fcf-aa32-4f6b-9e0b-18cbebd0b0a9","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":61,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"3279af4f-e3d9-4f8e-afcf-875b395e4310","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":61,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"99fea4bb-4d2f-4c33-ab6d-e0fe08675e3d","block_type":"box","text":"domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a","page_number":61,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"34ff015e-34df-49c1-afb4-b4a1242ce7f8","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":61,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"ed20715e-53a3-43fb-b2b2-b0c37acae70c","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":61,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"15d78d9a-90db-4d82-a293-90d87882ca2c","block_type":"box","text":"or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide","page_number":61,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"23ea3cd2-ae16-472b-9cb6-782b1ca1da32","block_type":"box","text":"spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell.","page_number":61,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"5de283e2-0851-44e4-977c-c6e335c93cf4","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":61,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"9a3b442c-79eb-4374-a4af-b7775efd806c","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":61,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"afeda45b-e374-419d-aa8a-06c3c0864b28","block_type":"box","text":"would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the","page_number":61,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"7b0d675b-a4e1-4dcf-93ea-20931b12c1c5","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":61,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"4fb6c887-17a8-45a1-94a6-fbab6602a05d","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":61,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"5405c32e-9ffb-4593-90c3-2535f73c8312","block_type":"box","text":"anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not","page_number":61,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"fed4cf47-01b7-4a3d-82e0-7d68291bfcca","block_type":"box","text":"able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a","page_number":61,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"16d69569-95ce-4785-ae5d-09d94a7e4b72","block_type":"box","text":"market with respect to which Currency Instruments are not available and it is not possible to engage in effective","page_number":61,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"d6d26e24-79bf-41a2-afe8-560c31d74a14","block_type":"box","text":"foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as","page_number":61,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"7eee3e69-08d3-4b7f-beee-8f9e5642d5ad","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":61,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"1efd32a6-d455-42ec-bf42-23d5807b642f","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":61,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"7751659e-8912-420d-9979-4320cdca2a04","block_type":"box","text":"involved.","page_number":61,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"fb58b39e-9949-48c8-a0eb-779635b07ee1","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns (including","page_number":61,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"137440d9-26a2-41c2-8995-81a877add854","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":61,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"9d7f80b2-056e-4a3b-ad9c-12a59ce78a36","block_type":"box","text":"denominated in such currency.","page_number":61,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"ccb59e2b-6841-4893-b328-d3a196d5495a","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":61,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"a3ecde69-ce45-4ff7-b186-b1410a07fc07","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":61,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"5b3fcde4-00eb-481f-8577-2ab34db2cd02","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":61,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"eb5c6281-d419-4bc0-a4a8-ccce459a903f","block_type":"box","text":"transactions are similar but are settled in the current, or “spot”, market. A Fund will enter into foreign exchange","page_number":61,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"fd691b3b-2d52-4642-a4d7-775cf60be8b4","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":61,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"6354d9a8-0ceb-4eb8-8f59-2d736cfddb98","block_type":"box","text":"Funds, to seek to enhance returns. FX forwards involve substantial currency risk, credit risk and liquidity risk. A Fund","page_number":61,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"c094aaca-9884-45bd-b421-654ef97f9ccc","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":61,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"31ce92da-49b6-446a-99f3-b835dacec828","block_type":"box","text":"purchasing a currency needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":61,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"4b2d13f6-b3dc-4ec1-9ec6-d80441384984","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":61,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"3265ef3b-147b-4461-a5d4-3185affe98da","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":61,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"985e0bb2-7041-4742-b196-72678a14d7e7","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":61,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"96839970-8fbf-44b8-ba43-bc19109b5126","block_type":"box","text":"also hedge a currency by entering into a transaction in a Currency Instrument denominated in a currency other than","page_number":61,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"78d1db0e-36ea-4937-9731-ff1546606844","block_type":"box","text":"the currency being hedged (a “cross-hedge”). A Fund will only enter into a cross-hedge if the Manager believes that","page_number":61,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"dd4c16bf-f2d6-4584-b106-5f063705cb9b","block_type":"box","text":"(i) there is a demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":61,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"4761f5ad-1bef-4b79-9413-94428a0cfaab","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":61,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"d8d1e13f-a5c9-4510-9c15-9b84bb7b1fbf","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":61,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"992141a0-5692-4141-aa8d-4d27bc51bf2c","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":61,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"37167003-8b62-456a-b17e-a4fb649c354e","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on the value","page_number":61,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"0321b0b4-450b-4ed6-92c2-ccdd86b9c680","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":61,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"47e63841-c305-49dc-bfa0-ad6122a80eb6","block_type":"box","text":"Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar. Proxy hedging entails entering into a forward","page_number":61,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"02fd071a-f54e-4195-8ab4-2e00d039a138","block_type":"box","text":"contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies","page_number":61,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"59a299e6-29e0-4a6f-a97f-3c0c0db4f8a5","block_type":"box","text":"in which some or all of the Fund’s securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy","page_number":61,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"6e8439dd-3a06-4028-9eca-c94bfa91f45b","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":61,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"18278615-6d98-463a-b090-18f85de0e1cf","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a","page_number":61,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"53ad0784-c583-40b7-a06b-73e2238c157f","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":61,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"c0cd92af-560c-4971-b552-cfad26f7981a","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":61,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"a92b15a1-da55-4e59-b5a0-24ab7a15cb43","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more currencies that","page_number":61,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"24930b31-ed5a-4d12-8889-193759a31bb9","block_type":"box","text":"are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to","page_number":61,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"615846d7-ab85-4f6d-992e-1fefae38a70e","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":61,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"15e16dbe-684e-4052-8339-c1fe58770ff2","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":61,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"4996db59-23c3-4750-8771-b4d42a569ec2","block_type":"box","text":"Fund would sell Canadian dollars to reduce its exposure to that currency and buy Japanese yen. This strategy would","page_number":61,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"67d54b85-4570-423d-b387-0f04d848c8a1","block_type":"box","text":"II-24","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"56df2a18-a851-4393-9ae8-9ab16c1f3b91","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c4a733f2-2f7b-4c90-8acc-317ef3d3bfc4","block_type":"box","text":"be a hedge against a decline in the value of Canadian dollars, although it would expose the Fund to declines in the","page_number":62,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"7de639db-58fc-4ef2-881c-f3f8e926e25e","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":62,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"64097e64-0f09-4884-a4fb-767819849f64","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as non-deliverable","page_number":62,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"9c52fc2d-3419-4c4a-9d3d-2363b96b78cd","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":62,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"daeae053-0690-475e-90a7-693bd19c86a1","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":62,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"388f4e7a-3a7d-4f59-8755-28339c17c9f6","block_type":"box","text":"the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed","page_number":62,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"0ec71b27-9558-43e8-8114-787fc2226095","block_type":"box","text":"upon notional amount of funds. All NDFs have a fixing date and a settlement date. The fixing date is the date at which","page_number":62,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"d1dd6908-48a4-408d-a619-beee456510bc","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":62,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"ce8fad69-7666-46f6-8e96-a11f39b801d1","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":62,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"a5778617-19d7-4ad3-b060-7f9d9be49710","block_type":"box","text":"commonly quoted for time periods of one month up to two years, and are normally quoted and settled in U.S. dollars.","page_number":62,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"8381da70-fa58-42ca-8324-32c04a59db70","block_type":"box","text":"They are often used to gain exposure to and/or hedge exposure to foreign currencies that are not internationally","page_number":62,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"ef9fa189-4bed-4ff8-9841-f72935b07fae","block_type":"box","text":"traded.","page_number":62,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"d9892b35-b05a-48fb-b72b-eab8f85f48c4","block_type":"box","text":"Currency Futures.","page_number":62,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"c9e4b9cd-7f02-4082-a994-d998465c9a6a","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":62,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"8bfc94c0-119e-494b-9d70-6a7e1e4683e2","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":62,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"aa0bdbb6-5510-4b2f-9280-d400c529eae7","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":62,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"94708811-c27c-43bf-8d75-0f3179544888","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":62,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"44b1c9ad-e8d3-46c8-b4c9-58f92d837ea8","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":62,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"2d29d409-baf9-49f6-95c0-d2fa4e357b91","block_type":"box","text":"Currency Options.","page_number":62,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"7533282e-417e-4fbe-ab1d-1c000dd183b7","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":62,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"ba3491ec-5c5a-4296-80e1-0844f939a4d2","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":62,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"8b423e35-4f6b-4fd4-bc38-137e3c717848","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":62,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"8599c326-9897-4613-85c8-5cea3eea2719","block_type":"box","text":"securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in","page_number":62,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"4da6d48c-6ba2-483d-bf78-7a5ef261d517","block_type":"box","text":"the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or","page_number":62,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"48c4e2eb-bf9c-4d0e-9f66-e5b4b3f1d4fd","block_type":"box","text":"before the expiration date for a specified amount of another currency. A Fund may engage in transactions in options","page_number":62,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"c5530dfd-10ea-4a63-a098-70ba48575c8d","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":62,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"a095d711-eb7c-439d-a6b2-96e506ae4e36","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":62,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"f86b589e-7fb4-4430-b1ed-cb41502580aa","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered call options","page_number":62,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"0fec38a2-0558-4a1f-b056-748f6a0c539d","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":62,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"95752fd0-f459-4336-b2b8-ef13e376ca80","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":62,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"f527ee8e-c194-482d-bb20-b9bcc3d7f9d7","block_type":"box","text":"Currency Swaps.","page_number":62,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"6c7af399-b89c-4aa6-b4c6-40a6920abb24","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":62,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"11e98d39-4437-4dc0-9148-d45d54597894","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":62,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"da4dcf6a-f79d-48ae-bf17-cebd60f0197e","block_type":"box","text":"second currency on a spot basis and sold for the second currency on a forward basis. Currency swaps involve the","page_number":62,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"8b66a6e4-f806-47d1-9dfe-4e4d2836b903","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":62,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"0063e54f-bea6-4988-9011-e5c99e770d8a","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":62,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"b68f8dd0-5485-4f73-b8ea-b3cfd1678ec3","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":62,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"8e52ff90-5bd4-4c3b-b5de-f80c720bbb00","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":62,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"9d745331-1cb9-472b-9b43-0fbe99286322","block_type":"box","text":"Distressed Securities.","page_number":62,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"341fb9b3-39af-4b12-be3e-c6f33a6d8234","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":62,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"5f835652-3af7-4227-849d-5b8e71ef74b2","block_type":"box","text":"are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default as to the repayment of","page_number":62,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"a5c9ee62-ea49-4fcc-ad79-5908b4e9dec1","block_type":"box","text":"principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one","page_number":62,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"689ade7b-72fb-4ced-ae53-c022ec838d22","block_type":"box","text":"or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by","page_number":62,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"e8be14cb-d920-4d96-a988-b76a77630e87","block_type":"box","text":"S&P or Fitch) or, if unrated, are in the judgment of the Manager of equivalent quality (“Distressed Securities”).","page_number":62,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"a74c0b3a-a1e7-4b35-9f36-f95548fe82b8","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":62,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"a34b3ced-8263-40ee-99dc-dc249145b9ca","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":62,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"6d48e081-85a4-4e96-be29-61e71f62e6ea","block_type":"box","text":"issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization","page_number":62,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"6895274b-77f9-4f14-a0ee-de6cb04e2e0c","block_type":"box","text":"pursuant to which the Fund will receive new securities in return for the Distressed Securities. However, there can be","page_number":62,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"670131a5-3d51-4612-b4cb-37b6ad9cc8e4","block_type":"box","text":"no assurance that such an exchange offer will be made or that such a plan of reorganization will be adopted. In","page_number":62,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"f36a0e2d-88db-4da8-a718-e6c95b94e2ee","block_type":"box","text":"addition, a significant period of time may pass between the time at which a Fund makes its investment in Distressed","page_number":62,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"c5fbfefa-a93b-4f13-9ce3-e98b759ffac5","block_type":"box","text":"Securities and the time that any such exchange offer or plan of reorganization is completed. During this period, it is","page_number":62,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"1fcf7a3e-37af-40f5-ad5f-8e66c3b3e6fc","block_type":"box","text":"unlikely that a Fund will receive any interest payments on the Distressed Securities, the Fund will be subject to","page_number":62,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"211c0655-8066-463b-8cb8-9b76968910ca","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":62,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"777c7eea-ca47-4e04-bf7f-6b2b154d0ef6","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":62,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"ba0ce92b-acb4-415d-9c88-37665e854631","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":62,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"4b482477-064d-4152-8455-aec3f3843fd6","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":62,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"8671409d-b7f8-428e-aaec-9ff5ff1114b7","block_type":"box","text":"when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be","page_number":62,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"61664882-3871-4c87-a38e-cd4f7a0b7bd7","block_type":"box","text":"satisfied (","page_number":62,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"505cab40-cce8-45e7-be79-36e08ab4ccb9","block_type":"box","text":"e.g.","page_number":62,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"94df10c2-a20c-46a0-853b-b2b0e4bbf3f6","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":62,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"e37a5d69-2866-428a-9153-ef2967adc6f3","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":62,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"b02cc55a-10fe-4658-9bf9-020faf5d15e8","block_type":"box","text":"II-25","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c862141f-d0cf-4165-9c02-dc2dbf026660","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e03c535e-7a90-4dc1-b068-45314fe8ef40","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":63,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"85661c57-2e53-4a83-8237-9cd01bf1e9a1","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":63,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"02d7d01a-2793-49f8-a8c7-ca20d6df1c38","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":63,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"5ab69255-0ccd-4411-a4cf-dd7bcc010ae2","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":63,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"9545885c-5463-431f-bb50-1bf0489b7ea8","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":63,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"ab848154-12bd-40ff-977a-9fc18e384d42","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":63,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"813db0be-4a01-4827-932d-6b8c405b4a1d","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":63,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"da0d5faf-fe49-4cfd-aad0-2a1eb27f488d","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":63,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"10772358-9720-4a62-8145-f0ad260d04f1","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":63,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"29fce9c3-2750-4568-869c-b0cbb2896276","block_type":"box","text":"affairs.","page_number":63,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"aed7a631-cab0-4346-99ff-2c6fe57e4452","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":63,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"fa037395-05b8-4c80-944f-4798d1496e27","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":63,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"beb340a4-7526-4d44-9731-92bd27cfde43","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":63,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"e4c85519-c1e2-449a-93c3-c5decc196972","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":63,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"83658d73-f706-4c6f-b13a-2454b8dfca03","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":63,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"b3d3b451-0d1c-4481-8b5f-9d0fb29364bb","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":63,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"ea21ffa3-ace5-4671-9d50-8fec1b896e0d","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":63,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"6d5050b4-90e6-4dbe-9575-a285710543e1","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":63,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"a77200e8-9742-4a86-9c27-d0825f8d1193","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":63,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"9f94ece1-a7db-4aae-92e8-c9ddca37f6c0","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":63,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"1b8c8f72-e25c-47d5-aad9-09a1fc53fd0d","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":63,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"e92d9722-299a-459e-9944-9844f245c8d9","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":63,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"b697fb79-7e44-4640-a04a-a3b509065417","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":63,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"7038f873-bb75-4348-a201-87a1b9213b5a","block_type":"box","text":"Equity Securities.","page_number":63,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"e5a9d2d2-00aa-45f5-a0d1-3e0803369312","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":63,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"2ec68a62-e5b5-4912-9400-45dbd4c7c41c","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":63,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"5d14a0ed-1e18-4cb4-aa5b-76ed1fdffbe0","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":63,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"50ed76c6-316d-4577-acb1-a9e69d04690f","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":63,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"e5e32a08-66ad-49a4-9c0c-4630e62723cd","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":63,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"594769da-b346-4cca-973b-aca346ba652b","block_type":"box","text":"and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the","page_number":63,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"21a0748a-15b0-47ce-bdac-c6f7540c9b98","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":63,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"d1094d50-ede0-40b2-b9ef-724b5ced34b6","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":63,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"08718de7-08d4-4297-8184-2c97dceaa34b","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":63,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"c7116d67-63d3-4978-ba11-6c85fa32aa53","block_type":"box","text":"due to general market conditions that are not specifically related to a company or industry, such as real or perceived","page_number":63,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"8fde81d4-1cc5-4f8f-b6e0-2e484dd982a1","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":63,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"232d3ef2-cb23-4433-a222-8b7f7b8fe0b4","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":63,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"59ab79bd-1ef3-4dcd-8a54-68086b610747","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":63,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"22db97da-1edb-4019-a45b-f69be4dc962a","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":63,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"03854d7c-6520-46d2-8a89-3b17dc8a8d47","block_type":"box","text":"no assurance that any Fund will have continued access to profitable IPOs and therefore investors should not rely on","page_number":63,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"6be82ece-98e4-4055-839d-f47a4a23ce7e","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":63,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"a0e10fe7-ff9a-4ff4-b45f-cac72111493d","block_type":"box","text":"it is unable to invest significantly or at all in IPOs may be lower than during periods when it is able to do so. In","page_number":63,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"f4d5e454-6f85-49f3-ac20-6fa8e5865005","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":63,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"591a1660-d5ce-4284-be83-435bcada0ed6","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":63,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"adbf1f5f-e520-4873-9bb0-b4ebf74dab02","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":63,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"3209eca8-ac00-47df-88be-628c72a70a45","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":63,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"48aa581c-8952-4f5e-bb8b-64422ae07f0f","block_type":"box","text":"initial public offering.","page_number":63,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"7f756e7c-0994-49b6-a0c7-33bbe201c0ea","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":63,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"3be5dfd6-fee8-4af6-b36f-b37808977908","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":63,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"4fda16ee-97df-4586-b71a-e09ab7a1e398","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":63,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"68735be4-d13d-4919-8a34-8448e54d2df8","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":63,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"a69c59c6-0a43-47ab-a5e2-e92dcd9c86ec","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":63,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"41f1c172-fc2d-4380-8947-82a70b8dbc8e","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":63,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"ced9bc77-2136-4071-863f-74183c424e28","block_type":"box","text":"greater price movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":63,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"10326004-bc69-4c15-90b4-cf565988742d","block_type":"box","text":"more established companies.","page_number":63,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"efa38f50-7e2e-479c-85f2-eba25b5337ce","block_type":"box","text":"II-26","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9990473d-3a96-4cee-854f-f72e0132d3c8","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"516fc3d3-7651-4d7c-92d1-d755b694d1e3","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks associated with","page_number":64,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"c91f3c3d-0454-4f0d-8de7-ae5558dde0e6","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":64,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"cc5537d8-3a99-423d-b6e4-3d5f71bdf92a","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":64,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"9050911f-f6ca-4023-a5bf-14eb6c4e52f6","block_type":"box","text":"below.","page_number":64,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"a8879a30-e911-40a8-9745-3829c7f666ea","block_type":"box","text":"Real Estate-Related Securities.","page_number":64,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"50f7fa22-cc02-486b-bd38-e6bd3124f4e6","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":64,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"bbab85cd-18fd-4dc9-a056-ae41dd837f9b","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":64,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"11b60cdb-cb2f-4de3-b985-d181cb5f5518","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":64,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"9384d2a7-9ad7-4c2a-855b-a99d15faf4b0","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":64,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"568f8d1e-85b0-4d21-aee1-d9e8058d6f79","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":64,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"d209121b-c746-4c5a-8baa-c46f6500c0e1","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":64,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"65119718-13c7-4874-b228-167fa2ff1dcd","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":64,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"fc11de6b-cce5-409c-b608-47493e72daef","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":64,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"8b9e5b59-a26a-4ce9-8292-df423a7c7823","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":64,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"f116f64f-5bd5-4aa6-a34b-e1c35a841251","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":64,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"3cc77c52-a9fa-4851-b703-de6fefa54479","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":64,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"0cf64e37-9be1-4af2-8391-7759c48f4538","block_type":"box","text":"interest rates. 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The securities","page_number":64,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"58f263d4-b8f6-4ab9-8b89-8bf20cc98a25","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":64,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"299c80cf-5ab1-40b4-af60-e21ee92dbba0","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":64,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"0da587ef-23bc-4b9e-9fd6-a16d9dd0e63f","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":64,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"43e403a8-b4bc-4699-8bb9-c42878e1c35e","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":64,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"6b930812-1411-41da-b676-9275877ed0e8","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":64,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"cf2bf94f-75b4-4485-8c33-0dd1caff9170","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional securities","page_number":64,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"ea38ee79-a4a0-49d8-9681-789f3fa38aa7","block_type":"box","text":"exchange and may not be traded every day or in the volume typical of trading on a national securities exchange. As a","page_number":64,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"2aa6c77e-7b97-4fd2-9515-2668ae9253a7","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":64,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"5e7d1652-e4a3-4e09-b0d4-d226b6046ee8","block_type":"box","text":"make many small sales over a lengthy period of time, or to sell these securities at a discount from market prices or","page_number":64,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"3b506002-0b49-4908-99a6-5b37507fbd30","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":64,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"936308f8-df3f-4d88-b35f-613b4c0681ea","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":64,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"b7bf7039-6330-4865-923c-6061b424aa50","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":64,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"9a4c59e9-e205-405b-9c58-defe2228ee69","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":64,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"22cfec23-4165-4e73-a427-f9136bd146c8","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":64,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"b9c1861d-c0f6-447f-9ae4-b19105d8fa54","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":64,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"933703a0-b6d5-48bb-a2e1-570e35f41a1a","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":64,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"0d7abb14-a418-4993-a928-4c0b2f4b82a2","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":64,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"154d534d-465e-4fe7-96b7-a0bee5a2c79e","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":64,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"47c5d955-2a4a-4154-9ac2-11cf9da7c234","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":64,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"8f404409-f1c6-45d7-b283-244fd11b8782","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":64,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"141c9deb-54e1-4732-8ae9-b59fb4e281ac","block_type":"box","text":"cycles.","page_number":64,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"f908b4c9-338c-492f-a56e-af2cc967d872","block_type":"box","text":"Tracking Stocks","page_number":64,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"f3f825f7-1275-424e-92d1-fb7105e17305","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":64,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"2be37766-477e-461c-b692-32d0de721c00","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":64,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"18370b41-02c8-47f2-b6bd-f884fadda6a7","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":64,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"1ea6d8b2-8b47-4cce-b4e3-da02ebe82f0f","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":64,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"0efa93e9-e0a1-4797-9230-8b25050094fb","block_type":"box","text":"holders of the tracking stock may not have the same rights as holders of the company’s common stock.","page_number":64,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"78554b27-517e-49a7-a0fa-f9c47ecf1da0","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":64,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"aba287e7-ef11-41b0-8360-164188f1ddad","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":64,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"6b2f6c55-69cb-4f72-9910-39d78a1210cd","block_type":"box","text":"debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and ETFs. An ETN’s returns","page_number":64,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"cdf11973-eb65-49ca-8819-97258d20cd5c","block_type":"box","text":"II-27","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7f27b3b3-4cc8-4b43-931a-acfd3aa346ea","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ad9099e-b28c-4f24-8a77-086ba2ace9f6","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":65,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"9dc1aeab-0470-454d-a013-71131e99c97d","block_type":"box","text":"expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an","page_number":65,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"541956ee-50be-4474-8079-91cb05f31572","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":65,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"b2d2a746-84a8-4c33-96f8-372383b336b1","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":65,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"e32907d1-76a1-461a-8496-73747a2054d3","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":65,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"f55288ed-02b1-4ea3-9f4a-19af652767ea","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and demand for","page_number":65,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"41a1a911-68a3-4d43-9c5d-e676f4eb3768","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":65,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"fc1ef64b-98b0-45cb-a123-f59586bce313","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":65,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"4225f892-c3ff-4a44-b583-8fe3439d9d4b","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":65,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"0dfcdc30-7586-4538-9b3e-40136a29d1bc","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":65,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"d9d19d0e-77ac-4709-a00b-657c44322edc","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":65,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"728bcf01-69ed-49b6-a4ec-85c5066497c3","block_type":"box","text":"ETN.","page_number":65,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"9fb0c618-0267-443d-b41d-c8fce659470c","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":65,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"4132597b-4575-4019-987f-c2035684fdde","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":65,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"c1097132-51c1-4dc9-92c6-34c90ccbe05b","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":65,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"7a4b49fb-74fb-4bdd-8af2-5fcad9c934b4","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":65,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"21adf119-35d9-4989-9c6f-07f7970fb52f","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":65,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"c47fe5e7-0249-402c-9c90-296d9878dfbd","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":65,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"652baed2-6e65-4db6-917b-d7abd4208b8d","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its obligations, the","page_number":65,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"1a444778-a7fa-47eb-b3be-f2c0abe8f871","block_type":"box","text":"value of the ETN may change due to a change in the issuer’s credit rating, despite no change in the underlying","page_number":65,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"3a85f6fb-a1cf-412e-b2aa-e17a3efba3d5","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":65,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"15fb5044-7b04-4454-8133-207bae50e3e1","block_type":"box","text":"difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in","page_number":65,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"f5ab6e2e-c50a-4b1c-905d-2d7063165c12","block_type":"box","text":"time is not always identical to the supply and demand in the market for the assets underlying the reference","page_number":65,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"0e23190d-a156-4244-a28b-8442e9b28c87","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":65,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"c181680e-c5eb-455c-8204-66b3a7bea6d9","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally meant to","page_number":65,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"e521ad8c-fd10-4e61-becb-9c0433820a27","block_type":"box","text":"be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary","page_number":65,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"ccee429a-e8e4-4ccf-a2c2-4abb784c9254","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":65,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"dc0819fb-3acb-44f1-879d-6cca439c6234","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":65,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"235a34e4-2709-46c1-aea4-2d5437b8c879","block_type":"box","text":"uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and character of income and gains","page_number":65,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"cefdcc7a-4996-4d50-8363-4b9bfa266b99","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":65,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"360e3f5e-b1c5-4ba5-bd8d-632144b1e7f7","block_type":"box","text":"Foreign Investments.","page_number":65,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"0c557b98-4429-40e8-b9ac-660575126c28","block_type":"box","text":"Foreign Investment Risks.","page_number":65,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"8308a925-7055-4b0a-9e3a-13461d824e3b","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":65,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"3c3d4f94-c8d2-4f1a-bee8-075a551a010b","block_type":"box","text":"located in emerging market countries. These securities may be denominated in U.S. dollars or in a foreign currency.","page_number":65,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"af8f0f40-a997-4c2c-939b-f3c6fff2a4fa","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":65,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"dfd53b85-2bdc-4fb6-8f67-8c87800fcb0c","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":65,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"3702e8d2-3db9-4364-86e0-e3238fa14b49","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":65,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"c7f615a9-9573-41d9-9f3a-c1021a18263a","block_type":"box","text":"securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are conducted from the","page_number":65,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"8c444c63-f252-48be-aa4d-0cf6217993e6","block_type":"box","text":"U.S., (ii) the company’s equity securities trade principally on a U.S. stock exchange, (iii) the company does a","page_number":65,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"ad7883e3-0665-412a-8ddc-ee45b283d245","block_type":"box","text":"substantial amount of business in the U.S. or (iv) the issuer of securities is included in the Fund’s primary U.S.","page_number":65,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"51e2b96e-0013-4e6c-a18e-e45d43da4722","block_type":"box","text":"benchmark index.","page_number":65,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"3527b14e-ff42-4c00-8667-4f581eb2ab5c","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":65,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"cad86305-662f-455d-ac51-b632e2039bb1","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":65,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"357f49c7-43d9-4f7a-9ed1-f60b557427e5","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":65,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"921e01f2-ff45-4559-b900-49089aa48103","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":65,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"4c7261be-87af-40bd-b5a4-f6e04b231016","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":65,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"9dbd39f6-5cdb-4684-9c1f-6dc11c9ffbe9","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":65,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"28f34dae-5633-42bc-b9fa-8e6426e1f7fe","block_type":"box","text":"securities and zero-coupon securities.","page_number":65,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"71e47705-e7da-4254-91aa-17f7d6452e83","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":65,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"1c3bd631-bac6-408c-9c3d-3f932c32882b","block_type":"box","text":"taxes.","page_number":65,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"7ffddb9d-8f0b-47c4-b189-5805b7a369ad","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign exchanges or in","page_number":65,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"fd6c5667-8380-480e-bd90-e98977739393","block_type":"box","text":"foreign markets that are closed when the securities exchange on which the Fund’s shares trade is open, there are","page_number":65,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"0dc850bd-1a68-4b64-a45c-2974855a6520","block_type":"box","text":"likely to be deviations between the current price of such an underlying security and the last quoted price for the","page_number":65,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"34d7a38e-38f9-46c2-9910-4ff09661d114","block_type":"box","text":"II-28","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"64b28df2-12d7-4057-a3e1-1b381b64a4ea","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0e25b67a-8695-4774-b555-de61ec824078","block_type":"box","text":"underlying security (","page_number":66,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"5a22d2c2-a3bd-4cb1-bb85-a3a36a087154","block_type":"box","text":"i.e.","page_number":66,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"c5d3bde9-a5b5-4ede-9b0e-1edc90ac97ef","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":66,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"6961b34e-4c46-448f-9689-afa8885eb661","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":66,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"16a513ef-684b-4c7e-baab-571c798b9c32","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":66,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"10a2374d-aadd-411c-8f6b-d2dc9be0f609","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":66,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"e85e5ce0-e6db-497f-9ba3-3406768d5ef6","block_type":"box","text":"Foreign Market Risk.","page_number":66,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"1c0d6011-70e1-4c0b-b832-35092efa15ee","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":66,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"c2e8d31f-3411-4424-8b1a-062200ec6772","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":66,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"12c45371-26ad-4fa2-8271-f01765fa0edf","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":66,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"199c9ca6-78ba-4849-86c8-5cb98cfc25e8","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":66,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"2333ac0e-4aca-4b6f-b0be-b229ddaa2e0f","block_type":"box","text":"is subject to the risk that, because there are generally fewer investors on foreign exchanges and a smaller number of","page_number":66,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"53cd38e5-2400-431a-827a-8b00fa783255","block_type":"box","text":"shares traded each day, it may be difficult for the Fund to buy and sell securities on those exchanges. In addition,","page_number":66,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"be89c669-c068-4a00-b945-de18b4b8cdf8","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":66,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"3d981a2a-4e30-431e-93bd-b5847d0a455f","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":66,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"e8f22698-bd73-4756-bbfb-b7df9471cb04","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":66,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"c5a29775-33df-4963-a6b1-3bdffc211f6a","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":66,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"28f68f66-67fc-4c00-9cbc-40d2346d74c6","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":66,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"8753b97d-14ea-4461-8f3c-7caf0302ef82","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":66,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"34bd0034-15aa-498e-b98f-1178d219e9eb","block_type":"box","text":"controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency,","page_number":66,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"6df0fd60-da69-4fdd-a947-0acf0e729cd8","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":66,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"1088ae2f-516c-403a-bfa7-6893c78e10d7","block_type":"box","text":"government, such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":66,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"3e25b16a-edad-4daa-b2eb-7d7a37fc1ff4","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":66,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"d63aeab3-f194-4c75-b110-a5b787b6fd4a","block_type":"box","text":"transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or","page_number":66,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"628072b7-c391-47e5-9160-10e0b0076a78","block_type":"box","text":"liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the Fund to decline in value. Other","page_number":66,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"46141674-c54c-4575-b9f0-48be253ac31a","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":66,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"62521247-85d4-45de-a6fb-946e14545868","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":66,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"5091e14e-0934-4e7c-964b-e91e601953fc","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":66,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"9ef23d84-e402-462a-b27e-0d12a1ff399e","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":66,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"c498c642-b51f-49d7-beb4-e78c3ad644b4","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":66,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"1d3bebfb-3daf-4eee-b67c-a9b51c5bb962","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":66,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"01acc480-f4c5-4e4a-8e52-d9d24c0f10e1","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":66,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"906c71f5-0b77-4698-b3fb-9f30d60872b5","block_type":"box","text":"Fund’s operations.","page_number":66,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"50716dc1-0676-4576-8340-7a593db0f3f1","block_type":"box","text":"Foreign Economy Risk.","page_number":66,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"1d7919a0-dc22-4217-8df2-d3d3abd62b90","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":66,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"2c9b8e77-3235-4911-b353-e6e1f8898d67","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":66,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"e518e539-ed73-47e2-aa29-45de475634a3","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":66,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"632e2b64-bbc3-4f53-8a58-027a4f218b22","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":66,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"e0a09070-3688-4ad7-8b3b-018f26a9eb40","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":66,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"8dde5ffd-61cd-407a-b413-cdfa3870de00","block_type":"box","text":"measures.","page_number":66,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"9379b4dd-44de-4dfa-a63b-3bb21bae9e61","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":66,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"ca674286-c6e6-49d3-b095-f93b6780cf2e","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":66,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"d5a425ae-1557-4ce4-a2dc-9d0bb6be598e","block_type":"box","text":"interest in foreign currencies, the value of a Fund that invests in foreign securities as measured in U.S. dollars will be","page_number":66,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"9816b9a1-84c1-4f95-a74b-a8df08a37afe","block_type":"box","text":"affected favorably or unfavorably by changes in exchange rates. Generally, when the U.S. dollar rises in value against","page_number":66,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"b6d5f3cd-91ab-43ae-a2d7-c8daf89d9db4","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":66,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"f0826035-5793-45c0-9a8f-3ce3d4221bd7","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":66,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"4e9721f5-476a-4efb-bf7b-25f7e763ffb8","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":66,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"0528eb1e-c970-4098-899b-013dbdadbae5","block_type":"box","text":"risk,” means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase","page_number":66,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"6887b54f-9b49-4036-b175-2314fc478e36","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":66,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"e305292e-e0c8-4a3e-be45-4bba5689fd25","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":66,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"596adbbd-3de7-4186-a106-b17ff2dd3e25","block_type":"box","text":"United States or abroad.","page_number":66,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"adb2c4df-4ff5-4e89-a435-143954983688","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":66,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"deb190b2-0b5e-4a99-9998-ba1a74fcccb1","block_type":"box","text":"Many foreign governments supervise and","page_number":66,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"a0c149fa-6d4a-4e84-9d38-1baec9d803e5","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":66,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"f87a1e76-c75f-4c6e-b594-04cb6c58fdf1","block_type":"box","text":"not have laws to protect investors comparable to the U.S. securities laws. For example, some foreign countries may","page_number":66,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"1c1f42b9-72af-4740-adfe-62790ed6842c","block_type":"box","text":"have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s","page_number":66,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"7a580de1-21da-466c-93e8-adc1baea7cbd","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":66,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"1b11a72e-e4d0-4472-88db-df9e4e7bc27b","block_type":"box","text":"necessarily the same as in the United States. If the accounting standards in another country do not require as much","page_number":66,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"a3dae089-b180-448f-b7a9-351566a5b4fe","block_type":"box","text":"detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a","page_number":66,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"107774da-1673-4be7-b312-3ec65ec6fd09","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past imposed","page_number":66,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"29bc753c-0b95-4e35-b444-84383bd78d7f","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":66,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"b260f329-38b2-43ea-8d7b-0332fc39e862","block_type":"box","text":"restrictions should be reinstituted, it might become necessary for the Fund to invest all or substantially all of its","page_number":66,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"834bc028-864b-456b-9165-421cf9f7fb04","block_type":"box","text":"II-29","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"700dd9a9-d88f-4ae8-8612-de32992feb37","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7b8ebb10-3c0b-4281-93cd-8482cbd4046f","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":67,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"aa002355-2a4a-4f33-983a-5ec0995c6fe4","block_type":"box","text":"higher in foreign countries than they are in the United States. This reduces the amount the Fund can earn on its","page_number":67,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"b9033e78-3fa2-4194-afd6-5d124a10c171","block_type":"box","text":"investments.","page_number":67,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"ce474838-5ca6-4db3-92bd-25ebbe0aed07","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":67,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"480d08cd-1edd-497c-b087-9858d82ad291","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":67,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"0aedbc26-1135-46d4-b1c4-22deb4b87bb5","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":67,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"27a96739-44a4-40b7-93dc-32772ba29cbc","block_type":"box","text":"organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight over","page_number":67,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"2f10548c-d3ee-4ce4-95d0-18e6e411f12a","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":67,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"46084408-0750-445e-ae95-d02a1ec8aec8","block_type":"box","text":"bank or depository or issuer of a security or any of their agents goes bankrupt. In addition, it is often more expensive","page_number":67,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"601e8f18-7f45-4e02-ad57-9ff2b9f39b67","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":67,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"389c2bf6-5670-47cd-98a0-f5f3d76e6807","block_type":"box","text":"expense of investing in foreign markets reduces the amount a Fund can earn on its investments and typically results","page_number":67,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"e5a3b5b3-a896-4faa-8f10-252e7e26f7e2","block_type":"box","text":"in a higher operating expense ratio for the Fund as compared to investment companies that invest only in the United","page_number":67,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"397c148c-e3b4-4f5c-a767-ec82d8bde433","block_type":"box","text":"States.","page_number":67,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"87ddf35f-e564-4dd3-ac76-0d9d37a6ce95","block_type":"box","text":"Publicly Available Information.","page_number":67,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"1171f3f5-2cbf-4010-b8c8-36b514c0f5f8","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":67,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"9be75538-6681-4121-b8a2-5a7115f975e5","block_type":"box","text":"than is available with respect to U.S. companies. Most foreign companies are also not subject to the uniform","page_number":67,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"43b53aba-e59a-47f8-98be-bdb143df3473","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":67,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"1f33d866-108f-467f-969b-118220c0116f","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":67,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"c2a99ebd-d787-4da7-b95b-ba6a8b4aaa71","block_type":"box","text":"the New York Stock Exchange. Accordingly, a Fund’s foreign investments may be less liquid than, and their prices may","page_number":67,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"2a093ce5-fd2c-4044-9837-5302abddab34","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":67,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"4d8f863d-5064-4422-b5c9-5f356829d7db","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":67,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"7770535d-1c6a-45ac-9e11-61820d7e7225","block_type":"box","text":"United States.","page_number":67,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"517c406d-0881-4baf-8503-4631120e504f","block_type":"box","text":"Settlement Risk.","page_number":67,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"7254cd53-e542-4f00-a55b-adf0cb1090b3","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":67,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"94b5f92e-8d63-454a-bc28-61f6365fec5d","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":67,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"6dbaa5aa-d206-4527-8889-aedafa384b69","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":67,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"4a4cb77f-b158-4801-a34c-b79c963d5508","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":67,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"f4ae8590-32de-4382-8d3c-995766231e78","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":67,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"9b9b2b89-62b7-43b9-8cd1-34e9572f9507","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":67,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"06b55421-6496-4834-9b3b-edf5c7969932","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":67,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"6e314396-2d54-4607-869d-666016c1bbc4","block_type":"box","text":"these problems may make it difficult for a Fund to carry out transactions. If a Fund cannot settle or is delayed in","page_number":67,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"7c5fed73-78ff-4c52-afd2-478297a0434d","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":67,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"95bf2dbf-63d7-45df-bf42-f49132752558","block_type":"box","text":"uninvested with no return earned thereon for some period. If a Fund cannot settle or is delayed in settling a sale of","page_number":67,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"49f88d99-a090-4da6-9e96-cb962270f8b5","block_type":"box","text":"securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to","page_number":67,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"11a7c44d-a173-474c-a7a2-90eb38721ae1","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":67,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"7050114c-79a4-4c9d-aea4-d82376a9830e","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":67,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"b5cb2b71-e4db-44ec-a6cb-128304c91d72","block_type":"box","text":"arise in respect of securities held by or to be transferred to a Fund. Compensation schemes may not exist or may","page_number":67,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"7e9b8438-a4bd-4611-844c-54d3123b0507","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":67,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"53f86c41-da01-4a20-87c3-366194a719dd","block_type":"box","text":"Sovereign Debt.","page_number":67,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"622f6105-dd72-48dd-b897-74c068e43871","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":67,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"46732f63-2962-445d-8677-8b6d2ebe354b","block_type":"box","text":"controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in","page_number":67,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"bf44b4e1-7417-4562-a13c-ee5f62980d27","block_type":"box","text":"accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest","page_number":67,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"82dab879-a353-4b5f-846e-72a3455a07f0","block_type":"box","text":"due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign","page_number":67,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"9250a124-77cf-4c44-9d78-969f2fcc1af8","block_type":"box","text":"reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt","page_number":67,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"46a5158b-11ac-4f00-b7ab-1d9ac94aade7","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":67,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"16487663-2e47-4e30-8f8a-68517ba03ea0","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":67,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"d6ce1e8d-bdd8-46f1-85b7-6def73582aa0","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":67,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"a91706ff-518d-4d7e-8bf1-fbf6ed2eef90","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":67,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"18607ed4-94bf-4085-a3a7-309fac02c8ff","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":67,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"c29d8456-dbd7-4e65-8dfa-aec5a7079a6b","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":67,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"58b84aa5-ddcb-44a1-80c8-a33ae47b51f0","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":67,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"21351fba-f5d8-4a39-93c3-f41e868ff80e","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":67,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"076af1ad-3068-433c-9b10-1858c69bdd8f","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":67,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"fc31fb63-bc38-496b-94b5-227f1e2737d6","block_type":"box","text":"debt.","page_number":67,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"7ad1fce9-8512-4d90-8800-53d34934f926","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":67,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"4f3bf201-593e-415a-a00b-3a5adc118fa2","block_type":"box","text":"loans to governmental entities. In the event of a default by a governmental entity, there may be few or no effective","page_number":67,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"80f53ae4-50f6-4489-ab93-e96ef4895638","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":67,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"5af82be0-cf49-49ba-8f77-15e49acdaaf2","block_type":"box","text":"II-30","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8579a9bf-9491-4304-99f9-fd5c566b1c1b","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f286c50-11be-48f3-9fb9-0a3903bb4075","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":68,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"a8437107-4025-44a9-ba43-b5a3f3bfcf05","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":68,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"77e1431f-68a2-4a14-bc8c-0dede7caeb27","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":68,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"9128a183-d81d-4946-a31d-b084feebe838","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":68,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"cd2e3226-19e6-401d-8691-480395be7bab","block_type":"box","text":"refund is within the control of the tax authorities in such countries. Where a Fund expects to recover withholding","page_number":68,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"dd884e2d-4c91-4a18-b624-47b890c377af","block_type":"box","text":"taxes, the net asset value of the Fund generally includes accruals for such tax refunds. Each Fund regularly evaluates","page_number":68,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"cf7ef39d-d262-419f-81bf-3835928419c1","block_type":"box","text":"the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax","page_number":68,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"d1403ade-68bd-4413-afe2-5bb8a95b36fe","block_type":"box","text":"regulation or approach in the foreign country, accruals in a Fund’s net asset value for such refunds may be written","page_number":68,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"4d964c79-101b-481f-a8b7-ef8d8033e506","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":68,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"50a103e4-15e1-48cd-b64e-a43b4376e10b","block_type":"box","text":"accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they","page_number":68,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"b46140b0-277c-47fc-abc5-b042e60487f3","block_type":"box","text":"were shareholders during the accrual period. Conversely, if a Fund receives a tax refund that has not been previously","page_number":68,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"8b3840b6-8ffb-4328-8598-629849582684","block_type":"box","text":"accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in","page_number":68,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"803e40e3-9b58-476c-858a-ec216c4e4718","block_type":"box","text":"the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase","page_number":68,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"8f35aa29-af34-4dee-b225-743dcf1a12d3","block_type":"box","text":"in the Fund’s net asset value.","page_number":68,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"a64ba5b2-376b-4499-9998-9f736d8871b0","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":68,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"4f5b161b-470a-4827-9cf7-51831c37e859","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":68,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"20173f03-ad92-41f8-a7d5-f7829d14d95d","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":68,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"2144557a-4f79-40d5-a19f-4441934a8efd","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":68,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"bb2a8769-3ce5-4814-9f5a-8cfaa0f503e7","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":68,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"97157e10-5d99-4b8d-96e6-2dca23fab0d4","block_type":"box","text":"slowdown in the United States may have a material adverse effect on a country’s economic conditions and, as a","page_number":68,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"55834b3f-a76f-445c-8243-bf70b4f3198e","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":68,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"accf688b-12dc-4c66-b30a-e811e149454b","block_type":"box","text":"of interest or principal on U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment","page_number":68,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"c3d99b1f-a40a-4f1a-b283-16fb7d0f723c","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":68,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"49bf0fcb-9e6b-45c9-b184-bdeaa1c75d04","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":68,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"21163929-69fc-4fb5-a903-5191b6b08888","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":68,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"b7266cc2-90dc-4e1c-a72c-227ad9c72f2d","block_type":"box","text":"If these relations were to worsen, it could adversely affect U.S. issuers as well as non-U.S. issuers that rely on the","page_number":68,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"413ee74e-9143-494e-9841-5173f1065477","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":68,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"2371e74a-ce62-4f66-ae4f-36f8d2673ccb","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":68,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"7184733b-63a2-4a1a-b82e-3133bb8a03a8","block_type":"box","text":"Fund may invest.","page_number":68,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"291534b2-01df-4fd1-85b8-08154504dc11","block_type":"box","text":"Funding Agreements.","page_number":68,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"779bb8a6-f61a-4d36-ac35-b7c17dd34cd9","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":68,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"35617e04-7789-4ada-9e7b-49ba5884eadc","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":68,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"7f630ed9-b30a-4b73-8695-52e52f7b6694","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":68,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"98f867c9-b4d0-4835-8710-737d29287dd2","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":68,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"1fc0134d-11de-41f1-abb0-100fff905b16","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":68,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"487b01b9-fbf5-430f-b682-6910dfc55a76","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":68,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"6c58b9ba-ac10-42f5-8aea-ceacbc7dc4e4","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":68,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"f3f3a92e-fd24-45c6-86c0-e0c9c975afd0","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":68,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"c0c1e80d-c1b9-4a45-9c99-4a9f9d46df01","block_type":"box","text":"Guarantees.","page_number":68,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"426e0c97-3bb2-4cc6-b826-51bab49885e9","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":68,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"8f0d4401-d9d3-499d-8659-9987b8795be9","block_type":"box","text":"issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":68,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"eaffb449-f916-49a7-9dd9-034202022016","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":68,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"ddc9e8d5-0dd5-48c5-9937-f008417a1ec3","block_type":"box","text":"Illiquid Investments.","page_number":68,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"5e8be527-51dd-4841-961b-a1aa2e8de723","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":68,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"44df1601-f886-4532-abfa-c0cf0f5bb75d","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":68,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"02a63e78-d930-4b78-a340-15de23d353c4","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":68,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"002dfbf9-ff98-462a-89f9-61a8b7bfc648","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":68,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"23ea2e78-975d-4739-ac30-97aec470864b","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":68,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"a8e661bf-38e0-4425-84d4-d0406d22c3d0","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":68,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"58b29b21-6b06-4bd2-896d-23e60aeddd48","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":68,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"bb2e0e93-f541-49fc-b7e6-160ecaa15909","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":68,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"1d222829-815a-4b88-a2db-36bd25f95776","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":68,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"f7efbac3-8a5a-42bf-953e-f82172d819cf","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":68,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"bfa3b171-946d-43c4-945b-a6794ccf675d","block_type":"box","text":"selling their shares, or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to","page_number":68,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"0bf14931-bff1-45c7-9082-c5daff85daf1","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":68,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"bb90bb7c-3646-4970-a4e4-15007bdabe70","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":68,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"9c63f5ef-19e0-4500-bf45-983569eb8d46","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":68,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"a75e396f-355d-4f73-8d30-12e14c51b031","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":68,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"d24b40c0-58ad-49e8-bb7d-345555f5ef8a","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":68,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"d6ac768c-b240-4e1a-a629-047715062653","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":68,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"3200363d-116c-4fec-95ba-21d6c065ffe2","block_type":"box","text":"II-31","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4dd717bb-deb7-4a2c-b980-6527905f3674","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"369759b1-5eaf-41e6-ab34-579b134e817c","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":69,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"71e8a2cf-456b-46b9-867e-7d6772ad5280","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":69,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"51f3023a-fce0-474d-87f8-c5b99cf34e96","block_type":"box","text":"Index Funds.","page_number":69,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"e76a60fa-94af-4fc7-9f68-2abfb5aac5a0","block_type":"box","text":"Cash Flows; Expenses.","page_number":69,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"c34d901e-a2a9-4e2a-a5b8-9914331c7e05","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":69,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"aaf09251-516e-4804-b524-f9af0e03c695","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":69,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"e4f2a4a9-a9fa-4abf-8d61-82d4b69677f0","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":69,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"b3e7d66a-6faf-4de0-af29-f16a7b5e4dd9","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. Investors should also be aware that","page_number":69,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"af3c988d-71da-412e-9143-51a22bf58601","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":69,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"94b98216-2954-44f5-883f-96309706b44b","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":69,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"f12b39cf-00e3-456d-a948-1d1166ec57bd","block_type":"box","text":"(","page_number":69,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"4bba01ef-e19f-4d7f-b5ce-a2108439c38a","block_type":"box","text":"e.g.","page_number":69,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"c5c4e818-f530-4db4-8bea-914690e61fb8","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":69,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"0938a551-325e-4320-9b7d-5af534847710","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":69,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"88164e10-bfa2-4c57-bd1e-6d1224a28282","block_type":"box","text":"par ticular security as an investment.","page_number":69,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"216ba567-2523-4610-8aa4-d63bc7a4737d","block_type":"box","text":"Tracking Error Risk","page_number":69,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"737a2c1b-305d-439b-89a6-58dcf14bb4cb","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":69,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"fef77b86-c2b7-42d5-b037-214e3257a7ff","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":69,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"26ebba46-9fb0-4faf-b32b-bbc3ccc33169","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":69,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"40956034-6ba9-40a9-9a7a-f45584370bc0","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":69,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"50dd2677-f9a1-4973-8c50-eeadedd6dea6","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":69,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"f5274dbe-8eea-4c43-b104-6d7a6819ceb1","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":69,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"c00acb79-759a-4c5d-93ba-9b99c656db76","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":69,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"8a0d27db-db96-4fb5-ab2e-0ccd392088c7","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":69,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"ab275fd2-6f80-40e0-93a1-da783bb81134","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":69,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"5762c8a9-133a-4cc1-8de0-acedbf4ad01e","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":69,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"4677adf2-5757-4f31-86df-ba2d075e4ab9","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":69,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"cd8a39f6-8233-4516-88d8-b90c94b8a43b","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":69,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"fff8bb04-6fa8-4c54-a5a3-680ea396df74","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":69,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"cc49c639-2457-40aa-a852-62532fd5e2d1","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":69,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"c84d40f1-aedf-4e8e-9976-ea6beb3c49d4","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":69,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"550ed2d0-4f72-440d-a34c-99d01b852081","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":69,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"2cb51387-9baf-4451-ab51-66cdad54f488","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":69,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"e6a1d65d-1c92-4293-9289-43dbaa5676f1","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":69,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"c4b86141-5141-43e6-8fea-45df537bdd50","block_type":"box","text":"the rebalancing of its index. 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Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":71,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"7f3c9afe-75f6-4b12-947b-7c4ac907636c","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":71,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"6bef2c2b-6390-4469-8fa1-676e0d932b3b","block_type":"box","text":"ICE BofA Indexes.","page_number":71,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"dcde187c-5a4b-42d1-9983-5a787b47d85c","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":71,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"1ec1256f-5def-4e47-968a-40894084e20c","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":71,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"33200444-11bf-4459-ad66-7fb6efbc60c7","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":71,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"40046ded-30b3-43ee-bad8-88d739a1df4a","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":71,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"3897046d-cf68-4601-a18e-613fad1421d3","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":71,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"7cf5d9e1-0bce-4235-bd73-8c2aa8c14161","block_type":"box","text":"completeness, or otherwise.","page_number":71,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"bd41545b-1363-4a18-8290-8ed1578b3cdd","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":71,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"ba80e30b-c61e-49f6-aabb-ff495236be5b","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":71,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"c256fbd1-5ef0-46b1-8e14-9655b7efbeab","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":71,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"72a1b73d-15b8-40b6-bebd-ab2ebdb220d8","block_type":"box","text":"Indexed and Inverse Securities.","page_number":71,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"b1dc4d6a-e87f-4244-b392-29cc3e7bee80","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":71,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"2d00d9cf-ed65-4ae0-a1dd-1b795fb7552b","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":71,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"cb9fbc55-0cf2-4446-946e-8397f0820aec","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":71,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"371b6f5c-2c3a-4fed-a527-11d7f8527e35","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":71,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"2513a95e-e798-4302-89f1-9a36b5728e25","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":71,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"58e7defb-a832-444c-8a5f-1b807b33223b","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":71,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"9e7d07fd-3bea-4015-ad14-abe95e6b1ef3","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":71,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"65d2835b-6bc0-4ef9-b56e-47e6f0758989","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":71,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"960c2dc0-9a47-4cac-9fb2-3e4c4ce44aca","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":71,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"377da799-ae25-40ce-8009-068516b48ccd","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":71,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"6b1a2069-314c-4e79-8ac8-461aef004dc2","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":71,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"cc85681a-2683-45c9-bf4e-9b26ca161d17","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":71,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"bbb131a8-52e1-4b2b-9e55-048710b38478","block_type":"box","text":"increase or decrease in value in response to changes, as an illustration, in market interest rates at a rate that is a","page_number":71,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"db4231e6-1496-4b5b-992a-e466918de43b","block_type":"box","text":"multiple of the rate at which fixed-rate securities increase or decrease in response to such changes. As a result, the","page_number":71,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"46da2cc1-64f1-4b1f-a91a-6eb251df3277","block_type":"box","text":"market values of such securities will generally be more volatile than the market values of fixed-rate securities. To","page_number":71,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"a8b0cc46-e059-4c3d-b98b-48f22a89487b","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":71,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"756bebf4-8514-4f84-99b5-a4cf58f451c5","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":71,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"2c70531f-a6cd-4cb1-96ce-8640e40f160e","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":71,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"4a0b7071-00c7-48a3-bdbe-00e5898544ef","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":71,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"8db14736-3c62-421d-8f8b-a8e4553b5131","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":71,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"ef057443-eede-4bdf-9984-a40dcbbeb146","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":71,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"7f65839a-1443-4f89-be39-2aaf9a42af52","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":71,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"984488ad-b27b-4129-846b-f7d4b9ded29c","block_type":"box","text":"includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, a Fund","page_number":71,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"f81d7c7f-27e2-43ee-8116-323ceb2eb6f6","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":71,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"44bcd235-a2bc-4f94-8a55-06bd1ed66876","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":71,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"7a5bc698-e264-4257-957b-e83ee577adf7","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":71,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"83ef1868-3700-47de-995d-aaa8c2bf28b1","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":71,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"f0fd236f-875f-48c2-a266-c64e3d55fb68","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":71,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"4570c425-8875-476d-a221-453481cd2379","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":71,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"e85744e8-3f43-43d4-8a4d-f92f1c99a7bb","block_type":"box","text":"Inflation Risk.","page_number":71,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"de051dd4-8727-432b-be1d-bb966e15ff27","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":71,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"735fcc23-94e0-42c4-86ce-f36dfbc59082","block_type":"box","text":"value of assets or income from investments will be less in the future as inflation decreases the value of money. As","page_number":71,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"4b98b015-15a5-4880-8a86-4aeaedd8a18b","block_type":"box","text":"inflation increases, the present value of a Fund’s assets can decline as can the value of a Fund’s distributions.","page_number":71,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"4d3b803b-9a49-428a-ade4-63c36b6ccacc","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":71,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"3d9ad41b-ad13-4a6d-b43d-045eaba5a480","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":71,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"d457edef-6005-468e-83cb-11e696b1d190","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":71,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"632d974f-cae9-4379-8e0f-625d52ebf5a9","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":71,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"db1dc0bf-2779-4339-898d-5ac9439d75b9","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":71,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"3cb4917f-1693-45a8-8715-0f8acc7b4f17","block_type":"box","text":"availability may be limited and a Fund may not be able to buy any shares at the offering price, or if it is able to buy","page_number":71,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"0b3731db-3a64-40c9-a98e-614b36b9db7f","block_type":"box","text":"shares, it may not be able to buy as many shares at the offering price as it would like. In addition, the prices of","page_number":71,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"7d2b0e8f-4d60-404b-aa5d-7be79d962af3","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":71,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"1c5a1c38-f571-4aa7-bf9d-82c8e86a05fc","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":71,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"7d39062f-fb74-4bad-857a-1422fa0d78dd","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":71,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"0d7b82c8-f8eb-4abe-afa8-415538946eef","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":71,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"d814fc48-75f8-46e4-a243-1363fe267c1b","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":71,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"1e2bc4fd-4f22-4b18-a059-9fc3865e528b","block_type":"box","text":"II-34","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"26127c58-fabd-4dcb-b7ab-9a56c217c3c7","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f313a99b-e15e-44fc-919e-aeb267d60573","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":72,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"9198168f-ba99-408a-97a3-9e373fd5ba6a","block_type":"box","text":"Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when it","page_number":72,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"82e65314-0dc1-4476-9aae-cd6700a3965e","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":72,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"b2e210a6-2e75-40df-a76d-b45cb8278c4e","block_type":"box","text":"decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller","page_number":72,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"e794a7fc-38a5-4504-a801-fe696d0b688e","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":72,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"70b6586b-321f-4730-83fb-a925163c194d","block_type":"box","text":"be available for very limited periods.","page_number":72,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"b5f6d7b7-9553-46fd-a1b7-47377dab379c","block_type":"box","text":"Investment in Emerging Markets.","page_number":72,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"05462d32-4215-443b-b8e9-648273a3bc5a","block_type":"box","text":"General.","page_number":72,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"887f2692-c0b2-4fdf-be83-ab0f12e477f5","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":72,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"0a20bfe4-5036-45ed-b437-6a7d5dde95b3","block_type":"box","text":"markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital market is any country","page_number":72,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"79337542-e8b4-49c7-84a0-5617049d968a","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":72,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"4ff37d87-72a1-43de-9c67-ac8a725c4da9","block_type":"box","text":"the International Finance Corporation, or determined by the World Bank to have a low, middle or middle upper income","page_number":72,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"2f32b774-b9d9-41e2-be7a-a3b104de440c","block_type":"box","text":"economy; (ii) classified by the United Nations or its authorities to be developing; and/or (iii) included in a broad-based","page_number":72,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"d893c0c5-0b5d-4fbd-a842-ebd41ba48a7b","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":72,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"c25c153b-aace-4d36-ba8c-b373596a785e","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":72,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"5dede9d4-a3d7-4011-b280-7e284cb6d0e1","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":72,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"5867b084-9749-4b59-8bc3-a50f1402a958","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":72,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"b42a6b9b-8efa-47ef-9ca6-406dbf8d8ff2","block_type":"box","text":"such as (i) low or non-existent trading volume, resulting in market illiquidity and increased volatility in prices for such","page_number":72,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"0ed5e3ae-9580-4113-8560-69df077dc9a0","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":72,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"5827cbaa-088d-4170-a894-04a36e7cb29d","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":72,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"eba30e0a-1568-4da1-a40b-25899474502b","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":72,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"fe0a4a98-0268-4981-8d1c-aa49d5b41b30","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":72,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"c6bab066-ffc7-4794-952a-6df66508f3ec","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":72,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"30134acf-2172-48ef-b2df-d820cc04d2f6","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":72,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"baa77f22-83a6-460a-becf-cb265a2941ce","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":72,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"6b218c4a-6e5d-489e-bf5b-6490cbcbc22a","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":72,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"6100f737-0a44-4f28-8125-6b968286cde4","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":72,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"ce3005fd-486b-42fb-bff6-e260b1e325c0","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":72,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"88c2faae-88ee-4098-8ce9-fc5d43670324","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":72,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"3ca04544-2800-4ec8-9c37-5b2c661ef60f","block_type":"box","text":"developed countries. In such a dynamic environment, there can be no assurance that any or all of these capital","page_number":72,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"f8387954-00da-473f-b3ee-ed927d76b31d","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":72,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"0379435c-5116-4ff6-9d7a-8c43da08c2c2","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":72,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"88bd209c-195d-4f66-b5fd-b846402eec88","block_type":"box","text":"fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":72,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"9b89bef8-d417-491e-b93f-7613909beb8e","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks described above,","page_number":72,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"433bf709-d25a-4f2b-b57a-de883d185a9b","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":72,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"461cd5a5-1512-4098-ab6a-7c957133618f","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":72,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"e0fe1d7c-b416-478d-a6cd-a5204f9efae2","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":72,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"879c6277-ae7a-4a54-86a7-a6965ec7dc06","block_type":"box","text":"the limited volume of trading in securities in these countries may make investments in the countries illiquid and more","page_number":72,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"4e269bcc-83be-488c-a118-4871de850946","block_type":"box","text":"volatile than investments in more established markets.","page_number":72,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"0bd9dc51-c378-44c3-b033-b8f371b68642","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":72,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"b639aff1-5334-4bea-831e-16bfb6866d55","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":72,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"80eb4cf8-afe1-441d-a636-c9e11a8e42d4","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":72,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"c927e9ce-9f0e-439d-b09e-ab5e6d57cac7","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":72,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"b3a94830-2725-4105-9e07-5d7388971ea1","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":72,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"43c95dd8-3e56-4310-a007-217507436ed5","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":72,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"83642380-a6af-44f1-a6f6-e7db1d7bd3c5","block_type":"box","text":"shares may be held by a limited number of persons. This may adversely affect the timing and pricing of the Fund’s","page_number":72,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"8c47b0f6-5a5b-42a5-ae33-215cbe12f12c","block_type":"box","text":"acquisition or disposal of securities.","page_number":72,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"a071be99-0b08-4e4b-b51a-e78ac567f30c","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":72,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"b748ba2d-2854-4ee3-8fe4-00cc9e6ee60d","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":72,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"cf3e0131-a8ea-4a3f-a33e-b9646809c9d2","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":72,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"64bfb774-6426-4185-b3e1-c1672f562f21","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":72,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"884ce3e5-e2bf-4f02-a97b-b2a38526409d","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":72,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"82778fbc-e71f-48dd-b5b3-13160342d8ee","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":72,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"63e91ec1-6960-4a72-86e5-ad60d726944d","block_type":"box","text":"II-35","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f14ef20b-78a1-4312-abca-bcf06316afe1","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9d36e468-03aa-4e2d-91cf-114670bcc9be","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":73,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"4c38924b-e591-451b-b661-f976ba54c2f4","block_type":"box","text":"countries may be on either a currency hedged or unhedged basis, and the Funds may hold from time to time various","page_number":73,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"2e402821-32b3-4506-99f3-d85272bce057","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":73,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"aa38d872-62fd-4739-8c80-455d08d69b9b","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":73,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"0c9dc134-0c65-4275-bcc5-60e412e2bb97","block_type":"box","text":"to seek to protect against changes in the level of future exchange rates which would adversely affect the Fund’s","page_number":73,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"e947cd56-71a1-41df-bebb-cad016e81b75","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":73,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"df5318e1-15f3-4b49-9856-3b4f446155b8","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":73,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"3881c4cc-f794-407e-9f04-72adb94fdca0","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":73,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"47318b79-24ee-4b7c-a916-21caa483e810","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":73,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"e4f9450d-b1e8-461a-9bfc-7ec4383525d6","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":73,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"bd2829c8-fe7d-493c-b9fb-d438807ea8d7","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":73,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"e232dc58-8ac6-4ab9-9df9-79146fbe7d6a","block_type":"box","text":"these markets, there is a high concentration of market capitalization and trading volume in a small number of issuers","page_number":73,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"9b434d33-698e-4e5d-913c-a72e5fe1084c","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":73,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"3ba28ed9-5194-4be8-8923-c0b28acb547e","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":73,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"0a902daf-b0cc-44a2-afc0-d9418a558c6a","block_type":"box","text":"region such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in","page_number":73,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"3778cd2b-42d0-4144-a3dc-0ac0922de6c6","block_type":"box","text":"number and less well capitalized than brokers in the United States. These factors, combined with the U.S. regulatory","page_number":73,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"69bfcce0-2510-4297-8cd4-5216e0248f62","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":73,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"df9b7f06-03f1-446f-ab8a-53e787ca0d5e","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":73,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"2d2ec760-046b-4d99-a163-be9e98a0316f","block_type":"box","text":"per formance of the Fund.","page_number":73,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"dfdbc0ec-a8ff-4bbb-bd58-5c1b8ba2ea4d","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":73,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"76329f8e-9646-4c44-a34f-39debbf77140","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":73,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"5b94ee33-4188-48d1-9dde-bc23d6632986","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":73,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"72f88681-6370-4b81-9048-4c978f899b15","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":73,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"f783bf2c-50ce-408d-9a0b-eb9c704f0af9","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":73,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"d67ca162-43ad-4d05-910c-1b1bdb33a95d","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":73,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"bd0def3d-fbc5-487c-9e83-8b5e17fde8c4","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":73,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"4d3cb9a1-9a68-4789-84ee-4f2e7abe3998","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":73,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"e9842854-c3fb-4262-a879-763944849642","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":73,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"f2ae6ce6-dd3a-40a6-bc1c-d355f5655f41","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":73,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"639ff8ff-b454-4eaa-9e0d-d29fa76588f3","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":73,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"b522214f-4483-47ae-b799-8b9ea84af706","block_type":"box","text":"affected by a variety of factors.","page_number":73,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"ffe203fd-a2b7-424b-bdd8-3a0e7ad18e44","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":73,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"bb0fe92f-2ac2-45a9-ae4c-8705d76f708e","block_type":"box","text":"Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the","page_number":73,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"69ca98aa-c94c-444f-a492-0d853d6b11a2","block_type":"box","text":"corporation is generally limited to the amount of the shareholder’s investment, the notion of limited liability is less","page_number":73,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"e05ecb0e-0b09-4893-9d38-72f9ce0b65e8","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":73,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"1814513d-a868-4ce1-b087-3f861f22cd12","block_type":"box","text":"Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or","page_number":73,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"cdd2d671-177f-483a-adbe-fb71ab7a036d","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":73,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"66fc874e-e8f6-434c-98bb-123c48f0dc57","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":73,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"3518a404-96a9-43ca-acb3-a7a52f79b0e2","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":73,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"3879b802-9b8c-4cb9-b2d2-f66d61ed4f17","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":73,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"c75a9b88-2edd-4d51-b2c4-feef5d02295d","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":73,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"430783c0-2916-4d5f-ab36-ce66843378d7","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":73,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"0838c461-67d2-4612-8172-897b9c3fd8a5","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":73,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"31e38b23-b77a-4f51-81cd-3ddb8daee30c","block_type":"box","text":"nations.","page_number":73,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"08ef7f95-977c-4560-90b5-054a4bb06142","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":73,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"fb391d15-7056-4f7f-aef0-19610156ee55","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":73,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"54a31927-d072-4201-ac91-60d580ad46f1","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":73,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"876fa698-579c-4837-ab5b-2a34a1e0559f","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":73,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"4e6ee39a-77ce-43cd-87d3-5c365bf94b9e","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":73,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"e2915623-a9d7-4fc8-9794-91744291003a","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":73,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"28c343c2-4b47-4c0f-9f35-2f646340efdc","block_type":"box","text":"market Asia-Pacific companies.","page_number":73,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"8cc2523b-94d9-4651-b004-5d3935cb6ed0","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":73,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"e0a0962d-52bd-460f-af46-b455fc7b0c2f","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":73,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"64951018-1d19-4995-846a-974bb919f859","block_type":"box","text":"services for such securities outside such countries.","page_number":73,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"5d171585-d00b-4409-90f5-608f4641bdda","block_type":"box","text":"II-36","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0b348053-b489-4032-879c-e69e905eaf28","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2054a844-3766-4564-bd23-e6981b8c64ab","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":74,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"475b9c9c-612f-41bf-8189-3457afafb7ae","block_type":"box","text":"to commercial banks and foreign governments.","page_number":74,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"5412c436-7cb4-4ab2-8d11-3f557a1f6722","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":74,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"c6cd1236-0ec4-402e-943d-338338f6020c","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":74,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"ad590089-7abb-4c9d-9f11-5f7897336fcb","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":74,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"fcbf6365-c8c3-43bc-ac01-e766c0dac8bd","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":74,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"94682f7c-7495-4509-b6a1-96a33f327399","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":74,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"d7918548-5397-4c6d-90a5-d43f25a2c666","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":74,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"33f4a56f-f793-4af1-bbbf-d5a9aa58769c","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"ddc00631-2001-496c-b363-de3ad8ce8cb0","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":74,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"7ab353c6-9eb9-4c46-9028-6658d429040d","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":74,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"f47a7b8d-e279-4a59-9ac6-4e2b089dcc98","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":74,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"01fc47c1-3dcd-42b2-a75e-a9fe52e2e8cc","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":74,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"f6edef37-4d78-47d7-8075-e59bb82d4082","block_type":"box","text":"by foreign persons to only a specific class of securities of a company which may have less advantageous terms","page_number":74,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"c313d303-f986-4f4f-bba5-e87eb16446f3","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":74,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"17fa45bc-f85b-471a-a881-62cd03a6a18a","block_type":"box","text":"be no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In addition,","page_number":74,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"652d5643-1426-4620-8a9e-af0cf3343665","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":74,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"1da4e760-e924-4d2d-ad64-1056175543c1","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":74,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"db2044c6-ce1f-4d22-bda8-f50b2c7b647f","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":74,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"8fe590f9-fa39-449f-81e1-6831d5cb51ea","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":74,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"1f09adf4-3bca-418e-9139-c1f5704e82bb","block_type":"box","text":"well as limitations on such investments, also may have an adverse impact on the operations of a Fund. For example,","page_number":74,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"69a38930-7c72-441f-a538-0c780b4f9e9e","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":74,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"418fd8bd-ea6a-4e2a-82cc-f4c89123119c","block_type":"box","text":"have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able","page_number":74,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"24481ae3-0c9b-4d57-9ab0-da0356549639","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":74,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"2267f84a-baca-4d43-ab0a-0d1b837e3576","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":74,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"9a4dba93-fa93-4dca-a3db-0be7aaa356ce","block_type":"box","text":"a Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible","page_number":74,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"68ef2798-c753-4753-be39-b76016ce6899","block_type":"box","text":"allocation of the investment to foreign investors has been filled, depriving the Fund of the ability to make its desired","page_number":74,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"d2d9b604-4033-43bf-8a02-3c8625dd7b92","block_type":"box","text":"investment at that time.","page_number":74,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"349d9485-95d8-4e8a-8e60-7536d3746456","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":74,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"8914128d-35f6-41ab-a772-1fb6ce491cc1","block_type":"box","text":"income, capital or the proceeds of sales of securities by foreign investors. A Fund could be adversely affected by","page_number":74,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"806354bf-9178-4e14-9218-02db32a2deb5","block_type":"box","text":"delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the","page_number":74,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"17b7ae0f-afad-4ba7-9dc3-dfe8c1930ccd","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":74,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"13f01a61-859e-4452-a9fd-a8941839fe04","block_type":"box","text":"controls or other restrictions relating to their currencies or to securities of issuers in those countries. To the extent","page_number":74,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"05807996-4dc1-42b9-8c10-b68b080fdc40","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":74,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"3e61cacc-4df4-4225-a609-f3a2d8367934","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":74,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"35178765-62eb-4519-9ada-adfa10089bc4","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":74,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"77d8c39b-52dd-44e0-bb98-79b7e01b9f56","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":74,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"7e310212-dedc-4b28-b32a-92a4ad9d2bf9","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":74,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"99235e1c-1c04-4d8f-b47c-55b8af8a9111","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":74,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"dba0e526-03af-4dd2-9062-d9ca1f7a1f0a","block_type":"box","text":"government).","page_number":74,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"eadf91bb-61cf-48c6-9b32-f5317b752d25","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":74,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"62111900-c5dd-4ca0-8d0e-c0ed73df15b0","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":74,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"c645ff8e-ed6a-4f54-8ebb-d4074396245e","block_type":"box","text":"securities of an issuer that, in its most recent fiscal year, derived more than 15% of its revenues from “securities","page_number":74,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"1a71c1df-609d-458a-8799-fee744abb0a1","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":74,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"7dcbcbb8-574d-4af0-823d-b2205b3714d0","block_type":"box","text":"foreign banks and other financial institutions.","page_number":74,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"c78dbfd1-be08-4773-abed-cb8a9368642d","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":74,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"0a8f3709-2397-4cb6-bc9b-a993ea853503","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":74,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"5536790a-9c15-4e9d-a771-cd067a41d5bb","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":74,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"919952dc-a7a4-4e69-a37f-5044624b9a06","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":74,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"0e79bb04-8618-4e22-999f-264dc068098a","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":74,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"0484d343-340a-4201-a365-348ec5192e3f","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":74,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"f138e85f-bee9-4bfb-ad6a-b3b37714bdad","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":74,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"899b5887-ed33-4a81-b3e9-8b93ae5b2f99","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":74,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"072e4a2a-6bd3-434a-88fb-5a92b42c46d4","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":74,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"b337e76e-de80-4f5f-89b4-97671b2067dc","block_type":"box","text":"II-37","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"94c608bf-0fe8-42e6-bb49-59cc9c44353d","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c4d41a58-837d-4552-9a5b-33a4f728198b","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":75,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"996e102e-bd2b-4bbb-9f9e-2a24f4c8964a","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":75,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"09762e24-216b-4975-9f84-700f0f9671c8","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":75,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"bdec3a98-c386-4a7e-8d67-eee993201341","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":75,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"9863e60b-4ef4-422f-8fb8-5ed2293a9dda","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":75,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"ee8156fd-04df-4c1f-b0fb-8e2a89a4d00d","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":75,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"e07b2eb8-08e2-439e-9a80-a39897524bbf","block_type":"box","text":"foreign securities.","page_number":75,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"b22708af-9775-4153-8778-8daf8cdc3c34","block_type":"box","text":"Risks of Investments in Russia.","page_number":75,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"f7fefe63-de7f-45be-93cc-a55d657aff27","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":75,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"3a52e955-6078-48eb-9480-d3598fd69026","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":75,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"904c922b-33e4-4253-b30d-0bbb99a9f68c","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":75,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"db6793ca-f10f-4583-ac88-1ba42d763a08","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":75,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"1beee5c3-782f-436f-8653-efbecc7b9818","block_type":"box","text":"The inexperience of the Russian securities market and the limited volume of trading in securities in the market may","page_number":75,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"fcc0db57-20f1-4d7b-a635-ce775f3f955c","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":75,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"cafe6b22-f12c-4824-8b24-afa52b2b92fa","block_type":"box","text":"developed markets.","page_number":75,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"4541182e-d86a-4f27-964b-39174301688b","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":75,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"9f65be73-cb3c-4382-b7ec-914a7da688f1","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":75,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"2d158588-e9cc-4d8f-a2fe-7bc29f5b9f8c","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":75,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"5fe12e4a-f921-48b2-8599-d8d868c46e1b","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":75,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"8dff10f0-ca71-4413-a6ba-fd1769de5668","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":75,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"aec8334d-c8d1-4781-be6b-d5405b35ae26","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":75,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"605e1788-1e20-496b-aabf-baac258550cd","block_type":"box","text":"through the NSD is now based on the records of the NSD and not on the records of the local registrars. Although the","page_number":75,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"7857d57b-1788-44df-91e6-3b3c8820b1f0","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":75,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"389b5d9c-3e84-49da-a72e-c938fd75e50f","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":75,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"237d3714-2f8c-44d2-804c-2091b73d2a00","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":75,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"b4693725-8925-4be4-8355-4b856eeb387a","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":75,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"dd9cc1a8-c40b-4591-b5cb-13bd5bba94de","block_type":"box","text":"respect to the completion and submission of corporate action elections. To the extent that a Fund suffers a loss","page_number":75,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"98dfec0b-cc14-475f-858b-357897b39cff","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":75,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"9c10ef21-7db8-4466-9ca6-19602e2b34b7","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":75,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"3c267fb8-2fcc-4c93-a82e-fd7a803a0d27","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held on behalf of","page_number":75,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"73b76bd3-65a7-4e84-99d5-115a485d1f8a","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":75,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"8f2e5372-6cae-4a4c-9dcd-71fc20fcb131","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":75,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"a0f18621-5150-4ca8-ac80-3015910bcd99","block_type":"box","text":"did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia launched a large-scale invasion","page_number":75,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"203aab24-cf90-4135-9d6a-7f24cae0d4c6","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":75,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"35d240e8-2d3f-4f97-aca0-08dc51e5051b","block_type":"box","text":"future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar,","page_number":75,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"472cd677-e970-4b5b-adfc-bbd108bac2c2","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":75,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"f2038d33-cb58-4e91-a86a-0ca947da2eb0","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":75,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"f9d61958-34c9-43e4-b768-181eca553c5b","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":75,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"270f1ffe-5585-4957-af49-7173ae2f0a4f","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":75,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"dc664635-e10c-4881-bc05-551f2b7108a3","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":75,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"23da5d0c-aea0-4ef7-9385-b54ee88ac5d8","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":75,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"9ffec711-ac14-4cb5-8d6a-7e32b3d3c8a9","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":75,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"152e9a6d-55ed-4287-a715-73e88c45289a","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":75,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"e99152b9-4078-4cf8-aa9f-e79c9c221a97","block_type":"box","text":"oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":75,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"08051166-9d9f-4fe2-b331-8e64f9b22cfe","block_type":"box","text":"sectors globally.","page_number":75,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"00dd3a60-5dbf-464f-a12c-e0b2b076563c","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":75,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"f6e26395-6fd6-49e6-882b-093f42cf49c8","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":75,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"99843b0c-2152-4ece-838d-0d94b2e2aa95","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":75,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"09b6f633-e3e7-40f8-b469-e59d598f692c","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":75,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"6684900a-2fd6-4d38-9470-9fe6dccb80ed","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":75,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"6262cd32-89f2-43d8-a143-d68a4c325d12","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":75,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"27b635c9-820a-46b8-a25c-5a51599f48ea","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":75,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"01da14a0-b48a-4d78-afb2-c1188f3c3f88","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":75,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"165daab3-136d-4604-8b90-4f92c20d1035","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":75,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"7925e552-973a-478c-a7cf-6d0499b4daa7","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":75,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"a6263cb4-de43-40cb-8964-3c4d92f8c1d6","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":75,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"41334636-44db-4fc8-a6a8-874624c7d5da","block_type":"box","text":"II-38","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c16b5d4a-05a5-4d88-8406-387029ddbf1d","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e2f9e06f-4f7f-4fab-996d-3f01edef566e","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":76,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"0ce7a2da-67e4-4b2c-b93b-b7ce694ce38e","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":76,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"382258ac-3feb-440e-af3f-735f115c3667","block_type":"box","text":"issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian government at any time,","page_number":76,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"a6199de3-8516-4c6b-a9d5-314b84d4b919","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":76,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"0a36344c-7d17-4dc5-9501-807f5508cc89","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":76,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"efdcc8f0-26c6-425f-a503-e3c20c19da5e","block_type":"box","text":"including a limitation on a Fund’s ownership of any single issuer listed on the Saudi Arabian Stock Exchange, which","page_number":76,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"ee2ac1e7-b5e7-4cd9-9a6f-ef14c62f19a5","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":76,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"446c6748-02fb-4f2e-bc52-290b2ea68bef","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":76,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"3f1fc65e-882c-4ec3-8416-d9ee80e53588","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain or maintain any","page_number":76,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"7e1a2ada-40d8-40d7-b07a-53f370802934","block_type":"box","text":"such licenses or approvals and may not be able to buy and sell securities at full value. Major disruptions or","page_number":76,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"619644be-2936-4e8b-915d-ee1f782f536c","block_type":"box","text":"regulatory changes could occur in the Saudi Arabian market, any of which could negatively impact a Fund. These risks","page_number":76,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"1553a29e-99e2-421d-97bc-4cd645b87cdf","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":76,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"0de78982-eccd-4758-9432-5db53443a6bf","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":76,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"8b1edf1d-88dc-4e80-85b6-4e3af9399cd6","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":76,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"fb9c9ec6-402f-4de3-b8be-054637bfd8ca","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":76,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"abb9964c-8d93-4b80-b1a9-2780fe52bf9f","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":76,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"6a4b7fde-6167-4265-acf8-50a85267946a","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":76,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"56ec722d-afbe-4224-bf86-d6536fd10a88","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":76,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"76d0c0e5-72f3-445c-896a-3dba9a8f4b43","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":76,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"9d69ac3c-f4a3-457c-9eac-f892fedb4d2a","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":76,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"e6151bfa-2ffa-4c64-9a82-c52e68c01b4c","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":76,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"9c27bcb0-0f40-4371-81b8-3a1149c86211","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":76,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"7259edd3-cc0b-427a-96ec-b7aa57146de4","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":76,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"247b6f58-203c-4d49-9b07-3c823b35ee47","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":76,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"977aba63-7a2e-4fc2-b854-71c01b527520","block_type":"box","text":"to an applicable treaty). Saudi Arabia is highly reliant on income from the sale of petroleum and trade with other","page_number":76,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"d3c5ac8c-85b4-4774-aa27-48904994f717","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":76,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"47a86c3e-9493-4262-b146-08f538d83460","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":76,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"bfcacabb-7dbb-414d-901c-6e71475bf550","block_type":"box","text":"impacted.","page_number":76,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"9d239a9e-87b4-4bea-8dba-c3630428fa74","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":76,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"5795bf2c-f6cf-4421-bdbb-d7a176716de8","block_type":"box","text":"many aspects of the private sector. Although liberalization in the wider economy is underway, in many areas it has","page_number":76,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"627c65f3-0af0-4e2d-9929-6bfc5859ec46","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":76,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"5b66dfdd-2b3b-4d75-8646-7cf486bd9f92","block_type":"box","text":"key industries. The situation is exacerbated by the fact that Saudi Arabia is governed by an absolute monarchy. Saudi","page_number":76,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"bffd56ba-5477-422d-8fdf-f39da58fa429","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":76,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"a1d1768e-127b-41b6-b4b7-f12d84cb72ca","block_type":"box","text":"the Middle East due to geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security,","page_number":76,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"76058a06-c41d-4ae8-9fc1-d89b25e4173c","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":76,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"cc990440-92fb-42a1-a967-3850fc620290","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":76,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"559fa629-f961-4489-874c-de3505b31f88","block_type":"box","text":"Arabia, which could affect private sector companies and a Fund, as well as the value of securities in a Fund’s","page_number":76,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"8d66a7d8-bddb-4923-bd77-76360abdc660","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":76,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"125f6005-a1e7-464a-a429-4e11bf5594c5","block_type":"box","text":"of sanctions, may result in the decline of the value and liquidity of Saudi Arabian securities, a weakening of the Saudi","page_number":76,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"80b72dea-1243-4a59-9a14-3d6247dcd883","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":76,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"9275cc0c-d555-4106-955d-2c9f7317bde4","block_type":"box","text":"on cheap, foreign labor, and changes in the availability of this labor supply could have an adverse effect on the","page_number":76,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"3ca6823e-7c1a-4072-a301-422e10ef91bc","block_type":"box","text":"economy.","page_number":76,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"16cde091-5afd-4e23-a880-e3101381f28d","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a result,","page_number":76,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"3a21c96c-8163-4525-a2d0-2e4ea28a969f","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":76,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"ef8b9502-6f3d-4b95-a501-d62b16f7a70d","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":76,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"ae786ceb-03ca-4687-b29f-4308aeba329b","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":76,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"3632cbc3-82d5-4f1e-81ff-395a512c2849","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":76,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"da3ff57b-1471-4d29-9635-5a5003ec5668","block_type":"box","text":"infrequent trading may adversely affect the pricing of these securities and a Fund’s ability to sell these securities in","page_number":76,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"3751e6b6-cde7-49de-ad10-e3bd30488435","block_type":"box","text":"the future. Current regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":76,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"1230fef0-4b45-498d-96f1-3f7fbd1e27e9","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a Fund than is","page_number":76,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"84bce71e-2d71-450e-b088-45161642be7f","block_type":"box","text":"typically the case for investment managers.","page_number":76,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"74f9bacd-d4e5-4056-967e-badb6ce1b26a","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":76,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"6c1e3e44-c6fe-4e19-8409-eacd52ee4f4f","block_type":"box","text":"instability, and there remains the possibility that the stability will not hold in the future or that instability in the larger","page_number":76,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"cfcf060a-7c3c-4882-b09f-1aadb68ff268","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":76,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"fb44215b-4e4d-4ba6-84e0-bf1939cc9e59","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":76,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"6204dd43-cf39-41e5-88b4-c3ffb15ec0db","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":76,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"d8f56fbc-4489-4f3f-ab41-aaa9e8b81707","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":76,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"930e02f2-d079-4241-b802-d6659d3bd743","block_type":"box","text":"II-39","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff88d826-04a7-4177-b7c1-480298ddb78a","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7447e707-e4af-480a-83aa-d22feaa3f544","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S. is a","page_number":77,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"a7fcc5b2-7056-4ad9-87e5-7d4dcee7aa36","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":77,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"e662838c-bde7-44e7-94e9-a3efc3bc4666","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":77,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"a4c4cb20-1eb0-4c60-aa63-51681234f4c9","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":77,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"977dcca3-66c7-4d42-b375-6cf70b1dbb9c","block_type":"box","text":"an economic slowdown in the U.S. may have a material adverse effect on the economic conditions of Saudi Arabia","page_number":77,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"cedc1494-158d-4efd-821e-c9e236901a20","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":77,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"f1036e6c-0a10-4710-b1b3-14cc0932e41e","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":77,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"8ccd0d52-e72f-4091-93db-76a26d39274e","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":77,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"ed7fcb31-116c-4e99-bad3-206af4572670","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":77,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"b6dcc77f-1e73-4f41-b7dd-e4a1ae6c8c01","block_type":"box","text":"and/or embargoes imposed by the U.S. Government and the United Nations and/or countries identified by the U.S.","page_number":77,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"2a53ca06-0ef3-4fdf-abf7-32d09f664409","block_type":"box","text":"Government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is","page_number":77,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"fb7a5cc1-e070-450d-9e7f-5d5384d5f941","block_type":"box","text":"identified as an issuer which operates in, or has dealings with, such countries. A Fund, as an investor in such issuers","page_number":77,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"fb2452df-7ef0-434e-84cc-889d860cfb2f","block_type":"box","text":"will be indirectly subject to those risks.","page_number":77,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"fa0c1648-1bb7-4b08-a8c3-9d99e72d3daa","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":77,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"6d1d157c-990d-4f79-bc63-d8e9a4a5e13a","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":77,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"a0141c2d-1ad6-4c90-b93c-47055ddf8810","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":77,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"0f33318d-23f3-4ad8-816e-4344986e8c83","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":77,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"e294f46b-5862-4ce3-8bb5-833bf3a1218e","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":77,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"c0bf8115-5d78-47b6-842d-fb5e493255d5","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":77,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"c08d51e7-e1ac-489b-a219-762e7576fd9d","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":77,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"25e761ee-79d6-49e4-96cd-698d0f387f2c","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":77,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"baf256d9-9c11-466a-82d7-6252b32746c8","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":77,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"83233548-bb1a-496c-9e32-354b9ad283be","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":77,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"9c40d907-81d8-4674-9a38-ff2ec6d5ecd8","block_type":"box","text":"governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions, which consist of asset freezes","page_number":77,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"c342e89d-647e-4d7e-8fb9-4af49ba6df2d","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":77,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"2478e621-65e6-4215-8dce-aeeb8677d946","block_type":"box","text":"government. The U.S. could also institute broader sanctions on Venezuela. The U.S. has also taken military action","page_number":77,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"c5b5bc58-a53d-4d0d-9646-1ab4404645e5","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":77,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"6e40d982-de51-4b54-85a3-38dc06589f98","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":77,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"747f5cbb-394d-4d2a-b74b-450837aac93b","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":77,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"93e2930d-18d6-466a-bee9-43a93f6e2aa5","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions against Venezuela","page_number":77,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"26946838-a5fa-4615-8706-000b8acb9cfe","block_type":"box","text":"may in the future be imposed by the U.S. or other countries. These factors, among others, can have a negative","page_number":77,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"6aaf0811-5fa7-4909-8cbe-50c17938f77b","block_type":"box","text":"impact on a Fund’s investments.","page_number":77,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"9bb82eb1-8e48-4256-94c0-80fa80c46ade","block_type":"box","text":"Brady Bonds.","page_number":77,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"d7317997-8191-4377-8d2b-bd251e6f6782","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":77,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"83b7d6d6-a3de-409d-9d92-3f5b281bee61","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":77,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"254a3f53-c904-4c51-a47f-31d8e5149a87","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":77,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"550034dc-29e7-4511-b3d9-ca8163a1c4e2","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":77,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"3dd9fa4a-a704-4703-a8f8-aa1767c3cb1c","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":77,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"e3d2b4b7-3468-4072-bf47-87e4a51652d3","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":77,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"91bec442-5fa1-46d6-8610-3d3b91e563f7","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":77,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"e7e4b27a-7e77-4392-9149-f563275a9763","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":77,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"8f873d41-d82b-4821-b3d5-a750720f5850","block_type":"box","text":"Venezuela.","page_number":77,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"5e6792fa-3b25-4675-addc-8d818fe434d1","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":77,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"af2a6b25-e464-4113-8b2e-95719d39ec2b","block_type":"box","text":"and are actively traded in the OTC secondary market. Brady Bonds are not considered to be U.S. Government","page_number":77,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"9f0a3f99-212a-45cb-a83a-a29b4d341df5","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":77,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"60d5e70d-5d8f-4a46-bc46-5463ecf46c66","block_type":"box","text":"discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero-coupon bonds having the","page_number":77,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"49ac867b-1de9-449b-abd8-c9c97ebac509","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":77,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"36bbfefb-acb5-43fd-947c-69a2ad0df93d","block_type":"box","text":"year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal","page_number":77,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"2e842920-e8b1-4505-a053-6dc641a5cf5b","block_type":"box","text":"to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":77,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"450c8a8f-fb47-4238-8c86-3acd3acfbbeb","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":77,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"97e44ec7-156b-448f-85a2-dad283496a15","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":77,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"6869cebb-5002-4f69-a135-37b8c3121dcd","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":77,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"fc8b4320-4580-407c-93db-6b9edba88515","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":77,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"72e1df57-2d67-41ae-93ea-365f08bd38b6","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":77,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"f403efa7-ca7e-48de-9111-3a189eb0d9dd","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":77,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"a81acc1d-99a0-409c-ad8c-624db3001ed7","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":77,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"fc53e3fb-c898-4dd2-8352-d6cfdcb2cd2f","block_type":"box","text":"the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady","page_number":77,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"7be33ab3-127a-4789-9f07-30027eaf6440","block_type":"box","text":"II-40","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4f19bf40-06b5-42a3-a073-f1a6b9eb15d1","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a2b9d907-ba95-4cb0-af35-f6dc85409d85","block_type":"box","text":"Bonds. In light of the residual risk of Brady Bonds and, among other factors, the history of defaults, investments in","page_number":78,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"46e63f9d-b92a-4d11-aaad-40570bf0157b","block_type":"box","text":"Brady Bonds are considered speculative. There can be no assurance that Brady Bonds in which the Funds may invest","page_number":78,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"96850741-f3ee-4b81-ae97-346193770d28","block_type":"box","text":"will not be subject to restructuring arrangements or to requests for new credit, which may cause the Funds to suffer a","page_number":78,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"c4124745-ff33-4f78-b989-abddd619c1ff","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":78,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"ea9de9e3-8c15-4769-92e6-6ed29dd76388","block_type":"box","text":"China Investments Risk.","page_number":78,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"69f20a8a-fb55-47fa-8660-2a505e74bdc8","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":78,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"d05ea99f-841b-46c3-bfd5-68ad3e037cc5","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":78,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"d5bbcafa-49a7-4a93-8da6-bf4203d7bd3d","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":78,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"e986b733-1e51-453c-a7e7-804509de1a0c","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":78,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"377c80a8-85ec-4867-b078-5095b538f94e","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":78,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"f86ffb62-eed6-4039-bcd5-a4de1db978cc","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":78,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"7ada1317-ad91-4279-b234-965f71b90c4a","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":78,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"57a58477-1b9b-408d-a574-af0ba610cbc3","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":78,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"68d21046-cd23-425d-9365-08092ab56cbb","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":78,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"2f6f7fdd-a521-428b-9be1-28c7e3baec77","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":78,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"39371fcf-0b78-4b83-b39b-c354831dc7c0","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":78,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"829b0c74-06df-46fa-9cee-0c572288ae03","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":78,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"0d71eeb2-fe8e-4e0f-a85e-67eda9f5153d","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":78,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"6db145dc-c50f-427f-8234-0f949360b987","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":78,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"85b43de9-d8e2-474c-82b3-c3f15833c318","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":78,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"7971a2ac-1720-422f-b064-915cefbd430e","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":78,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"7c79c117-6f7b-4473-ab25-2dcbdb0e9ade","block_type":"box","text":"hostility between China and Taiwan would likely have a significant adverse impact on the value of the Fund’s","page_number":78,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"49e89120-1929-4cf5-b448-fe7aa6d38c41","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":78,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"0257b399-a865-4463-acd3-d343e10c5958","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":78,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"666aebb7-ded6-4f37-9ad5-1c7447d5bf15","block_type":"box","text":"Frictions between China and the Philippines in the South China Sea pose a risk of escalation potentially leading to","page_number":78,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"7adf87b8-83d8-4978-a4c5-84d176ee749b","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":78,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"019d68c7-8d1b-45e8-bb46-05e550c9ce05","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":78,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"4727a1a9-dc00-4db5-ae8f-74ecc20556d1","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":78,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"8a77e8a2-6bb3-475d-a4dd-5b4ff8375ac2","block_type":"box","text":"companies, may impact China’s economy and Chinese issuers of securities in which a Fund invests. China could be","page_number":78,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"8bddd6fa-7eae-4859-bd66-042a849ce0e4","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":78,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"d4dda9ad-8553-4c39-837d-213ac6bbf0e4","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":78,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"f578cf90-0c9f-4991-815e-6e4a49b69ed3","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":78,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"89510350-1b98-4664-b010-98c153879f13","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":78,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"7211412b-18ec-4fda-8445-ff255066fcb5","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":78,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"f69c73b7-4969-4b0f-a612-d82f82c389bc","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":78,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"3f8f6cbf-af62-41cc-9a0f-bf883ef228d3","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":78,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"5f7fc27c-0bbf-4878-801e-8abb2dbe7d91","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":78,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"cce1582a-6056-4c40-9859-95e1093f19c2","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":78,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"3eb45fee-b85d-46a9-9ff0-711845b98aa7","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":78,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"3f2a42cf-6258-49cc-80b3-a3338fd1dd8d","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":78,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"5e2b9bb6-7f78-450d-ab7d-7081f0d1074d","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":78,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"6b1f4dcf-5631-4789-8a4d-bb9e155085b2","block_type":"box","text":"market price and liquidity of these stocks, and may have an unpredictable impact on the investment activities of the","page_number":78,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"eb715116-56d1-42fb-a3d2-08f7cdf3c5a5","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":78,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"cab0c317-90f3-4450-b43d-13b7255e17b6","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":78,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"bea34dd8-f3d7-4583-b6ff-637f22cb754f","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":78,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"0be80ddb-116b-4515-913c-1af4a4b66181","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":78,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"0979faa8-a94f-46f0-baa5-9aed00446c5f","block_type":"box","text":"Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulation as are U.S.","page_number":78,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"125c99d7-7168-42a9-a136-bb6a762e2155","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":78,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"93e6e5e7-5d49-41cb-a3b5-579e4f943239","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":78,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"8f174860-3392-468a-af63-5635881697a5","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":78,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"48ba287a-1166-4d8f-9f8a-99d1dc35aa66","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":78,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"2f6dafaa-50e7-442c-b0ef-613f93f51b3d","block_type":"box","text":"the relevant regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":78,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"d10cb043-6bf2-4ec6-a555-89caca4ac0f8","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":78,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"a583024f-27f4-442a-9730-fd2e3f0949c9","block_type":"box","text":"there is a risk that a Fund may not be recognized as the owner of securities that are held on behalf of the Fund by a","page_number":78,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"797734c9-9dfb-4ec8-928d-15d77b152456","block_type":"box","text":"sub-custodian.","page_number":78,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"3e240e64-4507-45c7-9155-284f8232538f","block_type":"box","text":"II-41","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b901fc5e-1f67-4106-bf7f-f434664da9c0","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c55324b6-ea5f-47b5-b0fe-c744fd30c641","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":79,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"cc7eb1d4-6232-45c6-b7c8-ba0a2b8ce5a3","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":79,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"4d26f8fd-777e-464e-8070-00a7aa1c2b77","block_type":"box","text":"on investor protection considerations.","page_number":79,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"f1d3dc05-39bc-4a93-8f8d-4582bf0dbf7e","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":79,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"b22b9316-8070-4e73-a5be-bdc2b5b7082b","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":79,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"425a5637-b358-485c-9328-d91fd76d84a9","block_type":"box","text":"for compliance with U.S. law and professional standards. On August 26, 2022, the PCAOB signed a Statement of","page_number":79,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"61365653-e9da-48bd-8a42-a918c202b2e0","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":79,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"aa91ad2b-3ad8-48d4-b637-c7ccadca70e6","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":79,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"7f4121e9-ac19-4299-960e-03faa713a7c1","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":79,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"b67653f9-782b-4774-8309-0c59306c800a","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":79,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"b938c8d7-8147-46f5-b3d1-79c6deb56d71","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":79,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"9a099164-441e-4839-ab69-16185044ad48","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":79,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"48025386-2f8e-4053-b7d7-65d5055c0d15","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":79,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"c82b4661-54f9-4bc1-81c7-ad12997c2e35","block_type":"box","text":"2020, which requires that the PCAOB be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer,","page_number":79,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"5f9fdc59-1f7c-4aac-af4f-e5c4ca701fe3","block_type":"box","text":"Chinese companies with securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the","page_number":79,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"40f8a9dd-ad5e-4bab-b7ba-22fccf925a43","block_type":"box","text":"accounting firm.","page_number":79,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"79a02eb4-845a-44d0-9859-f6f10969ad86","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":79,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"309a7a6c-92ef-4540-bec4-c1253f7a3a1e","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":79,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"0d29d1ff-544a-4782-abb2-eb1404218153","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":79,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"81fab729-8ceb-41cf-b160-e2b85d7779a4","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":79,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"aa63776e-e183-4887-94cb-4484af172704","block_type":"box","text":"capital, as well as by the application to the Funds of any restrictions on investments. Investing in entities either in, or","page_number":79,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"c40b5752-438c-46ad-ab7e-6b385913d412","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":79,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"ae727d93-7866-4c8e-97e2-67bacb2210cc","block_type":"box","text":"seek local government approvals or take other actions, each of which may involve additional costs and delays to the","page_number":79,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"b8e79918-4e54-45d6-bb89-8e184bc764a9","block_type":"box","text":"Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and RMB, as well as in","page_number":79,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"3fffeadd-de50-46b8-84d2-393f42ecaa53","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":79,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"870a3b22-f682-4d69-8761-62817ca560d8","block_type":"box","text":"RMB (“CNH”).","page_number":79,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"a9949197-2e08-4bef-8aa9-7fb131b98dd8","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their structure as a","page_number":79,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"6a35074c-23dd-4bc0-8a4b-12a1399641db","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":79,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"f88dba31-4e79-46ff-845c-25e0fb15dc1a","block_type":"box","text":"in another jurisdiction to issue stock to public shareholders. When a VIE structure is used by a Chinese company to","page_number":79,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"f5987695-5989-4cda-a8e3-e67769ee8cd4","block_type":"box","text":"list its stock in the U.S., instead of owning the equity securities of the Chinese company, the U.S.-listed shell","page_number":79,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"050f035f-0f4a-4ab0-a843-6d31996c5704","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":79,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"5b33ca45-d369-4d6f-a0b9-ed25dad7a293","block_type":"box","text":"contracts provide the U.S.-listed shell company with only economic exposure to the Chinese company and do not","page_number":79,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"241dbe6f-28f9-4b6f-b134-530fc0923864","block_type":"box","text":"represent equity ownership in the operating company.","page_number":79,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"011c04fb-fc64-4845-a66c-b0ba3375bc35","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have not been","page_number":79,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"6413b8ef-9a77-46a8-ba0b-f65739411739","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":79,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"e3aa0faf-6676-405f-9816-55b90dbc74be","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":79,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"22270f65-75d5-4971-892e-51944c047379","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":79,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"4503e726-4d17-4498-9b40-41359351971e","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":79,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"33788099-d175-43d8-873b-caca62fbf600","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":79,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"4627f273-8865-4e2b-97e2-257ae0c5a64e","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":79,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"e48db024-9ee3-4ae5-99df-997bb0fff0b7","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":79,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"ce3af41b-f1e2-44a1-94a3-9898cca40b9b","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":79,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"d2a144ed-2945-4b73-86f3-696df492db3b","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":79,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"91ee0b80-c37c-4a55-b716-fa2cde6f524c","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":79,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"963c2b2e-5521-4ae4-8297-7c206dbf9fc8","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":79,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"346d6d94-9f69-49bb-87cf-1141d7d12406","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":79,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"6b4c77c7-18b4-48d8-9995-c481c3c1bb30","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":79,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"94733b95-8e7c-43eb-863c-3a09cead481f","block_type":"box","text":"losses on its investments through a VIE structure with little or no recourse available. Any change in the operations of","page_number":79,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"bf6e3e52-2035-4dfe-8eb5-76fc3d0080ff","block_type":"box","text":"entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China,","page_number":79,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"83b10fc5-5bdf-45cb-b778-3b58c5a5ddbb","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":79,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"fccf8e8b-671d-4db7-9ee3-58a0f6e79ba9","block_type":"box","text":"losses to a Fund.","page_number":79,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"7d0a6cce-222a-45f3-9d53-1e48b4913fd9","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":79,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"ca081c06-7e4c-4c93-9ad9-22d97ff52c8b","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":79,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"c691c809-27d2-4c37-9c64-6e68614c9aa6","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":79,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"32896aea-d27b-4347-8463-30392a3d3f19","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":79,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"d95379c0-be73-4473-8fb8-f2a619f72cda","block_type":"box","text":"II-42","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"46312bd8-4085-4ecf-848f-caf905f4a6e9","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"815d7fe0-b986-4ca2-a3f2-2a112857cc87","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":80,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"9e74f18b-7c39-4495-8315-a21aa2975c0d","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":80,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"559755d2-f03c-47be-965d-3fc77a3eb8b6","block_type":"box","text":"and the United States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":80,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"e768e7dd-ade9-4b31-89b7-d671b7e748cb","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":80,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"88ce1eaf-a288-4c8a-8274-4913f3660cfc","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":80,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"86ed4098-f27f-4d97-9bc2-1549c8121f02","block_type":"box","text":"subject to economic or trade restrictions imposed by the U.S. or other governments due to national security, human","page_number":80,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"ec9868c0-aabc-4898-88a2-a0b71f227b1d","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":80,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"83425f41-b9e0-4b1c-912e-a9e2546c68bf","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":80,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"5fd8f949-a4dd-40db-a8c3-d70d4766fd5a","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":80,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"b24ca0b7-71f1-403f-be00-8750a7b64b3b","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":80,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"dbf20954-2098-44b9-99fb-e32c97dba115","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":80,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"9f9a5dfb-5b63-46e8-8a84-9bb0289d2692","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":80,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"7187ae9e-6495-4933-b8e2-48f575702baa","block_type":"box","text":"restrictions) imposed by the U.S. or other governments due to national security, human rights or other concerns of","page_number":80,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"2aa4214f-2e5c-4d3b-81dd-92d483469efa","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":80,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"4a8e2301-d562-4312-a787-619e37a1a74c","block_type":"box","text":"such companies.","page_number":80,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"b03def2c-c9af-4550-8d84-4793a463fd65","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":80,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"b234c1e7-9273-414e-8d69-bda9a49ac2f2","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":80,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"fd0f8be5-8f33-4447-a6b0-96c81ff1fda0","block_type":"box","text":"tax authorities are not as consistent and transparent as those of more developed nations, and may vary over time","page_number":80,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"6053b17c-542f-49d1-bb87-d4a4d298023e","block_type":"box","text":"and from region to region. The application and enforcement of PRC tax rules could have a significant adverse effect","page_number":80,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"4a2d413f-91a9-4b47-be19-15885198de66","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":80,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"ef2491b7-cf21-4311-9f5a-7805d5b01285","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":80,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"0c11d1a3-6470-4651-8970-2936a733ec5e","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":80,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"49688041-f88a-42f9-9f92-d7f2f6940064","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":80,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"af834f54-9d26-445a-96de-8b732b2145ac","block_type":"box","text":"standards.","page_number":80,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"fe829a4a-5968-4285-b913-11a068068606","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":80,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"4949d422-3250-47e6-aa8f-3e78a94f367a","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":80,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"26d68cd6-851c-4a4d-87dd-4d01b598ce96","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":80,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"fd0caf11-0efd-47b5-8881-38b6052b2386","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":80,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"828feb1c-9fd1-4cff-9796-76adfe00d5db","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":80,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"bb1b9d0c-0739-4041-9481-1efc67a164db","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":80,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"a490a080-736d-448d-8571-ab33af44f41f","block_type":"box","text":"General","page_number":80,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"9a8111b9-7720-49b9-80fa-0a9b6332ac1a","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":80,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"44d2ad86-4cba-4a31-be75-9894d07f6a49","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":80,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"63f4a3b8-7336-4e68-a3d8-98b3453704c1","block_type":"box","text":"Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the SSE and SZSE is not permitted, other","page_number":80,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"032b4ad8-bdd4-41d1-8388-ab3bdb54e750","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":80,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"13258362-a023-4fb4-aa9e-d9e1cf5c6732","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":80,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"24521110-e7b7-4eab-ba8a-6884e5f7fcb3","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":80,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"be1ca521-f4f5-4149-9df8-10aefb0ff34c","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":80,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"4bf61b39-154f-4987-9016-14eef91073f8","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":80,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"fe48abb1-3392-41e1-976f-b88312e84d0b","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":80,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"d2d7fbea-8c00-4615-bb25-61c1925586d0","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":80,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"98da15e7-2f41-4d9f-aa9d-fca87f2472af","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":80,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"a06c66c9-4c35-4359-8917-3f22200ca304","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on each market","page_number":80,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"9ae92d69-fa60-414d-a1fb-1d5acd3d8a26","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":80,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"f20ee7e1-d18b-468b-8505-dfcccb6ea6b2","block_type":"box","text":"the SSE or SZSE, as applicable, would be effectuated through its Hong Kong broker and a securities trading service","page_number":80,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"dffe628d-f8a4-4093-8c64-a32f0f1ab5bd","block_type":"box","text":"company established by SEHK.","page_number":80,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"522d93b8-fb06-4c38-8fa3-c9b13e913686","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":80,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"f903b224-8e36-4ef9-b0ac-0d8dc42207a4","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":80,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"d3c81eef-6c29-4c1d-9974-67d9e13c816b","block_type":"box","text":"buy orders for Stock Connect Securities be rejected once the daily quota is exceeded (although a Fund will be","page_number":80,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"351cdc4d-5502-46bf-8de2-c97f3f65d694","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":80,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"54470072-08f8-439f-9098-ce2321439f69","block_type":"box","text":"investing in Stock Connect Securities on a timely basis, which could affect the Fund’s ability to effectively pursue its","page_number":80,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"6d64f574-ea00-4f1b-9b71-c4d733b3c65c","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":80,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"484316b8-7c30-4414-962c-5b256a4384ae","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":80,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"16c8c14b-0f0f-4e1d-885c-564429d16368","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":80,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"ad79951d-2de8-4243-bf64-1b9fecedf579","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":80,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"a6dd975e-0fd3-49e8-8033-e50414d067ff","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":80,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"113240a7-f9f0-453d-ab14-6417cdbe2cdc","block_type":"box","text":"II-43","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"359872d8-7c7b-4c2d-9c83-bc0199e3e90f","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0e749bb2-f009-430c-9f0f-f9cb7abe811b","block_type":"box","text":"Securities in the investor’s account before the market opens on that day. If there are insufficient Stock Connect","page_number":81,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"d5f2a454-c8f7-44b1-aa42-20edb5c23795","block_type":"box","text":"Securities in the investor’s account, the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries","page_number":81,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"5376b2e5-5eed-4c65-8c31-90f02d7d0de3","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":81,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"5f9c32f8-1632-4636-8984-cbc4f215ff12","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":81,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"7881c774-6162-4876-9ddc-3bb2e59cc2cc","block_type":"box","text":"i.e.","page_number":81,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"33b5b1b3-c2b2-4066-9091-5db0f3f942f3","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":81,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"15fc3afd-d721-464f-80e8-e46ca8136cfc","block_type":"box","text":"must be designated as eligible to be traded under a Stock Connect, those shares may also lose such designation,","page_number":81,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"ce292d3d-f874-49ad-917e-555696c1618f","block_type":"box","text":"and if this occurs, such shares may be sold but cannot be purchased through a Stock Connect. In addition, Stock","page_number":81,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"ddad8edc-ffab-4c12-a4b0-5126081087e2","block_type":"box","text":"Connects will only operate on days when both the Chinese and Hong Kong markets are open for trading, and banking","page_number":81,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"8779fc3a-5389-4129-8aa6-13aa12996b6f","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":81,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"6682b0c5-ca9f-4949-8b02-fd113fd20dfc","block_type":"box","text":"Connect Securities through a Stock Connect may subject a Fund to a risk of price fluctuations on days when the","page_number":81,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"bd82cc78-fd26-4dbd-ac14-07d3211fbee6","block_type":"box","text":"Chinese market is open, but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on","page_number":81,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"1cb304a8-22b3-4181-a143-c8a0863221d9","block_type":"box","text":"the Stock Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will only","page_number":81,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"938b57f1-89b3-4146-ad75-db752e324696","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":81,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"dcf86f09-ea04-4143-a926-f01186942fdf","block_type":"box","text":"must be settled in RMB, investors must have timely access to a reliable supply of offshore RMB, which cannot be","page_number":81,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"fa1a9a34-6f8d-4a4a-b77d-4a206dd30f69","block_type":"box","text":"guaranteed. There is also no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could","page_number":81,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"ece5aa6c-13c2-4c4d-856d-725a8a67083c","block_type":"box","text":"adversely affect a Fund’s investments. If a Fund holds a class of shares denominated in a local currency other than","page_number":81,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"c20ba91e-db7e-4190-b855-99b8ee9754b5","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":81,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"7771a980-5161-4159-8580-dcf2c243e83e","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":81,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"bef07354-29fd-4e65-a71a-bb922f9974c1","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":81,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"8f9198ff-61f6-4f1e-ab11-f3e936bb54f7","block_type":"box","text":"as nominee on behalf of investors. The precise nature and rights of a Fund as the beneficial owner of the SSE","page_number":81,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"c06b55ab-aafa-4fb9-80e5-641d55027f88","block_type":"box","text":"Securities or SZSE Securities through HKSCC as nominee is not well defined under the PRC laws. There is a lack of a","page_number":81,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"2a6125b8-0731-48ea-9470-184e15e70c19","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":81,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"26e2ef86-faf7-4e09-81a9-6e9234b33b20","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":81,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"ec40510e-75c8-4d55-a2ac-44721329847e","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":81,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"e9e80044-3763-4f04-a180-e7d05844369b","block_type":"box","text":"HKSCC becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or SZSE","page_number":81,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"f4ca08e2-c049-4e0f-9efd-62f8f7c3c047","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":81,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"f3732fa0-53bd-40c7-8518-4255409d1f4d","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":81,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"72040d87-a93b-43d3-827b-e9943076c985","block_type":"box","text":"proprietary interests in the SSE Securities or SZSE Securities held in its omnibus stock account in the CSDCC, the","page_number":81,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"3a1ab784-0979-417b-859c-26e730301b1c","block_type":"box","text":"CSDCC as the share registrar for SSE- or SZSE-listed companies will still treat HKSCC as one of the shareholders","page_number":81,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"bf0dc211-28a5-469c-82fe-7abe10a502f0","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":81,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"06f723cc-c007-416b-9b0a-aaf0806db03e","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":81,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"b1aee416-fd37-4061-bff2-6f275c888f73","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":81,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"25f0a34d-f3d3-41ef-8836-c01130ebbb06","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":81,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"5f4e5329-a30e-4a29-8280-f4713da19975","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":81,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"d439c0c4-f2cb-49db-a043-1937801344f1","block_type":"box","text":"HKSCC, who will then submit a combined single voting instruction to the relevant SSE- or SZSE-listed company. As a","page_number":81,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"aa947dcf-8db4-4432-97f4-d853840e9e6c","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":81,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"e8416eda-149d-46a5-b6bf-1fd2bd364f65","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":81,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"1b01b4f9-d107-4e15-ba1b-d06a20147500","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":81,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"0567251c-0704-4bb8-a946-95c3403f4cb5","block_type":"box","text":"to exchange-traded products in Hong Kong. For defaults occurring on or after January 1, 2020, Hong Kong’s","page_number":81,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"eb4259a9-4cc0-45da-9a0f-80c7ef509472","block_type":"box","text":"Investor Compensation Fund covers investors’ losses in relation to securities (i) that are traded on the SSE or the","page_number":81,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"0b8b49d2-3d5f-415d-b20a-016eb4182ff3","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":81,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"56d515c2-29cf-4b8a-8d0f-fea9f1ba1d54","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":81,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"8d31b7a6-d418-45b1-95b2-6b371a64413a","block_type":"box","text":"brokers in Hong Kong but not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the","page_number":81,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"64e95ab7-f032-41d9-bf48-ce7451faeaa8","block_type":"box","text":"PRC.","page_number":81,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"6379136a-ba04-4129-bbf6-9989cb5e16bd","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":81,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"e448674a-2d7d-476b-8e75-2dc5cb71f30c","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":81,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"6de54538-022c-4c09-a450-01074facf098","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":81,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"4c057793-62c6-4c74-bf43-a3ccb1d354c3","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":81,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"0a543753-99cd-4f50-8a1b-75a4384d71c9","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":81,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"d50872f4-952c-457b-a77c-23eca2f60615","block_type":"box","text":"continue to be adapted to changes and developments in both markets. In the event that the relevant systems fail to","page_number":81,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"bf871004-8d3b-41ea-95ff-c238c260bab6","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":81,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"1bb09ede-c0b5-4048-867d-f67621ed7ac8","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":81,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"90e37976-33ed-494b-89fb-d129287adcf4","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":81,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"e65620a3-518b-4cbf-b382-4c9dbf7c8dd5","block_type":"box","text":"New or revised regulations may be issued from time to time by the regulators and stock exchanges in China and","page_number":81,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"6032d9d6-f3a5-4509-a716-083ea3062449","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":81,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"bd40467f-e5cc-43d0-bd44-f16dcd7f9123","block_type":"box","text":"addition, there can be no assurance that Stock Connect will not be discontinued. A Fund may be adversely affected","page_number":81,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"8e240ec0-05db-4cb9-942f-8d64b006845c","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":81,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"9f878889-0584-4dfc-91e6-357fd98271a7","block_type":"box","text":"II-44","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"180ebb49-7aa5-48b4-8e9a-f81734d6868d","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3c2dbb9d-1595-4cc2-96fd-30a9fb306830","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the relevant systems","page_number":82,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"9b9a60fb-1e0a-4d2d-89e0-11af67a3307c","block_type":"box","text":"fail to function properly, trading in both markets through Stock Connects could be disrupted and a Fund’s ability to","page_number":82,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"663e82bb-c8b6-4992-9cb2-31822c1409af","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":82,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"1156218b-a9e9-4f97-9943-5f69bbe92c5e","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":82,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"989425be-bc6f-4b50-863f-4f65327ef36f","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":82,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"a36d07cb-05d7-4ee0-9c41-996c047572a0","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":82,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"749c2202-64c6-4855-9883-07be1dec41e0","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":82,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"e3e892b2-b48e-49f3-a7a4-27b471e4610a","block_type":"box","text":"Suspension Risk.","page_number":82,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"864f71a6-962d-41dc-b610-b8202265e917","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":82,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"1c6946f0-5c84-45c7-baae-5402851b80f7","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":82,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"f8e72d96-c003-4c83-a093-e06df341b8e9","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":82,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"8e2627f9-4cdf-4ad8-a9f1-ad815536b9c0","block_type":"box","text":"global equity markets. Each of the SEHK, SSE and SZSE reserves the right to suspend trading of SSE Securities and","page_number":82,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"99bb9b76-44df-4aaf-ae4f-4a604fc71906","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":82,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"4bdd19e2-315c-4ead-8525-f0a90467aa58","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":82,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"b4e9d49e-0101-46d9-add0-f360cee5a041","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":82,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"2dcbc040-ecdf-4ec6-8eb2-cb4cd6dba473","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":82,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"4e58336b-2285-4e78-a5c3-81e46c0f4e9b","block_type":"box","text":"Connect is effected, the Fund’s ability to access the PRC market will be adversely affected. Trading suspensions in","page_number":82,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"54906dad-feea-4cf6-9a8c-0b18a9d65b7a","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":82,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"93612152-eb66-4074-8d52-7bac27556ef5","block_type":"box","text":"daily price limit, generally set at 10%, of the amount of fluctuation permitted in the prices of the relevant SSE","page_number":82,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"2803b9a7-57a9-48d5-a28b-9ba0ac5580b1","block_type":"box","text":"Securities and SZSE Securities during a single trading day. The daily price limit refers to price movements only and","page_number":82,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"6729a97e-be1e-481a-b025-097e1ae47726","block_type":"box","text":"does not restrict trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":82,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"ecb8827a-67a1-4ded-be43-32677430a912","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":82,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"035776f0-0f6f-404f-bf8a-931ede5a69fc","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":82,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"52e74303-8aab-4d19-8e93-090f4188b728","block_type":"box","text":"A Fund may invest directly in the","page_number":82,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"0f1079cf-c9ff-406c-92d9-18c5ba46c151","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":82,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"15060f4b-875c-4ee3-ae5b-1f10f8aabd9c","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":82,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"f6f634c2-9117-425c-9dce-76f16d002944","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":82,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"afe0ff93-0365-4295-8401-76971ae48cdd","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":82,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"85c2cdc6-48b9-43ca-9c63-418177b99f07","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":82,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"2cf1b7bd-7215-4757-926e-59115975dfd0","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the China Interbank","page_number":82,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"1f9ff2a7-7f59-4607-ab1d-8e1e31818adf","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":82,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"1bed4deb-a578-4d31-99b2-da86992296d6","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":82,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"393de354-54e8-4fc2-86d2-6e5c65291b97","block_type":"box","text":"turn transmit their requests for quotation to CFETS. CFETS will send the requests for quotation to a number of","page_number":82,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"309ef554-72f2-4b9d-9da8-d2cbebad4682","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":82,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"76f6977b-127b-443a-b8f4-159b4ff9eabc","block_type":"box","text":"The approved onshore dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their","page_number":82,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"48c5b734-aad7-4317-8b93-90cb5bf2d9a5","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":82,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"ba33e0af-1245-4d64-a7bf-5b3ee422e844","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":82,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"0199574e-87dd-4d22-a7cb-a1171eddbe51","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":82,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"bcf1ec9e-d58b-4dbe-8f44-4b4047562a39","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":82,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"8234ffe4-4d0a-420c-881d-70ae275790c0","block_type":"box","text":"as onshore custodians and clearing institutions in the PRC. Under the settlement link, CDCC or SCH will effect gross","page_number":82,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"16339a6f-3d00-4119-a0b5-0015c00df334","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":82,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"b922f0be-a78e-4e54-8360-f2e2b89c5208","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":82,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"988bfcbd-3008-4910-817e-d08dd76dfd9a","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":82,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"153cc8af-8836-4a97-a8a6-90d73cc5bc98","block_type":"box","text":"carried out simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":82,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"ffb8ee6c-14be-440d-af85-f62adbc9da0a","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":82,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"d60e404e-814f-48db-b702-721f03b677ec","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":82,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"db969229-d575-41df-9fed-d292aa81914e","block_type":"box","text":"i.e.","page_number":82,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"c1719e7e-da69-430b-8a04-9b4e725c58d5","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":82,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"5be0ecff-84f6-46c6-9fe4-112df3f99e37","block_type":"box","text":"eligible foreign investors through Bond Connect will be registered in the name of CMU, which will hold such bonds as","page_number":82,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"c34c7093-a3db-4a76-8ece-318f819fbea5","block_type":"box","text":"a nominee owner. Therefore, a Fund will be exposed to custody risks with respect to CMU. In the remote event of a","page_number":82,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"b38c9e3e-ccc8-4797-82db-e5f0d0a85008","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":82,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"2b5ba28d-d4da-4789-af5d-9d79a432e0ca","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":82,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"ebf91c94-2939-4822-a8f5-1a6267a970f8","block_type":"box","text":"delay in the recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":82,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"7d5f740a-0f24-407b-88db-3ec90ee93383","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":82,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"2db99120-581d-435f-b3e6-6750f40c3f4d","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":82,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"d96df071-dfb4-442e-b545-573e218e0e47","block_type":"box","text":"par ties.","page_number":82,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"0bd57cab-89a5-477f-8008-248f89c62cf8","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China Interbank Bond","page_number":82,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"11a55061-9e9d-4f2d-a3bb-12a64f291d46","block_type":"box","text":"Market through CMU as nominee is not well-defined under PRC law. There is a lack of a clear definition of, and","page_number":82,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"74c368f8-a890-40dc-ae47-a9469e78b22a","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":82,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"bcbdeb68-3459-41ae-8af8-716ac71c19a6","block_type":"box","text":"II-45","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f280d59d-5e48-4059-98ff-2cd8d5cb611c","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4867b587-fd2b-44a1-a3fc-4b986a65d3e3","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":83,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"d9d11225-7695-4ea3-bf28-0c5ba37c1f09","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":83,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"31228cd1-1818-4b79-a338-e8db37f27eae","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":83,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"eae5c55f-b13a-4654-b5e1-cd30e79dee6a","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":83,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"e0922074-960f-4175-94c5-d85535c1674b","block_type":"box","text":"such market is therefore subject to liquidity and volatility risks. The bid-ask spreads of the prices of such securities","page_number":83,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"da05851d-7ca9-47a3-988a-2a4d9a860736","block_type":"box","text":"may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.","page_number":83,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"0a46c0e6-9203-4f14-b32f-d7f41d40698b","block_type":"box","text":"The bonds traded in the China Interbank Bond Market may be difficult or impossible to sell, which may impact a","page_number":83,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"3c924a57-1b28-4f8a-977b-cbcd4260728d","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":83,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"3f2d4aeb-863c-4aa4-be05-cca78f5c967c","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":83,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"10bb7a09-d107-4379-a233-c620cb0e8441","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":83,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"39106e57-138c-46d3-b793-5f74b193b417","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":83,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"99fbb7aa-3838-4c8d-915b-9df12001f135","block_type":"box","text":"systems of China and Hong Kong differ significantly and issues may arise based on these differences. In the event","page_number":83,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"0c9dedf5-c5ae-4e7b-93d9-7215b22bc3bc","block_type":"box","text":"that the relevant authorities suspend account opening or trading on the China Interbank Bond Market, a Fund’s ability","page_number":83,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"3686f175-7328-4a87-9d44-18b4da81e4fe","block_type":"box","text":"to invest in the China Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability","page_number":83,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"3405cf94-1a75-4d0c-a052-209a20a160f5","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":83,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"86dd3a61-69df-4509-8c3f-d2420083c7dd","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":83,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"997dc4bc-6702-447b-a195-807a88c6bd14","block_type":"box","text":"acquire or dispose of bonds through Bond Connect in a timely manner, which could adversely affect the Fund’s","page_number":83,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"0110c553-5e81-4b68-a7e4-e337603fe6ed","block_type":"box","text":"per formance.","page_number":83,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"e5511b16-7593-4f59-8e67-5387820196f0","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":83,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"63acabe8-90d3-4334-acc3-011eb743141d","block_type":"box","text":"There is no assurance that such systems will function properly or will continue to be adapted to changes and","page_number":83,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"f7e2d887-491d-4f68-9070-4480376a46a0","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":83,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"2c590493-eb31-4de6-89ca-3ced8817eebc","block_type":"box","text":"Connect may be disrupted. A Fund’s ability to trade through Bond Connect (and hence to pursue its investment","page_number":83,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"de795d82-abda-46ac-a8e6-44c6d59cae60","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":83,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"ea08f9a0-0504-4db3-b668-17aceb765ed3","block_type":"box","text":"through Bond Connect, it may be subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":83,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"f146ce3d-0324-4569-aa96-c0077b5bba51","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":83,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"ccb99011-c7d2-46a8-a46c-b3ef7790133c","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":83,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"6de259aa-2c05-45cc-9b21-fdb917747a85","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":83,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"d2ad678a-7838-4356-9d09-679e1c600762","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":83,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"60ca35ea-7cb4-4f48-aaf8-fcb5d7d0165d","block_type":"box","text":".","page_number":83,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"bcec9653-ffe2-45b5-bde8-4186638fbea5","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":83,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"f5a25aab-b4d7-4911-b90f-491495022b53","block_type":"box","text":"interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is reduced under an","page_number":83,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"92d68bf4-e88f-4e3b-810f-c21ee1c48eab","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":83,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"d999d1da-1e9c-4e2f-99cd-35859c1a9478","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":83,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"88a26ee6-ad03-4248-9f22-5fcbcb32bb33","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":83,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"704a7363-1291-4469-ba29-185b03950819","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":83,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"dc54a104-d177-4e3f-bfb5-7ad0eae81fa4","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":83,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"fd35bbfa-06a5-470d-865b-18279c70ff27","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":83,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"860c30c4-9887-4029-8c37-90f698df21ae","block_type":"box","text":"(“RQFIIs”) from tax on capital gains derived from the trading of shares and other equity interest investments on or","page_number":83,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"a8719612-210a-4501-81d8-702b97f90ddf","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":83,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"5756fb05-141f-49c8-a26a-81ba596f442d","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":83,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"a4b7495c-549b-4bc2-b676-fc99158a3a70","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":83,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"2019595d-ef05-49b6-afab-47239db93616","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":83,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"f115fb7c-4740-4749-aa81-c4fddbafa8b7","block_type":"box","text":"temporary exemptions is not stated in the circulars and is subject to termination by the PRC tax authorities with or","page_number":83,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"c4c1e63e-62c9-4344-8e8b-d8c4156eb788","block_type":"box","text":"without notice.","page_number":83,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"6c3e9433-f31e-47e5-924f-39f4580755ee","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":83,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"f2eead97-3b00-4ddb-b760-dbd0aec027ef","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":83,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"2aa2e676-4e32-47a6-8ab7-346274c595d9","block_type":"box","text":"the PRC bond market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA","page_number":83,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"12eadc9c-8cd2-4bb6-9a5b-12177e314a2d","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":83,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"1803d1fc-749a-4b67-8b58-182d72ed76eb","block_type":"box","text":"January 15, 2026, it was announced via Public Notice No. 5 of 2026 that the exemption was extended through","page_number":83,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"07df8e90-7bb5-4bfc-a672-5b4f7ce108c9","block_type":"box","text":"December 31, 2027.","page_number":83,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"a357dc89-acbf-4416-a340-695a72dc2736","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":83,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"1ff90c04-5cfe-4b93-b285-ed0475e5f412","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":83,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"cf32766d-fc2b-4494-b50d-e93eb1a2916d","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":83,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"ce903f0e-cd47-4c0c-b347-acd402d978e1","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":83,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"e05f0166-d95e-4b39-aa0b-231b8cf571a2","block_type":"box","text":"II-46","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2ddf1d1e-1653-405e-9f34-cc1ef1d1444f","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"458bbe1d-9f01-4a79-a699-cf384cd59838","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares traded on the","page_number":84,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"7de952a0-093d-4bd6-bd18-35570aaca8f7","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":84,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"d7b5146f-8e17-4c9e-bbbf-d28dbbc2f7fd","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":84,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"f50afc30-3130-4783-a6ea-ee599c1473b9","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":84,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"5471b5b8-241d-4e5b-bb82-f3a77c505e3d","block_type":"box","text":"market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA jointly issued Public","page_number":84,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"8bc6ff7b-ad5d-4b74-bec1-4752b933d582","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":84,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"9212e34f-0ada-4939-a668-037f82b2843d","block_type":"box","text":"July 31, 2025, the MoF and STA jointly issued Public Notice No 4 of 2025, stating that VAT will apply with respect to","page_number":84,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"9ddb250e-fffd-400f-ac42-20d931772f99","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":84,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"75d05f00-8003-4e11-b024-2c063e055e55","block_type":"box","text":"August 8, 2025. It is understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption","page_number":84,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"b2c7e518-ef23-4cc5-8810-594eb2762fbd","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":84,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"4123c86e-7557-48c1-be31-c95e01ce3114","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":84,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"adc493f0-5ce0-41b2-9e88-eb0109a545b3","block_type":"box","text":"tax authorities may result in a loss which could be material to the Fund. There is a risk the PRC tax authorities may","page_number":84,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"98892d13-21c0-4655-b24f-06371a81026a","block_type":"box","text":"withdraw the temporary tax exemptions in the future and seek to collect taxes realized on the sale of A-Shares or","page_number":84,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"d21f5e39-af41-4168-b23d-7f847153c3ab","block_type":"box","text":"PRC sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":84,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"20bb0f09-7409-4401-8bf5-ff0e43a46f1f","block_type":"box","text":"temporary tax exemptions are withdrawn, any taxes may be directly borne by or indirectly passed on to the Fund and","page_number":84,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"dd3307e9-eaf7-4ac0-8893-9f3ebf20f7ad","block_type":"box","text":"may result in a substantial impact to its net asset value. As with any net asset value adjustment, investors may be","page_number":84,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"53646a03-be09-426d-a082-b463913c9cf7","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":84,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"8d453eb8-7db4-4418-94cc-0a410c579f8f","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":84,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"ca682301-9b4a-4497-9759-6f1c1ceef8b0","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from time to","page_number":84,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"98936c09-8d4f-4635-8949-a603c23ef9ff","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":84,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"6725c877-51a9-44cb-8a68-dc28b046147a","block_type":"box","text":"the PRC in notifications.","page_number":84,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"952ad2a1-332d-4edc-95c9-0229f4925f69","block_type":"box","text":"Investment in Other Investment Companies.","page_number":84,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"93ab6ced-31ad-48b6-bc05-033737249126","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":84,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"85267b51-b2f2-480c-9fdf-5f80da6456c3","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":84,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"4019223d-c9a7-41fb-a320-2305e7fdd9a7","block_type":"box","text":"market funds and ETFs, which are typically open-end funds or unit investment trusts listed on a stock exchange.","page_number":84,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"153bae1a-28f5-4232-ba4e-02a34e3e4cc4","block_type":"box","text":"Under Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets","page_number":84,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"497c2887-a4c4-4c87-b049-649c563b2f8d","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":84,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"d23fb8ad-3422-4329-a325-c00dac8169df","block_type":"box","text":"12(d)(1)(A) of the Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":84,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"c6559130-183a-4167-ad6c-f9e7de2e6e18","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such investment","page_number":84,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"74cd31f4-ff86-42b7-87d0-a909375fccc9","block_type":"box","text":"company and a Fund may not invest in another investment company if such investment would cause more than 5% of","page_number":84,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"b1c7982e-677a-4f58-b419-698d0e345778","block_type":"box","text":"the value of the Fund’s total assets to be invested in securities of such investment company. (These limits do not","page_number":84,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"8c5407ec-0da8-4145-a6f3-76ac5fea2979","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":84,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"33e62246-13aa-412f-85af-05ae78e6c0ff","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":84,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"46888e23-485e-4700-a2b7-7e63d1051d2a","block_type":"box","text":"Act a Fund may not invest in a registered closed-end investment company if such investment would cause the Fund","page_number":84,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"be41116b-90c7-4b89-b921-d208829fd60a","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":84,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"9dc878d3-0692-4dfa-92d2-bd65de48f9d6","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":84,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"d56d6ac6-cb6c-4dac-b49d-cdea4332796f","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":84,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"1ad113f8-2e6a-4c08-99b4-e0302631f299","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":84,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"cadc7ee0-be96-445e-868f-0e22f8d2aa57","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":84,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"f4a5f276-ffe1-4847-be6b-f8bb17b97b60","block_type":"box","text":"subject to cer tain conditions.","page_number":84,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"58b72997-d641-422a-982a-233833473184","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":84,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"a4153e41-8a54-4ce5-86ba-a1e7be4e2b35","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":84,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"8801e9b9-326d-4587-b1e8-d6a50ac85bea","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":84,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"9687a6da-a5c9-4cb9-9a82-2ac61de90d3a","block_type":"box","text":"held by a Fund that trade on an exchange could trade at a discount from NAV, and such discount could increase while","page_number":84,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"18ecc84c-f316-4c70-9bab-727c12b66ae0","block_type":"box","text":"the Fund holds the shares. If the market price of shares of an exchange-traded investment company decreases below","page_number":84,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"9e08af60-f574-466d-8dc9-393f589a0c81","block_type":"box","text":"the price that the Fund paid for the shares and the Fund were to sell its shares of such investment company at a","page_number":84,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"84c74c0a-a782-4b6b-a03c-dffbb78cf14a","block_type":"box","text":"time when the market price is lower than the price at which it purchased the shares, the Fund would experience a","page_number":84,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"57d7dc2e-0302-4195-94d7-b5cc25a81f92","block_type":"box","text":"loss.","page_number":84,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"bf1e8de6-69c3-4493-9ff1-243a03c6e234","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":84,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"d33d643f-0c41-4f9b-af10-67284f9221c3","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":84,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"9310a44e-a2fd-4d57-a5e0-6fc7575b5bf1","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":84,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"70ae349d-1bc3-433a-9724-d27c2cfa9479","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":84,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"411d1200-bd28-4590-a33a-3f9ce257f978","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":84,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"c34d07c2-078a-440b-b419-59f4b466142a","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":84,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"cc6b3e41-9e57-4868-b6e4-3ff4bab808be","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":84,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"06d90cfe-b8da-4293-a02a-0270bbf6725f","block_type":"box","text":"II-47","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1c2b79b0-1d6e-4500-b2bf-b40625f9fa69","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"580bb72b-f337-4b39-9005-0ba2dacf4779","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":85,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"94f9b67f-b70c-4463-9ab3-36c43569a3e6","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":85,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"90da5d2f-5874-45cf-9c04-fc70341b840f","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":85,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"e9c1bb13-a8e2-4e1b-828e-c48b8b7c3fd6","block_type":"box","text":"assets.","page_number":85,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"2c3bee66-0a10-424a-a83f-bb89ab52f414","block_type":"box","text":"To the extent shares of a Fund are held by another fund, the ability of the Fund itself to purchase other funds","page_number":85,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"4f895151-8b7c-45e8-a37d-551d22832903","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":85,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"ff4a6626-4b6e-47d4-b954-6e5ba8a25afb","block_type":"box","text":"e.g.","page_number":85,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"256db819-a3c7-48f7-9831-d47d4cc962e9","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":85,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"834f599a-5e30-442f-96d2-6036580be5c6","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":85,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"09e508ea-91eb-4e64-8dd6-fc164fc4d663","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":85,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"97795713-c578-4ab4-912a-db3b2ac97613","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":85,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"0659ac85-7c1c-4459-b36b-61f19304d314","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":85,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"a98ae0c4-d9f4-4811-8373-db1eefc213a4","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":85,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"55f64367-f05b-45ed-b90b-ee24dc797b16","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":85,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"2bb20a29-2c16-40e6-b769-e2ac8c4141d1","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":85,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"f423f039-5ec4-44af-a718-ca755cd906e3","block_type":"box","text":"countries.","page_number":85,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"b52bf33b-654a-4a76-b873-fafa1d1a1f70","block_type":"box","text":"Issuer Insolvency Risk.","page_number":85,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"e2e7c1b0-3354-4230-8ac5-252287f078f3","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":85,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"64d66c05-7113-4151-a0be-546cd5e1c63d","block_type":"box","text":"a high degree of credit and market risk, which may be heightened during an economic downturn or recession. Should","page_number":85,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"8bd153c5-e1e9-4f2c-bf66-77ad345045df","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":85,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"0d95b0bc-51c9-4fbe-91ed-97fcdc9e693e","block_type":"box","text":"restructuring, a wide variety of considerations make an evaluation of the outcome of the Fund’s exposure to the","page_number":85,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"ab622ffc-67a9-4af1-9a6d-06f2aded2fbe","block_type":"box","text":"issuer uncer tain.","page_number":85,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"2315198e-cefe-4ca1-99e9-d026c685d440","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":85,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"b4277ad3-e69b-402b-9d6c-6de61c20049c","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":85,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"c30941f1-84a5-4c5b-a149-61d6696bfb9d","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":85,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"7fc9c2d2-c190-4ead-846c-bda3ecaee32e","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":85,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"3c099df3-7b18-4afd-93b2-40a452fb6500","block_type":"box","text":"in what manner and for what value the obligations evidenced by the securities of the issuer held by the Fund will","page_number":85,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"86124485-32a6-4e7b-8d07-a807c7a98642","block_type":"box","text":"eventually be satisfied.","page_number":85,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"cd29dbb0-52be-4a41-8e18-457f5f9fa5d7","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer held by the","page_number":85,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"808980a2-7043-4000-8849-74cf1429813b","block_type":"box","text":"Fund, there can be no assurance that the securities or other assets received by a Fund in connection with such plan","page_number":85,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"3ed1476b-bd91-46b9-a488-04016e653dfc","block_type":"box","text":"of reorganization or restructuring will not have a lower value or income potential than may have been anticipated or","page_number":85,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"bc19f5c9-95c2-423c-9d15-f7b15457ed3e","block_type":"box","text":"no value. A Fund may be unable to enforce its claims or rights in any collateral or may have its claims or security","page_number":85,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"15439cbc-ab0b-4b0c-89b2-3b9f51d021bc","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":85,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"e6d2770e-b3ce-449a-9539-0d693a51481c","block_type":"box","text":"In addition, amendments to the U.S. Bankruptcy Code or other relevant laws could alter the expected outcome or","page_number":85,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"5e6a4320-b539-471b-a615-fe4099f5c4eb","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":85,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"62fbe0ad-e0d2-48c8-b9d6-9379e8a19943","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be re-characterized or","page_number":85,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"1a5479cd-f686-46fc-9435-57b22ca2345b","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":85,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"b1798295-ebaa-45d2-aa04-9d51d695a175","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":85,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"380976ee-365c-415e-8803-719bae57870c","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":85,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"bcf1baaf-8cc3-4020-815c-b5d7e66b8259","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":85,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"e9c9d8a4-4107-463b-9e82-ecfef16df635","block_type":"box","text":"volatile than those of other asset classes. Holders of equity securities are subject to more risk than holders of debt","page_number":85,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"0c5f636a-b356-4b98-aeeb-4b3bd8fa3d4e","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":85,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"ff473652-d5b6-405c-b6e5-58c3593368d5","block_type":"box","text":"value of equity securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":85,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"13075762-1624-4eac-8a39-56765ac3309a","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":85,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"cfb2d937-c83f-47f8-abab-0d41f9080ae5","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":85,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"4e3b4601-63e0-4c54-bd40-846f7dd0b96b","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":85,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"175f10ae-131b-449a-adfc-fee4e1612147","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":85,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"bdee997d-95fd-42e2-b1d0-140039321117","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":85,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"a71c3900-0de9-40ac-979c-065393cd4f93","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":85,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"f2773e67-cd62-433f-a8fc-3a363b521f87","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":85,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"eae4c478-6b89-46f3-a808-02eb4be7750c","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":85,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"f9ca7b5c-7f82-487d-8a66-1dd8e0831de2","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":85,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"7f737039-c950-4567-85d1-069b73b3f7a0","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":85,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"24ca5d7c-f1a5-4320-ad6c-1f6bac412828","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":85,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"1f8b715d-3cd4-443f-b7bf-70be79506153","block_type":"box","text":"issuer held by a Fund, the Fund also may be restricted from disposing such securities for a period of time. If a Fund","page_number":85,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"9f7dfa09-fca0-42e4-bd77-e073a0939e51","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":85,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"27f6dc2b-1e6f-44f9-ac62-22f417104a58","block_type":"box","text":"that assumed generally by an investor.","page_number":85,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"03335d9f-7e19-4b0f-b27c-955a9e316d01","block_type":"box","text":"II-48","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"457caa0f-dcf2-4593-b690-e4ecdf104d54","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"00af3786-d966-4ed3-9180-3a5adbb192fd","block_type":"box","text":"Lease Obligations.","page_number":86,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"04087c48-23f6-43b5-a1d8-f4395993e638","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":86,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"43efbb91-4a33-463e-b1ef-d587b3cc832b","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":86,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"928b006d-3fdd-468a-84ab-0926c20d42a0","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":86,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"9dd20833-b419-4e10-88a0-614755577718","block_type":"box","text":"Life Settlement Investments.","page_number":86,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"89e2d2d6-265f-424d-bea7-4b809de63ab4","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":86,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"0cb9c0cb-167f-4cfa-a8fe-b57c7297b8b5","block_type":"box","text":"Fund, of existing life insurance contracts for more than their cash surrender value but less than the net benefits to be","page_number":86,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"ded74ee3-bab0-405a-bc63-0f4d23be24b7","block_type":"box","text":"paid under the policies. When a Fund acquires such a contract, it pays the policy premiums in return for the expected","page_number":86,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"40eb9b8c-5ad7-4d4c-87eb-40c807b307a2","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":86,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"4505f22d-e505-4d16-a2de-ebe09ed8ec83","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":86,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"fee2491f-5442-4145-945b-afbb667c0bce","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":86,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"7ca3b38c-60de-4a1e-b4f2-03decaaa04d0","block_type":"box","text":"secondary market through life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a","page_number":86,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"f5a64d96-f87a-4c6d-b12e-ae0aa96a5c43","block_type":"box","text":"policy, the Fund may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":86,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"21c0452c-e760-47be-919a-af01a273a5db","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":86,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"56e60484-2588-432e-b286-d4254b882e82","block_type":"box","text":"losses on its investments if there is an inaccurate estimation of the life expectancies of viators. A Fund intends to","page_number":86,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"a5ba826e-108a-4b21-8c47-ce88478aecfe","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":86,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"cc296fb6-16f1-46aa-b624-88c961c51b69","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":86,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"8f30f3fd-24a0-46aa-bb01-f19dfc140936","block_type":"box","text":"addition, it is unclear whether the income from life settlements is qualifying income for purposes of the IRS 90%","page_number":86,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"5eab0069-471c-423d-931d-6b501cb3b54b","block_type":"box","text":"gross income test a Fund must satisfy each year to qualify as a regulated investment company. A Fund intends to","page_number":86,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"8ef9a854-b50a-4dcf-a85e-49153a51117e","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":86,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"7710c76a-3704-4bcc-9cd4-714c447654a3","block_type":"box","text":"Liquidity Risk Management.","page_number":86,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"acfe772b-149b-4f46-88aa-d00cf70d3220","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":86,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"0ae5d170-da59-45c2-ac80-f142e85fb6da","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":86,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"4c536d73-ae68-42ed-8807-a171f73c4c2b","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":86,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"5556fcc4-0009-46a9-ad16-d6e8cc1c54db","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":86,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"1d004580-602d-4a0e-bfea-20dddcccd36e","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":86,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"b000e696-e7aa-4b8a-a23c-c0afcf85b6a1","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":86,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"b5386131-2780-41d8-9cc2-780e3bea8a45","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":86,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"132eba1c-4eb2-4be4-9702-a984448ef6fd","block_type":"box","text":"“illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund could not meet requests to","page_number":86,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"efa7b040-aec7-4681-a10b-467bceaac3d9","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":86,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"b8f13356-5485-440f-a959-b5ce5529ee20","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":86,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"ab95c3fb-9cef-4cea-8ba5-4a5cdfdc7bb2","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":86,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"922768ca-1045-44d5-852b-efb113c232d3","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":86,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"b3a0af30-f2b0-45f3-8750-1fd38197944c","block_type":"box","text":"Master Limited Partnerships.","page_number":86,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"d56b7db1-5fc0-407a-8d4c-4bb602f01b33","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":86,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"937cbada-ee01-4c64-9836-dff329902616","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":86,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"51226fd9-8939-41de-b5ea-1efbe9dca871","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":86,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"37de9ea3-a393-4386-b92c-b00546cd8fe2","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":86,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"5b325a08-2738-4dde-bdf3-50442bd7f3b6","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":86,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"d5987475-9984-4ade-9c3a-604749f78e78","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":86,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"e631f2f3-8854-4abf-b81e-6ca91f5cc3f8","block_type":"box","text":"typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity","page_number":86,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"908f847e-0422-43fe-ac49-6d91b8b25d09","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":86,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"d65fe8e1-f8b0-4ea2-8961-e8b3fbb12181","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":86,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"4eaf8795-c356-4a3f-a1a3-ceb65f3bf6a7","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.","page_number":86,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"ad6b0a89-b5ae-472a-bbd1-3f622e55190a","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":86,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"a2ecc040-548f-4a5d-bd28-42dd3378758d","block_type":"box","text":"in the par tnership’s operations and management.","page_number":86,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"7b15f196-34dd-4813-bf8b-d872bc005fc3","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":86,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"8e32dd96-f290-4bdf-be60-f8162ce2ac33","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":86,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"32087d05-e295-4edd-ae44-deeb7bc815c1","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":86,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"28fda2ea-0ff3-4b30-8ad4-70ff28da7299","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":86,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"85e89198-5606-472d-af41-e7a1437ef9ce","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":86,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"9db09128-3520-45ff-bce4-e8c059d424bf","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":86,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"95b3ebf2-3788-4459-b69a-2ed82a6e5c19","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":86,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"90dd11f0-6111-4c26-98ed-8019fc6fc8f3","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":86,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"3f95c5dd-6de1-4262-a163-0dee17a415a6","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":86,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"e0ea56ef-f27a-42a0-bfe7-9f72556fc185","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":86,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"ad0b006d-5789-4475-87c4-2d0727e045f7","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":86,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"7bcf135b-bdcf-44dd-9873-195de129296a","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":86,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"53f9947e-3e86-4396-8293-4f695f613c8c","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":86,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"889d3f0d-a249-4f49-bbc8-19fd09922ef0","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":86,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"71ae0e5e-31c4-4f41-8f89-bce1be509d1a","block_type":"box","text":"II-49","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"94202873-3a6f-48f1-b970-a1d88310c1aa","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55c2ebc1-a128-40f7-ad0c-fe7249891322","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":87,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"deb1589f-0731-4fe5-821c-72781dc3a62e","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":87,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"0ff1b2a2-31a9-41af-aa95-44c9e392ac77","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":87,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"bc96f763-02d7-429c-a923-fa974a227f85","block_type":"box","text":"common stock of a corporation, owners of common units have limited voting rights and have no ability to annually","page_number":87,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"418c98e9-34ea-4efa-9b55-8b5a0674ed57","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":87,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"033deb82-93f7-402b-99af-768bcd2b9d72","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":87,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"e38f36e9-059d-4685-bb70-7c831afe85e8","block_type":"box","text":"Merger Transaction Risk.","page_number":87,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"ed9d3baf-1162-4d20-b6e1-91111b76e480","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":87,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"f6cb794e-2b32-491f-b214-b64461d4f239","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":87,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"e58a73fe-6112-4af0-9ced-94471bc1f533","block_type":"box","text":"in cash, stock of the acquiring company or a combination of both) in excess of the purchase price paid by the Fund","page_number":87,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"64e60316-10be-4086-89bf-cb65b7962e0c","block_type":"box","text":"for the target company’s stock. However, a Fund is subject to the risk that the merger transaction may be canceled,","page_number":87,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"54613e37-69af-4fd0-98f2-f1e1ae6bdca6","block_type":"box","text":"delayed or restructured, in which case a Fund’s holding of the target company’s stock may not result in any profit for","page_number":87,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"7eb75f70-659d-4a15-a354-0e3b07c30019","block_type":"box","text":"the Fund and may lose significant value.","page_number":87,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"f01a4bf6-85d8-469f-aa8e-fedc7e564fc6","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":87,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"bcc37c2e-12c9-41bc-8d3e-c95961f7d5f5","block_type":"box","text":"Cer tain","page_number":87,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"dac7eed4-e40d-41cb-b6dd-65595a9944ec","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":87,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"2fb422e2-8216-49a1-8205-ec46f6b1e2c3","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":87,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"65737f62-c52a-4c03-93e1-dfc112a5d4f4","block_type":"box","text":"having total assets at the time of purchase in excess of $1 billion. These obligations may be general obligations of","page_number":87,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"08ace851-129e-48c0-b79e-d2d08262dd7b","block_type":"box","text":"the parent bank or may be limited to the issuing branch or subsidiary by the terms of a specific obligation or by","page_number":87,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"3848ee3e-240f-46d3-ac24-a50e761cd417","block_type":"box","text":"government regulation. The assets of a bank or savings institution will be deemed to include the assets of its","page_number":87,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"89b112a1-cc01-4602-8264-23b3e4f6545b","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":87,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"3d710c33-0bb7-427c-9b16-42c837ec533e","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":87,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"90c6f110-d09c-4532-89ba-2dbaaa1f054b","block_type":"box","text":"branches of domestic banks.","page_number":87,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"7b29741e-9971-467d-a53d-aeed6cf20f69","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":87,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"dfb23e5b-9121-4f9d-a3d5-359f8fad3a69","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":87,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"48194385-b6ca-4510-835d-5ca2b723153f","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":87,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"6bfd2285-7189-47ae-9bb2-62a27ae916f1","block_type":"box","text":"paper of a foreign issuer.","page_number":87,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"441806e4-8f77-4140-9c1c-36372b3122eb","block_type":"box","text":"Money Market Securities.","page_number":87,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"2f5e75c4-a0c8-4161-880d-6c0bf9790f50","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":87,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"f00e158b-dd92-4d95-8d23-9910f68d24b7","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":87,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"a809e5e4-53b0-41c6-8fef-29bb7831bf07","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":87,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"2193d84e-7c82-47ef-ab94-8564809cafae","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":87,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"0eb1c626-b338-403e-9ec2-a803c153eb79","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":87,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"3cf73a67-4aa8-4b0b-8705-6d262c9f3ca2","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":87,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"baecfa72-c1b1-4141-a18e-605f92ec895e","block_type":"box","text":"other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher","page_number":87,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"40a8fc8e-6073-4a63-ad83-8e4daed9ee84","block_type":"box","text":"by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating","page_number":87,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"e73801e7-f396-441a-9010-925122d0c803","block_type":"box","text":"agencies;","page_number":87,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"4b90496f-3983-4f2b-baab-1c874633f10b","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":87,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"b1c69b6d-da8c-499b-8db3-3b54f1b31915","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":87,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"8dff8f13-80df-4391-be35-ee5a7bc38e0b","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":87,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"e92aab5f-ef0c-4c59-9e5a-82a74fedf6c2","block_type":"box","text":"obligations and credit card receivables);","page_number":87,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"6cf210c6-e38c-4a3d-83e0-4b74cba798c8","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or","page_number":87,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"57d57e94-0349-493c-aa81-a8b215e33399","block_type":"box","text":"authorities and related custodial receipts;","page_number":87,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"da130757-fe7e-48c4-b798-7050c41be0f8","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":87,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"92f7f7b7-4a1d-45e8-9643-93028f60ebba","block_type":"box","text":"agencies or authorities;","page_number":87,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"f8b41cd3-c7da-447a-ae95-2e62b6ffb500","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":87,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"2152b487-b53b-4835-b7c4-9d3b53875bb6","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":87,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"54c250d2-463c-47cc-837f-98d2e385f3e1","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":87,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"b3c5502a-5c9e-4ce4-bb5a-d831497210eb","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":87,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"7dd91a93-c03a-4bbe-b217-90ea8e50b551","block_type":"box","text":"one of its agencies or authorities or which otherwise depend directly or indirectly on the credit of the United","page_number":87,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"adc2acef-6c88-4012-b784-aea4973e6572","block_type":"box","text":"States;","page_number":87,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"df3820e8-4733-4958-9899-12b9cf955b7f","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s,","page_number":87,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"a6ed823c-3aa8-4850-8a9d-c0ba5750f442","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":87,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"a591e5ef-3e85-45e2-a44c-12ce3bb10417","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by","page_number":87,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"e320a165-c327-4063-bf99-a5800863f9b9","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":87,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"4ba8b96f-1e95-4ab1-b770-99a6fdba8ead","block_type":"box","text":"II-50","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f77cc4fd-69db-450e-8cbc-5968e614ea14","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5e25e904-502b-41d7-84b4-1fd26ec00f3c","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":88,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"6fe537da-8ff7-4900-987a-c6ceff7a25ab","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":88,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"bf54358f-781a-429b-bd0b-a065216e103b","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":88,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"bcc3b7e4-491a-483b-b1df-a47c24d44287","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an","page_number":88,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"f5bda306-900c-4193-942b-d55c540384f5","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":88,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"b061da76-abe1-4667-8fdb-556c18ffbe6f","block_type":"box","text":"States.","page_number":88,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"48aabf3c-3d60-4e79-8475-9e549f6999eb","block_type":"box","text":"Mortgage-Related Securities.","page_number":88,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"027cdd00-9efd-4e5a-bf14-4536919fb901","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":88,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"0384c373-676a-4123-8657-b85014029cb5","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":88,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"a65bbfa9-4ba7-4a86-ae5d-699861e3ee90","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":88,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"b4dd779c-0f01-4add-8999-97ed60d1a3d1","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":88,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"f487441f-b3a7-49b6-8d06-cebefb93fff3","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":88,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"1f44b978-cbb5-4ab3-848b-07a3177aa4f8","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":88,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"b33645ab-18b2-405e-bff7-ea8d92a85ca5","block_type":"box","text":"maturity or specified call dates.","page_number":88,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"eab1b511-02d0-4c38-a013-c20afc9eff85","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":88,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"80b59f95-5545-48ef-b821-8b5c7883dd65","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":88,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"bed53eb3-80a7-4c78-bf7a-91cc05739b51","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":88,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"697bb1da-85bf-4243-815c-9eff7b9352a7","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":88,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"b1906924-206d-457d-ab95-31a755d26e41","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":88,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"f8ac9b32-23c5-47d8-aff5-ebe3922c09ba","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":88,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"3a2d41a9-062d-49e6-af66-9d866a7027f9","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":88,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"ac321396-be39-426d-ae95-db38e1a0a534","block_type":"box","text":"in prevailing interest rates, and, like other fixed income investments, the ability of a Fund to utilize these instruments","page_number":88,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"48d88198-9e19-42ed-a516-57e03ace0b2e","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":88,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"11552534-19f7-4e93-bb56-64ca49ceab78","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":88,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"e522ab4d-de0b-46c9-8cf5-89926403a613","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":88,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"a9c03541-d542-4d0a-8138-5c4f06058e74","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":88,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"94967eea-e42d-4291-afbc-1d1c8e916771","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":88,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"714ac674-35ce-4c5c-83c1-1dd2e827e436","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the","page_number":88,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"238dad2b-4a22-4a27-bd0a-55ec954bc1f1","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":88,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"6d85a6c6-c7f3-44a2-a19e-dcd64a6eb321","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":88,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"104e636b-c6f5-4329-8c4d-47368397cce0","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":88,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"2cd73d84-5963-493e-bdde-303640013a31","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":88,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"8ce2c45c-fc8c-4487-ae43-6b3032b0b09c","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":88,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"a9bee72d-5dc8-4ebd-9b1f-d7d24537ffa9","block_type":"box","text":"principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such securities at a","page_number":88,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"922d960f-216a-4f2f-a49c-4998e5ad758c","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":88,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"2fc12e88-c843-49d5-aa7c-aa58a0390832","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":88,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"536c15de-abeb-4324-8445-4a5f104d3fcf","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":88,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"f3fe24b1-fc04-42e8-b67b-b8b2530a0564","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":88,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"c3a010ee-dfb5-4b80-9d23-ae5b55885908","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":88,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"52d182f9-ca2b-448d-be23-048daad39061","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":88,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"96affd4d-9f97-4aa0-92c7-002539cbb63a","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":88,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"7bb15955-d6c2-4f5a-8a60-797c6627ac22","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":88,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"754391e5-b11f-4ae2-b9a4-39b6d56ff803","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":88,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"a225d810-ccb3-40d4-b726-5318b48690f0","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":88,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"2eff6076-7f2b-43e4-9e19-e5aca4e7de4c","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":88,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"22284589-48d7-47eb-8cd7-2fd1ff71fca3","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":88,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"a73ffb3d-a767-47e2-b2d0-7381fc2a4b6c","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":88,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"ed70a1f0-01da-4708-b1df-ce442aa94ed0","block_type":"box","text":"securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities; and (3) those","page_number":88,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"d1c96060-16d4-4101-8995-84fa9a91d610","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":88,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"fc9eef5d-5b0e-4694-9853-e8babf60dbe1","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":88,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"35c15f4f-8595-41b1-8494-5989513a314c","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":88,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"4691fefb-45e6-4066-aa1a-68752c9e8d83","block_type":"box","text":"Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely","page_number":88,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"77a273c9-b318-488c-8109-9d598059ac87","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":88,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"5089fade-b70c-4d4a-9b86-27ad499956b7","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":88,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"9e85055c-fca1-4e76-b84d-5f8868dafa21","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":88,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"31c1bcf0-8ce7-44c5-a4bf-5ed4c540c7ac","block_type":"box","text":"II-51","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"74d16152-4656-4c68-927a-43ba99784840","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a8d784f2-28e0-4837-bfa0-1709d12bcda7","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":89,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"58df49de-468e-41d6-b6d9-64b045d70dec","block_type":"box","text":"payment of principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the United","page_number":89,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"d320d4d7-3a67-420e-9e05-aba33c10e722","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":89,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"b65412a2-eb99-49b4-af06-055592d0d3c3","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":89,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"0d626ba9-0431-4104-b859-4cfde557a022","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":89,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"87e741f3-6cdc-4318-a65c-ab365b84f749","block_type":"box","text":"guaranteed as to timely payment of principal and interest by Fannie Mae. They are not backed by or entitled to the full","page_number":89,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"b5fdae5d-f28c-4767-b238-09bf6ba07ff1","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":89,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"ef3f28f2-6cbd-4327-b127-a533902ed3f3","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":89,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"80758c7e-820a-4484-aef9-1ca69c481092","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":89,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"e9211853-52ea-4e9f-b29c-0ae16d595d8c","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":89,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"b8d26cdb-807c-4617-904e-ef790fb0ead8","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":89,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"f93efedc-acec-4aec-9971-350245ff0341","block_type":"box","text":"Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank.","page_number":89,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"f7ec3644-d1c5-43ea-8443-a44f2e30e7bb","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":89,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"c715e278-a16d-49bc-87ae-363483dfcca1","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":89,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"0cea1580-7690-4ba6-818a-6a4eb963ccb0","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":89,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"d253e34b-6e22-4c6a-bdef-a41045fe84a9","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":89,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"de9e20a3-49a4-4559-bfba-4c1cc1fad4d5","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":89,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"ce885073-6d8f-4e27-a58c-d101e811811c","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":89,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"12e7c0a4-bbfd-4da3-b034-7e1042b31c28","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":89,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"0d1a448a-da5a-42fe-bf93-85f7dc08305d","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":89,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"ac327421-e358-47b4-b41d-e0cb1dc50469","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":89,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"fc8aa76d-9ce3-47b4-a29a-37edfac5c5c4","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":89,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"dc8c07ef-d7e3-48e1-9eb7-367f6dbc0154","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":89,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"cab6f2ef-a22d-4d61-a96f-43f3e2d65a83","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":89,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"34bd050d-e2a6-4297-83b6-cce75dd505bf","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":89,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"9f8dac98-2cc7-4a36-be79-ec22ea160787","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":89,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"40beaf77-4e83-47ec-9362-fd2ca5a427e1","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":89,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"82d479eb-5613-41a6-bb35-d9728d845ee0","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":89,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"d4707880-bdc6-4dea-a6aa-901c4191773b","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":89,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"a844f8bc-e07c-4596-bd76-0abbff772752","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":89,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"5568d23a-8465-48d1-8f2b-59ca09d86b71","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":89,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"3c959283-9a39-438e-89c2-f171f041c58b","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":89,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"303d5a0e-19ca-4276-a183-804743a1f16a","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":89,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"214cdf9b-3dfb-4dcf-9e44-20d11bca1a0d","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":89,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"3e556531-1563-44df-8991-71e21b7ac253","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":89,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"c11a5e7f-0ad8-4732-8881-5bf04e3604fb","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":89,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"f644675c-20f0-4ebb-9fd9-d7025315bd8d","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":89,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"5535377f-7468-46f8-85e2-22f1e825a0a0","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":89,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"b88fcfec-d234-4a72-972d-b23ed4f6289f","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":89,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"ac870564-e8cf-4ad5-89e2-2ae6ab1f6659","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":89,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"f0940727-4839-434a-a881-970c3bd927f4","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":89,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"ae49f785-a826-477d-860d-b1bd5dedc725","block_type":"box","text":"loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to","page_number":89,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"014bcc30-f7e0-4f1e-b8a2-fee829bea1ba","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":89,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"d890dad4-9913-4f22-880f-5f04574be6d5","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":89,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"d399755f-7fe2-43db-a7fa-6d0b870c6746","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":89,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"8953b128-72ee-468e-908f-a8932ffd20fe","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":89,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"2fa4da70-e7a8-4e35-b1ea-5201ce5d6247","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":89,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"ec556c9b-5a89-42a0-a3e1-30cb8e8d5010","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":89,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"a4ae1ae0-ba62-4c27-a9b1-b099ee65f11b","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":89,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"4499fad5-30ed-4c0b-94f3-e5cd94026782","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":89,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"df8daaf7-5178-402a-ab3d-4680698d363f","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":89,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"8d6f0bbb-9deb-41df-b845-eb28e93d4708","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":89,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"6089af5d-3d4a-42c2-a87f-19754abdbf30","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":89,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"fca063e1-f383-42b5-a2f9-333390c3e292","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":89,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"77b8bb7a-dc9b-454e-a6dc-8fd2cab51932","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":89,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"edb3535d-265e-4e1e-8d67-c10261d68a7a","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":89,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"666373ae-89d2-442c-ae06-1b9d21d63ef9","block_type":"box","text":"II-52","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4cef5722-dece-4a27-bafd-d839f5e8706b","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"75ebecfc-1149-4a33-be89-01fb4aa2e6e5","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":90,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"7b7a68ab-f091-4119-a37f-f4554965b73e","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":90,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"17f648c4-2c54-4ef6-b8c7-eb5a0a4ffeb8","block_type":"box","text":"by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer of a series of CMOs may elect to be treated as a Real Estate","page_number":90,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"7d7b6f2f-aba4-4abc-94e7-9e2b8b3eab97","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":90,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"43579cf3-7d12-4b1a-9128-9657556faf26","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":90,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"0bf6a145-3a69-4210-8998-28f1e77a1f7c","block_type":"box","text":"or fixed interest rate, and bearing a different stated maturity date and each must be fully retired no later than its final","page_number":90,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"0b6a3206-cdac-4aab-a189-0e1ba42ab9fd","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":90,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"011b47b2-f033-4519-9aae-8ab723939225","block_type":"box","text":"is ordinarily unrelated to the stated maturity date. CMOs often provide for a modified form of call protection through a","page_number":90,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"174f251e-ebf0-43da-9328-0e2bc5e94d7b","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":90,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"6d8dd5c0-dd75-4061-9c17-021eb1d4bf10","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":90,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"deaf5752-0b84-45db-8c0d-6d40526e8a8d","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":90,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"d0695013-2eed-46c9-9794-b096cd88e4fd","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":90,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"dd33e977-e4b0-4cec-80df-651c51036c13","block_type":"box","text":"of principal because of the sequential payments.","page_number":90,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"3a56fca0-7b15-4d43-89eb-9f6999ed887d","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":90,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"897e05dc-9d71-41e5-838c-eaa68f2612b4","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":90,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"d3d0c785-463f-4051-9b88-1c75e8a06fe7","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":90,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"100dbb4d-d858-41da-abca-54ed5647c98d","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":90,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"2d297855-3950-481f-b5f5-e975adfed262","block_type":"box","text":"on the rule, are also not subject to the limitation of the Investment Company Act on acquiring interests in other","page_number":90,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"7935bdc5-2fc6-49cf-b3e6-c34e6b2fa57c","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":90,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"2dfd77fb-e0f1-4f00-931f-a3ca0055694e","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":90,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"5da554f9-242e-43b1-9045-248cff8f76f2","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":90,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"f2ffdb05-99f3-4dcd-9e24-6f0539a8b27f","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":90,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"fa807374-ed04-46af-8865-a5f2814058dc","block_type":"box","text":"To the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above requirements, the Fund","page_number":90,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"2b69078d-303a-41f3-bb02-8d105b3db5f8","block_type":"box","text":"may not invest more than 10% of its assets in all such entities and may not acquire more than 3% of the voting","page_number":90,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"daa598ce-109c-4263-b555-2bee83504af6","block_type":"box","text":"securities of any single such entity.","page_number":90,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"e4b1813a-7066-420a-86bf-ee684078f8f8","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating rate CMOs.","page_number":90,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"69e0e134-ff08-4165-b015-f6634253e754","block_type":"box","text":"Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class,","page_number":90,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"d01c0531-7cca-4afa-a3f0-18128b480455","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":90,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"e4f0c566-6f3c-4e02-944c-3739ebb970a4","block_type":"box","text":"calculating the final distribution date of each class. Sequential pay CMOs generally pay principal to only one class at","page_number":90,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"a1017e26-f378-4eb2-b644-6859f6d662af","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":90,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"7b6b8147-3788-43df-bcd3-4fae42d71ec2","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":90,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"6b2dd11b-954a-40cf-8657-19a4591c4974","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":90,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"1fbb0a8d-6625-4b9d-ad26-9dad473af40b","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":90,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"1a937544-befb-443d-b54f-956d170bb0ef","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":90,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"3b999336-dc3b-40c4-9866-918ff9d3aac1","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":90,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"a725c61f-f2ec-4c23-9846-29a697ef79ba","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":90,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"b7006d4c-fd2e-4df7-8ea5-f90bc953a4db","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":90,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"386b1161-9f58-4d18-8eba-294f8c610d54","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":90,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"d65461bc-8b47-4a6c-9a8a-70b50c57da65","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":90,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"fd4acb55-3d2f-42fa-886a-eb706180797f","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":90,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"9c935917-5650-476d-8fb7-ce60b2040676","block_type":"box","text":"the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must","page_number":90,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"7d10df59-3c16-419d-b93c-7789010a11e0","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":90,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"af92507d-6f08-40b6-9d3d-b376d0afea20","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":90,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"0294f34c-7aef-47a0-86d8-c8538bd06b9d","block_type":"box","text":"classes.","page_number":90,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"f7324d65-1f73-4d53-b84d-f01fd3d80268","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each payment","page_number":90,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"8922363c-1770-4796-a624-beea8f47ff92","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":90,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"92c04474-8f5d-44c8-b080-f93ee06e91ce","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":90,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"0a051a19-2822-4609-be19-2695efb947c2","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":90,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"b2d437e4-d620-4c7b-beb4-041d0c9ab69b","block_type":"box","text":"not both. TACs thus provide more cash flow stability than a regular sequential paying class, but less than a PAC. TACs","page_number":90,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"52638d95-bd5b-4bb2-9fbb-d33319cced6f","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":90,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"aaea6a81-b2d4-480a-9fef-3dfd8656af55","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":90,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"f5426290-adeb-4abd-8027-106063d6d5e9","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":90,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"2d243f75-05e2-4802-8d07-8e77f921ccfa","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":90,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"ac1c39d8-dc13-4ebd-9f08-f1a38495eaee","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":90,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"ccff8c90-a11d-44b3-91b2-3faa136b53a0","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":90,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"66c8cbed-8ade-4312-bd9d-ec2b48b92c18","block_type":"box","text":"to a designated benchmark index.","page_number":90,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"59357f5b-3236-4aab-967c-a1bf88b6769b","block_type":"box","text":"II-53","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a080c8ba-67f9-480b-a6f8-b0f3382d3fd6","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ddbd9475-eabd-4752-9a83-f5c2168ca41e","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":91,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"f349b499-593b-4d24-8546-4c70d837d997","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":91,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"f55156f1-18e8-4d99-8fc0-04a9db8637bf","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":91,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"8dd03735-b66f-461d-ac10-2907a5d055f8","block_type":"box","text":"more rapidly to levels above that of the ARM’s maximum rate, the ARM’s coupon may represent a below market rate","page_number":91,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"de2e644a-b7af-411c-a4d0-88ffcb6999f5","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":91,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"873ca345-58db-4c06-85ef-89c2b22cf307","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":91,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"41162662-94bb-4af5-a8ae-178f7e9adfe6","block_type":"box","text":"payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal","page_number":91,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"03e8b2d0-5b88-4df7-a542-2a090f8b022e","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":91,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"454f48cf-e5b3-45e7-aef4-0b5953f300a4","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":91,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"bbfff744-8d7c-4d57-9714-89c6371e3e8f","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":91,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"2a3c47ba-ffe0-418c-846f-ec82fb944eff","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":91,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"66929128-98b9-479e-96c9-c3ac16572b82","block_type":"box","text":"CMO Residuals.","page_number":91,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"cda929a7-de63-4548-a210-8d5915a52094","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":91,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"3ee7a499-1f9c-4290-b7ea-8937c4edc969","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":91,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"06991155-a105-413b-89b6-73c291d76d66","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":91,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"62e700f8-c2fc-456e-8c7b-d94fa72a9954","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":91,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"4d3b88c5-a2b4-4b1e-ab46-32e83241ea03","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":91,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"fb9fbd4b-8b4b-423e-9cc4-f7b718ab6975","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":91,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"18e7974f-fc21-4e2e-9617-e3f7f47cf131","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":91,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"0627e281-bef5-4804-9fd6-4f84082d87a3","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":91,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"327a670e-6e0c-4681-921e-c9a73a7cfbe8","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":91,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"3a7a0c64-cb94-4cba-a991-dd2b9da2a4d5","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":91,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"661e1f26-c370-49ac-8f30-0c55897af118","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":91,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"635b3574-5542-48d7-9dd9-7b38762133bf","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":91,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"2fede17e-0495-4330-a0b8-a7c1c87bf108","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":91,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"1fa756e6-c656-4b12-82a2-1736c32d3eab","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":91,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"fbe31495-5ed4-4c48-92fa-5d102d3c5644","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":91,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"78415e29-cdb7-48bb-8efc-c27ab4caa7b9","block_type":"box","text":"a CMO residual.","page_number":91,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"7d310cef-7daa-4c61-af98-48d49e7383cb","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":91,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"dce55148-997a-476e-9fa3-6bca16f2e99d","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":91,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"01a68e0e-dfcd-470f-bc3f-2c510388a8ec","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":91,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"d6216b18-6d2f-4312-bba2-7cd438a1e2af","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":91,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"6e738618-3d9d-4288-9e6c-5e237d562aae","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":91,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"49992e0e-1f5b-4a1c-9259-d6d9a087f532","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":91,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"ce91012b-ce33-4566-b033-ae1af7483f47","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":91,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"7b70368e-d2fe-40e3-8cef-86a971367b23","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":91,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"f80ed046-65bd-4d93-9b57-0a295c546cdd","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":91,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"4c6c7085-a3c0-436b-9980-73d53df519df","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":91,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"fa5c7942-5391-47ee-9111-826e94b6b3e7","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":91,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"f2517196-2f0d-4e7a-8921-94419334e98b","block_type":"box","text":"principal only or PO class) receives some of the interest and most of the principal from the underlying assets, while","page_number":91,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"87549187-8795-4f1a-90ea-f8c39baea538","block_type":"box","text":"the other class (the interest only or IO class) receives most of the interest and the remainder of the principal. In the","page_number":91,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"c76b1c64-08d7-4fb7-83f7-b6c1d3f4304f","block_type":"box","text":"most extreme case, the IO class receives all of the interest, while the PO class receives all of the principal. While a","page_number":91,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"91f1c92f-e8f7-4f6e-9c01-738540f26213","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO class. The yield","page_number":91,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"62136f59-28c1-404c-a726-b2d533103e62","block_type":"box","text":"to maturity of an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the","page_number":91,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"d94454f4-1bfc-4713-86b0-5e9012893b49","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":91,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"6ca9ef1d-dda6-4a6c-92f4-8a0444a2a42b","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":91,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"ddd6abb8-a77e-438a-bc7b-5fc6be86c2e6","block_type":"box","text":"experience greater than anticipated payments of principal, a Fund may fail to recoup fully its initial investment in IOs.","page_number":91,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"834b6457-46ad-4029-ac25-c4a41126b143","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":91,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"a9d3eaa6-80f1-4b47-b3b7-580e4f311448","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":91,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"985ca8c7-967d-464b-8d92-2cc4f2c1902b","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":91,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"15fffed0-e517-423f-bd77-94390407503e","block_type":"box","text":"generally will purchase IOs only as a component of so called “synthetic” securities. This means that purchases of IOs","page_number":91,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"6baf13f8-ffe1-4e4a-91c3-12f257f0022a","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":91,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"2f661958-9924-4e66-9e31-072ec5eae773","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":91,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"6c3ab430-45cb-4a20-a0dc-5fed8c989e6d","block_type":"box","text":"effect on a Fund because of its holdings of IOs should be diminished somewhat because of the increased yield on","page_number":91,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"bb56e973-53ad-4794-acd7-46632de8321e","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":91,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"31276a5c-8856-4a56-bad8-de54a86263b1","block_type":"box","text":"Tiered Index Bonds.","page_number":91,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"11a2eaf0-7e98-41fc-ba8e-fa18f731cc9b","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":91,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"74686d46-687a-4de7-bf28-d34a2edbfe9b","block_type":"box","text":"index bond is tied to a specified index or market rate. So long as this index or market rate is below a predetermined","page_number":91,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"cca24d6c-b953-4882-aadc-d3cace4d7baa","block_type":"box","text":"II-54","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2b67beb6-530b-42ca-8f92-05d66d6c8de3","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"146bed2b-9ea6-4245-a9eb-1cb9f02c78e8","block_type":"box","text":"“strike” rate, the interest rate on the tiered index bond remains fixed. If, however, the specified index or market rate","page_number":92,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"b6a68dac-900b-4eaf-8850-a4a97c53c96d","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":92,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"ee793473-c471-41bf-b224-ff6b6a3ee444","block_type":"box","text":"circumstances, the interest rate on a tiered index bond, like an inverse floater, will move in the opposite direction of","page_number":92,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"086cb415-67d7-4e3d-8d7d-8640c2cf95a6","block_type":"box","text":"prevailing interest rates, with the result that the price of the tiered index bond may be considerably more volatile than","page_number":92,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"232736e7-b853-4e42-b17d-b714e9677caf","block_type":"box","text":"that of a fixed-rate bond.","page_number":92,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"1976560c-af0b-4a1a-b018-3f4d58c8a132","block_type":"box","text":"TBA Commitments.","page_number":92,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"cc301451-aa72-4a2a-9539-7ebf42d97df6","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":92,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"14b59968-dd9c-4048-970c-e83282e78579","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":92,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"ee4f40e5-b34a-4725-a109-1beb30a68b77","block_type":"box","text":"with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not","page_number":92,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"89e7dd3c-8d2a-4898-9928-6b6d67153d17","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":92,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"c02c86da-8894-4ef9-91bc-9de9da0b070a","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":92,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"7d4a3082-3e58-490b-97b2-25290c4cec1a","block_type":"box","text":"price, with payment and delivery on an agreed upon future settlement date (which may be referred to as having a","page_number":92,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"96727bf6-e717-49b0-866c-da01e8db2e41","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":92,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"ccc6e5f3-ed3b-42af-aee1-d77f3fbf22b8","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":92,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"efe004b4-8fae-407c-83e7-5bd18e22de94","block_type":"box","text":"below.","page_number":92,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"86cf675c-057a-4568-b2f7-2eeecb82003c","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":92,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"ccf10ce6-a833-4c4b-827c-0d9a973fe0ad","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":92,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"9132605d-4d26-4331-9661-673135505bca","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":92,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"fb13e623-d0e8-4abd-9dca-e3f7c628d722","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":92,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"0ce05279-c039-41d1-8be5-b37d70a747a6","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":92,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"d676b34d-3b97-414d-9754-2e101c778b95","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":92,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"84636433-c985-4c99-b86e-266fd75c88ef","block_type":"box","text":"be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in","page_number":92,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"1fb83a98-7eef-422d-823d-d33d916db158","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":92,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"72ec74ad-ae78-4b65-aceb-45a42584ec72","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the","page_number":92,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"c477485d-b6b9-44f2-9a20-7b7faa6c53d7","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":92,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"082a2a51-ad8d-4583-9372-96e1490572a5","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":92,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"dfdf2ac2-ebab-4090-ad71-70660d561a38","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":92,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"ae15e039-37c4-4bbf-8b27-5f98a4934989","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":92,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"8ffffcaa-0447-4a68-9899-a0d1bee200c6","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":92,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"d0614960-7709-4acd-ac9d-09573ff41e4e","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":92,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"f3b70dd6-38d7-46e5-89ed-5a5b32aa19c5","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":92,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"a3bdf089-4dfa-4a67-9424-34f348107344","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":92,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"7f1d567a-c394-406d-be25-36033c59d619","block_type":"box","text":"securities in the forward transaction.","page_number":92,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"a205cd6f-1a67-459e-b56e-1adc2e8bbd5e","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":92,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"64b6b093-cc3f-4dfa-945a-1e2dc3509cae","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":92,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"6bc52553-17b4-4534-8d5d-27c4bef5505c","block_type":"box","text":"that the market value of the securities subject to a Fund’s forward purchase commitment may decline below, or the","page_number":92,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"fa9a6752-0a8a-4a94-aa5f-448fdbc51437","block_type":"box","text":"market value of the securities subject to a Fund’s forward sale commitment may increase above, the exercise price","page_number":92,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"ce4b6bbf-956f-4614-9771-ab2ec21d7187","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":92,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"354165e7-a5f8-44c4-8b7b-20b06859e23d","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":92,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"6df4acd5-d82e-4f1a-84a3-04315e3c2fa7","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":92,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"ef509ea7-c72b-4b20-a80c-e400af50617d","block_type":"box","text":"securities (","page_number":92,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"f034fb8a-206a-4a46-b529-463013abcfb8","block_type":"box","text":"e.g.","page_number":92,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"aa634caf-324b-4833-a1b3-65236786fddc","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":92,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"40d91087-7c42-47bf-9f06-269c6f6d8c66","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":92,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"8b27cfd7-aa47-4c10-a633-7375f9c3c9c4","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":92,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"72ef2c6e-82d9-4429-adec-b28a776638a2","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":92,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"662d41b6-e8f2-4b1c-836e-a24177027cce","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":92,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"f01158b1-42f1-4cf7-8f16-aa97c8d28257","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":92,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"dac7dec2-7206-46af-93b4-435bec6caec0","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":92,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"9173e565-ee18-4c91-9a1a-ab3e58067450","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":92,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"2581af25-9ebb-4631-902d-3d4c08863852","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":92,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"4a82c17c-5486-4e20-bad0-62fbdeef42d5","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":92,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"8c82d703-c418-4232-acaf-bbcd29e9e9b4","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":92,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"a20ef86d-fbce-431f-9cb1-bc56af034c8c","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":92,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"2f6d64cc-c34d-4b7f-9c63-36a5c6626b72","block_type":"box","text":"securities, the yield to maturity on a NIM security is sensitive not only to changes in prevailing interest rates but also","page_number":92,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"ef677d39-4528-4df2-b6fc-ab47afa0694c","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":92,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"2363153a-cb27-4ee7-88a7-c378af3628e5","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":92,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"b8bc6bb7-48ca-48df-965b-81888df52437","block_type":"box","text":"Municipal Investments.","page_number":92,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"db648da3-8f56-4df6-9baf-8c51fcd007f5","block_type":"box","text":"II-55","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6440d966-b852-4180-87dd-1987135063bf","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"433fc898-eac7-4d56-8873-f3a24d812411","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":93,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"cff4480f-2e51-4217-af1e-cc162545f2dd","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":93,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"6fd0075b-b218-4d12-86bc-3db552612bf8","block_type":"box","text":"payments from which, in the opinion of bond counsel to the issuer, are excludable from gross income for U.S. federal","page_number":93,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"e9732a60-55af-4b08-bb7e-7bc5408c4076","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":93,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"b2446a8c-61cd-4680-9cb3-891a02d5f985","block_type":"box","text":"pay interest excludable from gross income for purposes of state and local income taxes of the designated state and/","page_number":93,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"d3431b11-f1dd-4ff9-a8d5-1b1245e8f328","block_type":"box","text":"or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated state (“State","page_number":93,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"95277b79-a2b3-431e-8b53-514463578210","block_type":"box","text":"Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on behalf of a state or territory","page_number":93,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"078ae0d7-a2e7-4b39-a4ab-8cdbf06c694e","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":93,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"4a31dff5-4dd9-495d-8ea2-2a3fced2cfba","block_type":"box","text":"gross income for purposes of U.S. federal income tax and state and local income taxes of the designated state and/","page_number":93,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"82523b0d-ef47-41aa-b3f4-93544d5264d9","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":93,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"e1ca46a0-7a53-491f-af78-e09892002f28","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":93,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"3615e15a-c57f-4ffa-94d7-ebfcedad54bb","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":93,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"caa27c9c-b796-4b7a-9888-cfe1c17ca780","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":93,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"64c4cce7-1490-44fb-87d1-94ccddff0bda","block_type":"box","text":"law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":93,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"031dc83a-056d-4ce6-9897-e84dcca3c68b","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":93,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"5a4d43aa-5657-4807-a321-8f4f9e6c68dd","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":93,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"5f8d748d-6a13-4d33-8f5b-cc8ecd3f49be","block_type":"box","text":"income tax and state and local income taxes of a designated state and/or allow the value of a Fund’s shares to be","page_number":93,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"f64639a4-acad-474a-959a-b36d9091e889","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":93,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"4bcae598-4151-4b79-b49d-b1af3f9f939a","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":93,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"ff2848cc-20b6-45e9-837e-a8288323ec0f","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":93,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"fc9ebfea-0930-478c-ada9-734e5dec09fe","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":93,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"788783eb-e7b7-44c4-a4e8-80daab74dfdb","block_type":"box","text":"The risks and special considerations","page_number":93,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"9f3d0401-d1ed-445b-a89e-8092e06ee584","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":93,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"4d9fbcb8-6ecd-4852-97bb-aa331d831349","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":93,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"20e70e96-e0a4-4785-8fa0-423e77328ef1","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":93,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"8479df15-8db1-410d-ba23-70e5dddd9665","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":93,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"830049b4-612b-4c0d-b393-b384d05ed222","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":93,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"5fa147b8-9f44-4510-9c79-66d8d4c9ce39","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":93,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"7c0a8b84-59f0-4fb8-9831-4db9923c1b73","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":93,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"929aeebf-7053-4889-b25b-dcfaac90bb13","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":93,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"81e094b0-e29d-478d-a1f2-5b11be06e7b9","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":93,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"bb45b231-4b36-4fd6-a101-2bfb4949a8bd","block_type":"box","text":"II-56","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d8d89e55-469a-4536-8330-35d19f939538","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6592c7e1-d14d-4190-b04e-8b75cfc932bd","block_type":"box","text":"Description of Municipal Bonds.","page_number":94,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"b85c1bc5-3223-4437-af56-463e62a7f870","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":94,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"d6e15a27-0768-4581-9973-6491dc391bca","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":94,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"68b30bc6-cdaa-4be4-a8da-af7dd565b587","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":94,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"b8f6408f-5895-4ac3-a01b-a0179c8bdda7","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":94,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"7176cba8-beae-46be-a43d-c4ac71e36655","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":94,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"86fecf98-7a7f-4ffb-b040-f80c8d8704cb","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":94,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"143c52af-88a4-450f-bcac-0ca927a9f448","block_type":"box","text":"excluded from gross income for U.S. federal income tax purposes and any applicable state and local taxes. Other","page_number":94,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"8b14106d-acc9-4623-886d-7ea058a3a416","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":94,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"d24c7fb5-0443-49a9-89c2-e17593645299","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":94,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"eb8425a7-d0ef-4782-996b-175d6c8f4e85","block_type":"box","text":"federal tax laws place substantial limitations on the size of such issues. The interest on Municipal Bonds may bear a","page_number":94,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"07fd39a4-b265-4c56-9ca5-d8dcac9fc03c","block_type":"box","text":"fixed rate or be payable at a variable or floating rate. The two principal classifications of Municipal Bonds are “general","page_number":94,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"9e5cdda9-8f02-4d79-8f8d-6b2537da45bd","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":94,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"3f4b4e6c-0fad-4583-8449-19761bdc0373","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":94,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"22d94fd6-0506-4f48-bc53-5651976f7b60","block_type":"box","text":"General Obligation Bonds.","page_number":94,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"1bc302fd-2e08-4fdd-895b-015bee47eeec","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":94,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"11a4655a-1b4a-437f-b95e-33407130779f","block_type":"box","text":"taxing power for the payment of principal and interest. The taxing power of any governmental entity may be limited,","page_number":94,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"af21ae5a-5b33-4ca4-a23e-209947e00ddb","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":94,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"0123246e-106e-4b15-9330-89bf2cb83b77","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":94,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"aa17ae9a-b2de-4d39-9fdc-f7be1e3b9469","block_type":"box","text":"industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,","page_number":94,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"95405526-f7e7-45d3-a4f9-8bc1de7a2cef","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":94,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"94ddf508-9ec3-4f00-bd62-0e6e1ca427b7","block_type":"box","text":"relies on federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":94,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"63843f7f-d092-4082-bd5c-c46460862584","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest and the","page_number":94,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"06dc670a-c09d-4d8b-b87c-f1ef9e645627","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":94,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"cd25a53e-698d-48e5-ae89-8a9ae46e49dc","block_type":"box","text":"Revenue Bonds.","page_number":94,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"97adc8a0-0b05-4639-ae37-abb35c4f807c","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":94,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"ea851252-7ce3-4f7e-adb9-12b0e8e5f533","block_type":"box","text":"facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source such as","page_number":94,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"ddc78cb9-c108-4b9e-8c06-0196bf1706b8","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":94,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"59989269-8c9e-4acb-a421-d43da056c802","block_type":"box","text":"of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic","page_number":94,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"34e68510-0dd9-4838-9474-d70f8fe76d9f","block_type":"box","text":"viability of such facility or such revenue source.","page_number":94,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"fdd93729-b5fa-4a17-9b41-19b6578235ff","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":94,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"2972844e-3f56-4df0-ba39-a36f0b66ce5d","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":94,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"2c96c6d5-e9d6-4003-9e17-9827f42797c1","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":94,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"20c7aa27-431a-45d4-bf54-e40c766ce54e","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":94,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"f0010b9b-930a-4777-99f3-c3b55519dca2","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":94,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"8b9a919a-eb40-4708-9c77-7469092c1347","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":94,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"751994d5-effd-4528-b53b-116136be64f7","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":94,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"53fa6c88-0653-4bf1-964d-c04ed2076b10","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":94,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"ca71609d-9ef8-4d97-adf8-3d286bef8ed3","block_type":"box","text":"PABs.","page_number":94,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"23552bea-921e-4920-8e1e-d884946dbb35","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":94,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"254ed306-edcc-4b1e-b5f9-152eb3e9c91a","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":94,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"d39992b7-625a-4063-964c-de4bec024dbd","block_type":"box","text":"construction or improvement of a facility to be used by the entity. Such bonds are secured primarily by revenues","page_number":94,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"df5e172d-4bf5-4880-83d4-67c6f152d2e7","block_type":"box","text":"derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a","page_number":94,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"5bca3b31-77fe-4c59-ade5-732a6ed7e12a","block_type":"box","text":"parent company or otherwise secured. PABs generally are not secured by a pledge of the taxing power of the issuer of","page_number":94,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"204a2cf2-d14f-4151-8962-d6bbe7054c4b","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":94,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"b54abde8-1231-46ae-b18a-f87289275633","block_type":"box","text":"revenues of a private entity and be aware of the risks that such an investment may entail. The continued ability of an","page_number":94,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"e9c75304-6b2e-4de3-a072-c383d9bf909a","block_type":"box","text":"entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by","page_number":94,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"0ada1c9c-974c-40fc-a966-0a2085c9e57c","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":94,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"87dc0594-cd86-449e-ae77-51134b0d6388","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":94,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"d935e7b2-8ac2-4f14-96ff-64c1620e7f72","block_type":"box","text":"the par ticular facility being financed.","page_number":94,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"771856da-994e-4391-a243-d46536397870","block_type":"box","text":"Moral Obligation Bonds.","page_number":94,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"772685d1-e451-4268-bc7b-f4622ae80cbb","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":94,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"c5493b36-2130-4be2-ae3f-8a63de93d2ab","block_type":"box","text":"issuer of moral obligation bonds is unable to meet its obligations, the repayment of such bonds becomes a moral","page_number":94,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"4fa7f2b6-83b0-45a5-bda9-724465fb9629","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":94,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"65903ef9-d04b-4135-a4e3-8e705fbf694d","block_type":"box","text":"that issued the bonds.","page_number":94,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"dc720e71-a429-4eef-a495-934b9c6ddce5","block_type":"box","text":"Municipal Notes.","page_number":94,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"63133d68-d26a-4d69-b42a-fb5d20194360","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":94,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"f0e6b80c-c2f8-4b51-bf91-835a7e810bfd","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":94,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"379e542f-b68f-4e9b-aa15-0fa9ac90c728","block_type":"box","text":"repayment on the note may be delayed or the note may not be fully repaid, and a Fund may lose money.","page_number":94,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"3c9cbe6c-854f-47e9-ab13-40879864102e","block_type":"box","text":"II-57","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"19417077-e937-40ea-9edd-60b45ae2d822","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"267387be-ef4b-4026-a446-9414b6c00218","block_type":"box","text":"Municipal Commercial Paper.","page_number":95,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"e3f08b87-523b-4357-8da6-8b26581c885c","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":95,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"a2a5d112-ba8f-44ab-9ca1-a32790d58977","block_type":"box","text":"financing needs. The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s","page_number":95,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"38be69a7-4fdf-4201-b9a8-afdc2df542ff","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":95,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"02cb2916-735f-4192-b569-183fca2a0483","block_type":"box","text":"Municipal Lease Obligations.","page_number":95,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"9c7dc4e4-90ff-4689-a437-84f8c34d6d3f","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":95,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"6f44bb14-41d6-4f86-9561-132511838de3","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":95,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"7d3284b7-9218-4e8f-93c9-69af64a3a1f7","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":95,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"4de7e838-8917-4f99-a337-565ad67a98d2","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":95,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"96ade0af-886c-45b7-8031-c745bd8f31c8","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":95,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"5dae5112-8261-4bac-9f9d-d8d00652cd7f","block_type":"box","text":"lease obligations do not constitute general obligations of the issuer for which the issuer’s unlimited taxing power is","page_number":95,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"8f2d0360-f26c-4178-8b6d-11cf109cbdec","block_type":"box","text":"pledged, a lease obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":95,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"fe0c6fd1-0a82-4527-a451-b43c9d667e4e","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":95,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"6bb821be-0c7d-4b55-aa24-e44da794b9dc","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":95,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"78a8fc9d-337c-4435-9b36-bae1a69fffb1","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":95,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"388ba5f8-9032-47b6-bef9-87801cd3590e","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":95,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"0474e171-3caf-44d4-baff-6bccb306dd6f","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":95,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"2f94cf4b-2298-491f-9b06-626b5e7f9db9","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":95,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"2cc3179c-ee00-4b42-8eb8-82d3f0b5a9cb","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":95,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"59a5dc25-fd5e-4c8f-a205-47a4b287ae28","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":95,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"8f20ad60-b031-4ef0-af7c-aacfc84866c3","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":95,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"411d5411-8c49-4981-831a-d9aa9bbdb60d","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":95,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"ece74382-8ec1-4b59-b3c2-fb887890917c","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":95,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"d115ba84-6698-4157-8245-4b985ddc3325","block_type":"box","text":"such an issuer, a Fund could experience delays and limitations with respect to the collection of principal and interest","page_number":95,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"332e56d7-d179-41aa-895c-17d3b7ee5afb","block_type":"box","text":"on such municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest to","page_number":95,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"392b26ae-b166-4635-a187-ad0e17b537e1","block_type":"box","text":"which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might take possession of","page_number":95,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"6f28896e-07de-4b68-ac33-903aa6dce8ae","block_type":"box","text":"and manage the assets securing the issuer’s obligations on such securities, which may increase a Fund’s operating","page_number":95,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"4c5c5cc7-297a-45f9-930e-1e6520d7f82c","block_type":"box","text":"expenses and adversely affect the NAV of a Fund. When the lease contains a non-appropriation clause, however, the","page_number":95,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"b7629368-bead-4e20-b38d-0e6421c21db8","block_type":"box","text":"failure to pay would not be a default and a Fund would not have the right to take possession of the assets. Any","page_number":95,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"2067a13f-26af-4d41-a951-c516f6699d23","block_type":"box","text":"income derived from a Fund’s ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s","page_number":95,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"54118f53-25a6-4b1f-95d5-ea6fd45595f3","block_type":"box","text":"intention to qualify as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":95,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"b716fb63-08fa-48ae-b138-92b3ac562d4d","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":95,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"bb582d25-c189-4aa3-bfae-a5dd1ba39d97","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":95,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"7e2d2a80-6828-48cd-bc8b-e1f3f4c78d48","block_type":"box","text":"Tender Option Bonds.","page_number":95,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"d1cb0f07-5993-418f-af3c-477ca2478a65","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":95,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"cf01f30f-482d-40e3-b7e4-78416297b7bd","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":95,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"5558cf66-36ce-4742-8dac-08d707231aa7","block_type":"box","text":"invest pay interest or income that, in the opinion of counsel to the issuer, is exempt from regular U.S. federal income","page_number":95,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"897fe4e7-65b8-4a14-a720-a7547c30b916","block_type":"box","text":"tax. BlackRock will not conduct its own analysis of the tax status of the interest or income paid by TOB Residuals","page_number":95,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"60c2abac-2f28-430f-9a8a-a475da338dd7","block_type":"box","text":"held by the Funds, but will rely on the opinion of counsel to the issuer. Although volatile, TOB Residuals typically offer","page_number":95,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"b3989810-7b31-4f55-9c64-32495e21ee80","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":95,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"a4620424-4127-4195-8c86-065cf53682ae","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":95,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"ca8390aa-128c-4a02-ac44-e484f4b6a7a5","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":95,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"1109daa1-5420-4b93-890f-6f0a737648f2","block_type":"box","text":"Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically issues two classes of","page_number":95,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"42631ee9-b72b-43f3-b82b-4d0eca1f6202","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":95,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"71e440d6-d88d-454e-bfef-5ca5283fefd5","block_type":"box","text":"TOB Residuals, which are generally issued to the fund(s) that transferred Municipal Bonds to the TOB Trust. The","page_number":95,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"016019f5-ef7b-4291-b370-7a015c553e60","block_type":"box","text":"Funds may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from","page_number":95,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"52116bc6-4f28-45c2-9258-1d8adee8ac52","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":95,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"50604733-3d57-4568-9634-10c4290d49cb","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":95,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"a91b276c-ff29-42c2-9722-7f15daca02ef","block_type":"box","text":"as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes the","page_number":95,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"b08378c4-0721-4ce0-a610-323c6b4c4e3b","block_type":"box","text":"Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less","page_number":95,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"d2b2f154-40ad-4599-b558-f96dd1b58229","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":95,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"adb45ad0-f74f-446b-86d7-af2a2cfaf0f6","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":95,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"1d192368-3505-40e4-b498-bfe64eceb4e6","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":95,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"11422c5f-51ef-49af-897a-bcfa12d09ad6","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":95,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"82fbe6f0-94c6-4d31-ac99-a58b3c97c9ac","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":95,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"88149abe-64db-47c3-84e8-0ad4c1289fb3","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":95,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"837642e1-9e7f-4a58-a6e1-0c0206a3c5a5","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":95,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"f3e2e43e-c6e2-4cd9-afb7-cbc00d7f83ce","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":95,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"f21147d1-c731-4377-b949-249cae71c2e4","block_type":"box","text":"II-58","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"df863e0d-3430-426f-8dd2-93eeb68b6ceb","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0633b6b7-c16d-47fb-8bfc-92efbd8e06b3","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":96,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"2de88a43-a053-4952-ab49-9ae81cc4475a","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":96,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"15b3859f-7cac-4816-9d22-bd30a73960ea","block_type":"box","text":"enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by","page_number":96,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"28b7a8a3-1591-4e26-91de-36177041f81d","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":96,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"1ddc5899-d98c-48d7-959f-93765e760545","block_type":"box","text":"and a Fund, as a TOB Residual holder, would be responsible for reimbursement of any payments of principal and","page_number":96,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"86dfa94d-e2e9-416b-be98-cbc2f5699b97","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":96,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"5686407e-a81f-42b4-b5ac-7b87b50a7f33","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":96,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"f5f6d9e3-ccae-4ea2-af80-d5bbe3034778","block_type":"box","text":"share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, the Fund","page_number":96,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"3db55715-4a61-4098-b370-c4b4a512f5f7","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":96,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"2bf4d64a-62e4-4ac2-9f71-0b177f1dc087","block_type":"box","text":"exposure for the Fund to the entire return of the Municipal Bonds in the TOB Trust, with a net cash investment by the","page_number":96,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"20957384-2014-443f-b141-f7cfb8ea7a97","block_type":"box","text":"Fund that is less than the value of the Municipal Bonds in the TOB Trust. This multiplies the positive or negative","page_number":96,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"b28bdb90-733f-43af-a020-0cc2e9a71be4","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":96,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"4541ce6a-06e5-49bb-b228-3b00c62af67d","block_type":"box","text":"depends on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB Floaters it","page_number":96,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"64f2ce83-0f31-441a-9655-f284f7427b72","block_type":"box","text":"issues.","page_number":96,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"7badfe86-fca2-4326-8d88-9b47c47b827f","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":96,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"859319c6-eedd-4347-b05c-2a1da18c37b5","block_type":"box","text":"the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of the principal amount of the","page_number":96,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"3ad4bff3-0782-4ba6-87c3-1a7a0bca46c7","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"9699df07-8a58-4e55-851f-3be9c76e791d","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option termination","page_number":96,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"eb71de0f-c862-45d3-8824-6760705d63ca","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":96,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"5a892e2e-06e8-4be6-9516-b64ab300dd85","block_type":"box","text":"include the bankruptcy or default of the issuer of the Municipal Bonds held in the TOB Trust, a substantial downgrade","page_number":96,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"fe34a349-29b4-4a63-a47c-92cdf1866722","block_type":"box","text":"in the credit quality of the issuer of the Municipal Bonds held in the TOB Trust, failure of any scheduled payment of","page_number":96,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"bfa275c8-9e44-4689-be4f-fd5354f458f8","block_type":"box","text":"principal or interest on the Municipal Bonds, and a judgment or ruling that interest on the Municipal Bonds is subject","page_number":96,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"6f233ac8-5abb-44c7-bc7d-7c9c123ac50e","block_type":"box","text":"to U.S. federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Floaters, the","page_number":96,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"57777c7f-9781-48dc-a1f3-2e57ce028c2f","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":96,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"af0e9885-a756-44e3-9829-f1ba3812f520","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a TOB Trust would be","page_number":96,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"97ddb9f3-58f1-4d87-ae0a-34e6a0bd5bbc","block_type":"box","text":"liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing","page_number":96,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"47b46d40-916c-4f2a-9f49-779c75b1849d","block_type":"box","text":"agent of the TOB Floaters and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees,","page_number":96,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"603a4313-6f4e-407b-ba0b-ce5cb44ecd93","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":96,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"9fde462c-c3b9-42c9-b2b4-7b05b69d7af8","block_type":"box","text":"i.e.","page_number":96,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"a5889d1f-8700-41e2-a525-d2050b62c5d1","block_type":"box","text":", the Fund). In contrast, in the","page_number":96,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"faae7def-2499-4278-8958-dd386cc8244d","block_type":"box","text":"case of a TOTE, after payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro","page_number":96,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"a1345eef-256e-47ee-8f59-fe897ddfa040","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":96,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"4b66a977-d75c-41cf-9a4d-d50a8acb83b8","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":96,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"6fbd9fed-6c83-4b90-bd86-b29f9043ee4b","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":96,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"22fe0465-053c-411e-8be7-1e80ef424370","block_type":"box","text":"the holders of the TOB Floaters to tender their TOB Floaters in exchange for payment of par plus accrued interest on","page_number":96,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"b82af9f6-0581-4310-8e30-474b18725549","block_type":"box","text":"any business day (subject to the non-occurrence of a TOTE described above). Depending on the structure of the TOB","page_number":96,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"4bccc531-1921-4ede-a698-1e662b3b824c","block_type":"box","text":"Trust, the Liquidity Provider may purchase the tendered TOB Floaters, or the TOB Trust may draw upon a loan from","page_number":96,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"950769e3-8781-4227-98af-96d5add03367","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":96,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"46b8f1c4-1241-49ba-a14b-426fc1cf965a","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a","page_number":96,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"b5dfd4f4-f7fb-45b6-9d38-52c763d24679","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":96,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"a217cba9-a6b1-4a7e-a4d2-988ef3a784d5","block_type":"box","text":"held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the","page_number":96,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"17f3d885-1a7a-44a5-b98e-9e7c8c05c273","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":96,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"bb481758-9210-4799-8ca2-30852725b666","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":96,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"62c575b8-f8a2-446d-b2d3-1a4160d9463f","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":96,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"6136881f-56fc-4d21-bcda-4d4d598f2bfb","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":96,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"ea4fba1d-3e0c-4eec-9e09-d40309709002","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":96,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"8326ee61-1bcc-4f57-8414-65977e424f04","block_type":"box","text":"Trust.","page_number":96,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"c5df2049-2349-4b87-9074-a3519b93cfd5","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are investments of the","page_number":96,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"40be2038-94db-418c-9461-e23938530ef4","block_type":"box","text":"Fund and are presented on the Fund’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust","page_number":96,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"9ef6b5b6-7d01-42b6-865f-80315f7d9423","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":96,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"9c1dddf7-a49a-4d45-935e-0b44607e8504","block_type":"box","text":"Municipal Bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Floaters and other","page_number":96,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"c5b19a7c-7650-49d8-b21f-9793d72c248b","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":96,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"1f989e0c-9eef-4c10-980b-15f84a37eb14","block_type":"box","text":"of a Fund. In addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented as","page_number":96,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"8182ccfe-4090-4b57-b261-0c493773dadc","block_type":"box","text":"loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s assets.","page_number":96,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"908068f2-8a3f-4f63-9a5d-33dbde94dcde","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":96,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"bdb12e11-a37d-4186-b1d0-7e18b82f8777","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":96,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"6db8c61e-3f11-46b7-b84a-154f91d81321","block_type":"box","text":"II-59","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2c0439ee-28b8-40c1-9a23-5034c917bf9a","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e38a7cf-c738-4fd0-b4fd-adabf332d3f9","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":97,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"0eb55d86-6303-429d-8503-8f5b837594f3","block_type":"box","text":"Bonds deposited in the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the","page_number":97,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"fa104c56-b65e-48c6-b237-3f554f096676","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":97,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"38125569-7861-4cd5-86cb-416ed170860e","block_type":"box","text":"with TOB Floaters, however, may be increased in the current market environment as a result of recent downgrades to","page_number":97,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"3169a3bd-2215-4723-be59-63028277353f","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":97,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"ac4aa64b-4f69-4106-8db4-8ac87efd393c","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":97,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"83a98db9-c792-469a-bf5a-ef691964a0d6","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":97,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"ea8dd2d1-9ba0-4085-9ffc-e13d09d014ef","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":97,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"3184e4e2-c878-475e-a4f4-41c7e126feb5","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":97,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"d7543b5f-e549-43f6-b4b6-73ba75e8d12f","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":97,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"e41fecf8-d425-49f6-ba11-76a1386f94cb","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":97,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"0bf7b4b3-0133-46a6-a0f2-1cd404bd2199","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":97,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"1a933241-3de1-4f12-8f60-21c3a916aefa","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":97,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"22de6ccb-c4c2-46f6-9801-2e520e7b4fe6","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":97,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"f034dbf2-8348-4c7b-b8aa-b7709f4d68eb","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":97,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"fb01afac-32e9-4015-b4ee-f56f43f14623","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":97,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"f225db40-4dba-4f15-b0e3-812b9a5bf1b4","block_type":"box","text":"ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will","page_number":97,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"59327202-8951-4665-9a42-38a1ee8f020e","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":97,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"b88946fc-4185-484f-b863-c3243b9a216d","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":97,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"7fd8e465-df91-40b5-a1e4-51dc2125d0f9","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":97,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"1b562a3b-7106-4085-884e-7eadbe137382","block_type":"box","text":"could limit the market for such structured TOB Trust transactions or a Fund’s ability to hold TOB Residuals. Under","page_number":97,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"7188602b-e2b4-4db3-89ab-961603489f22","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":97,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"4b438eb6-729b-4d94-9c76-cf21d7dbefdf","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":97,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"e79f9830-9173-4711-a54a-4be037b2c402","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":97,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"39450cda-97f8-4eed-910b-242f1654c999","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":97,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"64521ede-8141-4a62-b8d5-d131a6c36498","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":97,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"da1186cc-6ad2-4949-a862-d53e8654b5bb","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":97,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"28058d85-0114-4611-97be-c3f8a1174b25","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":97,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"2e1e1f05-3846-4799-b9b2-4f5ebe11d6ee","block_type":"box","text":"i.e.","page_number":97,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"9b617584-c0bf-4b42-a73f-b0d8207f4b26","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":97,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"a6085de5-2b48-4daa-8415-65cf457a00b0","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":97,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"0c6c62eb-a25f-46c4-b987-934fac1901dc","block_type":"box","text":"TOB Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that a TOB","page_number":97,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"068cabd8-69bd-4e06-8d14-1514f398b480","block_type":"box","text":"Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of a failed","page_number":97,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"c9661802-1160-4cc7-af51-978993bba0f0","block_type":"box","text":"remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the TOB Trust the proceeds","page_number":97,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"9a99d825-8a8a-4e60-b7b9-7e61361370f0","block_type":"box","text":"of which would be used by the TOB Trust to purchase the tendered TOB Floaters. The Liquidity Provider is not","page_number":97,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"0eb3765c-aba2-4732-8b95-56db67bfb058","block_type":"box","text":"obligated to advance such a loan. The TOB Trust would be the borrower with respect to any such loan. Any loans","page_number":97,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"276fc457-6b31-4b43-8555-593429713ddc","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":97,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"0b036754-bd84-4078-a919-dfda5d06f683","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":97,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"016ec47e-7497-4f63-b9cd-a14121cb94e5","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":97,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"97e3e2de-a2b6-4852-b5ce-e01be2b59baf","block_type":"box","text":"contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB Residual. However, as described","page_number":97,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"f2ed5d6c-97d3-4d26-9f7d-d25f92d085f2","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":97,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"e6f0ddc1-739a-427c-8673-a618f87ea6b7","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":97,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"fb9df5f7-b475-489f-89c1-4cdf51cec59b","block_type":"box","text":"(the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention Rules require the sponsor of a","page_number":97,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"d374c0b0-e279-4dda-93ee-3da010242034","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":97,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"727db741-5746-401e-9a56-e1c91a8afb83","block_type":"box","text":"Bonds. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or","page_number":97,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"f9b68041-34a1-4483-b4c5-d32557fe39e6","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":97,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"e9eab5e8-d4fe-40ec-8a02-b7d3e5d11cb9","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":97,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"2b5b3792-6469-4a4d-8bac-23b6a25e3778","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":97,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"02aca361-4f77-47b8-bb5e-60caf8ece915","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":97,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"761380e3-7a42-4e5c-838b-be9f054213d9","block_type":"box","text":"could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal","page_number":97,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"d130cdda-45c6-4f1c-8250-6393b77ebd81","block_type":"box","text":"market is not yet cer tain.","page_number":97,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"f9d6ae18-683a-41d1-85d2-40c8b6c2e31c","block_type":"box","text":"Yields.","page_number":97,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"74ffc25a-1002-43cb-861c-8ef32d38e6a6","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":97,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"8c7213e2-8a4f-4a04-96c6-253bef0beef9","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":97,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"b073ee4e-ab45-474d-bf82-472b327bf3c2","block_type":"box","text":"issuer, the maturity of the obligation and the rating of the issue. The ability of a Fund to achieve its investment","page_number":97,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"9ef38f91-482c-49dc-8ea2-7849c904bbe5","block_type":"box","text":"objective is also dependent on the continuing ability of the issuers of the securities in which the Fund invests to meet","page_number":97,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"fc190a36-56b8-4020-a88a-7dccec2e3670","block_type":"box","text":"their obligations for the payment of interest and principal when due. There are variations in the risks involved in","page_number":97,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"c762905b-99b8-4576-ba80-ce3fc22b86a5","block_type":"box","text":"II-60","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0c608884-82e9-45d7-a7c8-e701547895c7","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43470123-1bb9-4e49-949f-3a179a52df44","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":98,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"9f6abeba-5295-49d6-bdb5-2d8165fb6e87","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":98,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"52ae4152-815b-4821-8a36-2a2831f2af1d","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":98,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"bf204a72-d78e-4624-be71-93da2b1410e4","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":98,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"84b460fe-86ae-4148-aae3-bcccce761912","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":98,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"24009b9d-a1c4-4b12-9646-0d93e1023f1c","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":98,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"cc2612cc-334e-4cb4-817a-ac21eaf497df","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":98,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"bfb7a64f-d6c2-47ae-a2ed-a9036c48cb7c","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":98,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"dfa43f6e-1ca6-411b-900a-97125649ccc8","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be honored.","page_number":98,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"936b3697-5b13-4980-9d57-da9afbd79c25","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":98,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"314fa068-8a5d-417a-bbf3-b74a10b2ee77","block_type":"box","text":"adjustment formula being calculated to maintain the market rate of the VRDOs at approximately the par value of the","page_number":98,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"a85718a7-2dc6-4ddf-956a-0ca6283a2f26","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":98,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"d7e38de1-97ae-4738-8634-3c748249aa69","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":98,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"87425db2-a794-4907-80f1-af4a3d9a7b09","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":98,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"10ea182d-d748-4483-b058-dfda28e30f74","block_type":"box","text":"During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its shareholders will forego the","page_number":98,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"5c20f2f1-9454-47a1-8da9-6d89d6b276f3","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":98,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"29ac982b-0f0b-47a5-9337-9452c2fbcc8a","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":98,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"50c20f18-0c9a-4b4a-ad2b-ebf34b5c30b7","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":98,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"fdf68bb2-5a4e-4816-8623-a0fa500b2426","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":98,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"e3c7a8a2-5f7d-42b2-983b-0f7c1eaa5d89","block_type":"box","text":"deal in financial futures contracts based on a long-term municipal bond index developed by the Chicago Board of","page_number":98,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"c9961b73-b519-4647-a2b6-60b0c7b41844","block_type":"box","text":"Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal Bond Index is comprised of 40 long","page_number":98,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"0875d608-95bd-4477-951b-54e708f6d68c","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":98,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"ae0aca48-a7a7-446e-b3ba-18e23aa05916","block_type":"box","text":"Bond Index must be rated A or higher by Moody’s or S&P and must have a remaining maturity of 19 years or more.","page_number":98,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"d70c44b9-7c5e-4baf-805d-d3f1be93f429","block_type":"box","text":"Twice a month new issues satisfying the eligibility requirements are added to, and an equal number of old issues are","page_number":98,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"05c14bd5-0b43-45c1-a8ff-4498e9bf451b","block_type":"box","text":"deleted from, the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":98,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"278255fb-d4f6-4ae5-aa29-e923f9948393","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six dealer-to-dealer brokers.","page_number":98,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"4986d269-776d-455b-8656-3651ecd01e92","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":98,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"b0ede730-9b84-4cc2-ab33-90eb03cfa225","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":98,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"83b893c3-3e9c-4c12-a282-bec0d197ee28","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":98,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"8f8d7c9e-edc0-4d9a-8e8f-2622b4ab6fb5","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":98,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"3614f439-6b10-4979-a96a-82ebc1a0e197","block_type":"box","text":"contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s ability to hedge","page_number":98,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"d568fa7e-64a5-405e-9d1d-a31e26204ac4","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":98,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"cda6cb78-4bee-4bab-9ce2-18d9ba47d9ad","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":98,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"6f867b80-ffb9-45c7-bac3-f542379a5a4f","block_type":"box","text":"correlate with the price movements of the Municipal Bonds held by the Fund. The correlation may be affected by","page_number":98,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"0696bfc1-70e8-47aa-8df0-f299b6a390f2","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":98,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"eacf21a7-ad74-4b2a-bf66-10e91e4dc216","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":98,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"b31a3489-a7bc-480d-a62f-b6dd6f8025c0","block_type":"box","text":"correlation between movements in the value of the Municipal Bond Index may be subject to change over time as","page_number":98,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"0cb089dc-5cf9-409f-9d88-553020755ffe","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":98,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"a42368f3-06c7-4486-b901-dbbd3f45ebbb","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":98,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"8ac363d8-bcbf-467d-9ceb-b5a2acd04109","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":98,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"a3e3c432-daa8-4f0e-ac09-768befe446e8","block_type":"box","text":"contracts and the prices of Municipal Bonds held by a Municipal Fund may be greater. Municipal Bond Index futures","page_number":98,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"1cc4618e-0b45-4802-9d04-aa3cd1f3ffa4","block_type":"box","text":"contracts were approved for trading in 1985. Trading in such futures contracts may tend to be less liquid than trading","page_number":98,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"32d6f8d5-9930-49fa-bbc1-4299f5240857","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":98,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"2c74ea29-c091-4891-9512-9d51a9164b42","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":98,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"f6392bfd-1390-44f6-a854-7e751136f9a7","block_type":"box","text":"Call Rights.","page_number":98,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"4bec2b9e-8a3a-40d4-837e-3ae7602b8a66","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":98,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"0c95d209-ff91-44dc-9c1d-2e21c77c3746","block_type":"box","text":"for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a","page_number":98,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"022c30df-fa76-481b-a791-93b626e2814c","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":98,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"405cd8d2-5bf8-4d18-bade-812f6062599c","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":98,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"3e25c3b2-7416-4f3c-81c6-40bfe7202f34","block_type":"box","text":"both the Call Right and the related Municipal Bond is identical to holding a Municipal Bond as a non-callable security.","page_number":98,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"28242f61-37c8-4ba8-8b36-7486650e95fd","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":98,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"d005c813-645a-448b-9900-754b9241adc0","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":98,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"9debb637-1b41-41be-9478-01f2a4735028","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":98,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"64336ae2-c5ad-45b4-ad56-bcd955935c04","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as Municipal","page_number":98,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"3ed809a5-c30d-4189-80d9-487931c2f21e","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":98,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"ee798f27-c6a4-43b1-8c2c-0e31553c1e29","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":98,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"55b35bdc-6bcb-4e26-8008-b17a178e873a","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":98,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"79ca336c-5236-4005-b588-c1c7f1719704","block_type":"box","text":"protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund intends","page_number":98,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"d8ee8886-e5ce-441d-95e5-35cde8e95b40","block_type":"box","text":"II-61","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"edf83f1a-2dd3-4e58-b544-2cee0c7e25b4","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3ad48f08-3e46-4a8e-8644-abeb12612b38","block_type":"box","text":"to use these transactions primarily as a hedge rather than as a speculative investment. However, a Fund also may","page_number":99,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"06c5d19d-880b-40db-955f-b9324831c1c1","block_type":"box","text":"invest in MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for example,","page_number":99,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"946b7ecb-ffea-46d5-9976-d9e796cc7d6a","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":99,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"bac5ee95-e905-42fe-b11e-8770f9e54ba1","block_type":"box","text":"i.e.","page_number":99,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"84e4c3e0-1e87-4883-b26d-a1197278aa92","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":99,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"ddb94e4c-d59b-4522-86a8-c0df6ac8a2ce","block_type":"box","text":"rates).","page_number":99,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"7779b81f-3c68-41e1-995a-7ef9a7e90999","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund exchanges with","page_number":99,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"46803166-aaa0-4b90-bcc0-c277867b8c68","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":99,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"b8e66cfb-7e46-4f06-acf3-b65c0774549d","block_type":"box","text":"e.g.","page_number":99,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"4750f100-d6b5-4e86-91ae-7a527324585a","block_type":"box","text":", an exchange of fixed rate payments for","page_number":99,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"32c3778a-f265-4121-8ba6-cdae40b0fa01","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":99,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"befc9961-e11d-4f44-a2c9-239ffd589356","block_type":"box","text":"index, SIFMA Swaps may reduce cross-market risks incurred by a Fund and increase a Fund’s ability to hedge","page_number":99,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"babf25d5-f408-4f0d-ac88-d75163de8e54","block_type":"box","text":"effectively. SIFMA Swaps are typically quoted for the entire yield curve, beginning with a seven day floating rate index","page_number":99,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"7b26eef9-9e93-43cb-82e5-8937250d34d2","block_type":"box","text":"out to 30 years. The duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond","page_number":99,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"0a2dd4b5-47e2-42db-a2c8-a3ab465216d4","block_type":"box","text":"with the same attributes as the swap (","page_number":99,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"63d3ff8b-3ab7-49ba-a8e9-17fb296c7afe","block_type":"box","text":"e.g.","page_number":99,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"65f479f5-e600-4079-b1e0-06d8f1d5e242","block_type":"box","text":", coupon, maturity, call feature).","page_number":99,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"81667a2c-f014-443e-9bbf-4108f3a85675","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap permits a Fund","page_number":99,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"47794594-d124-4d35-b62f-b52e1b4dd5e3","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":99,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"66764273-3b51-43e3-943f-6f9e489ca46d","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":99,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"2d0ebb98-c6a8-4c68-be5f-16eabe353aab","block_type":"box","text":"price of securities to be purchased at a later date. By using an MMD Swap, a Fund can create a synthetic long or","page_number":99,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"eed451f9-5db5-49e6-9bba-6c365d9998a0","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":99,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"28b350f1-ab73-4301-90dd-323cfc60acc0","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":99,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"0f41a6d2-4d3f-46c3-b4ca-d1d80d00003e","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":99,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"528bc17d-7b78-4b07-8998-aec53c2fb5a5","block_type":"box","text":"below a specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and the","page_number":99,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"abd50fe2-cb2c-4030-9b9d-afa54465152c","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":99,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"63621372-ed40-4cda-8480-b42c9eab0dca","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":99,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"c746b084-be3c-4ea6-add9-ee31c4ba5cae","block_type":"box","text":"multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above","page_number":99,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"f5eac97c-68d4-4c6f-a897-14a34192e8f2","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":99,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"04125912-7c7e-4953-b6ac-13d3cb461927","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":99,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"a5185d35-6478-4daf-a691-de0822bc5843","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps, there is a risk that municipal yields will move in the","page_number":99,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"9cae19fe-c996-4dc2-bacb-4898dc7e19d3","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":99,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"9efb06cf-ed70-4939-94bb-f52cde3a6924","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":99,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"f4528854-08ee-444f-9aef-9c654bbb4363","block_type":"box","text":"Insured Municipal Bonds.","page_number":99,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"20ff3b21-5fa0-49a6-a0ac-8d7812df459b","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":99,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"1ee69e9f-0ebf-469a-bd5f-ded7e8561d28","block_type":"box","text":"payments on the bond will be made on time and the principal will be repaid when the bond matures. Either the issuer","page_number":99,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"73be54fa-ffcf-4b79-ba17-b8054c5b1d4d","block_type":"box","text":"of the bond or the Fund purchases the insurance. Insurance is expected to protect the Fund against losses caused by","page_number":99,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"1e76fb0e-4b8f-4328-9e2a-525cdda7f3c7","block_type":"box","text":"a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its","page_number":99,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"e1ceebdb-c143-4f6e-be92-0cc492878db9","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":99,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"595e4d5a-7614-45b2-99ba-60b01867fe2f","block_type":"box","text":"insurance company does not make these payments. In addition, if the Fund purchases the insurance, it may pay the","page_number":99,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"9af66cf9-e9f3-4810-99be-0e589cfcd297","block_type":"box","text":"premiums, which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims paying","page_number":99,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"5e41a74e-6e81-44d0-8414-41493ce69584","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":99,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"88c593a4-29c3-40c0-a56a-e1903c456d6a","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":99,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"1097de3c-f417-4965-8b44-0a894ab8bb38","block_type":"box","text":"insurance or insured bonds. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the","page_number":99,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"c62ca640-5d06-4f9e-bb01-15a4478058da","block_type":"box","text":"bond could drop.","page_number":99,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"9892e724-012f-479f-8dc5-fd2b167709e1","block_type":"box","text":"Build America Bonds.","page_number":99,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"8a04ae1c-b416-4859-9ed5-37341f68490e","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":99,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"ca5c467b-c41b-4c57-8dd5-564f10fe7cbe","block_type":"box","text":"income tax credit; however, the issuer of a Build America Bond may instead elect to receive a cash payment directly","page_number":99,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"7a91a04b-1ec3-4a09-a7f1-ec95aaf89128","block_type":"box","text":"from the federal government in lieu of holders such as the fund receiving a tax credit. The interest on Build America","page_number":99,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"9aa82603-ed0e-419a-b934-6420ce770ecb","block_type":"box","text":"Bonds is taxable for U.S. federal income tax purposes. If the Fund does receive tax credits from Build America Bonds","page_number":99,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"d3799a50-040e-4489-add1-6c4e87b65762","block_type":"box","text":"or other tax credit bonds on one or more specified dates during the fund’s taxable year, and the Fund satisfies the","page_number":99,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"8519e954-cba8-4951-9117-8923db412da6","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":99,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"617a115a-7f31-40aa-9591-2c87ed7f8b41","block_type":"box","text":"shareholders tax credits otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond","page_number":99,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"cc747144-21e7-4a71-8963-168b5fa1b8a0","block_type":"box","text":"is defined in the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":99,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"2bb4897f-0fc0-4627-9228-d28c81258efc","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":99,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"0fdbb413-cdcf-47a7-9e37-50b365485082","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":99,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"ddf16117-5495-489f-8bd3-49f99f3d9b4e","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":99,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"23456f77-8809-4bc7-a6a4-32a6b3d5d57c","block_type":"box","text":"would be required to include in income and would be entitled to claim as a tax credit an amount equal to a","page_number":99,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"1680beeb-5a47-44fd-844f-32e2f4abb33f","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":99,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"a0230b76-2c31-4921-9b5a-43247e99d37e","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":99,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"e509d1ed-1cb9-4a2c-9d56-ec37201a89b8","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":99,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"9cbca29c-7763-4306-bb4c-96c166e981f9","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":99,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"e53f0b44-f625-4903-8a58-4ea49635c5e9","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":99,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"3e252177-7439-4f87-828b-e3dc1b316fb9","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":99,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"7c224b5c-a31b-4c2f-84cf-99e3e709603d","block_type":"box","text":"II-62","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f8d9ddd3-e6d1-4cd4-8d14-10acd2ce3972","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a17de362-6281-48be-a8ab-78e9083e2bf5","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":100,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"72416f7d-7df6-4749-a14a-f8c715eaec4a","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":100,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"5acdd25f-be6f-46c2-9c5f-7e351ac1bac6","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":100,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"bcb1627a-cb80-4d54-9f87-b61b6253835b","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":100,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"0a93148d-0b62-43a1-8ff7-503973f84bb4","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":100,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"0f467fa2-e568-43a1-a64d-1e04ce2099cf","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":100,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"72675cf6-0575-4fcf-88b2-242e5216d787","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":100,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"7f345a72-1241-4915-bf23-19ff84c0170b","block_type":"box","text":"their face value to the sponsor (","page_number":100,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"f36461e3-906d-4993-ab85-915026b39c7a","block_type":"box","text":"e.g.","page_number":100,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"650ce90e-d55e-4a69-9946-3f34d13e4bfe","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":100,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"2ecbb80c-3088-4b77-86c5-e0088e7ddd9d","block_type":"box","text":"periodic fees equal to the difference between the securities’ fixed coupon rate and the rate that would cause the","page_number":100,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"6b11bf57-d14c-4ba7-8ad6-ace4ace2d433","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":100,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"5ce44901-ab3c-4abf-99bb-1ef5dd3d8d8d","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":100,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"cbb16453-d856-467e-9f53-0b775cfa1481","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":100,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"14ac9b9b-99a9-40d3-88da-5142fdabacfd","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":100,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"5017df31-2c4f-484a-adc1-d7ab220a7810","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":100,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"2ba94e44-4bb0-4b72-a5a7-2c0572903070","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":100,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"76afbf96-8225-4a2b-a7b8-941c920d6b59","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":100,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"d21ee5be-1c72-4570-b9ca-7ee87bba1823","block_type":"box","text":"which give the holder the right to receive payment of principal subject to the conditions described above. The IRS has","page_number":100,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"5510d1ce-7c15-4147-9575-739720ba78b3","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":100,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"d05ff301-a174-4401-b912-a705be859795","block_type":"box","text":"or custodial receipts is tax-exempt, and accordingly, purchases of any such interests or receipts are based on the","page_number":100,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"e2f7f2de-b1f6-4a7f-aef9-d58a97ea5518","block_type":"box","text":"opinions of counsel to the sponsors of such derivative securities. Neither a Fund nor its investment adviser or sub","page_number":100,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"153fbc9c-4f2d-4463-b449-d997f379faad","block_type":"box","text":"advisers will review the proceedings related to the creation of any tax-exempt municipal investments or the basis for","page_number":100,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"51bba3ec-e53d-4cbb-84e1-697bd103d19d","block_type":"box","text":"such opinions.","page_number":100,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"aaf0a2f5-3ecc-45f4-b0ce-f35357144526","block_type":"box","text":"Operational and Technology Risks.","page_number":100,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"c0cb2c86-e60b-4c0e-b5d4-18122ca910d7","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":100,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"241b32e7-2c74-48c6-8410-63dafa680439","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":100,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"1ec4cee8-39bd-4df1-ab1e-0e98fdddd84d","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":100,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"7285bfe4-d4c3-42f0-a4c1-17f82f47bff1","block_type":"box","text":"learning (“AI”), which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These","page_number":100,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"3615c04c-eccb-4afe-bc3f-cacc3b6440e9","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":100,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"c19e1225-f7e6-4e89-b121-7deddc8dce1e","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":100,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"6759fb0b-96c4-4a51-acb8-e1e20ee1073e","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":100,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"32d6aeea-e4f2-40a6-8d97-d1c87e251f29","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":100,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"f1b9ac2f-63f1-4c53-8b59-ab598dbf8abb","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such","page_number":100,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"f0b05233-0189-4910-8bdc-2c626be1f609","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":100,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"684ff48f-8c19-4bf2-8ff2-1996b19b3c6a","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":100,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"f2b4ef5a-dbe8-44fc-ab4d-ccbf3b26af97","block_type":"box","text":"Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized","page_number":100,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"fcefe177-285f-4c84-8b18-3e11713516ff","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":100,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"2f6070b6-2cef-4b79-952f-b85f4a9b32e0","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":100,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"204ac2ef-4ebd-4678-8c1a-f709580d054b","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":100,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"85462603-c000-42a4-931f-92acb168bb80","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":100,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"08e6b3f4-f6e3-459b-ab48-614d333f6e07","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":100,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"b1ab99b9-4cbe-4c9a-ad47-9c3e425c78b3","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":100,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"7f7cd489-516c-47fb-9769-394b2525630e","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":100,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"83ad6b30-f2a3-472c-89c9-f63398ffd1f6","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":100,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"c64eeb74-3571-4224-b450-25272a1c61b7","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":100,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"0afed601-4c07-4994-8c2a-52a1b430decc","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":100,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"2b6f1c3f-4768-4860-a0a1-9fbd12fd8c5b","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":100,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"ab01dea2-4edb-43c1-9520-eb30f8686119","block_type":"box","text":"upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these","page_number":100,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"045c0f6e-1e25-435c-9934-ae154feb45fa","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":100,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"8bf86341-79bc-453f-9a39-078de5ccd439","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":100,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"4ead7a45-31e6-4ea6-9fec-a0910b240fd2","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":100,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"0410aa53-8b68-4e39-bc7a-814f685a0168","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":100,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"b3d81c1a-74c5-4dd7-b5a4-47607ad315a1","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":100,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"ca2c3953-ba34-47d3-bbfd-9c2a5caa40be","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":100,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"15fd2501-972d-4d3e-80e2-97cde22d1926","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":100,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"857dab43-40a8-491e-ba02-492948d503c8","block_type":"box","text":"infrastructure assets.","page_number":100,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"7283275b-086d-41c1-91fb-6827c0fb66f5","block_type":"box","text":"II-63","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"38f8cf11-071e-4254-9815-113c2eaceb1c","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b705dd91-2852-4d09-9776-4a72b93730f5","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":101,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"6fba0037-3e36-4be6-981f-2da77707f151","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":101,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"a7a3a8c6-cb06-44dd-8ed5-056ed99ff9fe","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":101,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"15cdf971-f075-42ed-ade2-5cefa6079779","block_type":"box","text":"or services.","page_number":101,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"6cd2723a-c31a-4b9c-9d31-b6d02bb91c1c","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":101,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"7ed35de7-8842-4e14-a80d-ed03a3f21947","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":101,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"9d3255f3-3ad2-4b8a-a815-3f057ce4c0cd","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":101,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"c32db83a-141c-4970-8ce1-a21af733f32d","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large","page_number":101,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"92facf86-e11e-4f9f-8e6f-8a7b0eba125a","block_type":"box","text":"amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all","page_number":101,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"a2ddc183-0266-42a7-bfa7-96550b8617a4","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":101,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"af8502fc-2edb-4840-b52d-a13cf09c7482","block_type":"box","text":"contain a degree of inaccuracy and error, or could otherwise be inadequate or flawed, which would be likely to","page_number":101,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"72807453-a243-498d-add1-ae70fd3fc6e1","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":101,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"5eff126b-d9bf-45a1-b6d9-a8ece0f31e87","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":101,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"ffd1e5be-ea04-4ef0-aa50-106acd04dd6b","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":101,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"0b912a2f-b462-4569-b16b-b63ba0ed7581","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":101,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"8865f8d9-9a1b-4ce7-aa90-657861bdf620","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":101,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"f36ac3f5-d19c-474c-b52c-3006447d6f27","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":101,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"a3241c02-6370-4472-b092-03de9e4e628f","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":101,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"d7723c70-b572-41ac-9827-b84f08512f6f","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":101,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"c7434e4f-e6c7-452e-ba8a-62057dbdb0fa","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":101,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"f1de1e25-dd45-45fa-8bb6-104cfb04de88","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":101,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"f818576c-b683-4028-98f7-1d4c2b047b76","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":101,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"354e4b47-d8a9-4f49-bb9d-7b7ccd265800","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":101,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"df8c2e27-d1cf-4365-a5d1-ac5d7f819a2f","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":101,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"6051404f-282c-453c-9a5d-57a4e87e5f83","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":101,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"d3c7e503-6535-4f3c-901b-b39524326808","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":101,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"0af654b3-aa9b-4c36-a06a-97669a7e93d1","block_type":"box","text":"and it is impossible to predict the future risks that may arise from such developments. The full extent of current or","page_number":101,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"e86c93ca-9cbb-4438-80be-5b9517975f62","block_type":"box","text":"future risks related thereto is not possible to predict, and the Fund may not be able to anticipate, prevent, mitigate,","page_number":101,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"c45d7e1a-9d4a-4413-a6d1-c4f4e49464f7","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":101,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"07b0bf6a-ed5f-44a8-beba-c0cee658626b","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":101,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"90c3227c-cb30-481e-a5b6-e1caa6c60e9a","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":101,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"92f10e8a-2b45-4216-8a63-cd376e232d6d","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":101,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"37a4f2b1-774f-415c-8864-79331fb5f37d","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":101,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"69bd557c-22d2-4c86-8c47-ebc92cc1ed9b","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":101,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"8e84ace9-50a0-4099-8a6a-bcd00094951d","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":101,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"4a3fd46c-6c32-4062-82d9-a8ad89983cb1","block_type":"box","text":"may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":101,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"cb998292-a46d-4bba-bfc6-759ed6ad428d","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":101,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"8eb458d2-4852-412a-aa4f-50f7b2bbe3f5","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":101,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"b5c5acb2-779d-4941-a253-2d8971fa808e","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":101,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"67a1facb-90f6-43d6-804c-05a59b11f195","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":101,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"53915cb0-7143-4892-8864-b68a82f4d3d0","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":101,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"edb1b76b-c89a-47b4-9e82-23854dd0916c","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":101,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"a422de44-99aa-402c-905e-66d97b4a809a","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":101,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"635d7020-824c-4e09-9af9-53bc324f941c","block_type":"box","text":"resources to monitor and implement required changes.","page_number":101,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"1c79d20f-1607-4d51-b3e3-fa0e5658f74b","block_type":"box","text":"Participation Notes.","page_number":101,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"46c74f7a-c039-4717-b207-39f6b5e76c9f","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":101,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"1367ccb4-fbf1-4ea1-94b2-ffa21eec0fab","block_type":"box","text":"Fund to a return measured by the change in value of an identified underlying security or basket of securities","page_number":101,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"75ed91e8-a362-4080-b612-5708e441ad62","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":101,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"083cd26e-e0ff-4ecd-aeea-8c170422870f","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":101,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"7a4ba61e-fc27-4755-80b6-b7c8af9011dc","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":101,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"c06106e7-cf77-4464-b287-37fe0d7607e7","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":101,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"28a24992-ff92-44b7-99d9-0733b8c71749","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":101,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"a9bde46d-11e3-426c-8920-538763bb36ff","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":101,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"ea8ef401-9c73-46b2-8ab4-43eee87da3f5","block_type":"box","text":"security. In other words, shares of the underlying security are not in any way owned by the Fund. However, each","page_number":101,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"c07988c8-3352-406c-96b9-c9209783be2b","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":101,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"e814508f-3e0c-4e4f-8618-b73911aefd9e","block_type":"box","text":"II-64","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"16eb5b20-b57c-4aee-b10b-43447081ce83","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"adc53645-3074-492c-8fd4-c64e420eaad8","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":102,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"c87b39a7-0628-4cd2-ba8d-9f4f8aef4e46","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":102,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"27dc9369-8d42-4ea7-8400-8c4fde0f44d9","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":102,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"d599dacf-46ed-4ad8-a292-589ec1ccd439","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":102,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"485cd058-edcf-417b-ba2d-50a1277ee605","block_type":"box","text":"obligation. A Fund may, but is not required to, purchase credit protection against the default of the issuer. When the","page_number":102,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"6fe46033-8fa6-4f53-b110-93b5871388a0","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":102,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"a8d995dc-2d29-4e77-8a33-5ccfd5b67c20","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":102,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"0915d18e-9388-47cb-9f17-bfaf1ffd1eb4","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":102,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"8d995ff6-d6cb-4401-bc31-e1a4adb2a19e","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":102,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"be9ac73f-8275-47e0-b89a-254307a71787","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":102,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"34a8703a-e953-41be-94c1-487092ce27f7","block_type":"box","text":"Portfolio Turnover Rates.","page_number":102,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"48a42db5-f0c5-4fc5-8f47-cd782d46cb79","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":102,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"39c4d673-168b-4ea9-9664-36f0209b37fc","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":102,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"eb4e7969-5055-4f9d-8b56-b89eed5cf247","block_type":"box","text":"Funds will use an approach to investing that is largely a passive, indexing approach, such Funds may engage in a","page_number":102,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"b0bef3fb-c8a1-48ac-8fa5-36ac8763df78","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":102,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"d13a4297-01f6-4cf6-bca1-cfbc40f75e13","block_type":"box","text":"limiting factor when the Manager considers whether to purchase or sell securities for a Fund only to the extent that","page_number":102,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"11f46891-58b3-40f6-987e-2d11634c3e25","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":102,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"5cdfe85a-c784-4001-af4f-c31c91c5e40d","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":102,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"8b660cd5-75db-4f3d-bbb9-a6fc84ef66dd","block_type":"box","text":"i.e.","page_number":102,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"9a1ac464-6cd4-4e1e-9678-437b63792f26","block_type":"box","text":", 100% or more) may result in","page_number":102,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"519e9023-8547-4eb7-9344-9cac747c0db8","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":102,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"d5555422-0ccf-44fd-87b8-b532025eed06","block_type":"box","text":"costs on the sale of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in","page_number":102,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"f9fa6264-8d74-4d00-826f-f9875ad1a85c","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":102,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"6706fe5d-2fb3-407a-aa66-ed7bcf3c106a","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":102,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"8bf5aeb4-ab30-4f2e-bf95-9a1269a792f3","block_type":"box","text":"Preferred Stock.","page_number":102,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"d4641649-872d-4bf1-bd0d-c2aeb23b3ff1","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":102,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"ba2d634d-1ec2-472c-8911-410400a68ca3","block_type":"box","text":"stock in liquidation (and generally dividends as well) but is subordinated to bond holders and other creditors in all","page_number":102,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"692bb0a3-01c5-4d0d-a7bf-9415ee2154ed","block_type":"box","text":"respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element","page_number":102,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"cdf64ae2-1a70-4c1d-97cf-ded7b21dfeb1","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":102,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"68cf8f54-69d8-4c07-9507-7efbcad4abce","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":102,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"bb50bbc7-271c-4e87-a0e7-c8b800b1aa3e","block_type":"box","text":"other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value","page_number":102,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"5590dcd0-c98f-46e8-8dff-868b26ff7437","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":102,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"d60a8999-c0c9-43c0-9c45-b48f29b1753e","block_type":"box","text":"payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors.","page_number":102,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"dc980ad1-02e0-47c6-bf71-7dbe4653e44d","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":102,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"75025470-931b-4d0c-a71e-e1291246b48e","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":102,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"709b28c3-e05c-4a85-9945-4dc1abf1c77e","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":102,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"d442c77a-32b7-410d-8ed5-b033358d84c8","block_type":"box","text":"dividends that are exempt from regular U.S. federal income tax. Such funds in turn invest in municipal bonds and","page_number":102,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"ee9c5656-45b2-4d3d-afcd-67d36dd97076","block_type":"box","text":"other assets that pay interest or make distributions that are exempt from regular U.S. federal income tax, such as","page_number":102,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"04021f0e-8b37-4cf2-807f-84d6bc32d1ae","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":102,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"6ac4eb4a-6476-48f3-bfa9-3facee0f4786","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":102,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"b6fed6af-81c0-490f-83f1-01fbccf4d63a","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":102,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"e6fff5e9-c90f-4691-9bb1-851bab1bb0d5","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":102,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"b26b3e14-c0de-45fa-92df-887932f8d9fe","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":102,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"8721664c-f93e-4ea4-8974-3d974dea9629","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":102,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"753afa2a-6030-4a42-8788-e2dfc774587b","block_type":"box","text":"Trust Preferred Securities.","page_number":102,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"36c7ae78-0925-42a9-874a-0accd507a861","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":102,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"faf1b811-3342-4e2a-8329-d50bb9b716a5","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":102,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"f82c02bf-5c24-4e84-b62a-b68419e503bb","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":102,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"92d04064-2562-4991-8d3d-6417cdcc35e0","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":102,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"2610b7f3-7762-43d5-b041-d1e41d0e1870","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":102,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"504df1f2-6e00-4bd6-8c05-9e7da4a3cb6d","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":102,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"471172c3-a06a-421d-9f16-0c04c22fc8d8","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":102,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"fb626f83-ce6e-4f09-aca7-70473d9b13d0","block_type":"box","text":"securities typically permit an issuer to defer the payment of income for five years or more without triggering an event","page_number":102,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"4b957e03-3be4-4e65-be2e-d2fd984ea50e","block_type":"box","text":"of default. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments","page_number":102,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"ad9fa90e-df44-434e-b950-6d652702d515","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":102,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"192cdd36-35e9-4f49-b7c7-2d82139786db","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":102,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"7f71d0e2-d094-42dc-b74c-328171c04891","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":102,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"824420f9-5819-488b-9036-d5f7a0230a40","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":102,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"a9363644-af69-4790-a881-1a3b087314ad","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":102,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"8df868e1-916f-4ddd-abf0-bdc037ce6aa3","block_type":"box","text":"®","page_number":102,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"eed90280-a4cb-42e9-baa5-9348c87696bf","block_type":"box","text":"”); monthly","page_number":102,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"b40bb1e2-298f-4e79-89cf-60e4a67a067e","block_type":"box","text":"income preferred securities (“MIPS","page_number":102,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"07aafa3f-c40c-49aa-9307-8d914ff34317","block_type":"box","text":"®","page_number":102,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"2374eba5-d009-4445-bf33-83da5b752fb3","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":102,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"999dad42-86f7-436e-afee-5fc7971afb9d","block_type":"box","text":"®","page_number":102,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"dc6c285d-7f30-4d2d-aaf0-6c80cd9e5980","block_type":"box","text":"” ); quar terly income debt securities","page_number":102,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"284eb92f-9527-4ade-ae8a-cb987eed49fe","block_type":"box","text":"II-65","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"02640ea5-455a-4f53-b212-a5267e96606f","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e5702ce2-15b2-41c9-a732-37a57050a3f2","block_type":"box","text":"(“QUIDS","page_number":103,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"744f3161-cfa4-4a34-8c7e-3c584ad0c327","block_type":"box","text":"®","page_number":103,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"e4e567fa-be7f-4756-b379-db40262945a7","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":103,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"8296924c-bfad-4e23-af19-c3b0c771e002","block_type":"box","text":"SM","page_number":103,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"58c1b0e9-bf84-45e5-9de5-a346925e2d1d","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":103,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"f7d91614-708a-4991-9767-ec98988b6568","block_type":"box","text":"®","page_number":103,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"8dbd3cd8-f063-4245-92a9-a1deb74525ff","block_type":"box","text":"”); public income","page_number":103,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"5033707d-b081-46f7-b0f8-313f93e7ab5b","block_type":"box","text":"notes (“PINES","page_number":103,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"e2fe4947-4ad0-4517-b212-6dfbd0e7d926","block_type":"box","text":"®","page_number":103,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"4c2cab7e-d292-438b-9ee9-49382be8ee47","block_type":"box","text":"”); and other trust preferred securities.","page_number":103,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"590e3afe-31c3-430c-a373-1e5983a6d285","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":103,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"bd4bda42-88ad-4a22-90f0-6789e271547f","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":103,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"def951c9-99a3-44b3-b34b-58992b939cbc","block_type":"box","text":"the issuer’s option for a specified time without default. No redemption can typically take place unless all cumulative","page_number":103,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"f5861d4d-5c34-4717-9473-56baa65dad77","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":103,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"32a5844e-a56e-4d2c-ac6e-ad74a7eb5d7e","block_type":"box","text":"regard to whether all payments have been paid.","page_number":103,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"5a307e77-e95f-40cd-804a-292971b3017f","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":103,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"28dba4a3-babb-4926-bae5-6a292c2b9833","block_type":"box","text":"companies and are not a direct obligation of an operating company. At the time the trust or special purpose entity","page_number":103,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"07b42456-174b-4f6a-8d62-9a7daef76fca","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":103,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"915a672d-576c-4412-8ba7-13ba255eeb03","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":103,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"19b032ef-46d4-4e19-acb0-eb35e2f624d6","block_type":"box","text":"purposes the interest paid on the debt held by the trust or special purpose entity. The trust or special purpose entity","page_number":103,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"90952a9f-c901-4237-bf41-9a73a1e5693a","block_type":"box","text":"is generally required to be treated as transparent for U.S. federal income tax purposes such that the holders of the","page_number":103,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"6b899b1f-d94b-4504-ab87-ea914cae56d7","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":103,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"7b416a29-27c1-441c-8869-9190b2ba24a4","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":103,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"1b544109-7863-4dd8-b135-4c0ed6cb812b","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating company’s debt","page_number":103,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"485d3291-cf6f-4e04-bbfa-8c8dbd74954c","block_type":"box","text":"and would have priority with respect to the operating company’s earnings and profits over the operating company’s","page_number":103,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"c61bf258-6727-4ffd-a699-15ccf6d540fa","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":103,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"d65e0bca-36c7-4dff-8b12-43087e3c1126","block_type":"box","text":"Typically a preferred share has a rating that is slightly below that of its corresponding operating company’s senior","page_number":103,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"973f9dec-3385-4273-9991-31e5f174ce39","block_type":"box","text":"debt securities.","page_number":103,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"0a8c13ea-9ed6-4c8c-82c9-9a10034d4960","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":103,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"58e05879-49c9-475b-997c-07086b305911","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":103,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"32fb2144-61dd-4dfa-a047-94e031f66d0d","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":103,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"cb58b789-c657-4d5c-92d4-b021b7204bf0","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":103,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"7467d3d2-37b8-447d-8636-427016e506c6","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":103,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"b2c1a2a2-88a0-4def-a2a9-4fce489bc6e1","block_type":"box","text":"i.e.","page_number":103,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"c03fbb32-6ab5-46d8-9a58-b1aa384fe436","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":103,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"abce9e16-dc7d-42f5-8468-9a460ef90298","block_type":"box","text":"buildings.","page_number":103,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"2a7e2f31-3a60-40e6-897d-d1604b8428bf","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its","page_number":103,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"41cfa9b4-c719-40cb-bd5a-43499a8bbcfc","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":103,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"a692e187-fba0-46d8-95b2-19cc05cd21e5","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":103,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"61936d79-9ae8-4a6e-b496-6cd04e07f29d","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":103,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"03665aed-c031-4f5b-b894-6f4b3306bb53","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":103,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"7cfa8851-3c19-45f1-83b9-e6fda263c1b7","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":103,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"931290d3-b0dd-422c-ad46-0ad5f5464e83","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":103,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"952dceb5-1c6b-4114-bf02-add4f58315b9","block_type":"box","text":"estate industry in general. The market value of REIT shares and the ability of the REITs to distribute income may be","page_number":103,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"a71592e8-30f8-4a09-830a-fa5e4ccab440","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":103,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"a679ed26-7bdc-4f2c-963c-288276517f1e","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":103,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"ba992317-9596-4238-932b-3d807c48d6e7","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":103,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"b93db211-b8d4-4641-bd7b-c893d82099f0","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":103,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"221f66a1-8a3b-4051-8855-7e6adb425b62","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":103,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"e16dc8c7-0940-410b-a94b-f40009cbdaa0","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":103,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"fc9ccbb0-1c61-4643-a353-d32d9aa713a6","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":103,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"fc8906ca-d416-4d04-839e-722c68c6b720","block_type":"box","text":"zoning laws and other factors beyond the control of the issuers of the REITs. To the extent that assets underlying a","page_number":103,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"c6b9c810-5497-43d7-bf48-3a361783b136","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":103,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"8a77ec15-8d53-4cf5-a4a9-fa63947cecb0","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or return of","page_number":103,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"6d492a76-1f17-4f45-b926-80169f9179cc","block_type":"box","text":"capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent","page_number":103,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"3ab92f52-b541-44f7-bb78-11f8d4b1b47c","block_type":"box","text":"application of the Fund’s investment strategy results in the Fund investing in REIT shares, the percentage of the","page_number":103,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"cb77d361-f357-47ce-af44-fdf9893605c6","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":103,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"89ffa9aa-005d-414b-8d3f-5c32af4726b9","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":103,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"b83b14a9-0996-41b0-a858-5e9b6bcfff47","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":103,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"53c737bf-5f6e-4e78-874d-3c97f26a7126","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":103,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"2befa52b-a9fc-46f1-b0c6-35db57bdde00","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":103,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"0a56b2e7-4cba-4b6c-a7e8-4e088298bba2","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":103,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"7d415e93-3e66-4da0-8a8f-b2eff21987ed","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":103,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"f372ee0f-5ddd-4a53-aa43-1505cab74daa","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":103,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"c1fef660-0f60-4611-88f1-45b2e627751c","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":103,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"8a8d393f-8147-40ff-85c4-d260e9d27230","block_type":"box","text":"investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity","page_number":103,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"8b89ce73-2ffb-4a0c-b06a-cab70d4dbaaf","block_type":"box","text":"II-66","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9f721b54-11ee-4e81-a596-2dfd2b0df5a2","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bca35731-b8b3-4ad5-a659-2b59af045907","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":104,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"b416bc4f-c6b9-4375-b7e5-c5302791a89e","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":104,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"0ef15f1d-c2da-4f1f-ad68-74a772253aae","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":104,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"15ab76eb-ad33-4f0d-8c3b-bf84cc7c6c92","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":104,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"b7b53bdf-c983-478f-9ec9-1c05be2396a9","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":104,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"9afab2d1-0412-429f-a454-22cc4b4860ca","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":104,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"0cea9fb5-33f6-41eb-82a3-4a284f981a5c","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":104,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"6081a790-b669-44a8-a1d8-0a0cfa26b70c","block_type":"box","text":"trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger","page_number":104,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"cda8c99f-c1d9-45d9-ab11-1b12b9c7ec45","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":104,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"bf9e15ad-64e4-4d5a-a936-1434ff60e32d","block_type":"box","text":"larger capitalization stocks such as those included in the S&P 500 Index. The management of a REIT may be subject","page_number":104,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"295037a5-41e1-4e6c-adc4-b8ba38f3a735","block_type":"box","text":"to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate","page_number":104,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"dc56e3b7-29b8-4589-9f49-0f410db0b63c","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":104,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"8bbfc2ec-3cce-4f7a-b8cc-cfacd7bc841f","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":104,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"0e46f597-351a-454b-90bc-41d4d3d1ffb3","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":104,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"810ac7b3-9f66-41f6-9537-822ff3e3c082","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":104,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"eabfe82a-6dc0-4d30-8c74-91373f739639","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":104,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"5e546370-44e6-4763-8f32-441343d5be9b","block_type":"box","text":"general market conditions, economic trends or events that are not specifically related to a company or to factors that","page_number":104,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"73c5fff5-6dd1-4c20-aad8-497996e6fdeb","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":104,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"43613689-0630-4f1b-9fdc-04a91da153d5","block_type":"box","text":"group of countries, region, market, industry, group of industries, sector or asset class. The success of a Fund’s","page_number":104,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"40059a61-3658-4335-8492-2555852645d1","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":104,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"ba8254f2-445b-4256-b6dd-a114f1360e0d","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":104,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"e89350be-cf81-420e-a804-a7e052a6b09b","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":104,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"680bfa64-e40d-4d61-9d14-c5b2f5f29ce7","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments. During a general","page_number":104,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"2d0e03b1-6488-4689-8ee9-d73116fe5085","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":104,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"45ecd22b-1a39-4846-a63b-7db69d22f0e0","block_type":"box","text":"affect the level and volatility of securities prices and the liquidity of a Fund’s investments, which could impair the","page_number":104,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"ec157db6-cc1f-4649-bd36-79382d06c496","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":104,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"8afbd73e-209a-4894-8f47-a5c101555bb2","block_type":"box","text":"affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.","page_number":104,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"b7c29903-0c20-4085-a81e-8da049e596c5","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":104,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"105736bb-0f54-4a46-bd10-086748579707","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":104,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"6fb90548-6e3d-474f-98cc-e2441402fc07","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions and there can","page_number":104,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"5456ae55-9783-4807-8cf2-9f9d0faaac10","block_type":"box","text":"be no assurance that a Fund will not suffer material adverse effects from broad and rapid changes in market","page_number":104,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"6ab16556-62f2-4ef0-b67e-200b96599985","block_type":"box","text":"conditions.","page_number":104,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"73864ffc-63a3-421e-ba70-9e136c655127","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":104,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"8d62c5a4-ffad-4a71-841e-f9fc8c4cbebe","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":104,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"8562a4f9-0023-46ff-8bf5-caa4752eacd2","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":104,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"f4c204c4-b26e-4cae-b818-44e71b7c6546","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":104,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"248883be-841c-40e8-acc5-09d5ec3137c9","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":104,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"143c965c-9761-4dc2-a69a-596f9335735c","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":104,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"e6a06d69-4980-4087-b686-d44db7ddecb6","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":104,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"06a6e492-efe2-499a-88ed-7d0b777410e6","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":104,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"aa0204b0-9f5e-46cc-8d6b-2c98c632ceca","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":104,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"fc50d2b0-753e-40af-ba8c-501281a78b79","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":104,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"12ddfddf-86ef-4ef0-9315-ca9ee32faab9","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":104,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"b272110f-795a-4670-a2b5-091f38d01ed9","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":104,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"31e1c510-55db-42d2-98e2-e4ebbff44365","block_type":"box","text":"affected by such events.","page_number":104,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"38e2a8ef-f485-4810-8c35-4b24018c3a24","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":104,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"8e3b8ec8-c3d8-4070-ad56-544009c87f2d","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":104,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"86eaf363-6092-4da4-b90c-ca0a85cbdde2","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":104,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"328aaacf-4e69-4f8c-9c74-6b0049201b89","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":104,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"af5df6d3-c0f6-461a-87e1-3a2a7dd7d311","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":104,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"d7e0a59c-0251-4fd6-83cc-6670dc184959","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":104,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"4cb57bca-619c-48fb-a633-cc0e58748692","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":104,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"67cf95b9-56d8-42f3-84b3-be40ffab64b7","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":104,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"4b332d9f-06b8-4cd7-92d8-f8c51f36e24a","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":104,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"bbe10dfa-df2a-4579-ba15-07ec0f364ae8","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":104,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"e3b66342-8170-453b-8a68-9f33b246200c","block_type":"box","text":"branches of the U.S. Government, the U.S. Government’s inability at times to agree on a long-term budget and deficit","page_number":104,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"15f81397-cfbd-4e4c-addb-79065fe663e7","block_type":"box","text":"reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the","page_number":104,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"5a3782ab-2ab3-4428-8079-d8c100dec086","block_type":"box","text":"II-67","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"05304a00-165c-4d1c-bc3b-b7132a748434","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fe7234d5-1ddc-490a-bfbd-78c11501a527","block_type":"box","text":"U.S. Government’s borrowing limit (or “debt ceiling”), as well as political and diplomatic events abroad, may affect","page_number":105,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"2e43df87-b60a-4122-8f39-f17cd73a9f5c","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":105,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"ec04b1f5-dded-4438-9c06-39d4cfa40997","block_type":"box","text":"suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns","page_number":105,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"3e30b0c5-3b88-429a-a80b-755153e16d23","block_type":"box","text":"about the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and global","page_number":105,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"dbfc0814-09b5-4d23-b370-8384a0adc596","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":105,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"4f124fe0-8a4d-4035-8be4-f4f9379a2bee","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":105,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"7f5cfe45-2506-4ed3-a0b0-7b920755b302","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":105,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"2b822357-0ca2-4bb7-828c-d67333785d40","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":105,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"eeaeefa8-e8de-403e-bbb8-143959b869b7","block_type":"box","text":"unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":105,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"e7138239-5d5b-4bd3-9ba5-839e5b376ed2","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund’s","page_number":105,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"928741be-4955-49c1-95f3-1e6692d27a53","block_type":"box","text":"investments.","page_number":105,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"3daaa6f3-dc79-4da4-80b7-af05bb8aa474","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":105,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"2bdfdbf9-e113-4cbb-9950-3bdec602d446","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":105,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"64096cff-e0b8-4b67-be73-0bcd399301fa","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":105,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"68675e2a-a916-468d-8eca-aadfb6c26959","block_type":"box","text":"in the future, could affect the economies of many nations, individual companies and the market in general in ways","page_number":105,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"d66473ed-9843-4111-9403-32b36a98132f","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":105,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"4815152f-e637-46b2-b91a-4fd3473e343f","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":105,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"a621aafb-d3e6-4800-94cd-f553f5f0ae1c","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":105,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"20d3eb3f-a922-4e59-9cc3-25bb3750c68b","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":105,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"d761806b-d297-40e0-abcd-5523292ce9df","block_type":"box","text":"Legal and Regulatory Risks.","page_number":105,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"abbc37c4-88a3-4f68-93d6-57264ad91b0a","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":105,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"c163b9b0-d277-4fe9-9b80-082e19d26b7e","block_type":"box","text":"jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some of which are new and","page_number":105,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"f7a8193c-7506-4154-8adf-f5126a243c5c","block_type":"box","text":"evolving. As a result, the Funds and the Manager and its affiliates are subject to extensive and sophisticated legal,","page_number":105,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"79126d5f-9ba0-45d8-8951-36b0f0c5376a","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":105,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"84cb43ea-621b-4309-88c7-6625a852b4ad","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":105,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"76c9695a-ba3a-4ae7-a84a-cf7a501a9339","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":105,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"9b512ed8-08ed-4e57-8c36-1097701f18bf","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":105,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"28e71674-1442-4e6b-a936-2eb369d1a932","block_type":"box","text":"changes to comply with current and/or new regulations applicable to the Funds and/or the Manager could have a","page_number":105,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"9813055c-b5be-465a-b19e-55e2a5950db5","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":105,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"fe8cbc86-0e60-4ece-a912-0070feadaa4f","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":105,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"2c0236e4-5ca6-40c2-ab80-cba79ec5df2b","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":105,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"c17ea8f4-751c-4f7e-a81d-e2696e712522","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":105,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"b3e7c932-fe5f-4abb-a7a8-90a6d9393e3b","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":105,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"8ba534ea-ef67-432b-94cf-0e845b867396","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":105,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"3a68bc97-660b-44ef-9969-7994619a8d93","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":105,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"cc22713b-a618-4673-b6f0-723bc120b09d","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":105,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"2488ad91-af97-4d21-9b77-1c66f1c004ed","block_type":"box","text":"Union, and the risks associated with trade negotiations between the U.S. and China, could affect the economies of","page_number":105,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"db4c3df2-c5be-4474-abf3-f924a65ac819","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":105,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"0a8f8862-6986-4341-bb48-3d305281236f","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":105,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"bdeb258a-a798-455d-a0c6-c8910e228cce","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":105,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"315dd557-e4ec-4700-a6e4-ffd31aa8a8e2","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":105,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"6b2ea13e-39ef-4726-b968-1e48edb6e3b8","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":105,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"3b9cb078-580d-4647-b374-a1c7b77a49e2","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":105,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"c10286db-62a3-4588-96c1-3802947f8f60","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":105,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"221e9d76-9bcd-4de9-bc04-dc6a33f959ff","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":105,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"d518e37e-6879-4b6b-a7fa-d5fe5368a4e8","block_type":"box","text":"Geographic Risks","page_number":105,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"6d117f9f-aeac-4a22-bb39-4a4ca99d0790","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":105,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"30239472-470a-4588-bff8-b53d955ad8ae","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":105,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"24743475-9dcb-4f05-94e0-56c6dd87fa0c","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":105,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"ac4de847-7e91-4820-acce-117ec2d4c3e2","block_type":"box","text":"addition, issuers may be impacted by security concerns with respect to a country or region, such as war and other","page_number":105,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e10f1460-02b9-4362-82d9-2737ec718e4e","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":105,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"c30c85bb-86d5-4cfd-90d5-33115c94579d","block_type":"box","text":"affect the issuers, markets and economies to which a Fund is exposed, which may adversely affect the value of the","page_number":105,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"ce9ab55c-793f-40d1-8561-f1938cfa7a0f","block_type":"box","text":"Fund.","page_number":105,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"6e3717d4-9e5c-4fd3-b846-5e0312591da4","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":105,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"adb19abe-a3fd-409c-88f4-845a06d33a9f","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":105,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"15a1c637-8c00-47ee-bdc0-535e345c834f","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":105,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"4fbd1195-0565-46d9-be73-e9c4f3dba2c5","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":105,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"d8089b80-994a-4174-8e59-92c392cb73f6","block_type":"box","text":"or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse","page_number":105,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"b5944416-f5e9-42ab-87ac-91bea7dc657a","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":105,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"d3450c50-107c-4eb4-92aa-115c37c5b9c1","block_type":"box","text":"II-68","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d87d25b9-451f-4c08-b2fd-4544489e33d4","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d5149b91-f152-44a6-8470-821f3eea03c3","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":106,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"47008a53-7895-40ab-bfa5-445b03eaf30d","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":106,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"3ed3ab80-62ce-48d5-9035-554a7b426cc0","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":106,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"9e44625c-2335-4d13-a984-fd2875cefcba","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":106,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"3736ee06-93ff-4553-b09d-104b6f8e0bc3","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":106,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"8949e016-db00-4d2e-8d31-e0e03486b944","block_type":"box","text":"derivatives. Instruments in which a Fund may have historically paid interest at floating rates based on LIBOR or may","page_number":106,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"be0732cd-50a4-47d8-a7bd-d887966cc5e0","block_type":"box","text":"have been subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a Fund","page_number":106,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"30e9e1aa-6df1-4098-a49c-56467e45db9a","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":106,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"a7c4d508-aa78-4a81-a3d7-ffd67e4cadb6","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":106,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"87ed7de4-c77c-4d39-9019-d1530283144d","block_type":"box","text":"last published on a representative basis at the end of June 2023. Alternative Reference Rates to LIBOR have been","page_number":106,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"26e62d42-72d9-43ff-b144-f0f7b7dc64ba","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":106,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"23178ca5-8dd5-4361-92b4-cc5580290e98","block_type":"box","text":"e.g.","page_number":106,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"569610e5-b399-4b20-9557-6443d4ec21c1","block_type":"box","text":", SOFR for","page_number":106,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"70bdd818-932a-491e-80f4-8038047111d6","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":106,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"3bf3075e-ab84-41fb-8328-d237548210df","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":106,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"ad6e0008-e045-4b11-8177-4b98291fc6f9","block_type":"box","text":"impact of the transition on the Funds or the financial instruments in which the Funds invest cannot yet be fully","page_number":106,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"91f18527-8ffd-4e78-8638-0c6f260a5aff","block_type":"box","text":"determined.","page_number":106,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"e51abd6b-890d-4cfa-986b-0c1d224064ce","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are","page_number":106,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"39a74f58-7935-4e2a-a9cb-e44db95b53a4","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":106,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"2c1ae448-26d8-4aaf-9852-b2309887cd1b","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":106,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"a1c38273-6169-45ff-bf57-61fb4c7ac5e8","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":106,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"e22f9b1c-ec14-491b-99f7-d768951ce0f8","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":106,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"c59fc457-b712-4a6f-b6e5-cb530354b02d","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":106,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"78ceb810-5d71-42ed-96e4-1233fa85bfc3","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":106,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"b61eec1b-8e7b-459e-92f3-c94bb05bf573","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":106,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"8058b8ef-218a-41b3-aa7a-0c2b62129c97","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":106,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"b2acf78b-bc86-4e42-92f6-5f07b8843bd1","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":106,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"25c65fd2-fa35-4b72-86d5-3d8897d83847","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":106,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"d55cf1d4-a164-48c2-a488-cc5179fce960","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":106,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"e8cf9a9e-0590-4e38-80ec-0e0ce4a2fc50","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":106,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"6e1c1525-113b-40f7-9edd-6150b1768268","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":106,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"dd22a95d-1647-4b6a-8724-2d584d2dca04","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":106,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"a77c82a0-24cb-4047-b9d8-b591e3fa70b1","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":106,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"97e47033-0e2c-45c0-bf5e-0cece63d5fdf","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":106,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"5094fec0-8909-4bbf-ad76-53a1b832636f","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":106,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"6762f7d4-3797-49d9-8814-f783955ed79f","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":106,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"4b8f2e61-1913-4a14-95c9-5a7295b020b8","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":106,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"91b97dfd-52e8-4211-868f-657fe85d3a7a","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":106,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"a5970d72-b74f-4a9a-b3a3-97f8ca93d925","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":106,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"f693194a-d65d-423b-92a3-1053c9c35711","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":106,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"5187c76e-5e76-49b9-8bed-f9a1808ec15a","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":106,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"249f497b-b5d4-4d64-a1fe-93cb4e10af31","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":106,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"578c83ba-1bea-42b8-8863-2ecbb312d5d2","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":106,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"e8355a50-48e7-4e8b-97ac-1b4cb522216a","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":106,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"506c1942-3e3f-4afb-af71-b6ec5bf3a739","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":106,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"eef8b4ff-d209-41c3-9a6c-977e56fc2b13","block_type":"box","text":"consequences which cannot be predicted.","page_number":106,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"1f8d5875-f3da-4db7-850e-02fa1f795b9d","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":106,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"1c361645-664c-4ac9-ace9-acebb041980a","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":106,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"ef71ac34-e9ba-4673-9f7f-1078a1ee521f","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":106,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"ec95d16b-41fb-44e1-9f8a-043c58176b20","block_type":"box","text":"the Fund at a mutually agreed-upon time and price in a specified currency, thereby determining the yield during the","page_number":106,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"8ade7fe0-c040-4c00-90b5-bf8806fc9ce6","block_type":"box","text":"term of the agreement.","page_number":106,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"1238e7b2-be35-4286-8e51-a26b9aa1083f","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":106,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"3da0fa7a-142c-45e5-9967-21f667cabe30","block_type":"box","text":"that securities are owned by the Fund and the purchaser receives any interest on the security paid during the period.","page_number":106,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"d527ae55-1d5e-4485-8639-164123f1366a","block_type":"box","text":"In the case of repurchase agreements, the prices at which the trades are conducted do not reflect accrued interest","page_number":106,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"1364d239-bf5a-49e6-9306-037d769192b8","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":106,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"4af9330a-17ae-433c-a6a1-90c8954bc60e","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":106,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"ec424f4b-c64b-4687-ab90-f11d4c9ade3e","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":106,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"1d12f2f4-9cb7-4381-8c45-39f67b90ebda","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":106,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"338debf1-dcbf-4d32-b9df-23df5c57e06a","block_type":"box","text":"II-69","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"27fd8373-92b9-419a-9a10-9a539b4438d4","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fe4e89c7-b592-427d-b05d-ae44ae0c483a","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":107,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"373fcdd8-58c1-4346-b9e4-489efe8427c7","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":107,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"41d709d8-33c4-4b00-838f-31f9d9878c29","block_type":"box","text":"currency fluctuations. However, in the event of a default under a repurchase agreement or under a purchase and sale","page_number":107,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"1e05351d-9894-41ce-961b-8065873c8626","block_type":"box","text":"contract, instead of the contractual fixed rate, the rate of return to the Fund would be dependent upon intervening","page_number":107,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"a83aa762-6cf0-493c-a103-8b969266be4a","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":107,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"fa4d2c24-01dd-43f1-8c78-ed3fe4bb430b","block_type":"box","text":"securities. In such event, the Fund would have rights against the seller for breach of contract with respect to any","page_number":107,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"245548cf-e247-4740-ac2e-256585c6af75","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":107,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"3bcc169d-fff5-4b48-95ec-0129780c4869","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":107,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"2f8fb98e-78b6-4098-a93d-d941b2eaf104","block_type":"box","text":"longer terms, and may be construed to be collateralized loans by the purchaser to the seller secured by the","page_number":107,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"487c1d42-508f-4d8d-b996-f9a8e8f7d5c1","block_type":"box","text":"securities transferred to the purchaser. In the case of a repurchase agreement, as a purchaser, a Fund’s Manager or","page_number":107,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"8917bbc3-418a-4da9-b003-1727d9c1d00e","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":107,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"09afbe08-603a-4d6e-a63e-d65b0f41c4ad","block_type":"box","text":"collateral if the market value of the securities falls below the repurchase price at any time during the term of the","page_number":107,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"fddf1278-311b-4414-be40-77bece831eb8","block_type":"box","text":"repurchase agreement. The Fund does not have this right to seek additional collateral as a purchaser in the case of","page_number":107,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"641cb0b3-d5e3-4065-9b22-1d1d21f291c9","block_type":"box","text":"purchase and sale contracts. The Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities.","page_number":107,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"191b199e-53e4-403d-ac45-48ae817c6f30","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":107,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"7c267781-e0bb-4083-9395-e12b2cd59497","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry system","page_number":107,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"82d1d549-d354-4cc0-862b-1dd586cb132d","block_type":"box","text":"or by another authorized securities depository.","page_number":107,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"80fd8352-e114-4122-9fa6-5f53234eb9ae","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the","page_number":107,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"8623debb-2a99-4dc4-bf06-ec74f63c4f71","block_type":"box","text":"underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the","page_number":107,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"bc8f4ca5-3164-4303-a7f0-ed38e75aca74","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":107,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"41bc3bfc-75c2-4fd2-b548-e0312021dce5","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":107,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"042ff472-5d80-4929-ad18-27a1855957c6","block_type":"box","text":"applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying securities may be restricted. Finally,","page_number":107,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"791c051b-ca03-44e0-8cd1-1fc3e412b165","block_type":"box","text":"it is possible that a Fund may not be able to substantiate its interest in the underlying securities. To minimize this","page_number":107,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"ceecd7b4-0c02-41e4-946c-08b94f00076c","block_type":"box","text":"risk, the securities underlying the repurchase agreement will be held by the applicable custodian at all times in an","page_number":107,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"081f4cc3-b670-415f-bdff-fc4767553699","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":107,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"fcc59c82-25e9-439d-a6c6-263ca7d1e529","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities are less than","page_number":107,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"7c42f41e-dfce-43df-9ebe-477efc17fc17","block_type":"box","text":"the repurchase price.","page_number":107,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"d271b0c3-6d38-4730-88ab-f0b110ce6347","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":107,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"e02f0269-056f-4cb6-aa45-8965a61f2f6f","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":107,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"8c3e4c8b-4cb4-4347-a2d5-f1d74dca840f","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":107,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"01a2f6f7-fadf-45d5-86f5-1a61259687b8","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":107,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"c937601e-c008-47f7-8fe2-465d321c1eb0","block_type":"box","text":"strategies without the repurchase obligation.","page_number":107,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"a44d92af-c761-41fb-bfea-9f0a66152f47","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":107,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"ae682c46-c3ed-49b2-8064-81ed46d2fc8c","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":107,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"c9ac1a6b-e74b-4510-84a4-0adabe248035","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":107,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"4f3f45c8-6eb7-4c8c-8f79-8b755ae2b6bd","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":107,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"b3a37b7e-5353-4ca7-80a9-f7074c680278","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":107,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"aed042c8-5d3a-446d-a925-5e121ad47590","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":107,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"adac2061-3190-4a82-b068-570db56ee0cd","block_type":"box","text":"i.e.","page_number":107,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"f7a5311c-985d-4f19-8d1b-17f6f359ec1c","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":107,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"a79d26bd-ac4d-4104-87f7-efb31c5d4642","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":107,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"c133ec71-8839-44b9-9e72-3f2f216c6746","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":107,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"a37d40ed-67d0-4b1e-a5a7-cb9ecb3e8461","block_type":"box","text":"and income involved in the transaction.","page_number":107,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"ca367f9d-3376-4bdd-a73a-1a74da692333","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":107,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"237489ce-990f-4224-abe5-9b3039b8b15b","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":107,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"7b79701a-d2a2-4ca7-86e8-ae775c694534","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":107,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"d0b93779-75d2-4409-bb3d-230cc610bfea","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":107,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"958b3a4b-834e-4db9-89bd-5675b45d9c2c","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":107,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"0ae708da-612b-4b73-a0d7-3af281c53fbe","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":107,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"13fecdad-7b66-49f2-a85d-5e117b5e75dd","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":107,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"fd75f135-3191-4d59-b2f8-ad2abe8a5a2f","block_type":"box","text":"contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":107,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"1b7136ad-f7bd-4504-ac54-7a335a53b5f6","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":107,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"e5fbed66-bf85-414f-ae52-68411259c306","block_type":"box","text":"Compliance with these rules is expected to be required by the middle of 2027. Although the impact of these rules on","page_number":107,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"0c498126-2e1c-4914-827c-9fd80904e837","block_type":"box","text":"the Funds is difficult to predict, they may reduce the availability or increase the costs of such transactions and may","page_number":107,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"4eb51a25-8f04-4176-950a-691e3363df25","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":107,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"7bb7b247-b3a5-45e1-9dd5-bf29b83c89b1","block_type":"box","text":"Restricted Securities.","page_number":107,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"5eb438f6-1782-4973-940c-75716118fc41","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":107,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"d24bdddd-9a54-4ce2-a135-efeae837ad98","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":107,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"0e8e9e40-eb03-4a05-8073-1e7a0bf1e56b","block_type":"box","text":"II-70","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"517a0ca9-98a7-4fe5-8224-a87a552498a1","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e495d4d-fd45-4c27-a9bf-8d527f917b37","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":108,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"95b7b987-f91c-4551-b054-b3a5782e2399","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":108,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"b7f93e74-96c8-40c5-bbb7-16614f0489d6","block_type":"box","text":"listed on an exchange nor traded in other established markets. In many cases, privately placed securities may not be","page_number":108,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"465b8d95-7c27-4033-9697-bc0d0d2645b4","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":108,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"4a6e91cb-96fb-4bcf-886e-23cded017650","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":108,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"9068b287-02b0-410a-ad10-37db81e34bbc","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":108,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"66508e2e-4e32-448f-b79b-e70988a54dd0","block_type":"box","text":"are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that a","page_number":108,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"86eadc36-ffb0-43fa-8a7d-b7e173561361","block_type":"box","text":"Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be","page_number":108,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"85b6337d-0c99-435d-9494-82764991973e","block_type":"box","text":"no assurance that a Fund will be able to realize the value of such restricted securities in a timely manner or at all. As","page_number":108,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"86d7cbb3-7eb7-47ce-b62c-3cd121702523","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":108,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"f9265554-f4ed-4abf-ae0e-2025334bccf1","block_type":"box","text":"restricted securities may be deemed to be illiquid investments or less liquid investments and may be more difficult to","page_number":108,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"0cf36f12-740f-4566-86fb-cba1042fbf7e","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":108,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"a34bb393-d061-4817-8a44-36d325a81f20","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those originally paid by the","page_number":108,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"f4bc3c6c-995d-47ab-915b-26fc5ab34633","block_type":"box","text":"Fund or less than their fair market value. The amount of any discount may vary depending on the security type, the","page_number":108,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"e8d21683-4a3f-42f2-82a3-d76418059add","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":108,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"039cc3b5-6364-4599-8de5-9be64593beda","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":108,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"69f1a3dd-c4f4-4107-b7aa-1e0be74d0e43","block_type":"box","text":"listed may not be subject to the disclosure and other investor protection requirements that may be applicable if their","page_number":108,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"662b4e08-078c-497e-b488-15670c4e2f69","block_type":"box","text":"securities were publicly traded. If any privately placed securities held by a Fund are required to be registered under","page_number":108,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"8fffba01-2765-4bcb-8fbf-21d7d5b8127f","block_type":"box","text":"the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses","page_number":108,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"f9c925a4-ac82-4b75-9999-75c49f9a0fda","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":108,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"30806daa-701f-48cc-bb48-3bef3ba14b15","block_type":"box","text":"between the time the Fund decides to sell the security and the time it is actually permitted to sell the security under","page_number":108,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"20842856-c6d5-49f7-a6a7-695200845f96","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":108,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"e3235a7a-849d-4d75-a94e-e3589fd6ebe4","block_type":"box","text":"obtain less favorable pricing terms than when it decided to sell the security. In addition, the Fund may be deemed to","page_number":108,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"9f9165af-a3e7-49b5-b0f2-de695cbc360a","block_type":"box","text":"be an “underwriter” for purposes of the Securities Act when selling restricted securities. If so, the Fund may be liable","page_number":108,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"7a061fd2-612c-41cb-868c-e31c8dbac4f4","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":108,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"1d77f77f-8ac3-489e-af96-ab62aa97f29b","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":108,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"2ccb5a06-9e64-43aa-8118-fb0ca8fcdbc4","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":108,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"c6b6e99f-45fb-4b36-b7c0-c28396825921","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":108,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"99ee4282-f33f-4877-ada8-9dbe8ccf2b6f","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":108,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"174e6f98-fdf8-4da6-bbb3-b2dd1145f5bd","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":108,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"35f55a5a-46d9-439d-b6b3-58be09614be9","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":108,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"0f3f709c-ceee-42e1-9712-9c074a01e4fb","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":108,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"2fb7c69e-98dc-41e2-92f3-6ad7a8c4eb55","block_type":"box","text":"operations of such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":108,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"917f649c-d8f8-415b-b460-7f1e43d9775e","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited product lines,","page_number":108,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"db4933c6-9c10-4f77-b281-c1b50279f2d9","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":108,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"5b3a040c-c43f-4c5a-be3c-272fbb7b0edb","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":108,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"e9d6bfef-7746-4664-83c6-253a8dba9d39","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":108,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"a2e97abe-c315-467b-b5e1-663f6ad491b8","block_type":"box","text":"Fund’s net assets grow from new or additional investments made in the Fund by other shareholders. The issuer of a","page_number":108,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"331762d6-bad8-48fd-ba46-c5699594c28c","block_type":"box","text":"private placement may later register those shares for public sale in an IPO, but there is no guarantee that an IPO will","page_number":108,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"f6799b6f-ce57-40d6-9aed-f815ae16d04c","block_type":"box","text":"ever be completed. Even after an IPO, there may be a limited trading market for securities of that issuer, including","page_number":108,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"640c8590-7537-461b-b813-56f57c0a83ca","block_type":"box","text":"any direct investment by a Fund, or the Fund may be subject to contractual limitations on its ability to resell its","page_number":108,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"e4e0410e-2967-4152-8a52-78d62bb4b88a","block_type":"box","text":"existing securities following an IPO. The inability of an applicable issuer of a restricted security to complete an IPO or","page_number":108,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"2b600311-b8ba-44f3-a48d-be937aad9ee6","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":108,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"b5d49d86-d84f-47ff-b328-fd86df6f610e","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":108,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"3dc1b739-aa24-459b-8254-d98cc0ea34c5","block_type":"box","text":"such securities, a Fund may obtain access to material nonpublic information, which may restrict the Fund’s ability to","page_number":108,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"9ff77ecc-fb2b-4968-a499-33729aec33f6","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":108,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"6451c065-7334-47c2-ad03-ebbf744e9a0e","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":108,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"51ac7b1f-b911-42ef-8d36-0cdcbf17dc46","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":108,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"bd6223e1-c0c7-4dc0-a3c7-707fa8289676","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":108,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"3a1d3af3-09eb-40e7-ad12-18f5be0895d1","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":108,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"12f7f5f1-0663-479d-a376-1dd2a95d20cf","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":108,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"3b2d05d4-2f01-4be5-a307-11ee1a2841b0","block_type":"box","text":"especially as that Fund grows in size.","page_number":108,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"c5400bdb-ad26-4e16-a7ab-2c4dc7ff11cb","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":108,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"9d9f8c14-7093-4084-b2ed-38419aa9ee0a","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":108,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"86923385-abed-4c1b-adc2-4ca7f5c69fc4","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":108,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"431fb12e-55d3-495b-8220-cd78576ce151","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":108,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"8102f20e-b04f-40f2-a974-32dc5abb9061","block_type":"box","text":"determining the fair value of investments that do not have a readily available market value, the fair value of a Fund’s","page_number":108,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"c9a3e88f-ec3c-4296-8d3d-e28a189ddedc","block_type":"box","text":"II-71","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e2e3e1d9-2365-4ac3-9e86-49a4548d98bd","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77c915d3-768d-46fb-bb70-7a3a9850d3d4","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":109,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"029492b2-d5d3-4892-b9a6-8e48e1091775","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":109,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"31394278-61fc-4446-ac2f-537a6d35ffb0","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":109,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"5348bc02-b7a0-4619-9f5e-12e7a3a95d1c","block_type":"box","text":"Fund’s shareholder transactions being effected at a NAV that does not accurately reflect the underlying value of the","page_number":109,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"6ce8d6b9-e18b-45e7-aba3-aa4b496c35fb","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":109,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"a1305562-289f-4cb8-bb50-a518420b344c","block_type":"box","text":"shareholder arbitrage. The values used by the Fund to price its restricted securities may also differ from those used","page_number":109,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"9d2d90d8-df64-4b75-862c-5710198cdf06","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":109,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"d3fe59c6-0471-4b0e-9044-857c2a100160","block_type":"box","text":"changes in the market environment and other events on the fair values of a Fund’s investments that have no readily","page_number":109,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"0fd405be-0a64-43eb-84b6-eccf2441a54e","block_type":"box","text":"available market values may differ from the impact of such changes on the readily available market values for the","page_number":109,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"a1199f26-7278-4bfb-a364-d1e1472f79ce","block_type":"box","text":"Fund’s other investments. A Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair","page_number":109,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"aeb74ba7-6fc5-462f-af8b-0f9f68a4f195","block_type":"box","text":"value of the Fund’s investments were materially higher than the investment’s actual market or fair value or the values","page_number":109,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"f42e6305-2f5d-4cdd-bb54-ea78578998fa","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":109,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"d380195b-99ec-457e-88c8-28f6c56ab58f","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":109,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"f2278c51-090a-4982-9c86-a162c1559f9a","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":109,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"53e0ce68-3512-46a1-a6c5-179e2749b1a4","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":109,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"50afb58e-7a3f-4116-b5fc-5ab6f8f121e6","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":109,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"65eb4e1f-2d20-4640-9896-c02e571fda24","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":109,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"a437f7e5-0d44-4921-85de-808fd6edffd5","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":109,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"b479f838-189b-4ce6-8b74-93abe3c9e966","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":109,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"2064e370-d07a-4eb6-a5a2-e2c602bd6a02","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":109,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"0cfeea57-bb66-46a0-a2ec-dff4f9ef0e2b","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":109,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"0f177bb3-a6ea-448e-9ebe-6ac96d9fddd5","block_type":"box","text":"of the proceeds will be less than the interest expense, (ii) the market value of the securities retained in lieu of sale","page_number":109,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"efa7ceaa-71ec-4251-ad5a-fa03c488db69","block_type":"box","text":"by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase, (iii) the","page_number":109,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"ed6745b6-3dec-40f6-b0a0-0f71e435ee19","block_type":"box","text":"market value of the securities sold will decline below the price at which the Fund is required to repurchase them and","page_number":109,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"15b11545-480d-4236-983d-1ca5db21da77","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":109,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"aa7f7542-61cd-4274-a6d0-e6c1d5a5f7d0","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":109,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"07fa328c-265a-47fb-8f07-76f6bf8f59c2","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a","page_number":109,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"b0555792-0feb-48f0-aeec-f08eb6ab185b","block_type":"box","text":"Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase","page_number":109,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"98dfeeb0-967c-43a8-9ea0-4bb1dcd69326","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":109,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"cb0c8ead-c11b-4d0d-b163-526b81aaab67","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":109,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"5e495cc6-7348-44d0-90de-36aec0b3ea9f","block_type":"box","text":"similar financing transactions (","page_number":109,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"4019aa65-6b88-467e-a04c-a34c1e6656db","block_type":"box","text":"e.g.","page_number":109,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"6c2c253d-da26-41d8-ae85-2c26053169a1","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":109,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"525f47a4-e718-44d4-8432-b1e04f2b0390","block_type":"box","text":"the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the","page_number":109,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"ba55370b-e69d-4383-b483-d4368765d679","block_type":"box","text":"Fund either (i) complies with the 300% asset coverage ratio with respect to all such transactions and any other","page_number":109,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"d89f8ca0-9080-48f9-828e-8eec6cbae32a","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":109,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"48d94cb4-7e2c-45d8-be0e-4100cd665223","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":109,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"c50d526b-4292-4bce-ac7e-1e8bbef191ea","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":109,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"291e336d-2567-419d-8d31-18e5fa5a2765","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the middle of 2027.","page_number":109,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"94823831-55f4-4825-a56a-8b836c90bba1","block_type":"box","text":"Although the impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":109,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"8df0dc2e-d550-41ee-a41f-1d7d2c8fb2c5","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":109,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"f35140d1-f7e1-48fc-9b31-dc0cf77588af","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":109,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"aa87a1c3-7336-4386-bf19-8e227e09f8f4","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":109,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"2e211bd6-aeb0-43fb-8dc8-99decefe26b1","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":109,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"0c484d0d-bd9f-4097-af59-e815e5a62b78","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":109,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"0ee66fa7-7323-4a64-a463-5682e56f831b","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":109,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"1ddd8b62-6373-40e6-8aba-4ba8ae24c58a","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":109,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"b7707555-8089-4d40-a31e-1ce7eb38ec4a","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":109,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"f6aa04b8-b89e-41be-8b00-246f5862734e","block_type":"box","text":"amounts to be received under such agreements.","page_number":109,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"b2f497ec-9598-48f8-8e81-ac0dc6d7bc4c","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":109,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"e5b17d5a-f756-4789-8504-d3566cd4379c","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":109,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"223fbb35-0e72-4313-868c-83fb409fe2c7","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":109,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"9b9c43af-ecf7-4af5-9eb2-99cdf86bb959","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":109,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"26c2fe5e-bc6a-40a1-8cf4-12a840919164","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":109,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"ee65e8ec-3e87-4de6-ac3f-0694c15f1cba","block_type":"box","text":"lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the","page_number":109,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"ba471a3b-6001-435e-a9b7-c2399289b5c1","block_type":"box","text":"rights’ and warrants’ expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price","page_number":109,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"ac054d40-088c-4c90-91b9-a6eae8c91522","block_type":"box","text":"paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the","page_number":109,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"f30c6009-9d4d-4194-b569-2443eff00194","block_type":"box","text":"subscribed security’s market price such as when there is no movement in the level of the underlying security. Buying","page_number":109,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"516b0b1c-db2e-42e4-a6c5-f04d00cbd2ae","block_type":"box","text":"II-72","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a9f475ce-558e-4ab2-be87-3e73241879ad","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c95ea2c2-8afc-498d-92a1-106ddb4d7b3a","block_type":"box","text":"a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder has no voting or","page_number":110,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"03145dac-3504-4eef-b884-926c64be1ed3","block_type":"box","text":"dividend rights with respect to the underlying stock. A warrant does not carry any right to assets of the issuer, and for","page_number":110,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"3aebd9d5-fb3d-41cb-ae5b-1bf23a09f40d","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":110,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"f74d2f3a-4ace-4075-97bb-ea196db19513","block_type":"box","text":"Rule 144A Securities.","page_number":110,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"e1b2b9ee-e630-41ac-b4e1-55dba74c2786","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":110,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"40fad531-1b41-49cf-9723-5f79979edbb2","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":110,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"0ea4b2ad-a24a-4a0c-bc81-615693a68e11","block_type":"box","text":"Securities Lending.","page_number":110,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"c1f1c169-3c15-49a9-9a93-048f91199053","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":110,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"674057d5-9296-4672-ac46-5603062baedd","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":110,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"708e41f5-76d1-4843-b9af-4ba0cc0670ee","block_type":"box","text":"an amount at least equal to the current market value of the securities loaned. No securities loan shall be made on","page_number":110,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"67697bda-56c0-47b6-9f37-a375fc8239e0","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":110,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"f812d84a-2bf6-4707-ad53-d756b690f7ad","block_type":"box","text":"the value of such Fund’s total assets (including the value of the collateral received). A Fund may terminate a loan at","page_number":110,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"43f4f801-db46-43ab-a931-c8a0a737e470","block_type":"box","text":"any time and obtain the return of the securities loaned. Each Fund receives, by way of substitute payment, the value","page_number":110,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"08bd5a2d-38ee-4e20-8d49-337ae8a4aaca","block_type":"box","text":"of any interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise received if","page_number":110,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"9e142646-64c2-4899-9849-5f40d9d157a2","block_type":"box","text":"the securities were not on loan.","page_number":110,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"2c23bcba-74d8-49ab-8b08-a3474d7c6969","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the","page_number":110,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"4ea41eb0-11c2-4aa0-ac1f-5074720111c8","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":110,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"a32ad8e1-f794-459e-8558-b3850dcdf797","block_type":"box","text":"reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Fund is","page_number":110,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"f564b422-ed39-4b25-8397-81b8aab6d135","block_type":"box","text":"compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any","page_number":110,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"015a74d6-63c1-484c-9773-aa6747b839ae","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":110,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"75dabd2f-b6d6-4075-91b3-67e78bb11ef8","block_type":"box","text":"instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds,","page_number":110,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"938d5c20-7baa-4f81-9c43-550f44dfb972","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":110,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"951a339d-1f2f-4ba3-8a38-ff5a153a0627","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":110,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"d0edbe97-2134-42d7-9b11-3e0d02cf1fa9","block_type":"box","text":"i.e.","page_number":110,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"d2ad590e-52b4-4077-a0af-f20f528a9568","block_type":"box","text":", the risk of losses resulting","page_number":110,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"db563610-7f9a-4f60-ae85-d36ca779f09b","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":110,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"a79f8248-4d20-470e-9280-6caf58d1820b","block_type":"box","text":"i.e.","page_number":110,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"aabee6f9-6078-4a92-a3f9-ca07fa7608cc","block_type":"box","text":", the risk of a mismatch between the return","page_number":110,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"bc652e10-cf68-43ea-86a2-24e89c5d3455","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":110,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"06d90575-ee2b-4a5c-806c-feb4eae7e711","block_type":"box","text":"i.e.","page_number":110,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"dab10049-d3cb-4d48-ab40-cd78c5639e77","block_type":"box","text":",","page_number":110,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"7ad531ba-93b7-489a-bfa1-47955b8fdde9","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":110,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"1609ffac-3c93-46bc-b964-20e2a4d31044","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":110,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"0ffb3c47-3509-4d5c-aaa7-6045b09f431a","block_type":"box","text":"market risks (including the risk that market events, including but not limited to corporate actions, could lead a Fund","page_number":110,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"bc234b64-99a6-4d51-86ba-c7ca57ac56a7","block_type":"box","text":"to lend securities that are trading at a premium due to increased demand, or to recall loaned securities or to lend","page_number":110,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"b8042e31-152c-42a2-ab6b-946516398f0d","block_type":"box","text":"less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend out securities that","page_number":110,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"4975b641-fc1b-4d7f-8515-9f83c9da172c","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":110,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"342930e0-a135-4b90-a729-347d20698ce4","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be","page_number":110,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"59d83b77-13bf-41fe-8d99-017a0e2d1947","block_type":"box","text":"less than the benefit the Fund would have received from making a different election in such corporate action. If a","page_number":110,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"8865f156-ca67-470f-810c-cf2635013dc9","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":110,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"6f8f79cd-7690-4c9e-a0dc-1e67634fdb78","block_type":"box","text":"collateral or in recovering the loaned securities, or to a possible loss of rights in the collateral. In the event a","page_number":110,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"04d9e073-ab22-40ac-9ec3-0ba1fcf76b4d","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":110,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"852c1f4b-cd7c-4048-a6cd-6f3fc50c1c2d","block_type":"box","text":"may be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral do not at","page_number":110,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"19f4bac7-6d40-4c44-b0d2-f9080a1ab45a","block_type":"box","text":"least equal the value of the loaned security at the time the collateral is liquidated, plus the transaction costs incurred","page_number":110,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"b2f9390c-a167-4d56-86de-64fac83e5dd4","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":110,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"de2a2140-95af-4f78-9271-4d3c25469c01","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":110,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"9fb9582e-3f4c-40d7-800e-c1b8aa054a85","block_type":"box","text":"payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be considered","page_number":110,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"7d88c13c-1cdd-4b1a-b4a1-2b6d539449c7","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":110,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"0e34b108-2ce0-4baf-937a-ec4c93f0c101","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":110,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"ff7610a7-f015-40d7-b953-a17f59c25f11","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund","page_number":110,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"7e1ec31d-965e-48ed-9cec-acf4138929ed","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":110,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"a616b83d-5141-494f-a07a-b44cb772a8cf","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":110,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"08b36c39-3247-4239-8f46-1c2b85936198","block_type":"box","text":"will take into account the tax effects on shareholders caused by these differences in connection with a Fund’s","page_number":110,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"b3fd4ef6-f20d-47a2-8000-d02fb0594df7","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":110,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"d9b41c94-5d29-4637-898e-ad55776c07fe","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":110,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"ca763fdc-53dc-417d-9553-d8a829947663","block_type":"box","text":"regulations, that may impact the regulatory or tax treatment of loaned securities and could, for example, result in a","page_number":110,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"9fa9a901-6d62-4bff-a04c-4d09e201c9db","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":110,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"d2d11690-993c-4b3e-90c9-666d50bc9f57","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":110,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"3bdac9be-c586-4eff-a11f-f567af936c70","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":110,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"58f2e716-ee34-4bdb-8d1f-579137762066","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":110,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"10fcc855-ef13-4798-86ac-a84fc96ad739","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":110,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"edfbb1d7-83f9-4b01-8d1b-c81f5ab46233","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":110,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"621238d0-7f66-4d70-8392-5cc7f701dafb","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":110,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"5545def5-eaf3-4385-a378-33eb0f3bb1b5","block_type":"box","text":"II-73","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8291db0e-9dfc-4463-b6d9-1c036ca1660c","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"89f37d78-7171-447d-933d-b355007338f7","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":111,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"ae524ee2-eba7-4345-ada4-d17cf41e2e2c","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":111,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"4b3e62bf-205e-4d84-adbd-78bf48ca33f5","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":111,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"cd2cca98-8ba9-4983-94d1-8f494736b2e1","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":111,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"ee4c82d4-3a9d-409c-a7b1-0ef239dc3a0b","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":111,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"f9baf01a-b391-4c66-895b-8db0b7a62633","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":111,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"4ccb8727-3db5-4808-8bc8-5b9a20663c10","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":111,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"a091f95e-ac45-48e1-ae56-0173ba0a463d","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":111,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"7bcd04e7-5645-47db-a5b4-ed8ebbb0e484","block_type":"box","text":"although in response to the outcome of a legal challenge against the rule, the SEC may amend the rule and/or delay","page_number":111,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"c790c1c2-1863-41dc-bef1-729b0f61d1c9","block_type":"box","text":"the current expected compliance date.","page_number":111,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"d9e7df17-2c04-450c-94f7-a8ea6db76d7b","block_type":"box","text":"Short Sales.","page_number":111,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"c1670434-ebd6-4fb8-a8f5-0e722192c49f","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":111,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"eb65c0ae-9a38-4671-8191-7ce986459ec2","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":111,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"55c25633-7c0a-4127-9acf-0d6b3562b1bd","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":111,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"8665e73a-dc7f-4bdc-8cd4-ac443bdddb49","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":111,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"5bb0f83c-23ed-48fd-8808-8edf2bd3f9a1","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":111,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"315dc23a-eb68-4644-8641-f58e8603c885","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":111,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"916041cf-b683-460d-859f-32f586fcc952","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":111,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"78210c2e-a412-45fe-abd2-a153ef77814c","block_type":"box","text":"securities to the lender of the securities.","page_number":111,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"abcba61f-339c-4874-93ea-2c45b20d41d4","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":111,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"e08cb0cb-bf84-41fd-b253-3080b4bec669","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":111,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"c8ad1506-e310-424d-bdd8-e4e8dfd51f57","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":111,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"a420ec07-2dc7-447a-8957-9e54a439307e","block_type":"box","text":"extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current","page_number":111,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"f23ad533-ed46-4a49-a4e3-85335052ecaa","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":111,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"620ac736-6651-4f3b-ab6e-c69abdaf3823","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":111,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"d163dc17-af1e-4897-a6c6-de5ada949ec3","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":111,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"c25d3078-1a0e-4d8f-993f-169b0c28ad3a","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":111,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"a16d62d0-899a-41d6-a208-990ba7b99795","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":111,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"076a80e9-75fd-4841-b0b6-6c9cf0aac7ec","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":111,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"36eae558-c513-46a7-907e-8b9211384af2","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":111,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"37d6b0c9-933a-4630-9112-c25e15b1c44a","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":111,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"3bb6d1ab-74c4-4edf-b430-6bcfe51b2fe4","block_type":"box","text":"sale if the security declines in price between those dates. There can be no assurance that a Fund will be able to","page_number":111,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"e3c458a3-9d23-4b9d-9ac9-345481eafc68","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":111,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"f2b7c797-5b04-4bb4-b40c-0ce4bef23793","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":111,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"fa1b4a85-15b5-4f20-b501-17439671aa4d","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":111,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"deabd1a7-abca-4ff3-bc47-0e2274fd30f3","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":111,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"1c7bd7a7-5f83-4daa-a2a9-18c0e1b0200f","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":111,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"f56ca34d-24bf-4d73-810e-444228aeb9c3","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":111,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"8d9b8157-bb10-4667-b08f-0ef716ed7444","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":111,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"6e14431c-9621-4e3b-87d8-3b3cff23d889","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":111,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"1292b5bd-e302-48e4-8533-e2b46dc1c84f","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":111,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"b9cb8982-7648-4119-b4ca-eaf4eb40875a","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":111,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"799ce379-2200-4883-b37e-4460504542da","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":111,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"5ee9283d-4e32-4169-a6d2-f7e9df665e25","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":111,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"baa81da9-cf66-4e1d-bc82-124d3fbc85ae","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":111,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"4161608e-a8f3-4f57-8606-94d41bcf547e","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":111,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"42728710-cba9-4e36-9a6c-ea0e43fcdf1b","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":111,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"49a7b343-c0d3-4a40-b0a1-6da53d0ad213","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":111,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"89e88362-d0e2-43b6-bc7e-52d90af1c865","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":111,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"5dc2863c-9b76-44f5-8a4b-0eb2373dc3e2","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":111,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"d4359705-1249-4dca-a1d2-66a5bde2f986","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":111,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"104e8504-f93b-415d-8558-9569200187ae","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":111,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"33079537-00fb-4ad3-b03c-3a48e6af8233","block_type":"box","text":"publicly traded company that raises investment capital via an IPO for the purpose of identifying and acquiring one or","page_number":111,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"7caf375e-2ddf-4f92-b9dd-234d1e901d9a","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":111,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"de64b400-7317-4e77-85d8-89cd07a06321","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":111,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"96c99816-ebf4-454f-b8c1-ebb46b3f355f","block_type":"box","text":"percentage (typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a SPAC","page_number":111,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"18af7c08-bec6-4976-a876-c4dd3ee73d9e","block_type":"box","text":"II-74","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8cb0ece3-5c2a-40fb-8f55-876d51402aa6","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0224e5f8-f1e8-40df-833b-cc3932015663","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":112,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"5a1eb606-4656-4f79-983c-6784840a9c3b","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":112,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"39ac508b-ba29-49bb-9b2e-ca0d571e15d9","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":112,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"d9e74bb9-1a60-4c81-87a6-f88d0e48f79f","block_type":"box","text":"within a pre-established period of time, the invested funds are returned to the SPAC’s public shareholders, the","page_number":112,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"c3943a36-48e1-491b-88a0-f219de1b6f42","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":112,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"e2c3075b-4ae0-4d7f-acbb-2c768bb35e62","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":112,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"438ffdd2-d3a4-4398-bdd3-335902b38a5b","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":112,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"102e0058-cb0c-4bb2-84bd-2bb54c85350e","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":112,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"d19dddd5-de79-485c-96c2-677b06625b3b","block_type":"box","text":"There is no guarantee that the SPACs in which a Fund invests will complete an acquisition or that any acquisitions","page_number":112,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"4d518d1e-c403-45da-a12f-d1d0bdc3750a","block_type":"box","text":"completed by the SPACs in which the Fund invests will be profitable. Some SPACs may pursue acquisitions only within","page_number":112,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"a6ee731f-053c-43ff-b3f1-6a86c19a6ca3","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":112,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"bb92fe6e-4f89-4127-8265-166df582a630","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":112,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"2c379e06-fbfd-4e20-adda-07226a52ab63","block_type":"box","text":"Standby Commitment Agreements.","page_number":112,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"f8223ca2-1043-4894-8f0a-2c610289a5de","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":112,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"ca5def56-2f45-489a-bf72-3ebdc5dd9194","block_type":"box","text":"time, to purchase a stated amount of securities that may be issued and sold to that Fund at the option of the issuer.","page_number":112,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"de826f24-6c70-4ef9-8f27-b46895927a23","block_type":"box","text":"The price of the security is fixed at the time of the commitment. At the time of entering into the agreement, a Fund is","page_number":112,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"cbdac350-ac1b-447e-a352-b23ee0d195e6","block_type":"box","text":"paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund will enter into such","page_number":112,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"ffcf381a-0ef0-472b-b7c1-31fcb88ccc7e","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":112,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"4c7931ac-4e51-4a2c-b165-b68eb104366d","block_type":"box","text":"advantageous to the Fund.","page_number":112,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"e1da5972-12a9-4866-9fa0-1622a40cad8e","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the value of","page_number":112,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"85c7a48f-76b8-41f8-bc80-58cbdadcd087","block_type":"box","text":"the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the","page_number":112,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"2b4e7a61-f04a-4908-b591-a0684369c01d","block_type":"box","text":"security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value","page_number":112,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"c0227d30-d6e6-4bdf-937f-89523c6eab5c","block_type":"box","text":"of such security and may not benefit from an appreciation in the value of the security during the commitment period.","page_number":112,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"800c6b8d-80da-4d8b-8d6a-83a732ac146f","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":112,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"4bc0d14c-6395-481d-be0b-20842d8d4127","block_type":"box","text":"be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security","page_number":112,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"3e58b22c-44f9-48d2-94ba-05f1113cf111","block_type":"box","text":"thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the security will be adjusted by the","page_number":112,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"2cc85ac4-a9d4-4a00-b30f-ce0a7a401f26","block_type":"box","text":"amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as","page_number":112,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"e32902bc-3bc3-4f70-8a06-03a7bfc9b10b","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":112,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"d96f6380-e545-4525-878e-e9c393db759a","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":112,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"6d4966c9-7b50-40eb-96d4-c716ef355bc5","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":112,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"2e055b3f-6f86-4712-8367-d604e53bca1b","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":112,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"cded2287-93c5-4b19-a319-b4a4f39efcb9","block_type":"box","text":"at zero in determining NAV. Accordingly, where a Fund pays directly or indirectly for a standby commitment, its cost","page_number":112,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"f898a3ef-2574-429b-b6c6-a35b76a9f3b8","block_type":"box","text":"will be reflected as an unrealized loss for the period during which the commitment is held by such Fund and will be","page_number":112,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"a84b428f-7300-4528-bf11-4b7a135bf1e6","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":112,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"8475e302-f1cb-444e-85eb-9ed37e9fd8b8","block_type":"box","text":"Stripped Securities.","page_number":112,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"cbb18aa2-f21b-4320-8f11-8bee471d38d9","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":112,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"150f2685-a7e4-4ffd-b6b2-26470e9a71cf","block_type":"box","text":"components of an instrument and sells them as separate securities. In general, one security is entitled to receive the","page_number":112,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"f6163f39-a064-42d9-bcfd-18b9b16c824d","block_type":"box","text":"interest payments on the underlying assets (the interest only or “IO” security) and the other to receive the principal","page_number":112,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"49840692-b913-450e-a2c5-c2a031db10ac","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":112,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"a2d2e206-29bc-4928-aa84-dcb8f040fc98","block_type":"box","text":"principal payments. The yields to maturity on IOs and POs are sensitive to the expected or anticipated rate of","page_number":112,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"73f9c5bb-2306-4798-b2de-061d7a55ae14","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":112,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"85582055-a4e9-4ad3-82b5-30861e136d9d","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":112,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"ddebc117-6801-4542-a239-19544fd100f7","block_type":"box","text":"principal, a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets experience less","page_number":112,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"1cfdc486-4924-457f-ab3f-735fb9b5d4f1","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":112,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"f89bb978-692f-4d09-b91f-7df4d8fe677e","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":112,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"e60d1da8-2213-4a22-9bba-7037be6e4255","block_type":"box","text":"Structured Notes.","page_number":112,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"2ed3e997-7d2c-4999-8749-c296737d40f3","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":112,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"d509143c-87cb-4d5f-8234-0190290c2805","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":112,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"37f6c9b0-0133-45f3-99d8-915d138eda0f","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":112,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"16167970-0052-4a47-be38-9529a57dfa01","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":112,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"c13b14e0-9747-4c82-aeed-230dbf8530fb","block_type":"box","text":"increase or decrease, depending upon changes in the value of the reference measure. The terms of a structured note","page_number":112,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"d900f064-d8d0-49e4-813e-e90fd97de9b9","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":112,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"37515330-c0fd-4dfb-b580-1af5687e72cd","block_type":"box","text":"invested capital by a Fund. The interest and/or principal payments that may be made on a structured product may","page_number":112,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"3725514e-47d1-4b29-8744-96d5d291daa8","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":112,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"aad46959-ef16-4141-b8e6-0250bdcb1426","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":112,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"63253c00-0666-4d1c-adf5-8b9b55c857f7","block_type":"box","text":"produce an increase or a decrease in the interest rate or the value of the principal at maturity. The rate of return on","page_number":112,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"091c1398-99d8-4e37-8ed0-8105480ff412","block_type":"box","text":"II-75","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ac0122ca-31e6-4d8e-8158-2a934cc203ab","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bfc36a3d-9521-4d56-ada4-de17abae1674","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":113,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"ba88d5d1-4436-4bb0-b65e-4d1b6841d800","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":113,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"2dcf3837-ec73-4adb-b406-5ca4852694c2","block_type":"box","text":"the risk of loss.","page_number":113,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"47155544-78b6-4df6-ad3c-fc873be04d07","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product.","page_number":113,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"504e0541-4b59-4c89-9745-c7ddae6ad1e8","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":113,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"ea3ff522-dc77-443c-9e10-12bc283b770c","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":113,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"6f2e48d0-d54d-4940-83a4-1330aa359ba1","block_type":"box","text":"illiquid making them difficult to sell when the Fund determines to sell them. The possible lack of a liquid secondary","page_number":113,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"be0226fa-1bc3-4db3-baf7-d9c9f6a3c706","block_type":"box","text":"market for structured notes and the resulting inability of the Fund to sell a structured note could expose the Fund to","page_number":113,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"4e7ffc56-8bc6-4daf-b35e-e08b80bf4dc3","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":113,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"7127dff2-2a1c-4157-be91-52f009616f49","block_type":"box","text":"Taxability Risk.","page_number":113,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"44a63186-f120-4dd7-9baf-0f9266cb0c0b","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":113,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"729361c4-7d0f-423d-9770-8dfa11a38e32","block_type":"box","text":"investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to","page_number":113,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"1bc09e51-ae6d-494c-8262-41fcdcee9b3b","block_type":"box","text":"the issuer and, in the case of derivative securities, sponsors’ counsel, that the interest paid on those securities will","page_number":113,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"53c460f3-57be-438e-9cb9-cd950ac6ed92","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":113,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"02f8ae69-6cec-417b-b55f-e36677f779a3","block_type":"box","text":"to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the IRS","page_number":113,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"52c3e6b3-f0ae-4027-aec4-40ce272c429f","block_type":"box","text":"may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to","page_number":113,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"72f9c942-7385-4f55-b97a-aaa206c3e7d1","block_type":"box","text":"do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be","page_number":113,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"e9fd5296-2c33-471c-92ec-835f56672b8f","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":113,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"9e5a68c3-e0b0-4975-9f37-dd647e6dd86f","block_type":"box","text":"increased U.S. federal income tax liabilities. If the interest paid on any tax-exempt or municipal security held by the","page_number":113,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"4f97a994-a997-4ead-afdb-a2034f360155","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":113,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"eec7d18c-9d13-4ab0-b80b-77c33cefb631","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":113,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"6dc9f3b4-d2a8-41f9-96b2-00c047e0f341","block_type":"box","text":"securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities","page_number":113,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"550b0fa2-34dd-4117-a7ae-6cbc9f8618fd","block_type":"box","text":"to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or","page_number":113,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"f088b6f8-dd69-4022-b1fb-53e0343392ca","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":113,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"cd3a41e6-beae-4164-af09-c305f968f572","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus","page_number":113,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"81cbb0ee-15be-49ff-964c-c69f664a92a5","block_type":"box","text":"the value of an investment in the Fund.","page_number":113,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"21b3451c-630a-4e66-a4b9-fde55a4fdd2e","block_type":"box","text":"Temporary Defensive Measures.","page_number":113,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"acd89dec-fcef-491d-9b11-ac107aea63cb","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":113,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"2dce73ca-d871-4dc9-8d78-59c41b2e235f","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":113,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"ad4444a1-0b65-4c5b-903b-46a33b3a64ec","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":113,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"a82fc57b-d0c7-423a-a2fa-2d48232d25e9","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":113,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"3216cce6-54e2-4f28-a550-5607eda57909","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":113,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"61efc2e2-02da-4b73-9712-5a44b517f7fc","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":113,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"6c45cf4d-9a60-4b7e-9038-a4e214a62462","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":113,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"d9678bbb-48be-4bd5-8184-eaa2d31782f5","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":113,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"3f57dae2-41cd-423b-b10e-dedf9b93e769","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability to achieve","page_number":113,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"701c2036-00c5-4a07-8d8a-4a5133322ae3","block_type":"box","text":"its investment objective.","page_number":113,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"58397ae5-e4c8-4504-9817-d1736df1c2f2","block_type":"box","text":"U.S. Government Obligations.","page_number":113,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"8bead5d8-0777-4ae7-867a-f5696d1b4352","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":113,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"ffacd82b-cf94-4096-9832-e687d8b5c23e","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":113,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"e806e226-cc60-46c0-8d2e-aa0f668abdc6","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":113,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"f4adc041-7157-42bf-922f-c451a3ab7dbe","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":113,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"ec619129-a40b-4b1b-8b93-f21c0b403317","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":113,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"1717ef8d-fc97-4eb5-8c5a-d77dda34cbad","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":113,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"4140506f-7030-4dba-bd63-e0d14eeacf62","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":113,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"13785bd9-aa30-47e6-b844-fbab5a642a06","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":113,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"455112d0-e6a7-461d-8d38-57740a11c132","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":113,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"244c7311-662f-4218-9f06-93f3dc164f95","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":113,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"ac2c661b-7eeb-48ca-869d-1ad62e3053a8","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":113,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"956fae53-9931-4c45-9cf1-7efd61abdbb2","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":113,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"ee9e4a4c-2d68-4775-bdd1-265f250c7226","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S. Treasury Bills,","page_number":113,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"5baae465-98cc-413e-8c70-1a5e5fe577ad","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":113,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"fca8f96e-dd51-43a7-a0d7-396b6759ef55","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":113,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"2703acea-6267-4d6d-be32-fe3df85434fb","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":113,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"39cf892d-60a0-46f6-a196-fdcda55c82a6","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":113,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"503880ff-91d7-4e73-8859-19f55d1af572","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":113,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"5b9bbdc2-dea2-4962-94d1-14b4d84a9b8c","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":113,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"fade2ce9-09ae-4495-abca-cb56950a4a85","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":113,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"90d4c830-e08f-4e7b-9752-e0376b1543aa","block_type":"box","text":"II-76","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5a0523ec-28b7-47da-8933-4402ee21a22c","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4e1b8aa8-db0c-4cf1-bbf6-a3c2bf54d6db","block_type":"box","text":"U.S. Treasury Obligations.","page_number":114,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"1d2014cd-783d-4af3-a5de-4f157bd02551","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":114,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"729f80be-80c6-420a-8c75-1b0b801dab93","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":114,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"831f2b45-32a0-4661-b4b5-081f0d18cbf5","block_type":"box","text":"of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given","page_number":114,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"d18fc50c-3e21-4e6c-bb7f-41d165c1e2f5","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":114,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"23c4becd-ac1a-47f7-9868-92ee3b7bfbe1","block_type":"box","text":"do so.","page_number":114,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"a2bb69db-2f7b-4b83-9644-5750434e704f","block_type":"box","text":"U.S. Treasury Rolls","page_number":114,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"d8eac2c8-bf17-4962-ac71-6749edbd789d","block_type":"box","text":".","page_number":114,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"d6e5446e-69c4-4730-b08b-ddf6715b33ab","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":114,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"02b86850-024a-4df7-a217-2b976a51acd1","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":114,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"159df63f-f434-4342-a58e-471ecf6f47f8","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":114,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"db9c53b1-5732-409e-97f5-5b38d81f6d3b","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":114,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"6c601501-c2cc-43f9-b704-96618318aae9","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":114,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"129567a2-0802-4230-9cb6-25a63b41a9ac","block_type":"box","text":"roll, a Fund continues to earn interest on the securities it is selling; however, it does not earn interest on the","page_number":114,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"e3850259-da09-4a12-a864-80e442eb949b","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":114,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"89e1e30b-c227-44b1-b2a7-95fedbac350b","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":114,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"d2b1f5e5-11d2-48e0-96ac-8cfd82745f79","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed upon","page_number":114,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"6a452222-0e91-48f0-aa90-b3de09db3595","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":114,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"d6f6038a-9bda-4c5e-90e1-6074eeca8635","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":114,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"fd2e0ab4-9b79-452f-a6d7-9ab7570fdfe9","block_type":"box","text":"Utility Industries.","page_number":114,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"05da6e1d-212a-44c1-8c8b-85b0f334322e","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":114,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"11879df7-7276-45cf-adbf-73cc5b8a5b05","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":114,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"466615a7-ef38-48f8-8fd5-e9f7edb5f791","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":114,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"bcdff4c1-6fcc-4384-93b1-96874015dcc9","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":114,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"6e9b5599-0cd3-4fb1-9538-54f4e1ef6f1b","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":114,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"c0fc407d-f845-466a-a7ea-0b1b8eee0578","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":114,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"1aaa7b27-ac79-4923-94b6-ec0c8f7c0582","block_type":"box","text":"availability and high costs of natural gas for resale, the effects of energy conservation, the effects of a national","page_number":114,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"4c59c38e-6404-4621-9767-9f055d06bd52","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":114,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"1f9de519-d1ba-4c68-a795-1379a8a1e848","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":114,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"6e3bf9b1-eec1-4220-bd3f-c91713cc0618","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":114,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"bc037d71-e7ac-409e-9516-0e73982c7771","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":114,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"1658ce1a-9f8c-4e97-8554-ce8fa58d0bfc","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":114,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"67481992-d9ff-45db-a77a-9cd53f2fd31a","block_type":"box","text":"authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":114,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"0f88102b-7d84-4df9-97f6-c31537d4573e","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":114,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"053633bf-0702-4c48-aa08-529acf9d908a","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":114,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"8893a621-0cba-4597-97b5-839bcd3541eb","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":114,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"fb033053-22cf-431c-bf03-3916f8919be3","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":114,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"03a31649-72a7-478d-a298-edcdd1f94459","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":114,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"314cbd63-ea65-434a-b18e-aa585126df83","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":114,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"3036925a-e02a-4913-a3b5-81f24514915f","block_type":"box","text":"utility.","page_number":114,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"e0dbfc42-013d-4259-9dad-5e53b5ff609e","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":114,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"e0b2570b-d98e-4a71-be4a-7bee07c2f448","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":114,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"badb73b4-124c-4138-882a-93b68c791c8e","block_type":"box","text":"debt securities and, to a lesser extent, equity securities, tends to have an inverse relationship to the movement of","page_number":114,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"b087e316-659f-41c6-b907-4dc8756cad4f","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":114,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"1fb1efb7-3f99-4eaa-b138-9e184dd39614","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":114,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"f8877c93-93f5-4082-93b5-65e62fcf57b0","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":114,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"e31e9219-2079-425a-a20f-d65ac1feeeb1","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":114,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"bf33c1ab-0691-45a7-8841-e58be20311c1","block_type":"box","text":"regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that","page_number":114,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"ecf14e29-b6a3-4132-97fe-562f4b985ee0","block_type":"box","text":"the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and","page_number":114,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"5bf2f10d-993d-4667-93ae-929c271154e3","block_type":"box","text":"continue to provide appropriate services. There can be no assurance that such pricing policies or rates of return will","page_number":114,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"f6067e4a-f76c-4c50-b5cc-b76464ff68be","block_type":"box","text":"continue in the future.","page_number":114,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"a0c3b6f1-2576-45aa-9858-c4edd18d8a8b","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in foreign","page_number":114,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"5ddc57a6-f46a-4cc4-a960-846e6c9fa670","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":114,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"105d2686-76da-4a02-8c1c-85633658477c","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":114,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"f4e0fd35-2726-41a5-83c7-6e33ce9476f9","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":114,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"c4cd4a09-5cdd-438c-aa25-2834a6b46be7","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":114,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"bb9859c4-7ffd-446f-97c1-2e11859bcf5f","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":114,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"f0a02c16-e730-4c5f-a644-0f8030ceb57c","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":114,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"dd494df9-cf97-4c03-ba83-fe8d3d2909f0","block_type":"box","text":"utility companies being able to earn more than their traditional regulated rates of return, while others may be forced","page_number":114,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"efcc6cd0-cc5c-4553-b7ce-855a640557fb","block_type":"box","text":"II-77","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"48e63d2c-98ff-4ff0-94b1-499dd48b0eef","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2c93671c-5edc-484d-bc81-c6625db3b98f","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":115,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"7b9f014e-d376-4f3f-9b34-da153dbc77e8","block_type":"box","text":"new uses of funds (such as for expansion, operations or stock buybacks) could result in cuts in dividend payout","page_number":115,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"1db91241-362c-4412-a72c-23cc025963cf","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":115,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"2ec86463-7096-4bfc-8608-88d82a0e7007","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":115,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"a7b2b667-8a19-4960-9a20-eb423ee051c9","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":115,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"7d32512f-1171-415b-be24-6a9a69311de4","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":115,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"5b0be650-1088-4a6b-a035-833e9b093faf","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":115,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"a42f8ab7-bbaf-4baf-a1dc-bc82ca8f0e92","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":115,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"62d62380-a90e-4ce8-81ce-f0718e5a54ef","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":115,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"86aba9ed-cc20-42ac-a456-aacd2e9eeccc","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":115,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"597163db-b0fb-412e-8f23-42ee0aa3f265","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":115,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"6a742797-79a8-41d6-bb63-fae238f5f816","block_type":"box","text":"than those used in the United States, which may require such utilities to invest in pollution control equipment to","page_number":115,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"a3bee6bd-a869-480d-8df0-b4bc80bd6304","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":115,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"1ff08248-e6d5-4521-bfd3-eca87ea1b23b","block_type":"box","text":"ways different from regulation in the United States.","page_number":115,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"d2c8696a-4e9a-4fe1-ba77-42a0e64ba058","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":115,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"58691484-88f3-47cd-b6e1-81a4945e5ac6","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":115,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"fce54f4b-7a21-422c-a570-5b095cb868ca","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":115,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"aa61c2ce-806a-4384-9ab2-1d6677a31fff","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":115,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"bcdce581-b5d4-4f36-9bb7-c1afe1adfed0","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":115,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"6df30b2e-46f4-495d-92d2-27f8a68a913d","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":115,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"77690079-1b7f-40ed-a84a-9a08b1ae5f45","block_type":"box","text":"ownership, is expected to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":115,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"edc26abc-2fee-41fb-8d18-8470f89bbdd9","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":115,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"21d77cc6-2748-4ce3-a88e-2e0a7045ad83","block_type":"box","text":"increase.","page_number":115,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"e6de0ac5-fb4c-449f-99ee-d686f581c92a","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":115,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"f20b7b16-107b-4e90-bd03-fd83bef4ebe5","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":115,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"58926c18-6074-4a6a-8f88-63b13ac42263","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":115,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"6de3feb8-f0cc-41de-9eb7-2569370ddca6","block_type":"box","text":"Electric.","page_number":115,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"7b5a8262-c422-4d74-a81b-76fe0a52be9f","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":115,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"271fb36f-7e3f-4b96-ad36-c58b33f2b5e7","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":115,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"c10b1966-b403-4337-a1e7-f861befd63e4","block_type":"box","text":"electric utility companies, in general, have been favorably affected by lower fuel and financing costs and the full or","page_number":115,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"d5d26634-e6d1-44e8-9276-0e27c03ed3fc","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":115,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"311ed8cb-b529-4726-b797-e880b8fadf16","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":115,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"582e382d-6477-4f86-8d92-463dd1435069","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":115,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"16b115ad-27cf-4d1a-8e3a-8e7591eae6b8","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":115,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"c3e8b7de-a4ec-4661-998d-e79128592f15","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":115,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"c1df5109-7dee-44a3-8604-ec950fc414d0","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":115,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"d3421de1-185b-46a0-a276-9030d93add77","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":115,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"a7c8a0c9-b062-483d-9085-142941c1070f","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":115,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"0e95453c-1e6c-4aeb-94fa-5a43a52b5505","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":115,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"f2ab8d4d-2b89-490e-9722-4a77a5ecce52","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":115,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"69895e04-329a-4058-8b3d-9777d6a7e079","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":115,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"c0584275-4e16-4e1a-8de2-10fd998baf6e","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":115,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"978e3e0e-1d65-4e26-9ae8-d965800e47ce","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":115,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"d9097797-bc28-443a-a4d6-865171ed15c0","block_type":"box","text":"costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a","page_number":115,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"557ceeb4-0f42-442d-be92-2e07cb2e5202","block_type":"box","text":"facility. In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel","page_number":115,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"2fa712fe-ad76-43f1-8e85-74a6d5e4af1a","block_type":"box","text":"and for decommissioning such plants.","page_number":115,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"b4bb2a79-0109-4e89-b528-40e1d890d5d7","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":115,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"a7d4bef6-610a-49c0-a0d5-ea1461164ca5","block_type":"box","text":"impacted to a greater extent in the future by the division of their asset base. Electric utility companies that focus","page_number":115,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"83724e7c-439f-46ed-8e0a-606c0d7ec0df","block_type":"box","text":"more on the generation of electricity may be assigned less favorable ratings as this business is expected to be","page_number":115,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"c7aed058-67c1-4bf3-8097-fa89da141ac3","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":115,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"552a0fb0-80cd-4c45-9d20-beffe4914f05","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":115,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"2c45309d-d7da-4070-870b-295a09100c2b","block_type":"box","text":"greater predictability of cash flow.","page_number":115,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"a5c1d2ce-f5c0-49cd-ae82-5559ba0d2ef9","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":115,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"0f29e93d-d389-4d0c-8c6c-74b6f870c1c5","block_type":"box","text":"the industry as a result of such deregulation has at times resulted in lower revenue, lower credit ratings, increased","page_number":115,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"daba88b0-4c93-43e6-a938-e58edc220a11","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":115,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"39ee6088-865e-4051-9c75-027ce6dfce7b","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":115,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"be0e2947-96da-49ee-8d49-097d7ad50c3f","block_type":"box","text":"II-78","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2493df23-55fb-40c1-a59a-12b6c0d66726","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3260aadd-69ab-4a64-af82-07b49c0929a3","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":116,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"62f24ddd-6f05-444e-bc6c-ea1f89af1b53","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":116,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"658a8c39-e459-459e-9a31-ad09c0ae3ee8","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":116,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"7e18619d-7002-4f53-ba9d-5da416a43509","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":116,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"d4d45a63-c224-4d6e-870b-89faa7785640","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":116,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"cb7fb9ac-d998-4c77-ac25-c91abd38567e","block_type":"box","text":"Telecommunications.","page_number":116,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"88c3861d-2749-4705-9168-0063c96cde63","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":116,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"651fa51d-ddc2-4cc8-8dd1-0f977abdd0e3","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":116,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"fd88081f-24bd-4822-92f8-19e7c3114136","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":116,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"a3593915-7e27-4ee2-89d7-57f4da857834","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":116,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"31ef1ff4-4c38-4b70-a289-52b37fa8fdaa","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":116,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"034c3436-b10e-4161-9c3a-c339a5f6dcb5","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":116,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"e2784f9e-f5f0-460d-b1fa-31205dccd454","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":116,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"821c720b-f69e-4118-9b2e-ff94c37d311b","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":116,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"5426e7f4-e926-4800-aa44-1f36a7eef38a","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":116,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"33d0a66f-bde7-467c-85cf-dd8ac4697ec3","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":116,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"dc2e35ae-8402-47a2-a284-8f47d6d65d78","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":116,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"f7274d22-32ad-4abe-bc5a-f8e467041ee2","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":116,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"84b0ec51-6100-4ad5-830d-641aed8c4e3f","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":116,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"b355287a-e975-4ebd-aa25-aaff13014893","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":116,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"dafcc91d-780a-4577-a3e5-9e4d5ce818a2","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":116,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"bdc29072-e4c7-43be-ac5c-d40717f42956","block_type":"box","text":"residential, corporate and governmental customers.","page_number":116,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"5a3d3878-fbb7-4b98-8a96-0d367649c4a4","block_type":"box","text":"Gas.","page_number":116,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"843d7c14-d97d-4671-b2eb-37655468f0d9","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":116,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"49f80a25-7bcd-4518-bbad-0b21929a198e","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":116,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"6b8fa2e8-53a5-4569-9d87-b2d7b5cc97dd","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":116,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"c33e87dc-17fd-4afd-8c80-8ac935cfa621","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":116,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"01f9f572-9f04-42fb-984d-7322c33bb3fb","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":116,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"60eb41e0-dde4-4ca6-8b30-4014b1a8b690","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":116,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"0685dddc-7618-45c5-a02b-8f2d0c1a9567","block_type":"box","text":"outlook in the future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":116,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"59a8ce39-2965-417f-8697-69f95b3b252c","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":116,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"5184bbeb-de45-4ba4-a2d5-070527ff8d2d","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":116,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"b7eee102-0fcd-40c3-8586-c1151adb30ad","block_type":"box","text":"Water.","page_number":116,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"724f70e0-ebda-4bdf-9cab-bd216a50cccd","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":116,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"3c656707-0579-4c9b-b484-f71f9a86cbcd","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":116,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"8eecf202-58cf-4329-8177-ab8d5b780176","block_type":"box","text":"Companies in this industry are generally mature and are experiencing little or no per capita volume growth. In the","page_number":116,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"e18e317b-b9a1-4687-bc35-4b284cdcffd0","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":116,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"2d6ec55d-7b26-4a17-afd5-8b566585c0b2","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":116,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"b0066f97-978c-4a85-bc7d-4c70f264daa6","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":116,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"7318884b-d413-4db7-b756-d94814ae8071","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":116,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"ddc0cd1c-e720-43a3-a0b9-56818d132354","block_type":"box","text":"Utility Industries Generally.","page_number":116,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"0585015c-bb66-45f5-9181-f28dbc7bb59d","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":116,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"27a8fcac-db79-47cc-972a-3c25816423ba","block_type":"box","text":"those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will","page_number":116,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"39d18768-cfb5-486b-a659-e15b14735aae","block_type":"box","text":"not develop in the future.","page_number":116,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"c0cda31b-214f-4160-af04-3a2d4f82e852","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":116,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"3440cd5d-0b01-47c8-9225-f9b79192106d","block_type":"box","text":"A Fund may purchase or sell","page_number":116,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"fb7c339d-aaef-45ab-bf71-c4eadd6d9485","block_type":"box","text":"securities that it is entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a","page_number":116,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"28c7ea84-5acb-4e76-99d9-3806d93e8031","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":116,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"7e884a74-e352-4ef4-925c-3780bba7039e","block_type":"box","text":"transactions involve the purchase or sale of securities by a Fund at an established price with payment and delivery","page_number":116,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"cced7616-e6dd-41ba-ad97-8848da5b1ec4","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":116,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"862792d5-d934-4f08-b38c-2694324a9928","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":116,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"4edba778-33d6-46d3-8be8-5d34ac388967","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":116,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"433685f9-24ff-48f7-b09b-034b5d130c37","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":116,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"a7285cae-d71e-4ff9-a23b-9957c5f763d5","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":116,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"a04f9382-6e61-4d26-8afa-5882bd6966e7","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":116,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"7bb5e3d7-d013-4f3b-91f9-3f2bacd174f7","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":116,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"94312ec2-f012-414a-837e-28a31018c885","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":116,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"2741ed41-3f2e-48c8-a4a7-89fa39c50b53","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a security","page_number":116,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"95fb91a4-aba0-4cc8-ae27-450da57fc441","block_type":"box","text":"purchased or sold on a delayed delivery basis or through a forward commitment will be delivered. Also, the value of","page_number":116,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"fbc0327c-c626-4901-b43e-2051a2418a41","block_type":"box","text":"II-79","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"479a1f48-edc3-478c-b306-3201ca5e611e","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"58516094-22d6-4123-8bdb-bd539667c90c","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than the price paid by the Fund to purchase","page_number":117,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"985c4597-375f-4350-9d07-c78b80d88b11","block_type":"box","text":"the securities. The Fund will lose money if the value of the security in such a transaction declines below the purchase","page_number":117,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"67fdf94a-27ba-46c0-aa35-0e62fac00da5","block_type":"box","text":"price and will not benefit if the value of the security appreciates above the sale price during the commitment period.","page_number":117,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"8299dc6a-29dc-4174-9993-77be77de6f1b","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":117,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"f1c9e3dd-4422-47cf-9920-4eaaf1b976c7","block_type":"box","text":"after it has been entered into, and may sell securities it has committed to purchase before those securities are","page_number":117,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"70cbb0f4-de2d-422f-9973-a9f44a4cd2cd","block_type":"box","text":"delivered to the Fund on the settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":117,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"d7747c07-5ab4-402c-8d8f-45a7a6eaa40b","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":117,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"db05c5f3-0202-4d14-b6fa-01dd2818b981","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":117,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"e2b8d830-ba18-445d-82e0-811607a6e0f9","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":117,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"64fe854c-d9f5-4d35-9c59-3db2f63a4d63","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":117,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"551cab24-6d2e-4616-838d-eabc39bd6642","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":117,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"f97da3ec-c099-4ed1-9acf-fbf6a8c12791","block_type":"box","text":"day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed","page_number":117,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"572a651e-0cf9-41dd-916e-93b195f83ba1","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":117,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"b7bf4428-2e4d-42c6-bc4f-50582c21e46f","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":117,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"b2593f99-c46a-4463-b8bd-eb5ce8cab1e0","block_type":"box","text":"securities (","page_number":117,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"29c99d48-22a8-4fc5-a6c1-42febc2b3248","block_type":"box","text":"e.g.","page_number":117,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"993b8beb-71cc-49cf-bb8c-1c7fa9659c75","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":117,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"4458160b-200f-4c5d-ae31-ec77f3d21584","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":117,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"95ec2078-c219-4e90-b662-ec43a7eaee03","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":117,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"f2e4cecb-512a-4b98-a419-e023b7e73af1","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":117,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"2161dabc-78e4-4a70-903b-ab554b411df2","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":117,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"90e0b256-f66f-4d58-9494-1db16bdcafff","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":117,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"cb634ba2-329f-40a1-a772-ebc7546446b5","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":117,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"5c5f0ec7-cfd4-4ec3-a9a5-9ed93fe8feaf","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":117,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"2ddd1fd7-da77-4747-b5e2-7facc5b3db7d","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":117,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"c22d0a82-001b-42c2-b650-3a5e4e7900e1","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":117,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"8237e5bc-c681-4646-8117-8fb8e48985b2","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":117,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"76a5bc8a-eb62-4c0e-a80f-ee127456b3b4","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":117,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"1035a80d-13f4-4c52-9018-cb3c6efeb7a1","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":117,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"36557e56-a5ea-448e-83ec-8ed02b938f7c","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":117,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"e7bc75e1-ae6e-4ee5-a923-669e2f4303e1","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":117,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"e2afbd4c-e615-452e-9339-50a526f9b6a4","block_type":"box","text":"Yields and Ratings.","page_number":117,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"ce4ac701-e14c-4dc2-ae70-b2fe61fffd13","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":117,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"68f177ec-5c2f-432b-aadf-73662d0c00bb","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":117,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"75edaed3-848c-42eb-b1d1-84bb862a7b55","block_type":"box","text":"of the offering, the maturity of the obligation and the ratings of the issue. The ratings of Moody’s, Fitch and S&P","page_number":117,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"d910c43d-ff9d-4595-8f96-00c5372eebbc","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":117,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"5807e803-661a-43e9-9272-41d8fc9f68fd","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":117,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"700abc1f-3b8d-46cf-a23b-3f8758c98c08","block_type":"box","text":"interest rate may have different market prices. Subsequent to its purchase by a Fund, a rated security may cease to","page_number":117,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"57cb089f-a51e-4624-9d9d-73cb66911b87","block_type":"box","text":"be rated. A Fund’s Manager or sub-adviser will consider such an event in determining whether the Fund should","page_number":117,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"a7f9bf17-7f5b-4399-93b4-2703e0236711","block_type":"box","text":"continue to hold the security.","page_number":117,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"00976938-67f6-418e-bea0-f1a5a1c3d054","block_type":"box","text":"Zero Coupon Securities.","page_number":117,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"5ff7403f-dfbf-4bd9-acc9-ba1ca32bbbd5","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":117,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"1439112e-7021-4001-b596-5bbc6d7afbb4","block_type":"box","text":"not pay interest during the life of the security. The discount approximates the total amount of interest the security will","page_number":117,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"831d0136-08e0-4998-8a3f-1c0018504271","block_type":"box","text":"accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at","page_number":117,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"c4bc1708-baaa-4800-a23a-e594eab22fc7","block_type":"box","text":"the time of issuance. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the","page_number":117,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"20111cb8-3e2a-4832-9457-7f98e5b5ebd6","block_type":"box","text":"security.","page_number":117,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"86305989-72ca-40be-95d1-e7129bc59c6d","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":117,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"5c823d76-a54b-4dfa-8631-c624f4eede0a","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":117,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"d412981a-e2ed-46af-8d90-983df5a24b9e","block_type":"box","text":"owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original","page_number":117,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"7eb01855-166c-4ae6-bf00-e32adb742dd5","block_type":"box","text":"investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of","page_number":117,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"66a50549-73a4-48f9-87c6-dc154e2f0fe6","block_type":"box","text":"earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit","page_number":117,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"9ac04fc7-392a-42bd-8f16-ddad5b7ceb67","block_type":"box","text":"yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the","page_number":117,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"33a53e74-27e2-4315-83d6-7cca8caebb68","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":117,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"386c6486-69d0-4257-9642-c5286ca24bb8","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":117,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"f0979440-2e94-42e8-bf70-501bbf35f141","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":117,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"a638416c-93e9-4874-98fe-31260e2b53f9","block_type":"box","text":"benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to","page_number":117,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"c515a00b-4a27-41d4-8b71-6fb2b58f49d6","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":117,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"aa57cd74-1f9d-46aa-b15d-96e5b9fb003b","block_type":"box","text":"II-80","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fd8c913e-d3c3-4377-b388-9c55f20b440f","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"685daf67-7e07-47cf-9ffe-a1960382b857","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":118,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"0355fce0-7a2d-4e4e-b9bf-2fca5f673132","block_type":"box","text":"prior to the receipt of cash payments. Zero coupon securities may be subject to greater fluctuation in value and less","page_number":118,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"60ebda33-07c5-4829-a946-6158c8cb5074","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":118,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"60de5ec3-40ff-491d-8bc1-e8c7bf818bfa","block_type":"box","text":"intervals.","page_number":118,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"e10514d5-67fa-4c1e-8039-d9ba3347b1e6","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":118,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"56fe7d91-db24-48c7-b6ba-aa82316ef7c9","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":118,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"0c1ed436-9577-41ed-8eb2-88a312da586c","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":118,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"9a498fec-393e-404f-9cf0-f219061238b9","block_type":"box","text":"generate the cash to satisfy these distributions. The required distributions may result in an increase in a Fund’s","page_number":118,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"6b0ad450-146e-422a-a0e5-43a9cae04399","block_type":"box","text":"exposure to zero coupon securities.","page_number":118,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"80f2819d-9760-4db6-9b7c-b475fefa5e10","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":118,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"e5493b6f-09be-4e5e-a0aa-9cc51a7b3b2b","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":118,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"95c7dd11-7856-4b15-8291-cff69a75b903","block_type":"box","text":"In addition, as these securities do not pay cash interest, a Fund’s investment exposure to these securities and their","page_number":118,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"da7215f9-f766-496d-973d-22c4178127fe","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":118,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"da0ddca9-1fd9-4445-9022-3699bc67d49f","block_type":"box","text":"Suitability. (All Funds)","page_number":118,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"6703b29a-c84e-49ce-8f62-017af8e0bfe5","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of the Fund,","page_number":118,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"39b23bbd-1491-4877-8a5a-5afb724cb8bc","block_type":"box","text":"the Manager and its affiliates. Each Fund should be considered a vehicle for diversification and not as a balanced","page_number":118,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"d3bdfbe1-7160-4a0c-9c9d-79ebde62bed9","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":118,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"2fc71547-f8a2-4074-8fcb-b8cfed1785a2","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":118,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"ef6499e8-f9cf-4dad-9193-c6cfdf9eca57","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":118,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"98a4f561-d012-4e69-a490-73595065d265","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":118,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"8a154a36-c6e6-4deb-828c-9947140bc64a","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":118,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"4bcd242e-d382-4f6e-986a-207d4cd650f0","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":118,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"3371596a-d1c6-455d-8462-2b338038854b","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":118,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"18a78442-7155-420c-bd3f-bd33075a29e1","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to qualify as a “regulated investment","page_number":118,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"ff185674-2da2-4986-a039-816cb445f53b","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":118,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"aca5342a-4c97-4bd4-bbbe-eb7ef58626e2","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":118,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"d82ed7fb-b14a-402c-9c0b-d3bc024bcf81","block_type":"box","text":"50% of the market value of each Fund’s assets is represented by cash, securities of other regulated investment","page_number":118,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"cd3b5aae-83bf-4384-8159-ef91625a95c5","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":118,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"33773482-f6dd-4abc-bb0a-a0ceedffd46d","block_type":"box","text":"issuer, to an amount not greater in value than 5% of the Fund’s assets and not greater than 10% of the outstanding","page_number":118,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"2dce9a96-3818-4ef2-943e-2587203a0699","block_type":"box","text":"voting securities of such issuer and (ii) not more than 25% of the value of its assets is invested in the securities","page_number":118,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"a999fa35-e9ed-4a62-aec3-671aebf92e44","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":118,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"766ee84e-50ef-4872-9f8c-5c26d8c86802","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or similar trades or","page_number":118,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"a3820312-980c-4964-bdce-0eab0ab7b5a0","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":118,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"c8473449-2154-48fe-8447-a8471d59a3bc","block_type":"box","text":"(","page_number":118,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"2935c91b-39ae-4273-baa9-ce8588cf7255","block_type":"box","text":"i.e.","page_number":118,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"29e1fd47-13d6-4e85-85f5-bd29d432cc04","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":118,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"7c6a204f-8064-4519-a3bc-aa56366c9416","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":118,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"4d588597-c24b-4850-8f19-90657ff63cc4","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":118,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"259f1b57-0ce8-46e7-9af0-5f8ea4229749","block_type":"box","text":"of its political subdivisions, agencies or instrumentalities and each multi-state agency of which the state is a member","page_number":118,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"21081fd3-55ed-4f04-a1a3-ca7f4e5f8ee2","block_type":"box","text":"as a separate issuer. Each public authority that issues securities on behalf of a private entity generally will also be","page_number":118,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"8a317a59-5554-42fb-945d-2380f7cf8bf3","block_type":"box","text":"regarded as a separate issuer, except that if the security is backed only by the assets and revenues of a non","page_number":118,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"1ea096af-97a2-4398-9841-355879bd8fca","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":118,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"cb7c926f-8588-40e4-bd81-1986f6ddb721","block_type":"box","text":"regarded as the sole issuer.","page_number":118,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"6eb39db1-1b02-4dd7-a722-72c8b24c8b28","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":118,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"7268eddf-aa56-40b1-8932-c0bef0f80694","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":118,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"ee831c34-7413-4e3f-924c-bc205fd1d2a2","block_type":"box","text":"considered to be obligations of a single issuer. These tax-related limitations may be changed by the Directors of a","page_number":118,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"935bb4ab-9dd9-4e64-8389-ceeb71c3a4e5","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. A Fund that is","page_number":118,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"4be250ee-d603-4bd6-9c78-02fddb21eb05","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":118,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"4f2251a4-3c8a-4b14-8840-dda09d050ee0","block_type":"box","text":"75% of its total assets.","page_number":118,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"b2126aa5-01c1-4095-a940-bcd603902ea1","block_type":"box","text":"II-81","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"352a7477-9137-4467-874f-bbacd58af139","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"50da506c-534e-4fe2-b5db-113031b2cffd","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":119,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"3fd04f34-df93-478a-bc67-8f27b234783d","block_type":"box","text":"Directors and Officers","page_number":119,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"1fe8e166-51dc-463d-8c22-3a9e5939431a","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":119,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"66279ed6-9fdb-4c54-bfd1-d05f4fc06bec","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":119,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"db50c2dd-8313-40f6-81bc-119332f6856f","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":119,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"e0ad82d8-cb31-4e08-ae4f-23f6a99a22a4","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":119,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"6f84aeb7-3dca-4b04-b1d3-f05640cf38ec","block_type":"box","text":"Management Arrangements","page_number":119,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"28746568-009b-48f5-bad1-ea8fe26d44de","block_type":"box","text":"Management Services.","page_number":119,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"689c03ce-a67f-46fd-8caf-2e6a9978f64e","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":119,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"2ad6c509-2352-4d13-a2c7-8c79f3ff3b41","block_type":"box","text":"Subject to the oversight of the Board of Directors, the Manager is responsible for the actual management of a Fund’s","page_number":119,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"1721c5c3-b2d8-410c-ada9-79216d0b3a03","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":119,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"6f42332e-0e34-4446-aed1-76b83a07a4d5","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":119,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"fa3f2674-29c8-40b6-a8d4-ddb4dde4b66e","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":119,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"e9fc4e47-da40-462d-b28d-cdfb8f419e8d","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":119,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"98927bc3-a834-4416-a931-59a8a28d0276","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":119,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"7f608393-e0a4-4a6c-9d42-aba39eb450f9","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":119,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"bb427b16-5565-40f3-908b-c60236ce8db9","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":119,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"7055d112-86e4-411c-9001-deb2aaf63aa0","block_type":"box","text":"Management Fee.","page_number":119,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"57e1776c-786e-430a-9e31-d5ccd5fc9be5","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":119,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"e559c8df-b52d-4786-848c-0cfb2cbf15d2","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":119,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"c00fde0a-d97d-422d-83cd-75d34abeceb5","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":119,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"c5f9d40f-71f5-4caf-aa87-0e0fac799a40","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":119,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"55f07512-8064-4192-97cf-8a4b1eede932","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":119,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"24e3d49e-d34b-4977-b464-897cafea64ab","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":119,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"697f85cd-b671-46a0-afe3-f56871f96fd7","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":119,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"354561d2-ebcc-4de3-832d-c5fac6af8275","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":119,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"70cc07e1-a18c-41b6-b617-cb9caa93d13d","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":119,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"44e54a6e-60d0-4a37-a285-919aa5291da8","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":119,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"378c2c2a-f4e9-4e51-8ba3-bbfd5dc03855","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":119,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"1cd636cd-3872-4546-9d05-4bf5e492c53b","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":119,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"78c7f67f-a26e-46af-b6e5-a0d622183485","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":119,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"a5dec838-ddfe-43e4-8d7f-3ce62f97f169","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":119,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"6b36b63f-bc8f-42d1-8b17-ca1a14aaa0a9","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":119,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"00f0b11c-92f1-4a30-9c3c-231851c9468c","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":119,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"e1ea1c35-ca80-4c78-8d31-17e9ec3f3779","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":119,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"1b56b63e-9b16-4bd2-ad39-0667074ab940","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), The Bank of New York Mellon (“BNY Mellon”) or JPMorgan","page_number":119,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"a40112b6-d460-4980-8c96-4215889493b8","block_type":"box","text":"Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and","page_number":119,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"44c08b93-fca7-43de-bb50-dbf49d2f1339","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional expenses of the Funds","page_number":119,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"14dda23e-1746-4cb3-afb3-fbbd6598276a","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed by each Fund pursuant","page_number":119,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"781cff8b-0611-43d7-a9a2-9b7dac211e28","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":119,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"4a9ad63f-c450-4740-99a7-2474a8c08032","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":119,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"eaeb7dd3-2034-45b2-802e-dce2fa7ab0d2","block_type":"box","text":"Sub-Advisory Fee.","page_number":119,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"ace4f019-b110-4be8-bd08-dfa25291c4a4","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":119,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"bf2158b0-d260-426b-b1d6-c4fb2e1315fb","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":119,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"70cda35c-18c3-49dd-8e62-043bdc918192","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":119,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"2c4abece-7129-4124-af52-41402e056be7","block_type":"box","text":"Organization of the Manager.","page_number":119,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"72ae0deb-303e-417c-988a-c1512d87d499","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":119,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"beddae90-e27a-49fb-bd1a-e455394ea721","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":119,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"4f4023fd-82c8-41f8-ad98-429cf44813d0","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":119,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"ada8a6dc-50b6-4bf4-8daf-ad82f4ace219","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":119,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"fbfccebe-0e4b-4804-8b86-4287ca9b64ea","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":119,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"183fbae0-8001-4c85-8925-53268f40473d","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":119,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"d1e70a3a-29f9-4a88-a5d9-e2746e690a3e","block_type":"box","text":"Duration and Termination.","page_number":119,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"2264496f-a912-4429-a663-06c6df707903","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":119,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"096f4604-eac2-4d44-a6fd-84c66a93faf5","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":119,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"8d81dbe5-3e8f-49e2-9d41-b14d2e933f79","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":119,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"a6299bee-53db-4c79-a842-f6d561599465","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":119,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"a4e14b66-652a-480e-84fd-2bfd05acda3e","block_type":"box","text":"II-82","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6e3549be-93c5-423f-92ec-5e3cfa57962b","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab54fc31-b85d-44eb-aad0-091c7d488245","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":120,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"71aad0cd-20f2-4030-91fd-90ee4b8fd877","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":120,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"669400cd-5dcf-489f-b454-a16cb658673b","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":120,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"01b7ef7f-0d09-402a-b257-56b97a401e57","block_type":"box","text":"Other Service Arrangements","page_number":120,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"fc3181b4-db46-408d-8050-ffd55de9d09d","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":120,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"da6002dd-5e75-4a93-a811-8feb96f2eaa6","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":120,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"1c4ca971-8751-4fd7-86eb-e67c92e146bf","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":120,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"9b4b6e07-3a3c-4de1-874d-db3f2c538b2b","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":120,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"1a4c3215-0492-4d60-93a7-c229996ab76d","block_type":"box","text":"annual rate set for th in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":120,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"2d9d060b-52dc-4ea6-8395-855bad548f65","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":120,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"08437d35-b32b-4a19-9acc-9d5f720257da","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":120,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"64d15ba8-2f68-42e7-8730-2eb831d8e0ac","block_type":"box","text":"that Fund’s SAI.","page_number":120,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"9a96e67a-185e-437d-aa2c-b90c77f0fdca","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":120,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"0673ec29-fc16-4f82-9ae3-9bb95e41f71e","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":120,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"f4b17fca-1707-4e17-962a-5a75092e9126","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. 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Such contract is not assignable","page_number":120,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"a4ce488e-86b8-48de-a73e-d5fa756500d3","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":120,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"32296f5b-1ad6-47da-b79d-091cb9408ce4","block_type":"box","text":"shareholders of the Fund.","page_number":120,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"95afc2f1-6121-4b72-9d6e-dc85fb22d0c2","block_type":"box","text":"Transfer Agency Services.","page_number":120,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"14412810-b8b7-4273-b732-1d4c823181e0","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":120,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"6e066e5a-d924-4817-9703-956a3baa38b0","block_type":"box","text":"subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer Agent pursuant to a Transfer","page_number":120,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"713140c6-a61e-41b3-a40c-9133844100bd","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":120,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"2241c6c6-b202-4247-86d0-c26b7bdbfa01","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":120,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"6e74f9f3-e8ab-456d-ade9-8f70b1001ef4","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":120,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"fc08a259-6036-44ce-8eae-e3140ddc84e3","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. Each","page_number":120,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"38f735fb-b14e-4bea-b448-e8ac961dd136","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":120,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"51d1fca5-c496-4308-913c-9b7ac15b19e9","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":120,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"60861572-a5f5-4030-a290-29405fa3fddf","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":120,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"7be1d3da-0140-47ea-9826-b033c42b1f85","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":120,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"bc756d23-28ba-4e7a-b870-0d9914731a22","block_type":"box","text":"class on a recordkeeping system.","page_number":120,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"e220bfb8-fdcb-4ee5-b2ed-82415cb6085a","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":120,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"2d580a80-6e3f-4b13-b7fe-c9ef21c111fc","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":120,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"304ee696-4b75-46d8-944a-bfd8258f53db","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":120,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"530a5ab4-f36e-42cc-8b9e-777c7a9fa618","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":120,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"9d6a76d6-f591-48ce-a4cd-df28713bdd9d","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":120,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"89920239-a3d3-45ab-8b08-3d85ff76772c","block_type":"box","text":"Custodian Services.","page_number":120,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"febd0870-b6ad-4e09-affa-c2eca6799c3e","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":120,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"c6dacf84-d2ab-47ef-8b9b-2892ae263f72","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":120,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"ab0e5e89-edf8-4aa9-9aff-8191973ca1fc","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":120,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"2f6b171d-98ad-4137-983b-9cf6cf09ef16","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":120,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"5ebd0968-4ae7-4d88-ba69-55f84430f71b","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":120,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"69deadb0-c028-4fc7-93b5-3fe722c671dd","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":120,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"b6386584-830a-48a3-819e-550fb5481277","block_type":"box","text":"cer tain assets.","page_number":120,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"0f90fe41-dca2-47cc-92b0-ae1c0b7ffd69","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":120,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"9dd8bdbb-9ebe-48be-b1cd-14e9fdc870fa","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":120,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"a1866103-025a-43c3-bd4b-7fc2781c11d7","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":120,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"f49889f0-1065-4bd3-854c-5b3eafb5be08","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":120,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"73c61fd8-c11b-4518-a65b-056178b41030","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":120,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"c7a29fc4-877e-4ff6-a245-1e7ec71be9e0","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":120,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"913066e1-56ca-4da0-beca-de24a71c861a","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":120,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"1dd0483b-23a4-4fff-9b31-b24e290ecc38","block_type":"box","text":"Fund.","page_number":120,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"7ecf52f5-fd75-4c5c-a788-284a33b7dfbf","block_type":"box","text":"II-83","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82a41def-ec06-4d3d-848a-6aa7d618c656","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad522319-1223-4d7e-8a56-efd6241f7abd","block_type":"box","text":"Accounting Services.","page_number":121,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"07584698-333f-4b3e-80ee-0c446ddc58fc","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":121,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"57cc24e8-44e7-4d75-914d-d47c477c63ce","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. Each","page_number":121,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"db117eef-4536-4bcd-bf8e-c8efb0c74e4d","block_type":"box","text":"Fund pays a fee for these services. State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":121,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"623dc2f9-b54c-4273-b459-5f68f93063f3","block_type":"box","text":"Master LLCs.","page_number":121,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"d0d04e02-66dc-4507-b1d8-93fbe3b2448a","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":121,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"e468a5f8-d92a-4a26-9935-4eb8ffa95dd4","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":121,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"3485c2c2-58f9-46b7-b8a4-ed60e7348fed","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":121,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"6ac342d5-4c27-4996-9df4-8a1319ac862e","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":121,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"0cefb1bc-01a1-4f43-825f-5a3f299edf43","block_type":"box","text":"Distribution Expenses.","page_number":121,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"7d237b4d-b652-43d9-b56c-8f2f50f68160","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":121,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"3e68ca03-bd45-4da7-9ff7-36df231b5b5b","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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Such transactions, par ticularly in","page_number":126,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"744c163f-aafc-4630-ad62-5d3882fbbc23","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":126,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"c3a41f94-1496-4bd4-8de7-5e7963365fa0","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":126,"box":{"x":68,"y":680,"width":652,"height":11}},{"id":"56c850ac-1f04-48f1-aaee-7a01d562897f","block_type":"box","text":"In addition, the por tfolio holdings of cer tain BlackRock-advised investment vehicles managed in an identical or","page_number":126,"box":{"x":102,"y":702,"width":787,"height":12}},{"id":"1ca22f94-6381-4cc8-89da-84b90a1a8e2d","block_type":"box","text":"substantially similar manner as cer tain Funds are made publicly available on a more timely basis than the applicable","page_number":126,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"08b4a0f7-84f3-4e3a-90cf-717906396d83","block_type":"box","text":"Fund. In some cases, such por tfolio holdings are made publicly available on a daily basis. 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In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":126,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"bf41842b-b275-4ad8-845c-08943556e115","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":126,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"3d555ba6-075f-4238-b30f-0717bd55bfb3","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":126,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"efd64d3c-a4f4-40f9-bdca-d3eae845aa84","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":126,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"d53a1696-df9a-4338-bf71-9fd28f306ad8","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":126,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"114a1a84-b94c-47c9-be6a-0ea8501449c0","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":126,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"73824e8a-1e0b-442f-b53e-fb11a3e87497","block_type":"box","text":"II-89","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bb7d0230-fe24-4902-be77-d3db03435c05","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c74191c2-1cce-423f-a4f5-75924b481405","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":127,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"fa493be6-aaf6-4267-9f71-fce4d20783eb","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":127,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"8e222c0a-0b96-47f8-bc8a-0c4acaea3d40","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":127,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"cf982bf2-01cb-4327-aabe-b2e6f2642e8d","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":127,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"d99c6c2b-8002-473b-8153-251db7eaf335","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":127,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"dc3d9366-67d8-4ce3-93da-b3fbb575b178","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":127,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"5697957a-a472-42ae-8b2d-a7407b1ccce7","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":127,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"8fc32c45-345d-4489-bcda-80a6bf9978b4","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":127,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"e4a986fe-e9c6-4dd7-876f-9e54b8f815f3","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":127,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"6a0df016-f33a-44bd-9f03-dc34bad3f22f","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":127,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"714c895c-ea27-47bf-af97-65549941370d","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":127,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"b2821289-4ea5-427e-a338-446b9c493e16","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":127,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"780a5a8a-602b-4e03-95ad-ae2e13a4f127","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":127,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"03e4527c-360b-402a-a801-e0b35f2b587b","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":127,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"370e2a57-7a22-4ee7-9a6c-d53f14cacc48","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":127,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"f0802405-d121-41b9-bc8b-68969cb20304","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":127,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"8b7058eb-4676-4635-8169-360ceab73594","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":127,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"1fd95a56-1dcd-4e9a-a126-1f9644bb0028","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":127,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"cfd3ef49-a0b6-4115-8899-182c5a36ab74","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":127,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"29af405f-946a-4f34-8214-4624286a56a5","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":127,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"1f4e0da2-6f69-4157-835c-db9c12e8de23","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":127,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"01091459-d866-4883-aac4-83d72ec1297e","block_type":"box","text":"situated holders of loans or securities rather than, or in connection with, taking such actions itself on behalf of the","page_number":127,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"476a713f-7a3b-4291-9dfa-26672b8dab0d","block_type":"box","text":"Funds.","page_number":127,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"fb3ac5fd-92a7-44d1-b558-6402500cff48","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":127,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"756e2b61-f275-4133-9810-a31b31fb6d12","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":127,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"44063eb7-8256-4d6a-832a-d9c1e90d3ddc","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":127,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"6b69ee1e-9514-4925-b385-b801d7eb7af2","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":127,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"220d65c5-257c-4e13-9d9e-20e792c5e1c3","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":127,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"c8501765-ff0c-4af0-8f0d-340e5367811b","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":127,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"e4e04a18-8820-48cb-a841-fd08630311ea","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":127,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"dd97d301-ef3c-4e58-862d-ff4ed7cd9c08","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":127,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"5ca231be-725c-4cf8-84d9-0dfe7e884cd0","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":127,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"399d7190-475f-4490-ae96-79a6203e7099","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":127,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"cd8e6a59-f166-4984-8810-6561074de35f","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":127,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"4d36d0b2-4e90-4a91-9cd8-f3f7c47c036c","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":127,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"324c84e1-7a3e-4688-9388-e122434269b9","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":127,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"3489ee49-c53f-46d0-8937-7c8d96e3f1c3","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":127,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"7da3d74e-2532-49a1-af30-fc7675c008a5","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":127,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"776ea94f-9f8a-40cf-b367-3f895e4853b6","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":127,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"bbeb3c40-91c3-410e-b243-6d109cb89c9e","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has invested,","page_number":127,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"8ee92af4-568c-43e9-84e1-8ce972b22608","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":127,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"d3a1af62-3473-41be-84f5-f59cd92a0a08","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":127,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"5c8c0bb3-993a-46d5-958a-d9407a4c9ecd","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":127,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"27448570-7387-4fa3-a7a7-5b497179e7cb","block_type":"box","text":"case.","page_number":127,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"0732291b-25ee-4864-93e4-016a0569b95d","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":127,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"510cdb63-6e9d-4ea0-ae2d-a18563425de5","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":127,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"648799c7-818d-416d-8eba-12c3223a8108","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":127,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"eb39b8ae-87a8-4770-92a9-9ece194cf828","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":127,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"d0fa23d5-a745-496c-9476-2eb64fd5d737","block_type":"box","text":"Fund. Moreover, it is possible that a Fund will sustain losses during periods in which one or more proprietary or other","page_number":127,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"aee05a2c-ce21-48ca-ae7b-c6cb60dd0782","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":127,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"1adcc8e9-d068-4634-8f18-4963badd2c45","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other","page_number":127,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"6384b074-3081-4200-8bd3-fbbb82d87d60","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":127,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"0b76febb-ca9f-4f61-960c-026ccf5ca947","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":127,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"d5badb28-42f0-4707-a6b3-b2e93fde3b38","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":127,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"10eac1c8-78a6-48d3-b0b6-b48f2fc94b10","block_type":"box","text":"II-90","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9069de73-90dd-4b70-bd2e-a120693cedcb","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c4907ab2-991b-4f9c-93d8-6d1d1accf16c","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":128,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"3f7ce424-e2b2-45e0-8359-71a174f84e29","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":128,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"abf5c9dc-de56-40f8-ac1c-14a7d0ac203b","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":128,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"4bdb24d1-a6b1-4a24-bde9-966b342573e2","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":128,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"2470ca77-5d2a-4a33-96f3-788e40f049f9","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":128,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"ce12f6fc-baa2-434d-8941-b256da85c7e0","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":128,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"2baf8bf4-24f1-4872-bc3a-568062a37e8e","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":128,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"d8a5f5a1-6f68-4857-9046-b26079535ba8","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":128,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"0ff8c3ae-f20f-471e-b042-9257aeb54874","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":128,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"3f587b58-c075-4672-9c16-c7539e9fb3b1","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":128,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"b7b0cb62-b4b2-45f1-bf1b-a93c5e65072f","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":128,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"2aa13e19-1049-4efb-bfdb-4f79106a7cd4","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":128,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"967d4e54-8d96-416c-899e-5db9f680b6e7","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":128,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"6755aeb7-d3f1-4dea-a48a-40b012733400","block_type":"box","text":"managing a Fund.","page_number":128,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"ce107075-d263-4da4-9ab8-5fd266084521","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":128,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"4663a898-b54a-4369-a867-a8fd3972c5ac","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":128,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"01012d27-77eb-42d3-b7f0-c68c06a84beb","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":128,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"38c627f0-7dd7-4c6f-8e79-d58f7caedd51","block_type":"box","text":"value and liquidity of a Fund may be impacted by purchases and sales of the Fund by model-driven investment","page_number":128,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"823e8411-7787-4596-a46a-a8242496172f","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":128,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"65084e30-d7a0-47d6-9dd3-37d2b2a02f94","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":128,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"27d84f8d-1188-4b1e-8c62-6ab5972cdae0","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":128,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"137d50a2-297f-4d90-b81f-b0768554f4a1","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":128,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"be3f2b37-3a30-430b-b795-aaafda942cd9","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":128,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"f22fc1cd-68ac-46ad-86bd-c1806216f53a","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":128,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"91cce22e-5d45-4af4-a8d1-d43ddab84f50","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":128,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"36ffb908-3533-4f3e-99f4-adefdba3056e","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":128,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"f1b1a44e-450c-4e8b-bbb0-4a6d3ac6237a","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":128,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"e8ad74c7-060a-4acd-ae17-dd79db8934cb","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":128,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"64874c75-865d-4e26-944d-d7a6b7b78919","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":128,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"30efa78d-53a8-4665-8ee1-4a8f91f92f6e","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":128,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"aba7b0fc-0d0e-4136-bbbd-3bc5625e9dbe","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":128,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"4bbdab9c-b00e-4068-b7f9-a56b0e44d404","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":128,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"294c6a90-3aad-4337-b684-9f462973d8f3","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":128,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"f6e05efa-d551-4d88-8272-d42b372cd643","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":128,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"cd79862d-0d82-4298-9807-106133057f70","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":128,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"963639db-dd51-4190-a441-206e0114af12","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":128,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"c4ab8587-d5fc-452c-a359-3f37af2d261b","block_type":"box","text":"under management for BlackRock.","page_number":128,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"ec9fec7c-afe4-4179-b59e-4784ca15d168","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":128,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"4130f3bd-32cf-4294-b28d-ae64945d91a7","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":128,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"fc62401f-ec4d-436d-8a93-5849832116ec","block_type":"box","text":"clients have interests adverse to those of the Fund. At times, these activities may cause business units or entities","page_number":128,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"7a6ea5b9-4844-49a3-846c-39bdeefb4840","block_type":"box","text":"within BlackRock to give advice to clients that may cause these clients to take actions adverse to the interests of the","page_number":128,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"fe34732c-2859-4d70-9ce2-2d37b91dfba5","block_type":"box","text":"Fund. To the extent such transactions are permitted, a Fund will deal with BlackRock on an arms-length basis.","page_number":128,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"0fc81a1d-2d23-426d-a792-497182a358a2","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or adviser or in","page_number":128,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"fc7bc9d9-11da-4878-a923-0699f585b30b","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":128,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"c3e834a5-bd4c-46b7-a37e-9a6eaf9233e4","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":128,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"9d40ba84-bb04-42bf-ae46-245b58b2bff3","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":128,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"87fcfcae-da95-4078-a7d9-7913b8350143","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":128,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"cb83c5d5-9eac-4a1f-80d8-d213880afa45","block_type":"box","text":"amounts that are favorable to BlackRock and such sales personnel, which may have an adverse effect on the Funds.","page_number":128,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"99f18e67-a3d7-4d25-98f4-f3bb9626fba3","block_type":"box","text":"Index based funds may use an index provider that is affiliated with another service provider of the Fund or BlackRock","page_number":128,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"9c0c7f6e-8ebe-439f-afb7-b727a6bc2c00","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":128,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"7e2d3246-47c6-4153-8c6f-54af3dbba613","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":128,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"4036dfc0-b117-4c25-b4e4-bb78fa867e71","block_type":"box","text":"other amounts that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser","page_number":128,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"b993ac50-3409-4b6b-abff-1abf6b5be6e4","block_type":"box","text":"or in other commercial capacities. 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BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":129,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"77c6415b-310e-4dac-8080-4eae78942d60","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":129,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"e8b84709-6fa0-4384-834f-e230ae8387c8","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":129,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"90e5b9a6-de37-4d25-b1a9-c459a2c47d3f","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":129,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"c315af6f-1f00-4c1d-9ee7-949cd311728a","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":129,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"00cab311-c402-4674-a716-78a9233d440f","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":129,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"e5506d7e-bb14-4178-a126-4e7c80c88052","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":129,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"6eacb96e-7994-4691-8773-38d6b64ec10d","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":129,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"a869e10f-9b3f-4f88-ada6-d24271b93f2d","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":129,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"2fc75dc5-1c2d-48fa-96a6-0de1e3f72dad","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":129,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"522f1bb3-a6f9-46f9-b4ab-ce57bb30a532","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":129,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"6e7e5d7b-f56e-4d7d-a5c4-21b299449054","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":129,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"02bc7f67-44f7-45b6-beb7-3e9f72beae30","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":129,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"e291854a-4480-4160-b17f-d31ad3e61dfa","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":129,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"4da9fb7a-79ca-4479-ab88-83b9f2c998fa","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":129,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"76b34764-3ae4-4c99-bfcd-a8bb907815ce","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":129,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"fcbb2136-9be4-425d-ac57-a55c8f4ed73c","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":129,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"c567eddf-ccff-40b1-b9a2-0d89af2f7cb2","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":129,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"6c27466a-c80c-4f3c-a62e-e405a51485d9","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":129,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"b8518ddd-26fe-4f60-a850-701bd7c3649e","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":129,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"e5f9636e-e401-496f-9f71-7222cc3c063b","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":129,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"77e0fe7d-cd97-451c-862e-57575e8b7b83","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":129,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"b0bc4889-dfb0-446f-b235-54c82b798718","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":129,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"c81b712c-503f-419b-b998-4659b9a82e7d","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":129,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"e05ebb40-e2b4-4789-8a9e-ef283a6602ed","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of a Fund or","page_number":129,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"1c082396-b05c-4ef2-869f-06196a951ac9","block_type":"box","text":"terminate a securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements","page_number":129,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"241c83bd-9af3-4f01-a58c-ac3f7343ddfa","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":129,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"848725e9-e5e7-404c-aded-ad5c1f7410c2","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":129,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"7c81b511-dd98-41ba-ace8-c36a8280bbf7","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":129,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"f2bcc169-1106-494e-8c72-c0127d0e7c70","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":129,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"c3d942e8-7093-4118-b8b4-478233d71497","block_type":"box","text":"regulation.","page_number":129,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"b67c558e-9ec0-4dc1-b3bd-7bda8f162f93","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":129,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"682d3e02-6816-4004-aaa9-1ed7a717a819","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":129,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"f0b54dc5-109d-463f-9607-67ee0e794f75","block_type":"box","text":"various program limits (","page_number":129,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"a435ede3-985a-4058-9a17-110151880f0c","block_type":"box","text":"i.e.","page_number":129,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"8d992238-eeca-4119-8c5e-a4eca350d617","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":129,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"a218bab5-3761-4767-a551-27b16ddd40ba","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":129,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"a515c9f7-4e9d-430f-88f6-bc728a5c1ead","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":129,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"df095fe2-d639-46a8-94d3-904d425a27f4","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":129,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"12fe1308-5786-4ab6-8278-f61c5c2c1d50","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":129,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"c370115b-4abe-44b9-bae9-778ff3425481","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":129,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"1d5d2df9-0dea-4b9a-8a6f-e04de42b8572","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":129,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"d909da8e-390f-41de-9d5c-be07722901c0","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":129,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"3510b775-d492-4aeb-a260-d885267a0c43","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":129,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"acf9a1b7-3406-483c-b0d8-eaf3c705ea77","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":129,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"8a47dec2-adc7-4dbd-bb12-f7c054ad096e","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":129,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"3b733997-737a-4d7a-a73e-e8c6355a6fa0","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":129,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"a0123baa-e94e-4c28-9771-517a76f87a95","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":129,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"2b2ec7cd-19ca-4b56-9f21-530694222cec","block_type":"box","text":"entire volume of securities purchased or sold. When this occurs, the various prices may be averaged, and the Funds","page_number":129,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"50f1dcb5-4b63-40c0-924e-102916f6097b","block_type":"box","text":"will be charged or credited with the average price. Thus, the effect of the aggregation may operate on some","page_number":129,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"609e0a8d-e6ae-46e9-ba47-15bf21a5c69e","block_type":"box","text":"II-92","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"389e3957-f4f9-40ef-858f-182f827983c1","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95b28afb-7e60-40a0-84fe-7e3febe42863","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":130,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"1c91693b-ad9b-471d-9813-26f0c30db0a2","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":130,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"a1656647-b3d5-4755-8e19-12889eb3ff38","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":130,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"ea6c1ec8-6d2d-4478-8080-b3d28376bd4b","block_type":"box","text":"Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to pay a broker or dealer a","page_number":130,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"e3ea224e-169f-465b-8911-c8730f8b7d0c","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":130,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"f7f87efa-cbbf-4f47-afbe-929295b6d8a5","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":130,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"10c76344-98b1-4081-8437-a7fb77db4481","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":130,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"69cfa698-500d-41b5-aa2d-4ec2caa072de","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":130,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"0c70e55f-daee-4237-aa0b-ff7bf4fd011d","block_type":"box","text":"than through client commissions.","page_number":130,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"fedfb4a7-2f6b-459d-9ede-fb933b942fb9","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":130,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"5db99708-abab-474a-9311-6b50700aef59","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":130,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"4196c2ba-b90a-477f-a5e2-bf64e026ecb6","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":130,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"fd9cbe01-05c1-481a-92ab-cc25cf4ad81e","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":130,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"32d137e3-1129-4518-91cb-b843cbe821a4","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":130,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"99640793-0453-45a1-a69a-70b6390b34fc","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":130,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"9a2eda7b-f772-4d89-a46a-2e9096455f26","block_type":"box","text":"research-oriented software and other services and products.","page_number":130,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"0f7297d6-0f27-43cf-97c2-89a2f4535ca2","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds and other","page_number":130,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"5ab4bdea-fc76-4f6e-87b5-0c7f176c4ca0","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":130,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"478ecb47-718c-43ea-a038-096e2db900ed","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":130,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"32b3f0ba-4cf7-4674-9848-e9ee91b20605","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":130,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"83cd99ba-1f07-4c18-ac07-f35ef43c5712","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":130,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"8edb65ae-856f-4f5d-a3ff-c03e39c1d7b5","block_type":"box","text":"that are paid for through one client’s commissions may not be used in managing that client’s account. In addition,","page_number":130,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"c679f005-3ecb-4a60-a80a-df8501dfa4e3","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":130,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"9bafddec-3f6a-43a5-bbf0-d27968e7f748","block_type":"box","text":"or price discounts in connection with products and services that may be provided to the Funds and to such other","page_number":130,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"028b82b2-6209-41ea-a0e7-1b6ec26722d2","block_type":"box","text":"BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay for those products","page_number":130,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"1565efe1-398a-4022-bf19-d9dceb8d73c9","block_type":"box","text":"and services itself.","page_number":130,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"e14eaa19-3311-4cef-af84-31c7a4470cc0","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":130,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"3a83be9e-d504-480d-adf3-635c255517d0","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":130,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"47696605-b798-4230-8fce-72ddc49154cf","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":130,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"a0df74f9-9d05-477f-89bb-5b2ca638ec09","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":130,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"3fa4a0e3-bc69-4c4b-b592-fd953dfb4406","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":130,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"63ef13a5-41e8-4eea-94a1-5f55c918a02c","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":130,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"5641e869-b1ea-45e6-b9e0-9bcbc2c36c75","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":130,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"d5910a57-e16f-415b-9ae8-52aeab3f8c58","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":130,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"5915034f-3c2f-4074-b053-e53eedfefca7","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":130,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"5eb642b2-15a4-4775-a507-8024e76279b0","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":130,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"1937d43d-ea1e-40a1-baca-6c2e0d3ac8b9","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":130,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"043703ed-420a-4404-bc64-3b2a41864a15","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":130,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"0720bcea-70f4-4c4a-bcc6-173c8ebdfdbc","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":130,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"a685bd13-70cc-405b-91ed-3253857e8c5a","block_type":"box","text":"the cost of the securities purchased. Access fees may be paid by BlackRock even though incurred in connection with","page_number":130,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"922a0c43-0f42-41b3-b4fc-8845051ae62b","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":130,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"6a6f2cea-e373-4ba4-a81f-a8789223dc31","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":130,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"af58b9e7-6eac-41bf-8bb0-7597f34f6521","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":130,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"77adf477-36c3-4458-82c7-e90bb577a30a","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly created U.S.","page_number":130,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"0d48e56c-3e24-4dc4-bf22-7c0566e152e6","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":130,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"50bd7b64-faf5-4a2e-92d0-9682bd4e76e7","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":130,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"c85c74bf-b623-411a-994a-6212ebd48788","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":130,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"4a82455d-f025-45c0-88d5-d8270198a7f0","block_type":"box","text":"voting decisions that it makes on behalf of advisory clients, including the Funds, and to help ensure that such","page_number":130,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"9cb00b8a-8f9e-41ff-9468-606120e64dcc","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":130,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"db12096f-3370-4b85-b5cb-471910c15811","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":130,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"e2696337-00e7-4c38-8ddd-5f78e31a57b9","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":130,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"3252d346-10f0-4a73-919d-03e509ee6584","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":130,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"f6f403ea-f974-4818-8eef-a8060e55b670","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":130,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"20346406-a343-4ea7-a221-14492d511471","block_type":"box","text":"II-93","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0e6f7e4e-e171-454b-af92-ba1211072f0d","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55b05b7a-4550-46f7-80f4-ed48564f1a50","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds and","page_number":131,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"7bdd08f2-e827-4d93-a672-ad990c311dfd","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":131,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"e9b24ace-5cdd-47b9-a5f1-527136743ccb","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":131,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"ba2a5a07-32ae-4965-b5c9-e24b1019a8a4","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":131,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"0400de7b-6b8c-48b7-bcc4-6fe1edbf75ed","block_type":"box","text":"applicable law, to redeem at any time some or all of the shares of a Fund acquired for its own accounts. A large","page_number":131,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"e19bd567-f9fe-489f-84f0-0a4e1945214e","block_type":"box","text":"redemption of shares of a Fund by BlackRock could significantly reduce the asset size of the Fund, which might have","page_number":131,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"0c132940-2c01-4253-9aae-95807c26429a","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":131,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"5132e119-1fd4-487e-b20d-a879cf2c081d","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":131,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"01635d7e-d3b6-4bd3-a1d9-d00912e1976b","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":131,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"abcee7e5-59fc-49db-89a3-7dfdf8479d23","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":131,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"f0eb75d2-08b5-4958-b5b3-1f52bea3816d","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":131,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"9a629cdd-873c-4431-bf19-51c5c0eaea1e","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":131,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"06faa5e8-4e0a-4ab2-8432-0c14bad6b57f","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":131,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"01c487b5-1a6c-4dbb-b013-ea8c188cf77a","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":131,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"f6e3d127-c3f2-425b-af2e-641c3996e856","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":131,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"0d2a918c-327b-484c-b92e-e68f89a31588","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":131,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"2ebb3a8b-5fe0-4321-8607-f7be8e82b500","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":131,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"98896e11-3ce8-403e-80dd-9b68093e0d25","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":131,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"aa3aa08c-6009-4ec8-b6e5-4be4cdc46e4f","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":131,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"8f33f91b-6370-4cb8-9b70-f6a2312a8b98","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":131,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"37471720-6afc-4ee0-8163-9befa6cd23fc","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":131,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"3f9d418e-85cc-40eb-a467-519d0ddedd81","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":131,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"e6bb5758-5db0-411d-ab62-faf8a0b179fa","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":131,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"a9eed704-114f-41e9-9e4e-41d794e625d3","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":131,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"426842b6-092e-4eb9-aac0-ae3ffaa7d204","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":131,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"e5d7c1fa-fadd-4600-868f-615c8d6fa0e6","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":131,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"b1b97ef1-4505-4379-8d16-a8e8f3defd59","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":131,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"86aaaf5d-0f2e-4597-8e80-ae448fe55af8","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":131,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"4dd7446f-a1fb-4ab4-82bf-fe488a2e4670","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":131,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"1ee449c9-0fdb-4f20-8671-93c11f6c7bc3","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":131,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"45e25ac5-f5df-4e5c-af31-c8252d8eb611","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":131,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"7698d80f-0933-42cd-a8a0-77b88350dc1d","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":131,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"829e89c6-7c0e-428d-a757-60ce26c8d70c","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":131,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"1cc78cb1-69d8-4794-84a7-8a0197da9e48","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":131,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"d91110d0-2c42-4e81-ad52-12a4bfa8e731","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":131,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"773eb12f-f475-46b2-875d-cb03a162d6b7","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":131,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"e7a4deb6-437a-4314-9f0a-cfe371d801da","block_type":"box","text":"under the Investment Company Act and acts through BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with","page_number":131,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"a9f7ca6b-0686-4dab-ad5e-0e155b699c23","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":131,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"6ee38542-a93f-413f-a18d-35b1de797f34","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":131,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"8f0440ad-a7b2-4716-a4aa-0ff5cecce8aa","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":131,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"4ccd5f78-a517-46ca-b63e-fd13e187f19e","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":131,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"02d1122e-0509-4441-a202-b9a7e922fac9","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":131,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"ee1b0ff5-a5ea-4c61-9727-a86aa8c50a61","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":131,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"02cf9b6b-5cd5-4bd2-b908-7ee214f2e900","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":131,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"0f273bb7-98b0-43a0-b792-4ff5c2ea2350","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. The fair value of one or more assets or","page_number":131,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"eb60ccd1-1462-4037-a7db-af646be83e9e","block_type":"box","text":"liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the","page_number":131,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"c7fd79de-1d09-40f1-9985-9898947c9fba","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. 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As a result of","page_number":132,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"9bdb988a-be84-462e-b3a9-6c8b0cec1d98","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":132,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"14184eee-a59f-488f-926e-abfa50ee193d","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":132,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"8e1927f5-3b2d-40dd-b031-c3f112614156","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":132,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"1e5928c0-e409-425f-a5af-a13fd165d2dd","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":132,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"432071b3-d7b0-4e43-aa49-b1e4983473c3","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":132,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"2ef1aa58-8258-4246-9b4e-0d18f274bed0","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":132,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"fb1ba34a-3266-428f-8d01-9addde66cb9b","block_type":"box","text":"EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying","page_number":132,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"34bba7e2-6f87-4b3b-b89b-d601a7d4a1db","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":132,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"35938f58-4880-40f0-b1fc-61f46c08a35f","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":132,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"4d3ea320-c93a-4952-8d0c-14a379cd311f","block_type":"box","text":"except that the Fund may in accordance with rules or guidance adopted under the Investment Company Act engage in","page_number":132,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"f168c32a-93b5-4bf7-829a-a86802793d32","block_type":"box","text":"transactions with another Fund or accounts that are affiliated with the Fund as a result of common officers, directors,","page_number":132,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"2a9bf767-970b-4cfe-ab69-c68810996260","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":132,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"a8f3146e-63e5-4ef1-a235-4899227b55be","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":132,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"b70bb0a3-f601-4313-99cb-6fc0db7557a8","block_type":"box","text":"for the Fund to purchase and another client of BlackRock to sell, or the Fund to sell and another client of BlackRock","page_number":132,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"e3149a1f-30fa-458e-8cc9-86c0f1c7c80d","block_type":"box","text":"to purchase, the same security or instrument on the same day. From time to time, the activities of a Fund may be","page_number":132,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"da1ed7ed-1f4c-4faf-9654-427b3f3778c4","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":132,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"e80e18c3-9df7-44d5-98e0-93191a36ee4a","block_type":"box","text":"to comply with, limit the applicability of, or that otherwise relate to such requirements. A client not advised by","page_number":132,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"efff152c-896e-4394-a997-046dea3aa827","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":132,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"dfc81a36-308d-44e2-8023-5e40f4c3821b","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":132,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"cd78a572-3b92-415d-9bfc-827844845792","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":132,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"aa698371-42d6-452b-87be-eb42a2b08343","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":132,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"790241be-9671-4070-a54b-fad4397dd94c","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":132,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"2323f549-587e-4de7-ba5a-bf7b9708c3f3","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":132,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"6aac52b9-81fd-41b2-b101-7a019beb83a9","block_type":"box","text":"public information about the company (","page_number":132,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"e2d25cc6-6d42-41f3-9349-eab27dfdcd9b","block_type":"box","text":"e.g.","page_number":132,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"1541043d-98f0-4d49-95c9-b75957647b2f","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":132,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"8ee84590-43ce-4411-9718-b15ee26aff37","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":132,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"7d2a2dac-0c84-4872-ad57-e088daa2d91a","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":132,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"bc30973e-0bbe-4554-b3dc-e746c9e93102","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":132,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"948d06b3-065e-4e94-9b61-588b75b0c801","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":132,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"1832d013-8c37-4ac2-a828-5643fdc4afef","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":132,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"4d831a5d-a5a6-439c-b58f-bcddbfbd1be9","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":132,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"ecf96de7-f3c6-42c5-8c23-8dc04acea5fb","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":132,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"343b50cd-0448-4bfe-ac95-02542b3ea5cc","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":132,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"8e1e87af-5adb-457f-b4e5-bbf62aba5b7c","block_type":"box","text":"of the issuer.","page_number":132,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"6b48c44e-ea2e-41df-84a8-4097306700ad","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":132,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"0e4c2962-3e17-4acb-a0eb-2d50808017b8","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":132,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"014f6a46-9b8f-4341-a92f-24602ee7b7c5","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":132,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"1e97cf0a-399a-4c5f-a819-ba8034977ca8","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":132,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"a049cb3c-ac2a-4816-a7f3-6af4d13f4e86","block_type":"box","text":"make decisions or take (or refrain from taking) actions with respect to clients they advise in a manner different than","page_number":132,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"088e6edb-37b6-408d-b37e-5745c60a4f98","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":132,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"e1dc0cbe-b71e-4a7b-a4fe-411d99650600","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":132,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"8cdec38c-484a-492e-add7-71b83f5f0d9a","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":132,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"6fae92b5-5fcc-436f-b972-9c918a78e20e","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":132,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"c7e49c36-f93f-43c7-8b75-d3e2bc592ddf","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":132,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"d5cea296-ac10-40dd-9e11-f737ec85401e","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":132,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"2c9a2a47-f219-4448-aa8c-24d38d016437","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":132,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"27f9afad-f31e-4203-a14b-2b2696483106","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":132,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"039eb812-a0a2-43fa-81a7-c3bf02827e52","block_type":"box","text":"senior personnel, in other units of BlackRock, and generally will not manage the Funds with the benefit of information","page_number":132,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"d22477c5-6ce4-4844-be66-034c675244c1","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":132,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"eef64103-eda0-4464-a81e-82f2f8eb8049","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":132,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"a838abc0-d0f3-425a-9d38-d2e17293aae6","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":132,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"64486a05-8b6e-4b0c-8fd4-fd6e5420f482","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":132,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"da262295-433f-4dc3-b1e0-3d5ade8adee7","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":132,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"84d2f070-91ab-46e7-b8bc-73c874d3397c","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":132,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"0d187ecd-3e7e-4a5c-b7c3-b83a7e733e1f","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":132,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"afc8d7e6-5482-4fca-af27-b5141318489d","block_type":"box","text":"II-95","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6339e0bb-f10d-471f-9e27-295b662c14bd","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"06cbff8b-fbae-446c-85bb-67ac5652c66b","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":133,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"cee40969-32f8-463a-9f4c-b560906ddda4","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). Information barriers may not","page_number":133,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"671c60a2-6980-4c3c-b5b9-fb6ecf0fa900","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":133,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"3969c59e-961a-44ac-8366-b7261d31e328","block_type":"box","text":"and actions by personnel on one side of a barrier may impact the potential actions of personnel on the other side of","page_number":133,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"d80a346f-ca04-4783-8c1c-efa7fa760ee3","block_type":"box","text":"a barrier.","page_number":133,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"eb9e36fa-c5ae-4bc3-91a5-7ca6efb4f2fe","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":133,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"4f7c47e7-3236-4ac0-81e6-4a04417409a5","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":133,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"32e2e19f-28c9-4f1b-b8ef-93008539d1e2","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":133,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"d2341272-b5e2-48b3-8ce7-b71368914e65","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":133,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"12924902-b615-491f-b079-e1ebfd4c35f2","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":133,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"9e7429c2-59f1-4035-9d8c-1f92962d612c","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":133,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"8ce5ffcc-8a69-4024-8653-abb19c91cf83","block_type":"box","text":"that operate in cer tain industries (","page_number":133,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"4fe1619a-58bf-4e86-ac11-0fbd3e9a2701","block_type":"box","text":"e.g.","page_number":133,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"9f200c9c-1b47-4074-8190-e584d0722fb3","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":133,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"590a12d1-28f8-47ab-a85d-2214c301a913","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":133,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"fee1d796-5792-4f52-8479-27d706e93209","block_type":"box","text":"e.g.","page_number":133,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"edc921e0-603e-49ce-af9a-ef512840f71c","block_type":"box","text":", with mechanisms such as poison pills","page_number":133,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"887b40f0-6c72-460a-a2a4-2fe807416fd0","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":133,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"1ec0a2bd-9e59-4693-8688-df73fa39fcd1","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":133,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"302f0773-b132-46bd-9692-e28b79296472","block_type":"box","text":"not be exceeded without the grant of a license or other regulatory or corporate approval, order, consent, relief, waiver","page_number":133,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"63500363-536b-4e10-a261-f40012c728e4","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":133,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"a26a708e-c94c-4274-b5aa-53ee64001290","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":133,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"8dc5af5c-0e6d-437d-afff-00d35139cdc9","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":133,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"e0a93f50-8370-46fc-8003-7495c214879b","block_type":"box","text":"seek to make indirect investments (","page_number":133,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"1e1ab0aa-a900-49f3-b10b-ed28d7493813","block_type":"box","text":"e.g.","page_number":133,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"61e222e3-7998-412f-9d4b-fdc8167be85d","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":133,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"1cd7c7fe-a857-49a1-b9df-d6be756b1daf","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":133,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"cc260efb-e5f9-481b-b6c2-7b1d4e00668b","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":133,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"9546a758-d9c2-4950-8f44-763b848b9026","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":133,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"3653148b-075b-4f1e-ae4d-7a13dab5d6fd","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":133,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"af6b1bf5-5960-44ba-8d17-a614c6098669","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":133,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"ce9d113b-0053-4352-99a7-2b0c07eacb6c","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":133,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"92defadd-ee9d-47e7-bfde-875f4c020170","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":133,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"642063ad-488b-4a51-892b-974689906df6","block_type":"box","text":"client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of clients to purchase or","page_number":133,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"1f147b24-b873-49f8-b9fd-9fadb07a96e1","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":133,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"dfd992bd-ec08-4f46-a241-46f3227f31d9","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":133,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"0b97d8cc-0553-48c1-ae1f-1c3b7f2c5354","block_type":"box","text":"an ownership limitation or restriction, a client may be unable to purchase or directly hold a security the client would","page_number":133,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"8e419a99-b180-4cb0-841a-6d72a8c6f134","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":133,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"661d5a07-c102-4e61-88f1-dc653523a5ec","block_type":"box","text":"instead of the specific client being restricted. For index funds, this means a fund may not be able to track its index as","page_number":133,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"84ac29f2-a99a-4c35-9434-6594e346c6e8","block_type":"box","text":"closely as it would if it was not subject to an ownership limitation or restriction because the fund cannot acquire the","page_number":133,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"f84f60ca-6fb0-43da-a3f8-fbd402b69850","block_type":"box","text":"amount of the impacted security included in its index. BlackRock on behalf of its clients may limit purchases, sell","page_number":133,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"acf64a92-b773-4898-b5da-f44de5c0c58a","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":133,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"10d034d8-dc30-4053-a2e7-60e8ce305c36","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":133,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"aca18128-b40b-475d-ba18-518ce5e4bc28","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":133,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"e64898bb-24dc-426d-bc53-13a5fe646485","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":133,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"618ff343-5932-4cbc-aed1-e92f421984a7","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":133,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"b2435f3b-c7b7-4350-97c6-fab14c999da2","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":133,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"d675de31-10c7-409f-9611-bb88c73adce1","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":133,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"1a6c2814-2ce3-4148-9181-245698f149e6","block_type":"box","text":"permission will be granted, or that, once granted, it will not be modified or revoked at a later date with minimal or no","page_number":133,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"ea4e9caa-cd06-41cb-8220-f91d059a9cca","block_type":"box","text":"notice. The issuer and/or regulator may also require that BlackRock on behalf of itself and its clients take or refrain","page_number":133,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"c9fb949c-5323-46ce-8352-8798e0bb003c","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":133,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"5338f813-eefc-4087-b907-5c8b08cd2466","block_type":"box","text":"may accept if it believes the benefits outweigh the costs and may limit BlackRock from taking actions that it","page_number":133,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"36540fc5-47bc-44ec-87e9-3ed3449c23f3","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":133,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"b3529732-1c4e-4934-b3e2-9f6fe6d04946","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":133,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"1ddded3e-1725-40d7-8300-b1302aa70eaa","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":133,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"f48eb7b1-4620-43f0-bf8c-15509d1e7edd","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":133,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"fe708266-d8f1-469d-a58b-16c184ac7e6d","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":133,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"35e4d1b2-d0c2-4a35-8761-d1f434fc12d7","block_type":"box","text":"respect to ETFs, remove such securities from the list of Deposit Securities to be delivered to the Fund in connection","page_number":133,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"563542d3-4b68-4c16-b863-cb2b9dc5e76a","block_type":"box","text":"with purchases of Creation Units of such Fund. If client holdings of an issuer exceed an applicable threshold and","page_number":133,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"be3f9230-e77d-4f69-8189-d38b0aa6c7c5","block_type":"box","text":"BlackRock is unable to obtain relief to enable the continued holding of such investments, it may be necessary to","page_number":133,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"60d75a4a-36ed-47b5-9acb-4f28574702ce","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":133,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"4f992554-29ab-43f8-963b-832c419272ac","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":133,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"882152a5-d0f6-4730-93ae-8076d02b86c1","block_type":"box","text":"II-96","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"51b059d0-d12a-4fda-9af3-fb0298afd4bd","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f0aa5f99-44de-4412-bd4c-28d4c7d6e183","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":134,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"6566e156-fc95-47cd-954b-f56708f8b338","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":134,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"beb2c13f-a133-437e-a922-b1cb635bc905","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":134,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"a472ad79-0586-41d9-929c-d8d0d94bde73","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":134,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"c3e05a65-b1bc-477f-a981-9da9c564522e","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":134,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"d986fc7f-de02-4f45-80a4-4bfa1fdaf518","block_type":"box","text":"strategy with respect to such security or asset.","page_number":134,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"6d75ed23-5627-4a18-b562-007792c600be","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":134,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"3201dfa9-4040-4ee5-baf6-8c7c023e625e","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":134,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"930adb3d-5ccf-42e5-86f6-bef49eb76bbb","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":134,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"2efde946-9f78-4450-b694-c18cc69c9f63","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":134,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"063abce4-2a5b-41c4-b102-43657059c62e","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":134,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"996c221c-4b04-4905-9b3e-db5777d81e25","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":134,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"f4037147-acc2-4cfe-842c-ce4cd298d9b7","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":134,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"70bb5df2-375d-42a2-abd4-5918eb5cd85a","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":134,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"d25f5113-a4c4-4caa-8fd9-8f8bb369d5e1","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":134,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"6702f370-0eaa-475a-890e-4a5c22e852db","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":134,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"8cb40320-1356-4a2b-92f0-e710fe3de1bc","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":134,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"900ddbf0-69a4-4fae-ae6b-ab23a9a82eb5","block_type":"box","text":"e.g.","page_number":134,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"9b8a3265-be0f-482b-a972-f5f4138c52a6","block_type":"box","text":", custodians,","page_number":134,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"84f058e1-f5b7-4c6a-9061-cce237dea542","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":134,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"8fe7a656-8de5-4541-a23f-8c733b9313ce","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":134,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"bcf60575-0a68-4829-9465-ed06b7f5c920","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":134,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"b871a000-b598-4217-b87f-f397f55ede71","block_type":"box","text":"provider’s services are terminated with respect to a Fund. To the extent that BlackRock is responsible for paying","page_number":134,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"55032e4b-99e4-41e2-9ac4-ef24b5c19851","block_type":"box","text":"service providers out of its fees that it receives from the Funds, the benefits of lower fees, including any fee","page_number":134,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"0f4c5fc6-7013-4bec-bf6e-a6bda807cfae","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":134,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"2e18efd1-ac5b-406b-98ad-e2292f26c963","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":134,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"9f55adec-e296-4988-9b52-319dd1548cff","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":134,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"bf7f1ef1-73a4-44a4-8d48-6bad665bb4a0","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":134,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"e2cc484b-8980-4e33-a46d-e88284e78832","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":134,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"75efcd3e-f487-4f44-bdb1-1dedea05b5a0","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":134,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"12f3d7b1-72bd-4170-bcb2-e29b98c6f8bf","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":134,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"2a551e94-81ce-46b5-beaf-b76631c9282d","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":134,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"9d99ff69-c02c-48a1-ab26-35b10fe1b37f","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":134,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"a330972d-8dc1-42d9-be51-4de36aaa0f91","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":134,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"3c39b620-98d8-4625-ab06-5dd58deb5ca7","block_type":"box","text":"information systems used by Fund service providers. These systems are, or will be, used by a Fund service provider","page_number":134,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"786dd0e1-3a24-4f60-949c-8691ad3b2561","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":134,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"7d16d9ed-9e61-49df-8206-d92ca3d73473","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":134,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"ddfcdb33-bb28-4253-a62e-b1acee687e71","block_type":"box","text":"provider remunerates BlackRock for the use of the systems. A Fund service provider’s payments to BlackRock for the","page_number":134,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"716252f9-1b32-4087-9be4-d7e17a6af323","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":134,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"da3a8cbc-d92c-4bd3-86b4-35564cfa2b8c","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by BlackRock","page_number":134,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"50ba447f-cf28-4219-811b-2f0c5411eae3","block_type":"box","text":"may create an incentive for BlackRock to recommend that a Fund enter into or renew an arrangement with the service","page_number":134,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"ec321413-a5b9-4f84-bdb3-7f4cb90c9e87","block_type":"box","text":"provider.","page_number":134,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"081560b4-5477-4a0e-a830-ec3538a39932","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":134,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"74054b81-81de-4673-95bb-d2989f47192c","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":134,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"5e45a46e-3a90-4734-a415-6ba81cc27fab","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":134,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"38644fff-6318-4f07-9a78-eb5585d5337b","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":134,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"a2f96dba-62bc-4b7b-9e35-27ee00e704db","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":134,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"f3d9374a-6ba8-449e-8902-bbcf5d0c2424","block_type":"box","text":"PURCHASE OF SHARES","page_number":134,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"87524db1-8405-48a2-9ba0-0bfa680db230","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under Rule 18f-3","page_number":134,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"3ef2c1b6-4bec-47a7-b23b-d1f2a4136110","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":134,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"fdca623f-9696-4085-880d-081033e7c2ab","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":134,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"f92dbd5b-c271-4a3c-a52b-79642923d215","block_type":"box","text":"generally not subject to an initial sales charge, and Investor C Shares are sold to investors choosing the deferred","page_number":134,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"20bff856-b83c-4fbd-b7d6-369059230863","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":134,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"e3162b94-31e9-4be8-9a9d-fcb74bc9c412","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":134,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"5241f248-cf5f-49d1-8d00-0e1f6d72eacc","block_type":"box","text":"II-97","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"204dd09a-26f9-457e-9818-132e2d4a91f3","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8324a80-2f2d-463a-8070-b67d4ad342f1","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":135,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"5e934e49-7703-4d2c-a574-c3610ba9b184","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":135,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"41786ab9-1d8f-4f4b-9847-8f0d2a1b6544","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":135,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"b89531c0-6898-415c-8628-0c448e01bf2f","block_type":"box","text":"platforms, which are platforms where clients invest in the Fund through a single omnibus account in the name of a","page_number":135,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"214f72d0-51c0-4e71-a800-ea09b124ce78","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":135,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"13e8e5b1-4908-4641-a9fb-241f288e918d","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":135,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"3a75d6e1-d448-4ca5-8adf-390f58762c9e","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":135,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"2eaa2e76-5773-48c9-8036-5e8789501b74","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":135,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"a337acbb-572f-4e5d-b5e1-ff97d94a180f","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after receipt of","page_number":135,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"c966d7c2-1277-44a1-aa84-3dee96f1256b","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":135,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"25438f08-0156-4ca3-a3c3-96a12b143067","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":135,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"788387f4-6809-49e0-90fc-f04f4daa7220","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":135,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"5f85959e-a50e-4492-9fa0-3ad63a10c718","block_type":"box","text":"offering price of each affiliated underlying fund is based on the NAV of such affiliated underlying fund next determined","page_number":135,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"b64ac3f7-b964-429e-be72-c8edc28fc573","block_type":"box","text":"after a purchase order is received, or deemed to be received upon receipt by a Selling Dealer, by the BlackRock","page_number":135,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"07f7501e-2b82-4d34-98b8-d2f2bcf2f28b","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":135,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"83e8192a-d48e-4477-b59f-2efbc90b9888","block_type":"box","text":"orders received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New York","page_number":135,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"f2522fa1-3998-4145-b7eb-2f2d63403024","block_type":"box","text":"Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed,","page_number":135,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"f61eea33-eb80-4447-9fce-2f4f34ebc288","block_type":"box","text":"including orders received after the close of business on the previous day, the applicable offering price is based on","page_number":135,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"f34df639-9281-4391-acb9-26067c32b2ca","block_type":"box","text":"the NAV determined as of the close of business on the NYSE on that day. If the purchase orders are not received by","page_number":135,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"83b77cc1-d231-4fd5-93f6-46fcdac74730","block_type":"box","text":"the Selling Dealer or a BlackRock Target Date Fund before the close of business on the NYSE, such orders are","page_number":135,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"fa531298-9d8e-4f78-b420-720b749d9652","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":135,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"94ff2c1f-6a78-428a-ba00-70d98032a11c","block_type":"box","text":"payment on a timely basis. Generally, if payment is not received within the period described in the Prospectuses, the","page_number":135,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"7e457cbc-6c71-4443-b3bc-664e33663022","block_type":"box","text":"order will be canceled, notice thereof will be given, and the broker and its customers will be responsible for any loss","page_number":135,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"8e1f8e32-1c52-426c-aa6d-a115d82208c5","block_type":"box","text":"to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the Transfer Agent.","page_number":135,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"32d39b21-defc-4fd5-8b59-712570a1426b","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":135,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"0c05693b-5d6d-43f0-af6b-12121b4e8f00","block_type":"box","text":"minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or employees of their","page_number":135,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"676a09fe-c228-4889-81ce-1aab05f6ef5e","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":135,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"8e8bbe4e-b33a-4c41-b12c-ce352d150c06","block_type":"box","text":"investment is $25.","page_number":135,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"4d46ddb9-18c2-49db-b825-605aee016d42","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":135,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"a7ec2721-b7dc-4c84-a997-d74688b2857f","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":135,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"0728f1bc-bff7-4694-85a5-2e937db99d55","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":135,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"e9692edd-5011-473f-a47e-05de11bed1ae","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":135,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"f6dcac7b-66bc-49b4-b47b-555ec90c3c4b","block_type":"box","text":"subsequent investment requirements and suspend and resume the sale of any share class of any Fund at any time.","page_number":135,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"c31d53ec-9083-401e-8a5e-452f699d71bf","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":135,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"90070431-52b0-4567-a826-f13f356b5159","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":135,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"1e11e067-c67e-42d4-a8eb-62982abaf3ac","block_type":"box","text":"class of shares of the same Fund, provided that the exchanged shares are not subject to a contingent deferred sales","page_number":135,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"1b1461a7-168b-4a13-b87d-b07546ceaf44","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":135,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"51af69d4-17e7-4686-8ed1-af63430b05ad","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":135,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"d876cf26-a176-4c02-a475-6a7b9f70894c","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at any time","page_number":135,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"4bd1c010-9134-43ea-8ae1-b688d9f6e309","block_type":"box","text":"in response to conditions in the securities markets or otherwise and may resume offering the shares from time to","page_number":135,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"e8ae04e1-8542-429f-916f-b1ea83910753","block_type":"box","text":"time. Any order may be rejected by a Fund or the Distributor. Neither the Distributor, the securities dealers nor other","page_number":135,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"ab8d9162-1cdd-45ee-9767-ff117faa175c","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":135,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"f72b3088-7a88-4984-b86f-9db97e37bb5b","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an individual,","page_number":135,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"70f1aec1-8840-4e4d-9c28-c9bd5fc3eae1","block_type":"box","text":"(ii) concurrent purchases by an individual, his or her spouse and their children purchasing shares for his, her or their","page_number":135,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"8867f0bd-62c3-4efc-8ac8-92bbd858ad3b","block_type":"box","text":"own account, and (iii) single purchases by a trustee or other fiduciary purchasing shares for a single trust estate or","page_number":135,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"56a6d375-6527-4afc-94eb-8607e806c92b","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":135,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"6613f8c4-a2f4-44ae-a724-f6f24682d20a","block_type":"box","text":"purchases by any “company,” as that term is defined in the Investment Company Act, but does not include purchases","page_number":135,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"e9e7e595-51e0-4c97-a13c-108649c65e81","block_type":"box","text":"by (i) any company that has not been in existence for at least six months, (ii) a company that has no purpose other","page_number":135,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"ebfa8d9f-e1cb-4790-b38b-e93d85cff97f","block_type":"box","text":"than the purchase of shares of a Fund or shares of other registered investment companies at a discount, or (iii) any","page_number":135,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"4c3d69da-8845-41cd-8acc-4cd745e204ab","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":135,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"4b97207a-5b33-4671-93d6-237527663bc6","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":135,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"aeef4361-af9a-4972-91ca-3bde7cc73b6a","block_type":"box","text":"adviser.","page_number":135,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"4cee2593-d716-4777-bc0e-76f7b5e3703f","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":135,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"c14f5c73-6cbc-4c63-b5a9-2de14ecf818e","block_type":"box","text":"and may not be distributed by a foreign financial intermediary. Under this policy, in order to accept new accounts or","page_number":135,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"23a84b50-b279-4865-8c62-019ebdac43e4","block_type":"box","text":"II-98","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8a24a6d5-0fb0-4b93-a105-4b7e4855c0ed","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1caca4cc-b6e2-4d38-9f43-5ee00c6de41c","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":136,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"6db98a77-f120-47a0-ad28-947c15110f83","block_type":"box","text":"requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within","page_number":136,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"c4f8b4f2-cb17-4565-807d-5a2094e96eb3","block_type":"box","text":"the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer","page_number":136,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"128b0a5a-89ef-4ddc-b96e-b96317db00b5","block_type":"box","text":"identification number, and (ii) a financial intermediary or a shareholder that is an entity be domiciled in the United","page_number":136,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"f9b68981-fb31-4c0c-b523-ce9569e9c80a","block_type":"box","text":"States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":136,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"a4dcee90-1319-4460-a5ff-06feff9761a7","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will","page_number":136,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"73e09aa4-0ca1-43ea-82f4-8cb60eca12ba","block_type":"box","text":"also be restricted from making additional investments.","page_number":136,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"2cb81fb1-ad8d-4816-bd62-c875d1e4f0f6","block_type":"box","text":"In-Kind Purchases","page_number":136,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"123f6b9c-ff24-4173-a23e-6475e34e0d68","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":136,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"8517cfc2-3877-4ae5-bd6d-9c3ca5881d54","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":136,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"305726a4-d824-492f-9f83-c1dd7c1d0fa2","block_type":"box","text":"limitations of the Fund as described herein. In connection with an in-kind securities payment, the Fund may require,","page_number":136,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"a77eeb33-1b29-4da9-9adc-aa3fa5626eea","block_type":"box","text":"among other things, that the securities: (i) be valued on the day of purchase in accordance with the pricing methods","page_number":136,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"124cf031-a170-4ed9-a316-e3ad3343f6c0","block_type":"box","text":"used by the Fund; (ii) be accompanied by satisfactory assurance that the Fund will have good and marketable title to","page_number":136,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"4635e454-b2c1-425a-b882-959c637220a2","block_type":"box","text":"such securities; (iii) not be subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to","page_number":136,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"2256e244-6dec-4d7f-a554-20f4da088222","block_type":"box","text":"the Fund; and (v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":136,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"0ecd3d79-dd84-425e-b14a-e392994c4b35","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":136,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"1cc8ddc3-c49e-4bed-a952-c3e516b7d856","block_type":"box","text":"of the Fund engaged in the in-kind purchase transaction and must be delivered to the Fund by the investor upon","page_number":136,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"75eff345-2f57-4745-bea9-7360cfe109bc","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":136,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"dedad20d-ee2e-45c9-b668-2808c997f87c","block_type":"box","text":"has settled.","page_number":136,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"7a9d2d78-8990-4890-91d7-2bb7b25ea693","block_type":"box","text":"Institutional Shares","page_number":136,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"94c67fdd-c507-4a0a-9576-c0cc4bd3c07f","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":136,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"3b9ec084-88cc-43fe-aa91-a606a2dac2cd","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":136,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"77568c2c-762b-4834-8e92-2bf4a7eacb68","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":136,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"a8b0d346-f308-4ac9-acf1-129f705f60d5","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A Fund may in its discretion waive or modify","page_number":136,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"85b040f4-0bbc-4741-8f8f-183e266d49d3","block_type":"box","text":"any minimum investment amount, may reject any order for any class of shares and may suspend and resume the","page_number":136,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"bdd512a7-47ca-4fdd-9955-a4edb6b38b9a","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":136,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"64924806-791b-4580-9d5e-5704fb3d11ea","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":136,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"d3c746ed-1f59-4327-bbe5-a77ef086d82d","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":136,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"c5de9a0c-2f1d-4193-ace2-cde0f393923e","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":136,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"349e6f36-c94a-4bd1-8750-898eb2310436","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":136,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"4752f1f9-7edb-493d-8c2f-4be0cbe5a117","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":136,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"f7cb4e42-1665-4b3f-b77e-5442270a01ce","block_type":"box","text":"redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its customers a schedule of","page_number":136,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"3c409758-616f-4342-9cc7-07f979aa1f39","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":136,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"1b9ee9e9-51b0-4452-b4f1-f4708d4a1858","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":136,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"82f03fc9-d8f9-481f-b2f7-32473fdcd7c7","block_type":"box","text":"these fees and conditions.","page_number":136,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"e4edbe95-eece-425d-9b2c-5179fc9873ed","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":136,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"91259c59-3e77-4918-bc3d-626bf1d8e32e","block_type":"box","text":"4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may also, in the discretion of","page_number":136,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"92b6ed54-6870-47c5-9e57-94355e7143c0","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":136,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"703d0793-ed34-4837-9e06-43d54fa2d234","block_type":"box","text":"purchase order is not received by the prescribed time, an investor may be liable for any resulting losses or expenses","page_number":136,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"09c620c6-8789-486e-91d0-0b966c4d9346","block_type":"box","text":"incurred by the Fund.","page_number":136,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"c384e4ee-6eb3-4fb5-91b8-04de866a2008","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":136,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"4011fb95-6416-4553-8fb0-329b7e1004e9","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":136,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"c6455059-8318-4a11-bba3-6abe023a8863","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":136,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"9edacab9-a060-4e15-9d9f-4d63c282fbac","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":136,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"dbd1ad4a-26bf-4959-8182-f1945c2c48b4","block_type":"box","text":"investment of $2 million who may purchase shares of a Fund through a financial intermediary that has entered into","page_number":136,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"56e52f17-8c5f-4a07-b943-01fb30bbc1b5","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":136,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"6da20459-b5aa-4562-a45d-a186d7f5352f","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":136,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"4136c7b5-0c91-4aa6-bf92-6ed1df27ba1e","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":136,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"92f58dff-1fe6-4aec-a4fd-c7a8b2561b9c","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":136,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"830522d8-8206-483e-957a-479c59704962","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":136,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"b157c786-469a-43fd-8eed-2e04a49ddd09","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":136,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"4461cdc2-ab4a-450b-99a0-2e9615201f15","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":136,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"d4522192-bf74-4308-a200-91e0ac0dc837","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":136,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"56c1939d-cddf-43b2-afe6-2b256ed1379e","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":136,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"faa8fb8e-ea64-4ecb-9d2a-b906b45aa227","block_type":"box","text":"(i) charge such clients a fee for advisory, investment consulting, or similar services or (ii) have entered into an","page_number":136,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"7b96017d-b2bd-4098-9e6d-3a8b0bff82c1","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":136,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"6a8af81e-99cb-4d41-9d37-78c83aff0604","block_type":"box","text":"II-99","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"719a5223-fc82-4389-97c4-44166c7d83cc","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3cf577fa-b8c3-410b-a3ae-7764438b53f6","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":137,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"1444fa2f-3e34-4001-b0fa-357949f78767","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":137,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"c3215ab3-9c2e-45bf-bb8a-3553558999ac","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":137,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"576b0c09-7d7a-4c37-89a7-032bf8fac8b9","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":137,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"46a73ae6-0448-4f6c-90f6-60a3e346000f","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":137,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"6df53242-cb5f-4628-812c-55bb778ea708","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":137,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"9658f9ec-3b8b-4179-9ff4-53eeb7d190bc","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":137,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"3f0367d1-edab-487a-9f11-3ebac4b03865","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":137,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"ec754524-c930-4120-8730-4fe6de288d31","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":137,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"f06279ed-571f-4cf7-af10-752f3a2e4eb3","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":137,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"05358644-38aa-48b7-9fa6-c78628601341","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":137,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"65cd1ae6-40a0-437e-bf13-3b96d24f8ed3","block_type":"box","text":"Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such","page_number":137,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"9b0a18c2-fd96-4e0d-83d2-19505ebab861","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":137,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"3be6ea2b-6513-469c-a0d7-9dcd22bc81a2","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":137,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"986dfa72-333a-4f6e-b3ae-5271142114af","block_type":"box","text":"with the Fund. Employees, directors, and board members of other funds wishing to purchase shares of a Fund must","page_number":137,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"e6769cf9-3e9c-4120-8c4e-9d7193143b01","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":137,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"a08f6f89-9497-4d3e-9d9c-62576e0d71ad","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":137,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"18b2da15-30b6-47ae-be99-023059e391d0","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":137,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"f1ff5645-35c3-4312-9f62-b7052609c859","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":137,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"1c5b0541-8d40-422f-b780-8f571c1fb11e","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":137,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"a05eeb59-e550-46da-a70e-121005b2cfc4","block_type":"box","text":"for dividend and capital gain reinvestment only. The Investor A1 initial sales charge does not apply to the transactions","page_number":137,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"7437f55e-7490-4763-ab8f-9564b32fcb4f","block_type":"box","text":"described in (i) and (ii). For ease of reference, Investor A, Investor A1 and Investor P (discussed below) Shares are","page_number":137,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"7a86d74f-f36a-4261-9571-75a42074aaa9","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":137,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"02dff801-1aa9-4a5b-a633-7aa8b94a2a6a","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":137,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"b241f3e2-71ac-4f71-b66d-c7d49d68213f","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":137,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"406a64c2-e0d0-45bb-aee5-17829105b4b5","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":137,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"948534ae-6665-498c-ac8b-0bf1e4555309","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":137,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"3b5d337f-1a23-4ec5-a7ab-9c90860f7e2c","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":137,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"692fd8ff-9a01-40f9-b072-a5410f4794e8","block_type":"box","text":"for an extended period of time also may elect to purchase Investor A Shares, because over time the accumulated","page_number":137,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"65c64b24-3809-43bf-a9d5-f3d260bcbe80","block_type":"box","text":"ongoing service and distribution fees on CDSC shares may exceed the front-end load shares’ initial sales charge and","page_number":137,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"79076d41-ca46-48ce-8bc1-0df449efe4f3","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":137,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"3ae97f90-a9d1-4475-a610-acadfc21d0f3","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":137,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"ad921a64-ebba-4555-86ee-9272637171ce","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may qualify the","page_number":137,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"9c107b0f-3077-4620-9b4c-82d55bf350e8","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":137,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"da06e31b-22b1-4ea8-9ce6-ce409f6c8c8d","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":137,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"8c648b2a-8ebe-4e81-a908-9608091f2c36","block_type":"box","text":"have lower total returns than the initial sales charge shares. The ongoing front-end load shares’ service fees will","page_number":137,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"6d18de77-c624-4a9e-bb33-8d187c43ee25","block_type":"box","text":"cause Investor A, Investor A1, Investor P and Service Shares to have a higher expense ratio, pay lower dividends and","page_number":137,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"19820778-bc78-4566-b146-d5bf6f24eae3","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":137,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"fce6e746-278f-47fb-a8e4-ee3a08825bfb","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"db3355b2-bbaf-43f9-87cd-73d45d51a994","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":137,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"0770b5f5-95c2-4916-a498-ef8ddca59245","block_type":"box","text":"periods indicated.","page_number":137,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"869e8d42-28f2-4b26-a118-f4e4cbc325ca","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":137,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"e73c16bb-4868-4ef4-893b-02754fcc3f4d","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":137,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"b9df51f1-f732-463b-a4ae-889bac155772","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":137,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"b7a9d86a-a7b7-402c-82e5-3bbea6e025c9","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":137,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"1f37bccf-d9b9-4220-952b-2000ffc6a604","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":137,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"1c11232a-fb85-4cdf-9dd8-96b6292cd0f5","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":137,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"c51a4531-6146-4ff9-8755-27e3642c9583","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":137,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"7bd4cc72-36c0-4563-8ef5-04b9babaf6e6","block_type":"box","text":"entered into an agreement with the Distributor to offer such shares and are subject to an initial sales charge. The","page_number":137,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"4302a583-8f32-43d3-b938-8f522a6b2ec8","block_type":"box","text":"ongoing front-end load shares’ service fees will cause Investor P Shares to have a higher expense ratio, pay lower","page_number":137,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"f30d9fc3-5225-43a7-8fe9-fcb1684597dd","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":137,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"2f5ec2c3-4aca-4015-9241-a29b04cde4ac","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":137,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"5c61ca52-ec54-4a8b-9642-9c3ebae49d6d","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":137,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"bb90e632-5e74-453b-be77-46b8f0f30ac6","block_type":"box","text":"II-100","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a211d126-b374-4974-acca-45857331fdbe","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64fb1c9a-55c8-4213-b6da-f6c1f974d9f5","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":138,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"71193c4a-3702-439a-b25f-02ea2e90399f","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":138,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"2ff6afad-8993-47f6-bbd3-01ae77a8ae93","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":138,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"1ef16985-1a64-45ca-8912-1af7642a50e8","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":138,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"da9d4f38-dcf9-453f-a919-35e6e43a39cf","block_type":"box","text":"Reduced Initial Sales Charges","page_number":138,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"3a8e5e41-a92a-49a6-bf92-6b12140710fb","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":138,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"5fcb955b-6ce5-4347-bb15-45c5dc2dbaa3","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":138,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"8fabf3b1-a233-4ca8-8cbb-fef48c1b8f60","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":138,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"bd551466-462a-4bbe-8be9-19aa7e8c6270","block_type":"box","text":"exchange shares of a Fund from one class of shares to another class of shares of the same Fund provided that the","page_number":138,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"f39dfad8-929a-40cd-93cd-50b75c144eb5","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":138,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"549aab15-1224-46fe-b8d4-d3cf41b7cd9c","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":138,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"ef9d2508-0213-4ec5-8464-94d6e87a3cab","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":138,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"cdb20b69-493e-4e0b-beec-637044ba1efa","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":138,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"378be500-62c7-4808-9a5b-8fa10787567f","block_type":"box","text":"Reinvested Dividends.","page_number":138,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"0d644d0b-db98-4e4c-b0d2-24157c69ba33","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":138,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"6690ec92-47ce-4db6-8004-4f398fa6b5c0","block_type":"box","text":"reinvestment of dividends.","page_number":138,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"da713292-987f-4378-bfe1-e1756065ac83","block_type":"box","text":"Right of Accumulation.","page_number":138,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"413a0486-3723-487a-8340-fb0029c43a7d","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":138,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"34f57818-ba2e-4e89-afdf-58e8917705f3","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":138,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"e64b80d2-0c96-4d2d-81a5-6c46db58bb8f","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":138,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"7a354b48-75b9-4b8f-956f-9ed20a1da173","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":138,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"2c0405ea-f307-4026-8774-9f263905aaf3","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":138,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"0f5ea3e6-4941-4b0c-aa15-b6461504f42b","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":138,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"9cf6ddcb-a3f6-4451-8284-7469cc32f073","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":138,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"f636a09e-7e94-4252-89cc-54fe09141984","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":138,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"5a3a28d7-e88c-48e9-b563-5040243f07a6","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":138,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"db15fb42-69e4-4884-955c-d37a623988d4","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":138,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"c72213a1-9c34-47a3-b96b-fb56352a6759","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":138,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"bffe2019-0ead-4db2-b07f-d7f4ba307ff6","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":138,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"dcecefc8-88b6-4e66-9403-5e02636c09e8","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":138,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"a6a80e69-c7e8-4cd8-8135-086792d2c87e","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares","page_number":138,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"86c6bda7-5381-4465-bd97-d871a41b066f","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":138,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"5384b60b-72f9-497e-b9d7-b98fc4b20a80","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":138,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"ec31a733-e8f8-4867-b548-1d8bb7a18b62","block_type":"box","text":"Letter of Intent.","page_number":138,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"c36dbfba-e081-4633-95d8-a0ff593e485d","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":138,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"23925474-6978-4cb3-9634-0516ebd516ec","block_type":"box","text":"Intent” stating the investor’s intention to make one or more of the following investments within the next 13 months","page_number":138,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"fc66fc6d-6759-45b4-b9a7-b1608e414509","block_type":"box","text":"which would, if bought all at once, qualify the investor for a reduced sales charge: (i) buy a specified amount of","page_number":138,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"dfaa19a7-f5e2-4365-90fe-9c69891d9115","block_type":"box","text":"Investor A, Investor C, Investor P, Institutional, Class K and/or Premier Shares, (ii) make an investment in one or","page_number":138,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"df10564e-c0b9-4ab6-9cd2-da14c4c868e9","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":138,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"3a5a0429-ffdb-4b24-9bfe-046618803d1d","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":138,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"922e18d2-b802-460e-b27c-e09abd2991ac","block_type":"box","text":"initial purchase requirement. The 13-month Letter of Intent period commences on the day that the Letter of Intent is","page_number":138,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"f70fceb6-a669-4b1f-92c7-c2fc6591f896","block_type":"box","text":"received by the Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":138,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"7a7ad880-f97e-4e91-8793-654211d798b8","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":138,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"087831a3-6916-4c06-a4b8-228132e4c7ae","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":138,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"42dc925e-2a5e-4e9e-83a3-297f6cec867f","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":138,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"ae58039b-63c7-46ab-b244-aa2e0d62b831","block_type":"box","text":"the Fund of (i) any current holdings in the BlackRock Funds, Eligible Unlisted BlackRock Closed-End Funds and/or the","page_number":138,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"d666fed6-8f5f-4eca-a7a0-903b6babf902","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":138,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"032717bd-1f89-4ce6-81c5-9cda4e699fbb","block_type":"box","text":"subsequent purchases that should be counted towards the Letter of Intent. During the term of the Letter of Intent,","page_number":138,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"7b2685c0-de0a-4a88-8b2b-e8916063ffb1","block_type":"box","text":"the Fund will hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":138,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"68dfb7a2-77e9-4994-8360-84760f4589a9","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the Letter of Intent is","page_number":138,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"289ed49d-f93d-418d-af41-42b789ab36ae","block_type":"box","text":"not purchased. If the full amount indicated is not purchased within the 13-month period, and the investor does not","page_number":138,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"5c98c610-5e6b-47c3-b396-2198cbeed189","block_type":"box","text":"pay the higher sales load within 20 days, the Fund will redeem enough of the Investor A Shares and/or Investor P","page_number":138,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"ef68550c-16e6-4fe0-b4b7-6633c7e55a27","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":138,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"94d51eb0-316b-48fd-86c6-ebe5c4b0233a","block_type":"box","text":"Placement Fees.","page_number":138,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"b3330262-de23-4163-b06c-5dfeb16e59f3","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all Funds,","page_number":138,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"672853d1-9274-475f-a08e-cf382ce75a3d","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":138,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"188bfdcc-8998-48f5-ba4d-abb41fe4d885","block_type":"box","text":"II-101","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4b386b2b-ac0b-4b60-b1f3-9e6c3ee84b10","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f27170c3-0376-45f9-9b87-64003780b9bf","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":139,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"6723815b-78a5-4e4b-a785-0e90eca96b15","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"60c86173-6924-46c0-b9b7-a8e222484132","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"b40d571d-6a5e-47ab-9622-2a74e4a7ee80","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"1744bc66-1c51-4175-80d6-218f43d29c5d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"04f84cbb-fbb5-4797-9664-b6d0954ff147","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"ee94f500-064f-4781-83b8-705510a72cc5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"67284088-5db0-420f-9beb-2fe66ac26750","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":139,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"80d808f7-fe92-4e72-9cb8-b8366cd5f1f6","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":139,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"68d59d41-22b2-4c7e-95a2-4650493be6c1","block_type":"box","text":"purchased prior to July 1, 2020) of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV","page_number":139,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"8a25f479-3d0c-4300-8610-89372d7bcbd6","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":139,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"6f2adf22-ca21-476f-ab9a-2268c5177818","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"1ddf91f4-d52d-4cf1-a680-3ee05162d8b7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":139,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"1f6494dc-0e1f-4392-9369-d55b0efa1fd8","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"a23d4108-27c0-4e41-9127-4743df583002","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"758d9338-e353-418c-bf64-5bce56408990","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"4071c6f5-665d-439c-ae1d-90fda6c773c1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"666d97e0-6192-47da-913f-bc966a181dc3","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":139,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"582a9776-9296-4ce8-bfd8-2481513ce101","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":139,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"914c3f6b-486f-44e7-bab6-11d450ab0d5a","block_type":"box","text":"SM","page_number":139,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"5110549f-6208-4f9f-80ec-eda225bd7d2f","block_type":"box","text":",","page_number":139,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"dfc55635-d048-4de6-97d7-e0ac051f1e71","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":139,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"8dc4177c-d352-4b12-bc04-8b7293f06133","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":139,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"674c2435-773a-4ada-aabf-abb260546c27","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"1c3d383b-b1d8-4471-838a-c8c9e89f97f5","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"e28ef0da-db3e-4bb5-875a-db3809cdf837","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"53efaf59-724b-4e0f-bb0a-2c3352270034","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"df0671d7-fbf7-431a-a634-08e7cefa418b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"42bbaf3e-6518-450b-9910-52712489b475","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"ddb57e95-8309-4a30-8df9-e22fd7dfd0a2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"dfa4484c-bf10-4a2c-b7c3-952c48aba62e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":139,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"bcaff150-b263-493a-bd8d-8a6cd2195459","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"1529e49d-397d-40c0-a1c1-f19f7bfd0a57","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"cd7e5d41-bf8c-422e-86f5-4946790a67cc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"cb254261-b323-457d-a28d-3e5223661c26","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"3e26ea8e-a909-4ed1-8534-750c1e7cc443","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"3d79a012-7e48-4772-876b-377945e39a10","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"d30e9eff-d5aa-4f4d-9a9f-3cfcdad51685","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"44defe8a-8e45-414e-a8de-46dbcf466625","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":139,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"0c1e4e8e-bf92-4e54-b0a8-dc66059525db","block_type":"box","text":"may be up to the following amounts:","page_number":139,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"b60256cd-32fc-43d9-9086-8f29b26e75b3","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"c0ec4869-019f-48e5-aacd-287e6a6bcd57","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"b48e3175-c6d6-4d34-a954-5d0fa263a534","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"1bd9fff3-6456-4dfd-9a89-2eeeb7f54e6f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"b80be5eb-73d1-431e-8f8a-36063c6b8e04","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"eb8200aa-a54b-4bfb-b86a-86bb167ae86f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"07c12596-009f-427e-b7aa-b238d00cdd15","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":139,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"ee201df4-1713-4b7b-86cd-b538fba73a10","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"5137e0af-d459-4bc3-a040-609800f9cecc","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"f7289d77-8b1d-47ce-9710-8d7012c1e5cd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":139,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"afc171bb-75e6-4432-981d-1883b6781f25","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"9a60dcc0-0c0b-4c6c-8eb1-da91789bfdb1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":139,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"bd4613e1-fe92-4b85-be3e-5ba5c3500598","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"e258f3e3-e9be-479e-8be4-3425cbb857db","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":139,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"3f3ececd-8861-4163-8411-b085d2a8b11d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":139,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"33fb9ba1-a71d-4f9e-ac83-a359a38cd481","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":139,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"896f1872-a7c7-46f4-9d65-1d027d62706b","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"94f6faee-1380-47c4-9f39-3087de2c8b93","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"17e9b934-3431-4cca-8d00-5060b48e12a8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":139,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"6f8e363b-a8ec-4fc4-ad9e-9bb14687f49f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"07b71222-ba51-4a86-b383-a688849a6b29","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"52a13216-decf-4e27-a13e-d2f35c8694d8","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":139,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"1a75b53e-15c7-4b76-872b-e45db47b917e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":139,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"51488ea3-5165-4e05-9586-09c834554333","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":139,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"1a22d07e-40c2-4d41-bb24-80542b43b356","block_type":"box","text":"Inc. (for shares purchased prior to March 18, 2019), the placement fees may be up to the following amounts:","page_number":139,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"14afa6c6-c704-4210-835c-c8944218d53d","block_type":"box","text":"$250,000 and above . . . .","page_number":139,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"2c6465a2-8015-4cd9-873a-86e8888d2926","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":139,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"927963b7-fc52-4f97-9d16-9b13c7704a0c","block_type":"box","text":"II-102","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fac7ad9b-166d-4010-a5bd-68242b1cd9dc","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"852c3e86-4be9-4788-bdc5-79b4a5765dcb","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"8a716c84-80bb-4408-bd4f-6fe8efec7dba","block_type":"box","text":"Inc. (for shares purchased on or after March 18, 2019 and prior to July 1, 2020), the placement fees may be up to","page_number":140,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"1394d9c0-796a-480f-8bd7-06036ae36790","block_type":"box","text":"the following amounts:","page_number":140,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"7fd3b970-af9f-4a93-bf71-87c1056a3ba8","block_type":"box","text":"$100,000 and above . . . .","page_number":140,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"196bc5bf-7962-412c-adbc-0b9ec0dc62e8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"56cf2ab1-e310-42df-9f1e-af4ae0849020","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"76aa754b-d8d9-448f-aca8-462aaee5c1d3","block_type":"box","text":"Inc. (for shares purchased on or after July 1, 2020), the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"08906ab6-60a5-42db-8bba-57fa837a158b","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"31cce8c4-c041-40a6-b132-f6cf1ee72b42","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"29106d3f-2092-4d60-acc1-78ee888de005","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":140,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"73d56789-a382-4cfb-81a0-177a1198f5b4","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":140,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"09ae1e48-d16e-4db3-8104-9431a94d24d1","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":140,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"b27a0f1c-c44a-4947-9dd3-e24d8090e4aa","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":140,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"7ec51fca-0763-4214-9ad2-3d13f7379bfe","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"57537ff6-645f-4c12-be04-e57d450ea09c","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"957803aa-2cc5-4b1c-9a2e-9d6e667212f3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"55e10530-5acb-48fc-a7ba-9265f996ff19","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"466eb171-99d5-4603-842f-dc8e4a7ba08a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"7fa953f7-272f-49b5-b685-55d956b6691a","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"d4cf67cc-c1ca-40dd-bfbc-a8bf8061ca90","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"1f0de713-6dd7-4089-9796-ca37bd7cdd2e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":140,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"5a7f03bc-b57a-46fc-b021-06e48e0e89cf","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":140,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"6ba5f293-4cb7-4362-b79a-8517187f4afe","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":140,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"009bd356-425f-489f-a9a1-8dfe0dd6f7bb","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":140,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"170a2943-682a-48b2-8c14-b927af02aa25","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"be466b6e-338b-42e1-bcb2-704858dc6bfe","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"a0b34751-10aa-4d9a-acaf-def819e192a7","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"03cfee3a-a2eb-4110-a10a-aa3093fa02a6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"13033332-a71a-42b1-a995-3a5d20033003","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"84b4be0a-a7d9-4f2e-9879-a277d65aa228","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"6089242c-d424-4368-90a0-801116937eb8","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":140,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"6815f950-e9bc-4f06-ac1a-a6decd0f7d15","block_type":"box","text":"®","page_number":140,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"fe9e11ac-e397-46f2-a140-cb3d3f922fe9","block_type":"box","text":"Index 2030 Fund, BlackRock 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amounts:","page_number":140,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"ffc979b0-9a55-470b-8688-657a253b12b5","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":140,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"6955be63-ee49-484b-9b4b-d3d168d5e4a3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":140,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"ec68add1-949f-4ad7-9b53-d122246bd164","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":140,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"4a38f482-8f00-4866-9597-615e73c67039","block_type":"box","text":"SM","page_number":140,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"d1d42b94-7dbb-4c8a-822e-99946e2e89fc","block_type":"box","text":", the 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by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":140,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"00eda4c5-aed7-4dd2-b9ee-8e57a35e01be","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":140,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"cc6a955f-9bc7-4be2-9a4b-b8b8da9159c4","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust depar tments exercising","page_number":140,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"9cebe593-46b2-4301-934c-d8661cb318ae","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons par ticipating in a","page_number":140,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"b3dc0a81-53b4-467d-8536-5b47f57ec62a","block_type":"box","text":"II-103","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ff84f4f9-e4cd-4c77-8b43-b514029d59e1","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2d8b41fe-2a7b-40f7-975d-48774f4a9e28","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":141,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"d7f0c95d-a709-42a3-9954-1c144f26bae5","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":141,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"3021b4c1-6d86-4843-9456-c5c2cbfca128","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":141,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"5654292e-5094-477c-8e50-7ecbe90dd93e","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":141,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"40f2f89c-7dec-4f89-9594-a7c00f637af3","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":141,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"468d766b-d70c-4fce-84a7-7aa6f180ebd8","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":141,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"918f5a46-b279-49a7-9338-17413647c82d","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":141,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"830705d3-a155-40ff-bca1-6afe58df4f5f","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":141,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"43a3f6cd-cff6-42bd-85bb-250b4197bac1","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":141,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"2e69cbaa-f936-4a4e-8df1-f4e48cfbff6c","block_type":"box","text":"or Investor P Shares of each of the Funds without paying a sales charge to the extent permitted by these firms","page_number":141,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"7198bc3c-91c9-4977-81fb-9f0915e7754c","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":141,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"c7cfd3b0-7914-4a09-8c8d-10e8699d9568","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":141,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"9f1bb0e7-e924-4a97-8462-89487fb2a67b","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":141,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"79a15a87-b648-4dcf-8d0c-dfd27b9ed670","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":141,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"54c73498-7c90-4dec-9b1b-bd6aab91b0fa","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":141,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"536efa8b-861f-498a-993e-1d5df14e564f","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":141,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"dc0ff2d6-72d2-4378-8fec-1d11a0eb2d7f","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":141,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"d8657e42-0d37-4b0f-bbc4-e80940cb4086","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":141,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"9c3c701f-c26b-46ab-beae-648cd1c2a500","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":141,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"8aca027e-30b0-4dcf-a741-62a46a724a9b","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":141,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"a712f42e-be0c-44ec-b7a8-8843346abf11","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":141,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"0f59b23a-e995-4939-9526-dfac19f4807a","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":141,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"defd83ac-0624-49cb-a576-470631f734de","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":141,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"5d02d738-73e4-4b25-801f-35e1520fde0f","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":141,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"e5095bc5-38da-4493-bb38-a913cff0f88b","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":141,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"72794840-352c-42eb-9fe4-0f60ac68c291","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":141,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"a6a2f460-f4ad-4881-a7d3-8c013d52b951","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":141,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"18080b71-2602-435a-aa9d-0b9283f6219f","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"932f6f89-c292-4d41-af6d-173b066955c1","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":141,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"7f4fe437-2b75-4458-a490-b5dfcca59c77","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":141,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"a5b526ae-19aa-44af-a1c7-78146fac948d","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":141,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"d82d3f38-e66c-4837-8147-bdf1e43d47ab","block_type":"box","text":"BlackRock Funds V) or more in Investor A or Investor P Shares, as applicable, you may not pay an initial sales charge.","page_number":141,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"b1a3bca8-55ad-460c-846f-c9530baeb708","block_type":"box","text":"However, if you redeem your Investor A or Investor P Shares, as applicable, within 18 months after purchase (a","page_number":141,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"513ccc36-6425-44e3-b0ff-2a9d6eb834b7","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":141,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"1b4524ff-1edd-4a25-abdc-f65bb36f6cdf","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":141,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"81b0e179-3c77-45db-9ad0-12b07a902d3b","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":141,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"139acbf3-3020-4bce-98ed-052bfd0f3b46","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":141,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"041a5885-0f21-4afb-974b-701c8eb291b0","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":141,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"4d3572e2-d49c-4db8-95d0-bfd4bf24f13d","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":141,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"112b132e-be2b-4efb-9e79-61072745b53e","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":141,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"35a9c22e-2bd2-43c0-8813-99a012bf66b9","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":141,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"23817dd0-e19c-4173-92df-b7d793b53f7c","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":141,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"4f71742e-7f6f-4232-9082-a54969a85a13","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":141,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"483f0fc8-6dc8-4ba2-ba28-0c0b99515b46","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":141,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"6cf8b435-fb1e-408a-abe8-a57d2398a1c1","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":141,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"1fa6a2f0-b60c-447b-96dc-e26a8dc18d3a","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection with:","page_number":141,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"0583ff2e-6a5f-4b94-9a83-973d2a321de4","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":141,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"d7250906-d11a-4612-9bfe-5cac07918d2b","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":141,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"d1c01aa6-4355-4f30-a6bf-425bdfcae962","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":141,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"ff9cc3f2-9b6e-4f6a-a4a3-03258c6dfe5f","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":141,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"ec109708-ea32-4cae-84c3-65f3b1f93f90","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":141,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"6436379c-d469-4e4d-abd0-421f302c938d","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":141,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"a3d22797-e343-4230-8457-1da14f71c463","block_type":"box","text":"distribution of account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as","page_number":141,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"1bcde164-7507-4683-adea-2cc3a6f0839a","block_type":"box","text":"defined in the Code) subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of","page_number":141,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"7c5b6c74-7666-468e-b8ea-35cde925d4c8","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":141,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"db626504-b253-4f54-bbd9-bd77d66299d3","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":141,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"6c6d0e44-52c4-4f5d-9c60-604f47f20f40","block_type":"box","text":"II-104","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"37382217-1519-43b3-b769-b0155674e212","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"101755a3-ab5a-401f-bfcd-7d28da75989c","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":142,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"1af00557-062f-4545-b8cf-f26857ce6dc9","block_type":"box","text":"the absolute discretion of a Fund.","page_number":142,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"94fdbfc1-0545-4816-8f1a-8a29a53cd3ce","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":142,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"f4169be3-5fda-4818-a0db-3351192ff031","block_type":"box","text":"fee, the Fund may, at its own discretion, waive the CDSC related to purchases of $1,000,000 ($250,000 for","page_number":142,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"56795fda-2f5e-427e-b1bc-7ad55476125c","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":142,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"92c288e7-7e54-494b-86e5-c3e50f114c8b","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":142,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"cba06eaa-eeba-4a85-887f-0f18bca1e8aa","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":142,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"b8e36789-4fde-41ea-a012-8ca4dd0095e0","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":142,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"41d80e6a-f8f6-407e-a550-b30741b8cad9","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":142,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"cbf64c7a-09ce-41f4-a831-50e07d6b10cf","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":142,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"2f56734b-7aac-4256-aeb5-4208c2822d69","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":142,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"aa71a901-a490-43c8-9b01-1923f1963ae1","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":142,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"337e033a-a11c-4090-885a-213df85bd7a2","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":142,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"47a48add-194d-40a1-9c59-2d7ff47f630b","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":142,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"cdda1ded-6e4b-49d7-b58a-aaca87324f06","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":142,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"93c1efae-7c84-47f4-a0b7-f8b5ce7642b0","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":142,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"fdbca1fb-281c-4781-8bd5-69459fb68c6f","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons, are required","page_number":142,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"d692e008-5f78-4bc5-9294-8f953580f514","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":142,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"e6513620-ebef-4507-9301-55b2b1f4de41","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":142,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"e55afed9-aa0b-466a-8de6-4635eae7b4fd","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":142,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"259d1274-307c-45c4-bc1c-ad907971ca85","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":142,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"2e2598f7-b413-4eaf-860d-a26e2d8fba53","block_type":"box","text":"connection with the acquisition of the assets of, or merger or consolidation with, a personal holding company or a","page_number":142,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"b04e5835-e7c8-4000-bd7d-988bfcbe982c","block_type":"box","text":"public or private investment company.","page_number":142,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"73e83ab0-ca82-4df3-aad5-9e99a2993aff","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":142,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"17e88291-fdcd-47b3-87c7-210ffd4a76b0","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":142,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"b0897bb6-ca13-41cd-8022-fca904812151","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":142,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"8cc4bff7-d268-4e57-8856-bf86adce7a58","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":142,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"4562d481-db9e-4090-8493-215b180edc05","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":142,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"6e4070c6-f354-4748-b8ca-00935c20f987","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":142,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"543ffd0f-7371-4401-a3b2-d21307b61430","block_type":"box","text":"as to the length of time they intend to hold their assets in a Fund. If you select Investor C Shares, you do not pay an","page_number":142,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"8eca44bb-5162-40bd-8604-a3371ef2fe5c","block_type":"box","text":"initial sales charge at the time of purchase. A Fund will not accept a purchase order of $500,000 or more for","page_number":142,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"1718298c-9589-46d2-ad07-bb085c96200e","block_type":"box","text":"Investor C Shares (may be lower on funds that have set a lower breakpoint for NAV). Your financial intermediary may","page_number":142,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"a5e8af9c-93ee-4728-b825-8a58aac1aff0","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":142,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"67031d8b-84a1-4b01-9eff-8f17fc70b216","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a financial","page_number":142,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"1b1a1a22-d641-4bde-a62d-40dd35bdc31d","block_type":"box","text":"intermediary associated with the account.","page_number":142,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"eb90638f-ad02-4ca7-a9db-942e16f108f3","block_type":"box","text":"If you select Investor C Shares, you do not pay an initial sales charge at the time of purchase.","page_number":142,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"0d1b92a4-1a06-4ea7-854b-c7174f864ac6","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":142,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"52855037-5f6b-4789-b302-fcec9fc2ccd5","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":142,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"ba270f12-9dd0-4572-b1eb-0000c58203a2","block_type":"box","text":"these fees potentially may be offset to the extent any return is realized on the additional funds initially invested in","page_number":142,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"58d2f074-a4b5-4f4e-9bf0-f83d7d2f040f","block_type":"box","text":"CDSC shares.","page_number":142,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"9e47d3a0-e88e-441a-96dd-727a3cf25a66","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":142,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"0fb2b343-95d2-42e7-8c11-cddd62daff1e","block_type":"box","text":"of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid to the Distributor and are","page_number":142,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"ee57be45-d015-4962-8df2-da2cfca87a15","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":142,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"cbcd93b6-08a4-49d0-ae7f-11d3fb25863f","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":142,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"8c71e619-0e5e-4d9b-9a66-c196f31159da","block_type":"box","text":"of the CDSC and the ongoing distribution fee facilitates the ability of each Fund to sell the CDSC shares without a","page_number":142,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"961c744b-dcd7-4872-b051-b70677de025a","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":142,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"0db79d84-c1d6-4b2b-a05a-e8bfe706cf12","block_type":"box","text":"Imposition of the CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":142,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"7e344784-252f-4c81-b8f1-c47cd908dba4","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":142,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"29b63ae7-8daf-49c6-83a9-a526b19a2a01","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":142,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"9a1c9810-2557-412a-81ee-2cf5f87e43a4","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":142,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"c4b41dd3-4bf4-4e3b-81f0-0731e11399fa","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":142,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"5ac138aa-d009-402c-939a-971e70764654","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":142,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"61113f2c-ef36-4c28-9eb4-0daf54487559","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":142,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"6c40f585-f42c-476e-adc9-b5945defa8a7","block_type":"box","text":"II-105","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"99576b4a-c1a6-4c22-8708-559b88b8fc18","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bd426aaf-48ad-42c6-93e8-605fce853e34","block_type":"box","text":"with sales of Investor A, Investor A1 and Investor P Shares. These may depend upon the policies, procedures and","page_number":143,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"a35e53ae-598a-45e6-a40d-c50e1402150d","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":143,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"031e3df8-2c3f-4064-a9e9-c5256e5d1b76","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":143,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"a351b0ee-6882-45fe-a438-d696de7b8005","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":143,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"b0491d0f-dd26-4970-addb-4f8c237312ed","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":143,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"9471c069-73fa-43a4-bf9e-78dc89a105c2","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":143,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"4d618925-9e35-4a58-8bde-7cbdde4a42b4","block_type":"box","text":"Investor A Shares.","page_number":143,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"41565a5e-d483-42b0-b34c-a7cc90386a0d","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":143,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"28543669-44fd-4a14-8821-b020a1225f61","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":143,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"c84491b7-bbe6-4ac6-9305-22cc8ff3ea28","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":143,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"7d717948-9bec-4ada-93b5-78e408e04c22","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":143,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"789c656c-384e-475d-962d-502c2c4d22df","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":143,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"661cd71e-a805-446f-ab4e-78e323d0ff1a","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":143,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"e90d2787-d79f-494b-bd55-5c0dd500f760","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":143,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"04ca7b48-c7a3-4850-9a30-c3da3909f2fa","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":143,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"a6e195ef-d01e-4646-ae8b-9ed4a28fe50f","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":143,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"febf0245-9089-4f3d-9704-04e347183433","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":143,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"1bd0888c-7ed2-40bd-8b77-aeceb7b8fab5","block_type":"box","text":"the Effective Date. If, as of November 23, 2028 (eight years after the Effective Date), a financial intermediary has","page_number":143,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"f5350f60-3e06-448d-b10f-d63a0534e512","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":143,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"ffdf4584-69d9-4eb5-a359-803b1f692618","block_type":"box","text":"holding Investor C Shares through such financial intermediary will no longer be eligible to hold Investor C Shares and","page_number":143,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"d05c6747-8c71-4be3-8d38-a4c981d235f9","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":143,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"6bffd46d-7f95-41c0-bdc1-414eb92d6f47","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":143,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"73d25595-e8d3-4b15-be88-4ff17ff719e3","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":143,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"e0d2705f-8b77-46ae-a675-f937b743e340","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":143,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"e4c35420-6b81-4846-a3f3-f94cc54721b3","block_type":"box","text":"“Investor C Conversions”).","page_number":143,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"047b3456-d4b7-4904-ba9b-6ce4159c3664","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the","page_number":143,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"f1084114-59a4-44f8-bb1d-d418382e419e","block_type":"box","text":"basis of the relative NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the","page_number":143,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"0814bb5c-390f-448e-ba3e-f3ed34a2d736","block_type":"box","text":"imposition of any sales load, fee or other charge. The Investor C Conversions will not be deemed a purchase or sale","page_number":143,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"c3422341-51cd-41c9-84bb-326bb9434819","block_type":"box","text":"of the shares for U.S. federal income tax purposes. Shares acquired through reinvestment of dividends on Investor C","page_number":143,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"8dd44c65-aebb-4d12-907d-0580c173b54c","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":143,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"a3b1060d-b15c-401b-861a-d88cb7d4b4cc","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":143,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"95ef7396-8728-4139-8a03-e0051e7914e9","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":143,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"ec900564-f9e9-4534-84a1-059ba680ac5c","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":143,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"96d9be13-bca1-4f4d-9ac7-970f15ca7e52","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC charged as a","page_number":143,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"43108e5c-d736-4c44-990b-b76baee4a01f","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":143,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"ea727912-7527-4753-b705-09c1348896b6","block_type":"box","text":"a redemption, the calculation will be determined in the manner that results in the lowest possible rate being charged.","page_number":143,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"f5b38efb-dd9d-44fd-9821-c5f7122fb2a7","block_type":"box","text":"The charge will be assessed on an amount equal to the lesser of the proceeds of redemption or the cost of the","page_number":143,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"164af798-41b2-4707-a548-126af7eb0e15","block_type":"box","text":"shares being redeemed. Accordingly, no CDSC will be imposed on increases in NAV above the initial purchase price of","page_number":143,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"cf72ffd1-316e-4c46-8e5b-478b5fc13710","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":143,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"ff6c006f-6d3a-4a79-82c7-16e18b47cd47","block_type":"box","text":"dividends. It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":143,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"9b0792ee-ecaa-4f70-b320-05e59415f288","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":143,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"572f6aa7-b906-45fe-a502-e6572464f249","block_type":"box","text":"shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":143,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"8b12e6c7-99cd-4e04-a724-b49123987611","block_type":"box","text":"redemption.","page_number":143,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"4945316f-982f-4b38-97ae-fece8aa6fab9","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":143,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"231593e0-fe66-4b25-bb89-14fcac829638","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":143,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"a4b19906-8f91-4185-b95f-1bc8da7b51f8","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":143,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"0b328fb8-1c93-4fbd-a1f0-676391ec7ebe","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":143,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"3dcdbb2a-5682-4976-be53-14748eca6aba","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":143,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"d31e79d8-c645-4d68-8a03-450d198209ed","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":143,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"02fa96be-13f1-40b8-a9bc-8bf5f8e22d2e","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":143,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"5d4ff009-30c8-4c71-84b8-887d1c05cfa9","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":143,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"2630cd57-7959-4fa6-96bf-474f71f58e79","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":143,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"f612f906-941c-4f67-a0db-3adeb647c7d5","block_type":"box","text":"shareholder’s death as long as the waiver request is made within one year of death or, if later, reasonably promptly","page_number":143,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"d9e55f84-4eb1-49e3-b02f-c7fa61d0b45f","block_type":"box","text":"II-106","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fd660440-1d7f-46b3-98d9-4a0c0d9754ca","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4c29748d-bd6e-4132-9568-ced4119ec40a","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":144,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"c8bebe75-c1d3-4797-b6b3-bd1db9743310","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":144,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"3449138f-085a-421f-a44f-99a64bdb1bd5","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":144,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"c35a238f-0a24-4b00-a44e-d0df90c09425","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":144,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"5e91032d-2175-4e08-8481-d04f597c80e2","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":144,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"bbf447b8-d74e-4026-bbdf-e55089061774","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":144,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"3513d4ab-5947-490b-aa10-42d3481dc77f","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":144,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"0caea773-288c-48b1-9e7f-0dff40eb1d10","block_type":"box","text":"demonstrate hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares","page_number":144,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"090ff4bb-a02e-4038-810b-42e98a2ff155","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":144,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"3b9d69fd-959b-413d-9f82-c626802a0eba","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":144,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"df45b578-ba33-45e8-876a-48254ffe6443","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":144,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"0bc093b5-700b-4b20-8d68-36a440864f25","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":144,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"8c2a5cd4-d59a-4258-a88c-aef861770964","block_type":"box","text":"Class R Shares","page_number":144,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"e894b357-3bc7-44b0-9bd5-15dd99b302fa","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":144,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"93b90b7a-8be1-4fb8-bfd9-cde176b71f2f","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":144,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"41e1892b-668c-439d-bb0e-bb0cda36d560","block_type":"box","text":"charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per year and an ongoing service fee of","page_number":144,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"623e394c-8a90-4943-b82e-be747a35314d","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":144,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"36a744ec-0f6d-434b-a0d8-6b1d4c25484e","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":144,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"285e87ea-dd9d-4214-8de1-a956ed8767f9","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":144,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"f1c8c4f2-7a69-44c5-a2f9-455bdaf4ef0e","block_type":"box","text":"If Class R Shares are held over time, these fees may exceed the maximum sales charge that an investor would","page_number":144,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"0ec31fbe-41d0-4ec0-b2b5-25d17a2513ae","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":144,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"158d0ed5-4322-4e0c-8a82-418c7a08801c","block_type":"box","text":"Class K Shares","page_number":144,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"a2b0f1c2-52d6-47b7-af0d-b8ea413c0d49","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":144,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"5f25e7a7-86ce-4383-bf0b-fad6af85181f","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":144,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"d415f51d-c086-4677-b98f-7b2ea0784f99","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":144,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"41455c08-0aba-486d-ba52-c405be4a3e64","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":144,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"5e740bf2-8356-432f-a756-2bad644ff937","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":144,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"bc389d86-8ec6-47aa-9761-f27e22329a00","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":144,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"444ecb16-c35e-43ab-b621-dbc062fb7fc0","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":144,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"861b620f-82aa-404a-9cce-fb5d88852887","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":144,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"d95a9c10-1733-46b2-9a5e-cfb596240283","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":144,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"1776f6e9-1807-47dd-90bd-96a66ccefb58","block_type":"box","text":"banks that purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":144,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"7edc0643-7f71-4d0c-bc81-c39bc1dc4c03","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":144,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"0e144e81-f220-4b14-8f4d-cacc4ae882bf","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":144,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"b4d1f798-5e05-4061-9033-0cc45e65eaf4","block_type":"box","text":"offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the","page_number":144,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"355ec1f5-0c43-422a-8835-c1b02625a8ce","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":144,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"f224a55a-b592-457f-bd76-cb0574de12f7","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held","page_number":144,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"96e12031-3da1-40be-8a29-fc3943416e96","block_type":"box","text":"Class K Shares of the Fund or the respective Predecessor Fund in the same account since August 15, 2016. The","page_number":144,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"2af91952-e5cd-4638-a597-63e23b7c2b68","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":144,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"1d522a22-c3d3-4869-a4ff-1cab292cb3d2","block_type":"box","text":"distribution and marketing agreement.","page_number":144,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"cc8c5200-a3cc-46ae-96d9-41cef3b8f5e9","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":144,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"f21486e1-8dd9-469b-8d3f-406d89c4c493","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":144,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"b0ba78b8-8539-4a4c-b730-f2c1aef6afb2","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":144,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"3ea8c07e-ed3d-48a7-9d5f-c70c7f2f904f","block_type":"box","text":"Class G Shares","page_number":144,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"c68576fc-2704-4c97-a3c4-4b4918c9c75a","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":144,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"1aed4d3d-9b5e-49bc-a4ba-7755c3ab6229","block_type":"box","text":"are those where clients invest in the Fund through a single omnibus account in the name of a financial intermediary","page_number":144,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"0811aa8f-a2ce-45f3-8045-2d178f22e486","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":144,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"71fef6ae-f983-40db-8106-d1aeec925f12","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":144,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"cf779eb5-9d06-4a8b-ba97-304e3df5d8dc","block_type":"box","text":"eligibility requirements.","page_number":144,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"e96e4ef8-979a-415b-b82d-832c65c2c11a","block_type":"box","text":"II-107","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ccd5b7f3-7a6c-4f89-b7a5-ddd44e8f5040","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"476a1360-de1b-4428-9394-d0b1b74efc9b","block_type":"box","text":"Service Shares","page_number":145,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"858e2e58-08f4-42dc-b761-acb7c6a2263a","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":145,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"2c53e16f-969f-4763-8097-0221bc229fc1","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":145,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"5f78fb08-12c6-4778-b864-c3d77b098f73","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":145,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"7b6208ae-03a9-4869-b26b-3d3e7f0aba1a","block_type":"box","text":"®","page_number":145,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"183a49c7-5014-4c93-a324-db0e23355e74","block_type":"box","text":"Fund in 1996; and","page_number":145,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"7514973a-be2f-4547-8d18-7f710461a6bb","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":145,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"94bd11ec-cdf8-42fc-9fe2-f3fa38b7dd7a","block_type":"box","text":"SM","page_number":145,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"047553bf-78a4-4839-8ea8-066189856d3f","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":145,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"47d9666e-d165-4697-8161-23a6dafaa7ea","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":145,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"0d33351d-3e8c-4014-af27-386a709ee469","block_type":"box","text":"BlackRock Shares","page_number":145,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"da8c507e-e6bd-471f-acf8-aba945ca4817","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":145,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"218f9e22-baef-4b5d-a606-bbef638da626","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":145,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"7dccb8e8-63de-4940-9990-9962a9cf8afb","block_type":"box","text":"fee-based programs.","page_number":145,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"4ea56b72-ac9e-4348-8b3b-d35722b294f2","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":145,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"0d23e344-6734-487a-82c2-ef20f4ff8594","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company Act with","page_number":145,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"56478b14-4790-46b4-ac6b-7ddf90bd35e1","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":145,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"fca29a04-54d6-4810-be51-2440cc055c65","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":145,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"40aa8d49-6238-45f1-a78c-0f66741704cf","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant shareholder of","page_number":145,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"fac79eaf-a072-4cf7-b8a1-71583c23c2a9","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":145,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"c689ba95-fbeb-4959-9d89-ef9a6bd6f030","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":145,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"2469b469-1092-455e-95c3-08433ed98e1a","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":145,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"e325a08e-a812-4fe3-abcb-32910ccb021a","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":145,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"aaf68388-0589-48b2-8523-cc99570b70ef","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":145,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"e95f461f-f620-4a10-a87f-a33a7d92b681","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":145,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"5bfaba2e-f7ef-43f0-8b30-265e96ddd1ae","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":145,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"8828a33e-abdb-48f2-b406-e984b1938457","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":145,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"916fba4b-b39a-4918-ab51-ce99af3871ec","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":145,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"71379566-3d6b-4512-be8f-654d412911ba","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":145,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"7e8d3073-e02f-4cbd-9b12-91bb180c5d7d","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":145,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"25159c1a-e45f-4ed2-9806-44d82a8b7eba","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":145,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"02167f8f-2231-411c-a35b-cccbd0f50da8","block_type":"box","text":"Service and Class R Shares of a Fund. Such services are intended to supplement the services provided by the","page_number":145,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"e2793606-dfa5-492a-9980-1e94e370783e","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":145,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"4bf2be1f-58cd-4311-9887-0249a864513d","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":145,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"4802d116-40d2-4564-a01a-3b711966b764","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":145,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"8ed9efd8-523b-447d-9506-998c67959077","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":145,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"9c6534d9-aa18-4956-a452-4c6b76a2cc4d","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":145,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"89f4e8f6-b3e6-427e-abf4-94e7db263a1f","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":145,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"45523b11-0f73-4728-972b-09b11e17d1f1","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":145,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"0df88ada-392b-428e-8ace-b3ca5b607137","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":145,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"92a6be85-dad5-40b4-9972-2dbc40804e31","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the shares in","page_number":145,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"c6b62601-b444-4ae9-b54f-3913a9567e3b","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":145,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"c7fde1d7-2596-4764-9e5c-36a73c036788","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":145,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"5dee4256-1350-4b68-a606-03008ce2fd67","block_type":"box","text":"with respect to the related class. Information with respect to the payments under the Plans and expenses incurred in","page_number":145,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"a655e1b9-a93a-444f-8da3-43ccc7ea3956","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":145,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"5b48fb69-37c0-4d46-b415-04a9be82dd6e","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":145,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"80203d12-c1d2-484a-812a-2e32ad934afa","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":145,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"c1cf7f38-7032-424a-9c6b-6fe933f64b74","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":145,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"c928cb86-9250-4123-91b6-de9f422acd7d","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":145,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"dc99b05e-8b59-4e1b-8f40-77856c8eb73e","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":145,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"61886557-7ead-41fd-975f-c26d16b53790","block_type":"box","text":"compensation for selling different classes of shares.","page_number":145,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"2db95aaf-0b05-4f43-b99c-4116c71a3087","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their consideration of","page_number":145,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"3abe37d9-a7e5-4251-a478-fe29537906c0","block_type":"box","text":"a Plan, the Directors must consider all factors they deem relevant, including information as to the benefits of the Plan","page_number":145,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"a82a246d-1e8b-48e9-8efc-c945aa5dccd0","block_type":"box","text":"to the Fund and the related class of shareholders. In approving a Plan in accordance with Rule 12b-1, the non","page_number":145,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"8af9a52d-5281-4184-8664-2c21afec73e8","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":145,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"b43530c8-3d09-46d1-98ac-b7499c5694a3","block_type":"box","text":"II-108","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7392b9ea-1b06-4add-80b8-8f90ae84212f","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"79a6bba4-cdef-46e6-b23e-8db0cd0ef465","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":146,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"376ecfb2-58ad-4f18-9461-78fcafc9ff7c","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":146,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"9375d218-7a30-4f5a-8422-f029d378d598","block_type":"box","text":"(ii) the Plan will continue in effect for so long as its continuance is approved at least annually by the Board of","page_number":146,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"1e1602de-6ee8-4d15-bb4a-44a64d96e7b2","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":146,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"7a792eb9-4a15-4242-87c8-c1f885a4f217","block_type":"box","text":"Company Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreement","page_number":146,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"eb98bcac-8d7c-4b53-a5dd-7d0f1f7225ff","block_type":"box","text":"entered into in connection with the Plan (the “12b-1 Directors”), acting in person at a meeting called for said purpose","page_number":146,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"c5b728ce-d3e9-4aa3-af4c-33ebc12fd2f1","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":146,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"b6c4d60b-8892-4a53-bc4f-1d6e2ca670f1","block_type":"box","text":"approved by the Board of Directors, including the 12b-1 Directors, acting in person at a meeting called for said","page_number":146,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"81d1f840-dba7-4315-9245-cee2ab5a6b2c","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":146,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"9264c423-d637-40ab-a604-4ee43f8000f2","block_type":"box","text":"services pursuant to the Plan shall be effective only upon approval by a vote of a majority of the outstanding shares","page_number":146,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"85199e17-eeea-4a12-bc94-dec4552c61cb","block_type":"box","text":"of such class and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":146,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"1c6cba5b-6ac2-41e9-9b8a-3f314f09ce4c","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the Fund’s Directors","page_number":146,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"0ce19fcd-d09d-4971-9f9b-9a2c881c4099","block_type":"box","text":"who are not “interested persons” of the Fund shall be committed to the discretion of the Fund’s non-interested","page_number":146,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"ed9e83db-4eaa-4f73-80b8-da639bd2e380","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":146,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"6f885fbc-40f1-4c82-b59f-5f4f10097837","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":146,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"3bd65f7c-5d8c-4840-afdc-38ee34dcfde2","block_type":"box","text":"easily accessible place.","page_number":146,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"15ccebe6-1ceb-42fb-944c-7eb912c3fcec","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of the 12b-1","page_number":146,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"30bc6589-f685-4f2e-a4a0-c982b54016c2","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":146,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"f1e159db-5bfc-4905-b9ee-45d3953daba2","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":146,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"c422cae3-3d73-4133-8de3-bec6080aeb3c","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s most recent","page_number":146,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"2758893f-c8c9-4997-8c7f-6c6121afdf70","block_type":"box","text":"fiscal year.","page_number":146,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"15868b0f-18b0-4e58-a8a9-57b9da894011","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":146,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"0a58b79a-dba1-4336-aac2-bedaf918f216","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":146,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"f93f201e-3b4a-4a1a-a1fc-0ee87053378d","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":146,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"4535b882-b2c6-42d3-a686-49d3983f17e3","block_type":"box","text":"the distribution fee and the CDSC borne by the Investor C Shares. This limitation does not apply to the shareholder","page_number":146,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"f121fcfa-c30b-49ef-8df9-9894fefdbc5a","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":146,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"fdf3c87f-925d-4b45-acb4-f1010de1aba9","block_type":"box","text":"distribution fee payments and CDSCs payable by a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R","page_number":146,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"39734b90-907a-4c23-b2de-1912fe9a9152","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":146,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"ae5d0604-ce1d-4ead-9dca-2c35fc608948","block_type":"box","text":"(2) interest on the unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the","page_number":146,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"69a05e70-8062-46c6-81b6-89fb099072b2","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":146,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"2037ec1f-270d-48b9-8475-f8b6d37a02a8","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":146,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"34d10673-b33b-4c02-b162-44a5b9bf38e2","block_type":"box","text":"for comparative information as of your Fund’s most recent fiscal year end with respect to, if applicable, the Investor C","page_number":146,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"24197013-9743-430c-844a-e0e0c601f1a7","block_type":"box","text":"and Class R Shares of your Fund.","page_number":146,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"ddeea1fd-2ba6-4181-be0a-594657e55abf","block_type":"box","text":"Other Payments by the Fund","page_number":146,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"3def01b0-1bba-4071-8cff-653cc4dff009","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the Plan and","page_number":146,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"4c28be5c-a7fc-47e2-99e9-bbf98055e0e2","block_type":"box","text":"fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into non-Plan agreements with","page_number":146,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"f02ab380-de1a-4c3e-82bc-f45401b31d84","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":146,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"bcd205ca-1385-4a4a-9647-43caefd6567a","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":146,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"00704f82-2cba-426c-b962-39628c956429","block_type":"box","text":"generally based on either (1) a percentage of the average daily net assets of Fund shareholders serviced by a Service","page_number":146,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"9ea0a1a7-d02a-48e1-b4fe-df1a59f99c6c","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":146,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"d521c642-9036-4e17-9ae9-00c0856f24c5","block_type":"box","text":"of these payments may be substantial.","page_number":146,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"d6653f99-a9ce-4c02-9747-8e3b7301eb18","block_type":"box","text":"Additional Payments by BlackRock","page_number":146,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"07c10881-5c67-4cbd-b7c9-7eb2462b3c81","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":146,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"86d28fd4-b118-493a-b5e6-220e666ec997","block_type":"box","text":"may compensate Service Organizations for the sale and distribution of shares of a Fund, for services to a Fund and","page_number":146,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"50bccf88-9e31-46f0-8aac-b6d7cad8253b","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":146,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"37a15d39-2f59-4bcf-a076-30f33ce44c44","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":146,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"9328af64-3c95-4a15-99d1-c1b3dcaf8748","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":146,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"f1125f1c-421d-43ba-a969-a69e6571cf66","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":146,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"0429c496-d382-4810-b342-387d94327c27","block_type":"box","text":"paid by a Fund to BlackRock for various services, such as investment advisory services). These payments are not an","page_number":146,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"13126664-8439-4210-ae66-296e86f3983c","block_type":"box","text":"additional charge to a Fund or its shareholders and do not change the price paid by shareholders for the purchase of","page_number":146,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"6d111ad9-4e83-4393-b073-73570569ec93","block_type":"box","text":"a Fund’s shares or the amount a Fund receives as proceeds from such purchases. Additional Payments made to","page_number":146,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"f1640e26-83a2-4e31-85fd-e17bd75b5316","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":146,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"5ab58d9c-7bc1-4bc8-86b2-fa6d99f20b3c","block_type":"box","text":"II-109","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3e17e2a2-4c3e-4a67-a14b-db608cd745f3","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0f79e330-ad9b-4288-8e73-2141d8f065f5","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":147,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"8900b499-64ac-4489-9ba6-4bffddd54499","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":147,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"9ba749f1-9d48-458a-8d8f-22f47e264a5a","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":147,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"e5ba2edd-6a31-499e-be33-26a3bb87a6a7","block_type":"box","text":"such payments in connection with the sale and distribution of Fund shares, are required to be disclosed. While FINRA","page_number":147,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"902f7196-729d-4f3f-8099-4460f068cea3","block_type":"box","text":"regulations limit the sales charges that shareholders may bear, there are no limits with regard to the amounts that","page_number":147,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"a1bbddc8-b080-472f-8a69-8e4b854eb382","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":147,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"f9e0640c-2a83-4c2b-b7df-7293da75d1af","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of Customer accounts","page_number":147,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"938dfa4d-d551-420b-ad51-8af877410110","block_type":"box","text":"maintained by a Service Organization, may be based on a percentage of the value of shares sold to, or held by,","page_number":147,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"6f6192ca-db1a-4161-909e-e3d08356760b","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":147,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"cccee3f6-ff77-4110-81c8-1740f3f3a8db","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":147,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"0b8370ad-45b9-4ec6-9e4a-86597a3a0754","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":147,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"227c9ce4-b4d7-4bb1-89e5-0c63ac29c3ff","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":147,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"330b4f83-6778-4cd0-8be9-b4d879d85705","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":147,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"41926e56-19a4-44a3-8cf0-543abc1e9577","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":147,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"4eaa1eb0-3282-4ff5-be13-139e194482fa","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":147,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"7024d7be-d1b2-4acf-b158-a064c5cb04d0","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":147,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"5699b046-33b3-4091-afca-fdd056052edd","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":147,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"f49ac95a-5445-4a42-a78e-f38c2812a871","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":147,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"5a68e3b4-eee2-4aeb-88e0-5ea34565056c","block_type":"box","text":"same Service Organization, or one or more of its affiliates, may receive payments under more than one category of","page_number":147,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"e3e6d0d1-4a22-4dd8-b145-31ebad959a5c","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":147,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"0c2aba8e-3cbf-4ce2-a01a-5df999f19c71","block_type":"box","text":"Funds.","page_number":147,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"7be0ac68-71f7-4355-a30a-9f1a85d9aa74","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":147,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"1b217267-c88a-420a-8c4d-eb68811cfafb","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":147,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"ae60341d-b89a-44e7-9b44-c8a3fa49ce6f","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":147,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"6e1d6097-32dc-4c06-9d53-002941e84445","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":147,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"8f9b4d49-52e0-4926-9bf8-239054247d01","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":147,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"043a9fec-4a6d-438e-90f0-f2f35df54c1e","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":147,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"48b18320-b99a-483d-b779-a33054b56ff3","block_type":"box","text":"the Fund on the Service Organization’s platform(s); “listing” fees for the placing of the Fund on a dealer’s list (which","page_number":147,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"400949f9-b875-44f1-b7f1-249f4a7589eb","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":147,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"e3774e57-273b-4122-98f6-5aace5dc9602","block_type":"box","text":"programs from time to time; fees for providing assistance in promoting the sale of the Fund’s shares (which may","page_number":147,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"71d428c3-c129-422a-bc85-df66e64b6df9","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":147,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"b96ab7f5-c603-406a-b99d-3604800bb2f0","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":147,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"0b7c6a61-d7b2-44bf-857f-6d998e51008e","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":147,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"00455bbc-7f0a-4bc4-9ca8-dc6a828c8eee","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":147,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"ab21e455-4304-4c57-afc3-e8d7cd7c158a","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":147,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"74fb05b3-29ef-4610-b336-3ac7c0277c01","block_type":"box","text":"B. Shareholder Services","page_number":147,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"c380fe2c-3733-4339-a089-50046e69a474","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":147,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"3fb2037a-d20f-44a4-9799-12041c46ab62","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":147,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"6fbc9346-07c8-4175-85a4-3afcfc9e8ef0","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":147,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"182eb532-2110-4775-bb1b-bf9f2015adb8","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":147,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"77bc9d60-6e3c-4342-a45a-43c92f660926","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":147,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"89278d87-d34e-463d-8251-2c577c94a2e3","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":147,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"f0a06dcc-8a92-4c2a-9faa-e6ab2f47156a","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":147,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"ab673857-58ea-4220-90ee-b46d36b9a1b8","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":147,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"15d9d24b-fca8-4542-bb5e-3161f7cf0f48","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":147,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"fe7a7d57-c2b7-4978-95da-4cd35bfa4090","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":147,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"6c8b6b35-2911-4a55-b770-56f1262d8685","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":147,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"29efe86b-b7f6-49cd-8079-db540405053d","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":147,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"5466a004-05ef-4669-9771-c0b30ad6aa6a","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":147,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"dbaf5731-c010-4e68-902f-6960541deaa4","block_type":"box","text":"D. 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Service Organizations may charge their Customers additional fees in connection with the","page_number":151,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"68c9079d-fb20-4d69-a09b-e7509fc2220c","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":151,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"0fb1d49a-dd31-4c80-9e1e-78fa2358c3d0","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":151,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"83e19ec6-6b48-4613-a9f4-f45f2c7c7d75","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":151,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"aa47f495-2b07-44b0-baa2-6bdf0e46d51e","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":151,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"aadaf850-f8e8-405a-9519-e96d203fcaaf","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":151,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"c5ec84b6-e65f-4851-8f19-2d3d9480fb39","block_type":"box","text":"appropriate.","page_number":151,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"ff1d6a52-7bb5-43e2-b62f-11fd83c150d2","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":151,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"6637c043-46ee-40ed-a1c5-dc759b84aaab","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":151,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"089ef2d7-b9e9-498b-9d4f-aa7bcb1b1432","block_type":"box","text":"described above.","page_number":151,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"78baf69f-c030-4967-9602-7e738c9724c9","block_type":"box","text":"REDEMPTION OF SHARES","page_number":151,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"3e367b46-d4f9-4b98-8d9d-6df0ae6c291c","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":151,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"4b850508-c878-4b84-9cd8-01e50eaac923","block_type":"box","text":"the right to redeem some or all of its shares in kind (valued in the same way as they would be valued for purposes of","page_number":151,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"bfec3071-12f7-40a6-bbdc-9b6400a6e81c","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s por tfolio holdings at the","page_number":151,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"18550f80-253e-4385-92b4-9351c786fc82","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in por tfolio securities and other assets rather","page_number":151,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"b18caf20-df01-433c-b1a8-c75b10233748","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":151,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"120a865a-1a27-437e-841a-9e42e3eec9b3","block_type":"box","text":"able to accept securities in kind, and may also be used in stressed market conditions. If this occurs, the redeeming","page_number":151,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"cc279c13-ca74-4df8-b9af-fd6950495f84","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to conver t the securities and other assets to cash. Each","page_number":151,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"dc3795e3-c4c7-4105-944e-a62aab451dfa","block_type":"box","text":"Fund has elected, however, to be governed by Rule 18f-1 under the Investment Company Act so that the Fund is","page_number":151,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"45606141-2943-41a2-8292-651e3c1f3ea1","block_type":"box","text":"II-114","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6d91750d-de53-479a-8a75-4495fbc7b647","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"163bcb9f-e95c-4039-bfeb-0d18841ea507","block_type":"box","text":"obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period","page_number":152,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"08aa8b6f-1222-483e-bb82-3dafe7e14bdc","block_type":"box","text":"for any shareholder of the Fund.","page_number":152,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"9e319f64-d18e-4ac0-915a-5939df083f9a","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":152,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"624b5734-a42c-45e4-89cd-0b24eeb9798b","block_type":"box","text":"redemption. The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":152,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"9b8262cb-cc13-442f-9441-f3807b642368","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":152,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"497c22c8-5a51-4275-b16c-0b9d88a3daab","block_type":"box","text":"any CDSC that may be applicable, there will be no redemption charge if your redemption request is sent directly to","page_number":152,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"01d635f8-888e-494a-904e-c6330576e1b2","block_type":"box","text":"the Transfer Agent. If you are liquidating your holdings you will receive all dividends reinvested through the date of","page_number":152,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"fb9aa3ca-8186-4b75-b1e8-7c0f78164b73","block_type":"box","text":"redemption.","page_number":152,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"80ab836b-7469-4c0b-8525-57d4c016d8b1","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more than seven","page_number":152,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"28457d19-18eb-4fef-867f-fdb982eb8895","block_type":"box","text":"days only (i) for any period during which trading on the NYSE is restricted as determined by the Commission or during","page_number":152,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"448304a4-2028-4426-9e6a-4f34ae207a4a","block_type":"box","text":"which the NYSE is closed (other than customary weekend and holiday closings), (ii) for any period during which an","page_number":152,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"cc62ac1c-9b04-441d-81f7-a0db363d8289","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":152,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"c15bdcd0-0666-4ce4-9a4a-b11c6b7b65bf","block_type":"box","text":"determination of the NAV of a Fund is not reasonably practicable, or (iii) for such other periods as the Commission","page_number":152,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"00f0a408-c4c7-49a7-8931-91dcb2394e45","block_type":"box","text":"may by order permit for the protection of shareholders of the Fund. (A Fund may also suspend or postpone the","page_number":152,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"c25a563e-b4ad-4a34-aebc-10706fef2818","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":152,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"f4cf349e-c7e9-4e10-8c85-01012ae196e6","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":152,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"053ce13e-096a-4f0f-8afc-26146a573b35","block_type":"box","text":"credit with a syndicate of banks that is intended to provide the Fund with a temporary source of cash to be used to","page_number":152,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"dc248ee7-052f-4ba7-af9f-ef60af6da32a","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":152,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"b5da07e9-211f-49cb-a16d-1c6a9250899e","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of the failure","page_number":152,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"b440df8a-1198-40bc-a503-1be8abe31e50","block_type":"box","text":"of a shareholder to make full payment for shares purchased by the shareholder or to collect any charge relating to a","page_number":152,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"42303436-2889-429a-84d6-7fff613fad94","block_type":"box","text":"transaction effected for the benefit of a shareholder. Each Fund reserves the express right to redeem shares of the","page_number":152,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"1dc04418-ced8-4d43-9653-c11f554a1519","block_type":"box","text":"Fund involuntarily at any time if the Fund’s Board of Directors determines, in its sole discretion, that failure to do so","page_number":152,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"9b0c97b5-7dfc-45e8-a161-b383e66f32fb","block_type":"box","text":"may have adverse consequences to the holders of shares in the Fund. Upon such redemption the holders of shares","page_number":152,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"edef76d2-f88a-4e37-a0c4-9ecd721fa087","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":152,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"956403ff-7500-4fac-93eb-15e2a6891012","block_type":"box","text":"Redemption","page_number":152,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"8644a3fc-84fa-4481-a18b-45f7dd842833","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":152,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"e1f05d6e-3ae9-40bc-a466-2c91fa2eb008","block_type":"box","text":"Redeem by Telephone:","page_number":152,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"7be40a36-02ea-43fa-8449-83ea9313d07c","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":152,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"b7c64dd4-c791-45ef-b346-0657af14bbfa","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":152,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"8b6bb547-aa7b-4aa8-9cd3-444eb2f79680","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":152,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"6c260144-a4b5-4afb-ab8a-4a76974965bf","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":152,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"0bc6778c-9692-4f93-a1e1-418194dac673","block_type":"box","text":"verified banking information on file; or (ii) the proceeds are not paid to the record owner at the record address, must","page_number":152,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"9c04e35c-1e97-4987-98f3-e76e3700012a","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":152,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"e9ae332c-7aba-4228-be78-5cada50972e1","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":152,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"39f33d7d-c85d-45f8-9519-06c8ae88975d","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":152,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"264fb171-d92b-492c-bd22-aecbf4bf68e3","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":152,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"7778f54b-4ee1-4b9b-b300-95726ce34184","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":152,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"0a1222f3-2336-4989-b8da-ab7be63c638b","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":152,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"dfef86d1-ed61-4164-bf92-c37f8c9709dc","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":152,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"f60e2142-d2cb-4671-9d07-ab78041c5cbf","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":152,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"17e55c7a-d12b-45cb-9f45-a58436c8dd00","block_type":"box","text":"will not be accepted. A notary public seal will not be acceptable. Generally, a properly signed written request with any","page_number":152,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"362c9bb8-d038-4ed9-92b6-3eaf54f216df","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":152,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"bea4e64f-b30a-4dba-8f76-617da79f9f02","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":152,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"2c17e9f5-257a-405e-834b-94a260e61bf1","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":152,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"70e7827c-275a-4ba5-a764-c25e6d1f5b44","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the Fund","page_number":152,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"bb17d5fc-6b15-4456-966d-82f1ce43d741","block_type":"box","text":"may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its Administrators and the","page_number":152,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"9780f8e1-5eb9-4372-b6bc-525ceba350ce","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":152,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"e84ab0e4-51d5-46a0-b1ba-801f5d5d043a","block_type":"box","text":"Telephone redemption requests will not be honored if: (i) the accountholder is deceased, (ii) the proceeds are to be","page_number":152,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"12fa4e52-0fa1-45d3-941d-1e0b6b60d499","block_type":"box","text":"sent to someone other than the shareholder of record, (iii) a Fund does not have verified information on file, (iv) the","page_number":152,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"43705101-e177-4497-8718-106177ae1f3e","block_type":"box","text":"request is by an individual other than the accountholder of record, (v) the account is held by joint tenants who are","page_number":152,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"174166a4-d09a-4b76-82d1-f6bd27e85b49","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":152,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"e5f5bddf-7382-46bf-93b5-7e19c5cebcd9","block_type":"box","text":"on the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the name and","page_number":152,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"418ca26e-7e6e-4899-9659-eb74de90692f","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":152,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"040b903b-48d4-4a44-b415-4b8fe93297a8","block_type":"box","text":"service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions that","page_number":152,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"ef2f3276-6aa2-4c46-9a6e-689a120ff87e","block_type":"box","text":"II-115","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2aae1d80-f0d7-4773-b009-2342bb2914c6","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bfe0b220-f901-47ff-bc18-d502f2854eb0","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":153,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"13bedb4d-27a1-4a7e-a0a4-147183ff4e83","block_type":"box","text":"honored, signature approval from all shareholders of record on the account must be obtained. The Fund may refuse a","page_number":153,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"018c65c2-0a18-485b-93cf-127f0243e5ce","block_type":"box","text":"telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market","page_number":153,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"b4e6217a-60d9-477e-9b8b-bd8f8a8bce86","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":153,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"122143eb-24f7-4c63-a89f-d7fedeeed88c","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day will be","page_number":153,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"84360540-2375-41b4-8160-deeb789513d3","block_type":"box","text":"priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern time) on a business","page_number":153,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"985044ae-4add-4ece-8192-26c6c87aa053","block_type":"box","text":"day, payment for redeemed Institutional Shares will normally be wired in Federal Funds on the next business day. If","page_number":153,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"6e3ca08a-a7cc-4fa9-8208-7f4ff530a4d1","block_type":"box","text":"the Federal Reserve Bank of Philadelphia is not open on the business day following receipt of the redemption order,","page_number":153,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"37b76089-99ed-40b6-a677-6efef0461786","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":153,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"a0abdc22-d62f-4492-95e7-011118fd4c6e","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":153,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"8bdd8b1f-314f-429a-b89b-c43834546998","block_type":"box","text":"Redeem by VRU:","page_number":153,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"4c319bc1-626e-439c-9e64-7af9ddb793ed","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":153,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"fcc9d982-714a-4bf0-8a96-6b3515539645","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":153,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"06a3f96e-8ee5-471b-a30d-9f61b630cb09","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":153,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"e6aee4db-f777-483b-9c63-db1115616e64","block_type":"box","text":"Redeem by Internet:","page_number":153,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"44fe131a-9316-42fe-92e0-f3157f9dff82","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":153,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"7a6e6015-8f54-40c5-861a-ead5706058c6","block_type":"box","text":"BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to","page_number":153,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"41ebd50a-f7cd-4c72-b90a-5977cfa7a337","block_type":"box","text":"the bank account of record. Payment for shares redeemed by Internet may be made for non-retirement accounts up","page_number":153,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"018dcf11-287f-45b3-bd3d-a5594a8328df","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":153,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"ec5db719-98c3-437f-b51f-cf8421bdc5e7","block_type":"box","text":"institutional investors.","page_number":153,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"d42d9963-8220-460e-b6a8-f64bb35c661e","block_type":"box","text":"Redeem in Writing:","page_number":153,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"c862d1e6-ade7-4703-98de-810388634a04","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":153,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"5fdd7d9a-6c07-42bc-97d9-fd91a13a2585","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":153,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"eee3867d-d9a8-456b-af64-a6e7adb7a6c8","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":153,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"8e0ce8e3-9fcd-4990-8698-727ee8a0cf09","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":153,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"3a104661-a5e5-4ec7-9453-1eebce248809","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":153,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"8c7ce8dc-9d64-4243-8345-4a1206110852","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":153,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"d022eed8-4c99-409a-a3c5-2fcff21b07a2","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":153,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"b6126c2f-36ce-44af-a288-1252fab9889c","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":153,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"3426d9bc-75dc-4861-8433-05f7ef457b17","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":153,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"4e5feaf0-6adb-49fa-9875-29fead04faa7","block_type":"box","text":"or wire to the bank account of record.","page_number":153,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"8653706b-7ce1-4d62-97d8-b2f1e4e38ca3","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":153,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"6b364341-ed77-4848-a6b7-3015d9e44e52","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":153,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"9a927b27-3ac2-4a21-b79f-ed5dc42a6d83","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":153,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"dfecf260-94db-4d54-8938-dcf5b27770d0","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":153,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"86c04f21-3a6e-441b-980f-075dd10fef5b","block_type":"box","text":"of receipt of the proper notice of redemption. A Fund may delay the mailing of a redemption check until good payment","page_number":153,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"06e9cd57-a8dc-47e5-9ebc-a42652d84add","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":153,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"9bf043fd-bea2-4883-8297-ed5c5bcbfe35","block_type":"box","text":"shares, which delay will usually not exceed 10 days. If your account is held directly with the Transfer Agent and","page_number":153,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"b9e39439-a58d-450d-864e-0186f90c6831","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":153,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"02703e03-f2ac-4094-b90e-13cfe16be619","block_type":"box","text":"redeemed by the Fund.","page_number":153,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"0fc1d2ae-78cb-41d3-987c-1bb4844a7aa0","block_type":"box","text":"Note on Low Balance Accounts.","page_number":153,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"95f8ed0d-20c2-491f-9b80-55d431ceb00f","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":153,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"e44cf702-7a90-41e7-b599-c6dc6cf19c89","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":153,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"3a7cc720-6832-4bc1-a3bc-3d2d0f1d2727","block_type":"box","text":"Minimum”), and may redeem the shares in your account if the NAV of those shares in your account falls below $500","page_number":153,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"448a7369-adc7-46ad-a401-b412a75c0aa9","block_type":"box","text":"for any reason, including market fluctuation.","page_number":153,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"bd304b46-3207-45e8-af97-4deb645e06c7","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund makes any","page_number":153,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"cbddf6b3-f355-4f17-9d93-7e22716b86bb","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":153,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"fc4e0127-bf0b-446f-ba3c-84a0fd446001","block_type":"box","text":"investment in order to bring the value of your account to at least $500 before the Fund makes an involuntary","page_number":153,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"fb6b5264-4684-4111-9797-44bc976cc165","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":153,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"7a4818db-6df9-4206-95eb-2a7096c3e72e","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":153,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"d30b6e8c-f9cb-4527-8911-281aa675b4fb","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":153,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"e5477500-be73-4c6a-941e-0ac80828de9c","block_type":"box","text":"Redemptions in Kind:","page_number":153,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"14ab2cae-8a9d-4961-b3f6-5f470ae64d6a","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":153,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"f89dfd17-0b52-4a76-9141-ad03e39eb319","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":153,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"f28a7ccf-44b0-4e59-8578-faf7790c82ed","block_type":"box","text":"Fund’s NAV, except that each Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1%","page_number":153,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"cab067ee-2986-40f5-9912-722f5efb60e9","block_type":"box","text":"of the Fund’s NAV during any 90-day period for any one shareholder. Redemptions in excess of those amounts will","page_number":153,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"ee8825da-5aa6-4f15-85d9-84d86762ad70","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":153,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"a0480218-503d-4a65-b40b-1caa54ac0316","block_type":"box","text":"II-116","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"34520693-5b43-4691-8bcd-8416f725b064","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6995635-b70a-467c-923b-36113e94d6b9","block_type":"box","text":"The specific security or securities to be distributed will be determined by the Manager and could include a pro","page_number":154,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"bbd53696-1f71-4d70-b0ab-8cbf3213e7e1","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":154,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"85aef223-1336-4954-9708-02151e0efab2","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":154,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"893dad5f-8970-4a75-83a2-00276d445374","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":154,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"589a145a-46e4-4535-a6b3-98bba7302ef6","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":154,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"a68052e3-2c8a-467f-a423-0742c5c73c8c","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":154,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"27330dee-3da7-49aa-8c93-571b6454cc00","block_type":"box","text":"liquidity of the securities, and the tax basis of the securities. There is no assurance that BlackRock will select to","page_number":154,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"236eaa56-a2f4-4752-9360-44401dd778e8","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":154,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"f00fa16b-4051-4e91-a95d-fda0298c8513","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":154,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"31bf3455-6837-480e-a87b-44ba8485c9ed","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":154,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"b09e887d-6287-4d04-a6e0-faac6c78e9c4","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":154,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"1e6da244-62ea-4e2c-89df-fc25c80d601e","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":154,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"f67c4a6f-db5a-4e38-98ab-a31cc3f8aabf","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":154,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"2720b535-98f4-49bc-b068-991e1234a51b","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":154,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"3f673696-705f-42e9-a012-0fbf10b85df7","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":154,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"b378d1d2-6eca-4f41-813f-702eedebf6c1","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":154,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"f69ce07f-7445-4968-a79f-190d277e4abb","block_type":"box","text":"redemptions in kind can or will be effected when they would be beneficial to a Fund, and it may be impractical or","page_number":154,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"8d1b0d6a-b744-4935-83db-46ab5d23338f","block_type":"box","text":"impossible to effect redemptions in kind with many or substantially all of the Fund’s shareholders because of, among","page_number":154,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"8052547b-2b21-4492-92ba-0af1be12d0cf","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":154,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"50713609-17f6-415e-a5a5-c93934008d45","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":154,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"7fe36d6e-9049-455f-a273-ad56d8109630","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":154,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"a63ac423-6be1-4db3-97d9-fc675595631c","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":154,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"1044885b-aa31-4295-9647-dd8b64d737c7","block_type":"box","text":"kind rather than in cash. A Fund’s ability to pay these redemption proceeds in kind relieves the Fund of the need of","page_number":154,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"2d3ba431-72d8-4c61-84e3-b05fa5b3d7ea","block_type":"box","text":"the Fund to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated","page_number":154,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"1655d5ef-aad6-4bd0-a89a-18e1537b76de","block_type":"box","text":"with such sale, and may have the effect of reducing the amount of taxable gains the Fund would otherwise be","page_number":154,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"1fc6ee04-9f3c-4ba2-8f62-c7c6a90deeb5","block_type":"box","text":"required to distribute to shareholders. A Fund’s ability to engage in such transactions is subject to, among other","page_number":154,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"92d37cda-b43e-4ce2-8ddd-0719d9ace8ed","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":154,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"58ee1fbd-f56f-4d08-b1f7-8b56771bec5d","block_type":"box","text":"to transact in kind, and there is no assurance that the Fund can or will effect any redemptions in kind. Financial","page_number":154,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"35b0096b-e547-4a46-a907-fb75684d82b0","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":154,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"8d5fa05c-ee59-4815-843a-b11dcdc998ab","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":154,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"c98911c1-202c-4d01-ad71-3aff51f0f136","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":154,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"6d36a2ea-a602-46f3-8dc9-9cfbf5b6ea7b","block_type":"box","text":"and brokerage and other transaction costs to dispose of the securities. You may also receive less for the securities","page_number":154,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"16b5bd3c-307b-4ce4-976e-52ed975e0c76","block_type":"box","text":"than the price at which they were valued for purposes of effecting the redemption. There may also be a risk that","page_number":154,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"3a33806e-72a6-491e-a990-508880473c92","block_type":"box","text":"redemption in kind activity could negatively impact the market value of the securities distributed in kind and, in turn,","page_number":154,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"42c043c2-7051-480c-b624-602c07535a9b","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":154,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"d4e414bf-16d8-4978-ab1d-043625e6a66d","block_type":"box","text":"Repurchase","page_number":154,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"21f6b1fd-4636-4468-8e62-d39c7e6c63d7","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":154,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"51d5ba9a-c734-49a1-8886-4afe30e00bc6","block_type":"box","text":"priced at the NAV of the Fund next determined after receipt of the repurchase order by a Selling Dealer that has been","page_number":154,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"c0f4ee92-0a30-42e6-9f70-6133dfc30c6a","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":154,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"839cd13a-0b55-4355-a8d6-54fcba131e0c","block_type":"box","text":"prior to the close of business on the NYSE (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":154,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"1f763ba0-a4f5-4d4f-8fd7-3a2ffc028817","block_type":"box","text":"order is placed, which includes orders received after the close of business on the previous day, the repurchase price","page_number":154,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"ecf52237-d1a6-451b-adcb-ea38d04bb583","block_type":"box","text":"is the NAV determined as of the close of business on the NYSE on that day. If the orders for repurchase are not","page_number":154,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"395678fe-f48a-4f62-bdb4-1bc26a7542ca","block_type":"box","text":"received by the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":154,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"bd738476-6300-4052-a03e-047955837576","block_type":"box","text":"next business day.","page_number":154,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"8d215155-7cc5-44ea-9709-fd47d1dc643d","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":154,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"dfce0964-6108-43d5-b926-34aeadbaf69e","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":154,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"4c539aee-1dd3-403c-aa32-f742485a98c3","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":154,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"b90c7361-9d26-4793-b83a-affe59053111","block_type":"box","text":"impose a transaction charge for transmitting the notice of repurchase to the Fund. Each Fund reserves the right to","page_number":154,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"bbdcdb54-ddc7-42b0-99ba-945ef3caf4ec","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":154,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"f333ac04-0cc9-4dbb-84fd-270d187856fc","block_type":"box","text":"redeem shares as set out above.","page_number":154,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"4d365fb0-ac39-4b15-bbf5-6f766f1240c4","block_type":"box","text":"II-117","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2f2f80e6-b29d-4511-bb9a-91ba2f4a3626","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"377b6598-bfce-4544-ad1b-0e67043703e1","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":155,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"d39a68cb-620d-4a14-b2a1-e61b70493bdc","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":155,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"5a37e5e5-a76f-446b-89e6-5892067eb85a","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":155,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"6241ff82-1934-4fa5-bff7-d90b0e27012f","block_type":"box","text":"Shares of the same or another BlackRock fund without paying a front-end sales charge. This right may be exercised","page_number":155,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"234c0122-0e77-402a-8f5b-f725d3e01745","block_type":"box","text":"within 90 days of the redemption, provided that the Investor A or Investor P Shares, as applicable, of that fund is","page_number":155,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"a97ece88-a5ce-4e08-9ace-ae8a7f039705","block_type":"box","text":"currently open to new investors or the shareholder has a current account in that closed fund. Shares will be","page_number":155,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"b6f7655d-fd8d-4f8f-8e19-4dac8f131c70","block_type":"box","text":"purchased at the NAV calculated at the close of trading on the day the request is received in good order. To exercise","page_number":155,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"06bdce1d-9c60-465d-b89d-aaea38150bf4","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":155,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"81186a66-03d0-489a-bd67-296351cfcfe3","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":155,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"0bbfc641-ff83-4087-a9d2-10ef750874e6","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":155,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"1028c550-d7b8-4531-86f6-ca8139924a02","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":155,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"ed5b5cb9-07f2-4806-8c96-ad4c74846056","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":155,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"7793698c-39f7-4f45-a6a6-1c8eafbf6f60","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":155,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"49c94ed0-d631-4205-b9d3-ad543570740e","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":155,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"3405b96d-57ee-4427-be8a-0383f5a48dea","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":155,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"6aead1a5-fd71-4b56-ae17-d0930a1169bf","block_type":"box","text":"Investment Account","page_number":155,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"b08fdaff-af58-467c-9099-aa793296f844","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":155,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"e16e933d-dd27-4b29-b0f4-cc78fe1fb27d","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":155,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"188c75d4-08f5-402e-b579-39f3f75df15c","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":155,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"51590cfc-b727-4492-8a91-9bce9a2f61f4","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":155,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"3b36705a-a3e8-4db9-9949-bfeb716c83c1","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":155,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"ddae9416-18c1-4648-b8e5-6c421c508eea","block_type":"box","text":"the Transfer Agent you may make additions to it at any time by mailing a check directly to the Transfer Agent. Each","page_number":155,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"0f7ba4be-bf78-423b-b66e-94a0da3008e9","block_type":"box","text":"Fund limits purchases by personal check to $500,000 per trade. You may also maintain an account through a","page_number":155,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"c341a2c7-fc34-4b5d-b3f1-2b152495fce3","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":155,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"fc6252ae-bcaf-4618-ab10-aa163145a5ff","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":155,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"00b63949-dab3-4b4b-9201-0bfc666f9690","block_type":"box","text":"automatically at the Transfer Agent.","page_number":155,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"34dfc79c-3439-4726-a292-c2acc909101c","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":155,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"ea935728-9f6d-44c6-89eb-67883bf1037f","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":155,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"a38a0abf-07c3-43d3-9920-369cba87e376","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":155,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"3a00b79a-df10-4cb4-9ea0-24be76262de2","block_type":"box","text":"coordinated by the new firm. If you wish to transfer your shares to a securities dealer or other financial intermediary","page_number":155,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"f5828da2-fb98-46f4-b97a-18ea2677a845","block_type":"box","text":"that has not entered into an agreement with the Distributor, you must either (i) redeem your shares, paying any","page_number":155,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"42374210-b5f9-46ed-902f-8e1726a44cb8","block_type":"box","text":"applicable CDSC or (ii) continue to maintain an Investment Account at the Transfer Agent for those shares. You also","page_number":155,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"ec6f0718-3fc3-4f8f-a04c-d83a82c0ab83","block_type":"box","text":"may request that the new securities dealer or other financial intermediary maintain the shares in an account at the","page_number":155,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"6d3e21f1-6c5b-4c1b-bd00-fab03d1d62d1","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":155,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"185e3d8b-0d90-4e0e-9130-ad7a038b3146","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":155,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"c487937d-8c8a-470d-bcab-7f58a7b7f584","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":155,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"f4567613-a473-452a-b9ae-06deafb2d5b3","block_type":"box","text":"not be issued physically. Shares are maintained by each Fund on its register maintained by the Transfer Agent and","page_number":155,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"16c111f2-1963-4332-8667-a3b0a102df10","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":155,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"61218725-657d-42f5-b83c-401d5e7b3daa","block_type":"box","text":"issued.","page_number":155,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"0c2949f9-7be4-467b-9672-6ed13d737833","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":155,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"00a08362-c3ec-4712-ac7a-f843dc420200","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":155,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"6964bb8c-1db6-4467-9401-d90085752c12","block_type":"box","text":"that if the new firm will not take delivery of shares of the Fund, you must either redeem the shares (paying any","page_number":155,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"735fb744-e2b1-44a9-93b5-ada19376c90f","block_type":"box","text":"applicable CDSC) so that the cash proceeds can be transferred to the account at the new firm, or you must continue","page_number":155,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"1d68c49d-9809-4e73-9807-caf7678bb8bd","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":155,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"d0476369-a4a4-4603-9fb3-74379b40a49b","block_type":"box","text":"Exchange Privilege","page_number":155,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"a049743a-4ec1-46dc-a949-9cfdef23e651","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G Shares of","page_number":155,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"cfe3d706-f731-4ec6-8cb8-19dce2208a66","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":155,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"73191c06-2454-4568-9785-ece29ad51249","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":155,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"245cd480-80a3-4d84-b3cc-9edc84d28749","block_type":"box","text":"$1,000 if you already have an account in the Fund into which you are exchanging. You may only exchange into a","page_number":155,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"797597be-dc6d-4578-b0be-bbae1c0f9a32","block_type":"box","text":"share class and a Fund that are open to new investors or in which you have a current account if the class or fund is","page_number":155,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"c4de64ba-ae50-49a5-b6c4-7290b12a9bc1","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":155,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"378932b6-eefb-477c-9b86-c277e6e765de","block_type":"box","text":"II-118","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7ffddeee-538e-42d2-bb02-7d85f10f66c1","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b584d44e-6133-477b-aa93-f5ddbe592225","block_type":"box","text":"into which you wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":156,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"0e25e8c1-e77f-4daa-b408-9d67cd14ffe6","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":156,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"a4a2055a-7a52-4f6e-89b7-8cb8d398918a","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":156,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"675690e1-3d34-491c-bffe-757840508775","block_type":"box","text":"Institutional Shares","page_number":156,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"d1b18b02-175a-48ee-9968-5e1d06141afe","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":156,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"ac1817ff-1bca-4009-9eae-a14131341160","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":156,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"e3868613-17c9-4244-adaf-8c6079ccef01","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":156,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"d9087ab0-41fd-4c84-8d12-d3a1fb648e02","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":156,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"46e5e7fe-e7af-411e-8f35-d314d6b82db0","block_type":"box","text":"for Class G Shares of other Funds.","page_number":156,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"667c9d45-5f71-4681-8d86-98e965f47482","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":156,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"08bb325e-eca9-4564-9160-14a81131a007","block_type":"box","text":"market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of Investor A or Investor A1","page_number":156,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"51a8fb6e-99e7-4f9a-8f04-a0ce40cf94f8","block_type":"box","text":"Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares of a second fund, or for shares of a","page_number":156,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"ad244bc7-726e-4868-a34c-e9587a5fbf37","block_type":"box","text":"money market fund (“new Investor A Shares”) are effected on the basis of relative NAV per share. Exchanges of","page_number":156,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"5660f3b0-3dd1-471f-9fa0-905cd9342328","block_type":"box","text":"Investor P Shares outstanding for Investor P Shares of a second fund are effected on the basis of relative NAV per","page_number":156,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"84512e08-3aa8-4997-a354-a95df64b4511","block_type":"box","text":"share. Exchanges of Class K Shares outstanding for Class K Shares of a second fund, or for shares of a money","page_number":156,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"44afca47-60eb-4f62-a25d-1b2d94a86772","block_type":"box","text":"market fund are effected on the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class","page_number":156,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"204b8d29-1ecd-4d89-8184-1569789732dd","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":156,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"cdaa2fe8-5d2b-4886-9396-9f43d5dc98db","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":156,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"ba9058ed-a157-458a-9f4f-47e55d1533e8","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":156,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"381bcb25-03c6-493e-9b09-b27184a7b85b","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":156,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"b19443c6-9792-4ddb-9fe2-aee09bcca453","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":156,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"2b54fcb8-7270-4e21-a7e4-d43ea7a16f57","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":156,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"34fc14fd-92dc-4066-a8fc-a01d2996ada5","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":156,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"0d001169-e592-4acc-8ac7-22f1a8e26339","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":156,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"78293069-fd80-4fcb-8edd-848a248c3d18","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":156,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"9d64619d-d835-44bc-9500-49ab1194b351","block_type":"box","text":"Exchanges of Service Shares.","page_number":156,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"85ab518c-4598-47b1-9b97-d44a8ffe0e0a","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":156,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"cc64e8ec-c31e-4930-b491-2ff2cbf96269","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":156,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"c840b6ef-bdd2-4466-a0f7-bd7127b19933","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":156,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"77f3fe18-645b-4458-9d1d-2f1e9a6ee2e3","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":156,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"95cae0fb-4f3e-496e-a825-f388951e8103","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":156,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"7c4b89f6-787f-4107-9938-a5fed46ba93a","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":156,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"7e2577f7-2306-44df-8945-43e725d0816b","block_type":"box","text":"classes of shares: exchanges of Investor A, Investor A1 and Institutional Shares of a Fund will receive Investor A","page_number":156,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"5edef5e5-d11c-4dcb-aa1b-7a6cbf2c2f1f","block_type":"box","text":"Shares of Summit and exchanges of Investor C Shares of a Fund will receive Investor C Shares of Summit. You may","page_number":156,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"a5e9ee00-39dc-4885-b275-64ec92504e17","block_type":"box","text":"exchange Investor A Shares of Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to","page_number":156,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"4e5b97ed-55df-40e9-99f7-e4e359e375c9","block_type":"box","text":"hold such shares. You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":156,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"217ebebb-fa69-40dc-a3b3-b8ce92c79156","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count toward","page_number":156,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"f82afa94-e214-4415-8c82-6e8bd3b47e58","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":156,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"5efd8292-738c-4126-a6ab-a39258d3b1ad","block_type":"box","text":"subject to a distribution fee at an annual rate of 0.75% of average daily net assets of such Investor C Shares.","page_number":156,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"ed56207a-3c31-4c2d-951c-a30c459ba753","block_type":"box","text":"Exchanges of Investor C Shares of a money market fund other than Summit for Investor C Shares of a Fund will be","page_number":156,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"072d0df6-6e07-46cc-befb-2e1318c865c1","block_type":"box","text":"exercised at NAV. However, a CDSC may be charged in connection with any subsequent redemption of the Investor C","page_number":156,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"7bdd0bdd-3372-4f2b-b80a-330c463a51f6","block_type":"box","text":"Shares of the Fund received in the exchange. In determining the holding period for calculating the CDSC payable on","page_number":156,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"fdf0506c-7889-4ee8-9c3b-bdf04a517e93","block_type":"box","text":"redemption of Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":156,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"32668f7a-aa2a-435d-9079-2230368efd0c","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired through","page_number":156,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"c83c01e1-3e84-4099-98bf-3578aac106c0","block_type":"box","text":"exchange.","page_number":156,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"df77f8d1-474d-4774-96f2-3350c0e9a965","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":156,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"eff055de-9251-4c42-8ddb-69cd149ffb70","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":156,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"6f680344-4271-4dbb-a1f7-183698637297","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":156,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"1804620e-d3f6-4c8e-9a94-245dc7d00a2d","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":156,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"32848085-ab19-4899-96af-51a8f503cdec","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":156,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"50624605-f02d-4c5c-b703-c74ead1df42a","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":156,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"7758a5ec-d909-40b5-9258-c337a8a2d2d9","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":156,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"9ffcd561-bed8-4ab9-8353-7eda74e21fe9","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":156,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"116b503a-0885-4623-8a4d-72f3a0e54b14","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":156,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"23f8ed62-cd00-44b3-ba9a-caee83e3411c","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":156,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"a18d0921-4e5b-41b5-b600-929693c265cd","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/o the","page_number":156,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"cc431883-de34-4b80-907e-c129c710c64d","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":156,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"68320596-b0de-47f2-9f3a-3a2dbd995baa","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":156,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"930f35cf-c951-49c7-a4e6-0d64ac999c27","block_type":"box","text":"Application that they do not wish to use this privilege. To add this feature to an existing account that previously did","page_number":156,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"aacba1e7-c3d2-40b2-b409-2b6bcdce8d00","block_type":"box","text":"not provide this option, a Telephone Exchange Authorization Form must be filed with the Transfer Agent. This form is","page_number":156,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"a6a05b60-0791-4c1e-9bf8-b642c8160b6c","block_type":"box","text":"II-119","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"891d8ec1-e5fc-4205-9743-d60860c8fe78","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c495cc35-4c0b-4e45-9f59-72f75abd5daa","block_type":"box","text":"available from the Transfer Agent. Once this election has been made, the shareholder may simply contact the Fund by","page_number":157,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"1b51a58e-0492-4faf-a911-3f89f4948a40","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":157,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"8f06cf9b-9820-488e-b209-deb301d0808d","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":157,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"0260049b-cc46-455c-9a2f-8b64887471f0","block_type":"box","text":"Transfer Agent in writing.","page_number":157,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"aa07630d-4de4-4d25-8c4b-936615a706a1","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":157,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"407889c3-00e9-4d0f-b9f7-7107164a2d17","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":157,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"c75fab4a-b279-47c0-8213-34e9e52477b6","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":157,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"545bb4a1-3d63-4f3e-935a-b9578239f87d","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":157,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"fdd1f771-a438-4bf5-8ac7-a7d0e8c1888e","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":157,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"6bb99aa8-cb73-4d22-a145-473a92d2e4d5","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":157,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"b6e83cda-bf12-43d9-853f-84455f8c83ce","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":157,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"1baabd11-206d-438e-9235-03b439714921","block_type":"box","text":"must be legally available for sale in the state of the investor’s residence. For U.S. federal income tax purposes, a","page_number":157,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"b38a868c-83a7-42f3-979b-68fa2592b5dc","block_type":"box","text":"share exchange is a taxable event and, accordingly, a capital gain or loss may be realized. Before making an","page_number":157,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"7139ec35-a339-4ef4-8f4c-9076bd7cde43","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":157,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"0b88843a-b6f9-43c3-a4b0-4a0123ce6876","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":157,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"5999de05-32d2-4374-a6e5-6d1d147bea58","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":157,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"88d97baa-2aaa-4ebe-95d8-64b94debfdd9","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice will be","page_number":157,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"95a9aec3-a02e-474d-9c9a-c4728005c5c7","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":157,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"b76e7be6-5059-4e5b-9578-120b4ea18a65","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":157,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"39837649-e0e6-4468-929f-164b3de4cd9d","block_type":"box","text":"amount or frequency, and to other restrictions that may be established from time to time to ensure that exchanges","page_number":157,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"db056fa6-8635-4fab-b39e-3fe196d351b4","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":157,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"5ed3d152-8bf6-4b78-ad04-79186cbb7087","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":157,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"6d9abac9-7c9c-4237-8a82-56b027652559","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":157,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"4102cc6e-0d7c-40d2-8cf8-fd5dc8cd3b90","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":157,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"d34354c2-1567-4fa5-84d6-c92cb46c328f","block_type":"box","text":"such procedures. By use of the exchange privilege, the investor authorizes the Fund’s Transfer Agent to act on","page_number":157,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"93724802-1227-4eb8-a1f7-4b21707ac53a","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":157,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"54de6927-c6ab-4e23-812a-0d2e69ed17a3","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":157,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"a7db1db6-b76f-4ad0-8830-6f362acee2d9","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":157,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"8545aa43-86e5-44c9-9b09-9d5bd61e1c99","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":157,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"d06fa513-da9b-46ce-93a1-0bc1dbf33b1f","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":157,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"adc17eff-30fb-4a42-9b53-be553ec1c21e","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":157,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"77fa5fff-905d-40ab-b816-3018785aeffe","block_type":"box","text":"such offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the","page_number":157,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"4965574a-20a6-4aff-8027-eccb7cb8f6c3","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":157,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"a38ab541-fbde-4856-bcaf-e65c5c220c95","block_type":"box","text":"may be distributed by the Distributor.","page_number":157,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"2790a3ed-0e27-4672-abb1-b7e314215126","block_type":"box","text":"Participation in Fee-Based Programs","page_number":157,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"e1702990-c7c7-46c9-84a3-57642c627f98","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":157,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"358d4563-3f9e-4567-af5d-29a83a21dd61","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":157,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"0971673d-fe94-431d-8247-1f19149c85e9","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":157,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"b98b291f-223d-4560-a5ce-48373ef0d038","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":157,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"21c43451-e93d-4aac-af60-207d8bca8e34","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":157,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"24775908-6b75-4e7f-b1dc-80d30c7f0643","block_type":"box","text":"if you choose to leave the fee-based program, you may have to redeem your shares held through the program and","page_number":157,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"a2dd4c8f-d6b2-4329-8d3e-a19ae1b48918","block_type":"box","text":"purchase shares of another class, which may be subject to distribution and service fees. This may be a taxable event","page_number":157,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"d25e27e7-6bc7-42c2-b56e-2f0bf4b80614","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":157,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"b3507c65-4a3a-4324-bb2a-ffc936b409f1","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":157,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"13ad8f87-c729-45bf-93db-46d8f22a478e","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can be held in","page_number":157,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"0dccb13e-4f4f-400a-be08-051d04f8f249","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":157,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"afe3d462-86dc-4da4-8453-63a03c56b36d","block_type":"box","text":"class was held in the program can be held after termination. Shares that have been held for less than specified","page_number":157,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"c9850d59-034a-407c-975e-e1da8453df15","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":157,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"a898d854-ad8b-49d2-ba07-fb2a7581ae86","block_type":"box","text":"Institutional Shares in the program may be eligible to purchase additional shares of the respective share class of a","page_number":157,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"2bd8e40c-dba3-4087-b419-1e53f9c2a902","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":157,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"66a0045a-88c2-441f-970b-ef716b69e8de","block_type":"box","text":"Institutional Shares are permitted only if you have an existing position at the time of purchase or are otherwise","page_number":157,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"542a0d70-a748-460f-bf8d-6002cc200465","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":157,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"e3292223-6203-4a79-9bf0-48c144d47751","block_type":"box","text":"II-120","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8b6b7335-b636-4521-bf01-0622c4c7fc8a","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a2f61fa-a6f0-4e4b-8bb6-8bc4220bf9fe","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":158,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"3072f72f-e72c-433f-8744-a8883b36eebb","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":158,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"ca4e9f94-546b-4276-86e2-64caaa6b317c","block_type":"box","text":"intermediary’s policies and procedures, exchange the share class held in the program for another share class of the","page_number":158,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"463cc814-5fed-4a10-8d6e-de69cb054e3b","block_type":"box","text":"same fund, provided that the exchanged shares are not subject to a sales charge and the shareholder meets the","page_number":158,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"11b127a6-00c2-4309-815a-622b5aaa9f81","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":158,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"49e92fd1-416f-4f58-aafe-fdd924bbad33","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":158,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"6f039ac9-df62-44d4-aed4-15cdcc885502","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":158,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"0a011863-8187-4db2-9514-c1c569f57e9d","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":158,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"df9ebeca-8422-4a59-a0db-bc980995606a","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":158,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"4166d54a-0dec-428a-bcea-710f1cbb5f59","block_type":"box","text":"information.","page_number":158,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"58b4f2a3-8510-42e0-a7d5-6cb664a8deb6","block_type":"box","text":"Retirement and Education Savings Plans","page_number":158,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"c66ec2a4-55e5-42b0-be5a-1f9880d4c7cb","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":158,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"0d599db7-bccf-444f-b945-8cfe97511c05","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":158,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"7e1336c0-7873-4b5d-ba27-cf46cfc33f1f","block_type":"box","text":"the other mutual funds sponsored by the Manager or its affiliates as well as in other securities. There may be fees","page_number":158,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"bab13bd1-d426-4371-b2e3-213db6473969","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":158,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"84275b7a-61e2-446d-9779-e1d9cdeca73c","block_type":"box","text":"your financial intermediary.","page_number":158,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"796318d3-b2ac-45c6-8f49-c09a18d91ae6","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until distributed","page_number":158,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"93e735b1-2aec-4de3-ba58-eaaa4eb45729","block_type":"box","text":"from the plans and, in the case of Roth IRAs and education savings plans, may be exempt from taxation when","page_number":158,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"ab8ee492-8be1-444b-a76f-ed680a75568a","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":158,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"639959ad-ee56-460f-8f03-3bcf55be6a52","block_type":"box","text":"specific tax laws relating to the plan and should consult their attorneys or tax advisors with respect to the","page_number":158,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"753390de-c35c-45e8-98a3-fa7c3e88725d","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":158,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"1e4f89d4-cd1a-4b55-8272-693777068d32","block_type":"box","text":"Automatic Investment Plans","page_number":158,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"46e7156a-8cea-4e8f-a3d4-cbdbbc49d6a1","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":158,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"3ce62957-5586-407f-a976-b471ef85ba0b","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":158,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"6f56998b-14e5-47c2-bd9c-cb2f12054992","block_type":"box","text":"®","page_number":158,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"dc9ae8e6-538f-46c8-a189-0797dc22af7c","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":158,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"137ecf6a-d079-4757-b6d1-60f46e323e9e","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":158,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"768da8c7-3c51-4b17-b78d-c29dababd8e6","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":158,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"fe66475f-8e7b-4b3a-ade7-d1bb8d879109","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":158,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"841676f2-9875-4dcc-a58f-52b8ba631668","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":158,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"a19a0e26-1210-4f97-88c2-c2961070dce3","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if any, to","page_number":158,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"d74ed7e6-dce3-423e-aae0-759091dab254","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":158,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"5f1469bc-699f-4da1-9d32-c0129f002b19","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":158,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"ea4eebf8-474e-4334-af00-9a2a8e992816","block_type":"box","text":"Fund’s prospectus. Such election, or any revocation thereof, must be made in writing to the Transfer Agent, and will","page_number":158,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"ae45a12b-74d0-4e99-ba49-7dac48d653aa","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":158,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"9c2f194d-e6fb-4649-a89a-62b02869145b","block_type":"box","text":"Systematic Withdrawal Plans","page_number":158,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"8bd0921d-900f-4eb3-957b-317bead82320","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":158,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"fb3cd577-1bb6-46d6-aa81-90eb8416fe39","block_type":"box","text":"Upon commencement of the SWP, the account must have a current value of $10,000 or more in a Fund.","page_number":158,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"eaf64e1e-f0c5-4787-ba53-2f4b7a22c15f","block_type":"box","text":"Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day","page_number":158,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"f4849ee6-42f0-4701-b039-a33384be677e","block_type":"box","text":"for the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such","page_number":158,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"608f948f-ddfc-43c9-b188-2530e82f511d","block_type":"box","text":"day is not a business day, on the prior business day and are paid promptly thereafter. An investor may utilize the SWP","page_number":158,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"e96cef7f-1152-49f3-8be3-143280e3dd28","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":158,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"ceb6702e-4a2f-4def-936e-8a2dd9381e2c","block_type":"box","text":"www.blackrock.com.","page_number":158,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"6d7ac274-a406-4ed8-94d7-0b59c3560aa6","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":158,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"5f11dacc-641a-49db-a727-c4c54cb52852","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":158,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"9ae490b3-5557-41ab-86a2-e5373614667c","block_type":"box","text":"Shareholders may change or cancel the SWP at any time, upon written notice to the Fund, or by calling the Fund at","page_number":158,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"71361d7a-14bb-41b7-866c-7332021d8bda","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":158,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"e7e121e8-8f43-470e-8f2a-6beca47e7b24","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":158,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"77da200b-7b08-4f23-a12a-3cfd44ad8c7f","block_type":"box","text":"CDSC will be assessed on redemptions of Investor C Shares made through the SWP that do not exceed 12% of the","page_number":158,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"4da81da7-0e6e-4af3-9bf2-74967c72a5c7","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":158,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"c258138c-7f03-4fe0-827f-422828185d2f","block_type":"box","text":"II-121","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1538722b-bf2d-47fa-bbbe-34336defe425","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a5c4ea1a-57fc-4e15-b1f2-3d75b7bd8aa4","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":159,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"1f89805e-adee-4624-872a-1abb96b05488","block_type":"box","text":"annually), respectively, of an account’s NAV on the redemption date. SWP redemptions of Investor C Shares in excess","page_number":159,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"a2036823-5c82-4cc4-a52e-573a0e910f2c","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":159,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"e4d71a22-e436-48b6-88e4-074f9f25e7d3","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":159,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"0261f527-3ae9-4214-9336-049f9fab5bf9","block_type":"box","text":"to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,” as applicable, in the Fund’s","page_number":159,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"fe55ea23-b5d2-4c23-8aa5-a54db200a129","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":159,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"86fefdc3-ab61-4549-9ac4-7e6c1c781746","block_type":"box","text":"Dividend Allocation Plan","page_number":159,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"823e4ea1-69a5-48eb-a202-7ed1a0cce2fe","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":159,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"63f2fda4-9704-4205-93fc-ba666ef25d9c","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":159,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"b7b8a20e-3d91-4ed9-bcef-40d959298f04","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":159,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"f3391d64-04fe-44e1-95c5-d097258a688e","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":159,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"05b8400c-1d5f-48cc-8f81-5295d755b7e4","block_type":"box","text":"PRICING OF SHARES","page_number":159,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"860b9c51-35d3-4377-bd66-5e066bb6cc9d","block_type":"box","text":"Determination of Net Asset Value","page_number":159,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"5fa8279b-c837-490e-8dfa-f86eb754d53d","block_type":"box","text":"Valuation of Shares.","page_number":159,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"5f1de920-cf18-4e9e-ba23-bad23b85cb17","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":159,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"4b860f7e-f986-4ed7-bc03-b0a22774c67d","block_type":"box","text":"regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day the NYSE is open.","page_number":159,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"ab8c21cb-15f4-45a9-b539-fc613bf9aa4e","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":159,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"14c730c2-ce78-4f04-95fd-7314cd14e1f5","block_type":"box","text":"Equity Investments.","page_number":159,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"921ff511-c957-4cd8-9cc3-60b1aebdae15","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":159,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"f49a556c-5d42-4536-9e71-f1bfbb0cbf48","block_type":"box","text":"e.g.","page_number":159,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"6ebb7bff-01ef-4827-91bd-7702650cad90","block_type":"box","text":", NYSE), on separate","page_number":159,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"badbebf7-9a1b-473b-8ddb-32dbeebb6a4d","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":159,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"43b65dc5-52fe-4ace-b756-a51c59e59326","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":159,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"cad95c0a-ca9f-4a16-b937-5fc3497b44b3","block_type":"box","text":"generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that","page_number":159,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"406805a2-8f3c-4e93-b1a9-4c0ea9248aa5","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":159,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"955746d6-bf73-479e-b856-e8816d2d8c96","block_type":"box","text":"other means of determining current market value may be used. If an equity security is traded on more than one","page_number":159,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"47263c37-8e17-48fb-80a6-8b92b7a170ee","block_type":"box","text":"Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that","page_number":159,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"cf9e5955-b408-4ec2-8109-402c4829f60e","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such security, the","page_number":159,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"d83329b9-4996-4c22-858a-23007909ddda","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":159,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"1713a6b7-590b-40e8-a4bc-f033c99296fb","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":159,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"deb0033f-09f8-49ca-8fcd-cf7e1e6be3a2","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":159,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"c7a90b23-936a-4f86-bb6c-98a31474232c","block_type":"box","text":"values such security, the prior day’s price will be used, unless BlackRock determines that such prior day’s price no","page_number":159,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"0d319388-8d08-44b7-bb08-5926c572649f","block_type":"box","text":"longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as","page_number":159,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"36da7be5-d4c3-4dbd-b72f-e588d59cb003","block_type":"box","text":"defined below).","page_number":159,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"1af25041-c0b8-41d8-9162-8b755a6c7a67","block_type":"box","text":"Fixed-Income Investments.","page_number":159,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"9b4ee419-4961-4859-aeab-f802e9d7ebd5","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":159,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"b47cd359-e913-4809-8343-0e4ca70b4b9e","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":159,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"a874dfa3-dc15-4b45-84ad-0981e63f3d60","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":159,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"da2cc82d-709e-4772-b394-9f41e5a1809f","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":159,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"2e308a49-1f0f-402a-8578-197e3f1bfbf4","block_type":"box","text":"e.g.","page_number":159,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"08700502-31a0-44b5-be97-4b8696220e3f","block_type":"box","text":", recent representative bids and offers), credit","page_number":159,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"1b92354f-2284-464d-872c-74ae2d061088","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":159,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"c1c37148-ad98-42b2-96fa-b1e917e4bc85","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":159,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"69bae207-ac48-4acb-b935-bf53e3151483","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":159,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"81577c5b-8c7d-42f2-9d17-30c0eb93ae8f","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":159,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"49d7276d-a916-41cc-baea-f875b194024d","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":159,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"7ca24d1a-7311-42b2-bfdd-671a5be8983c","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":159,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"25269cc7-e2a3-4154-b00c-ea780e676efa","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":159,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"d4fbbc30-373d-46d2-8e68-f027c21d2fa1","block_type":"box","text":"respect to debt obligations with 60 days or less remaining to maturity unless such method does not represent fair","page_number":159,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"9ac7caee-18a7-4ec4-9cdc-887358e51b71","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":159,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"21605185-ca2d-47db-9b2f-45c6b20e1c26","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":159,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"fd547245-3e76-47c9-ba3c-c5b81b7f79b9","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":159,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"ef1d54ce-3482-4b0e-9926-d80583d213e1","block_type":"box","text":"attributes of the tranche.","page_number":159,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"41476402-8653-490b-af3a-0e7b98f01873","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":159,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"ae8b6b8b-dc15-4539-a183-5c807328ba46","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":159,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"35a220e3-0268-462a-bfbc-2406425f1828","block_type":"box","text":"index options or those that are customized) for which market quotations are readily available are valued at the mean","page_number":159,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"dff7af6d-0c6a-4683-973f-63f571ddce2b","block_type":"box","text":"of the last bid and ask prices as quoted on the Exchange or the board of trade on which such options are traded. In","page_number":159,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"bf1cebfc-555b-4b01-ac01-918db703a32c","block_type":"box","text":"the event that there is no mean price available for an exchange-traded equity option held by a Fund on a day on which","page_number":159,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"78692670-6f5f-4aac-908f-c911247e4b80","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":159,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"2ab9dc06-a48e-445b-86b1-c5fb8b6100ef","block_type":"box","text":"the value of such option. If no bid or ask price is available on a day on which a Fund values such option, the prior","page_number":159,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"f0da510b-74ea-431e-b17e-f3916082bdaf","block_type":"box","text":"II-122","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8d17071d-4b79-4095-a98c-c4dfc0bc8e2c","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"af21439d-b18f-46da-bf30-77978edafb1b","block_type":"box","text":"day’s price will be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":160,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"8ae8b513-fc56-43b3-adec-f6b8c8fd261a","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange-traded equity","page_number":160,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"2a5e7a12-0f59-467b-b08b-6f80f19ed6e6","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":160,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"889875a3-e7fd-448a-b70c-de110234bfce","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":160,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"ceaa7747-7e6f-43af-a710-f0a2e22cb0d1","block_type":"box","text":"on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements","page_number":160,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"f90bbb29-c8c0-47d9-a021-ff58124ee3ee","block_type":"box","text":"and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in","page_number":160,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"90c4f493-cf02-4ae7-ae54-88037b11d9ed","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":160,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"0127d156-53e4-4cf3-92bb-d2edc010e120","block_type":"box","text":"Underlying Funds.","page_number":160,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"e5f7d6b1-bdfc-488a-900b-fbb3ad9b30a2","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":160,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"3491f114-9f65-43e9-84da-b725cd83b545","block_type":"box","text":"market funds) are valued at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued","page_number":160,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"ee3a8122-ae08-4aa2-9771-2e06998526df","block_type":"box","text":"at their most recent closing price.","page_number":160,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"cb36ebf3-4edc-44cc-b7af-a081bb025c47","block_type":"box","text":"General Valuation Information.","page_number":160,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"08b65c61-69fd-44a1-a730-d577d42a7754","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":160,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"3b1c9c44-f809-43a6-ba1f-b1d6b346b0a2","block_type":"box","text":"market makers to value each Fund’s securities and other assets and liabilities are based on information available at","page_number":160,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"ff6c1fb6-2797-4fcf-8f9d-4f5988ba2162","block_type":"box","text":"the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated","page_number":160,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"e7d17f7c-4588-41f2-86b4-74cb86f3eac8","block_type":"box","text":"subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be","page_number":160,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"a12e4233-e828-4b1d-b16a-8fc404e96a72","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":160,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"23663e0a-1865-4430-8bff-3045d9208e8c","block_type":"box","text":"the revision.","page_number":160,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"281230f7-2daf-4142-95a4-84d46fa75ed2","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":160,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"a611190f-d722-4bc2-a0f7-35c69df5b210","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":160,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"3b5a450b-f623-4ebc-8777-07207755674f","block_type":"box","text":"matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a","page_number":160,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"3b58d81a-aa87-4119-bc52-96b8d3d1378e","block_type":"box","text":"price different from the price that would have been determined had the evaluated pricing method not been used. The","page_number":160,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"4f2ebd79-4ba7-4471-9fdf-faab950a99a1","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":160,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"60940e92-21c3-4df3-b796-0f36d2a05681","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":160,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"680beb73-e215-49aa-9a02-d83e836e32e6","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an","page_number":160,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"5e2e7dae-e6a8-442f-b0d4-25d0bd42d27c","block_type":"box","text":"investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss","page_number":160,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"a749226e-e850-44db-bd0b-3eafe8be5828","block_type":"box","text":"or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investment may also be","page_number":160,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"d9b4c287-f160-42e2-8dce-0d6617cd347b","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":160,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"f6364b27-0b47-4229-b571-baeb56d72ff8","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security which is","page_number":160,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"217c7b38-b024-48ab-9c88-17cc0bb05566","block_type":"box","text":"deemed not to be representative of the fair market value of such security, the security will be valued by, under the","page_number":160,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"1f8f07da-5943-41b3-95c9-331f9040d7f0","block_type":"box","text":"direction of or in accordance with a method approved by BlackRock, the Fund’s valuation designee, as reflecting fair","page_number":160,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"b41d786e-4e10-40ea-8ad2-04aeca10adb9","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":160,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"57e81d0a-00cf-4658-abfb-96d9e08a1df1","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":160,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"6492cfb8-c961-4e34-b663-2456d3f6553d","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":160,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"9f8e7b73-4dd1-4c6d-bc3b-cf30830d6c2f","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":160,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"cfe10ffb-0f37-4d54-8103-661a99250920","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":160,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"a7e81330-7bd7-4358-8baa-157cc31ce3a4","block_type":"box","text":"which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on","page_number":160,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"a3de6bf0-ebaf-44f0-8b81-4bae31db8612","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":160,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"67da526d-37c5-4b8d-bae0-06e9889acb7b","block_type":"box","text":"Fair Value.","page_number":160,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"7074c6be-6079-4854-b188-45e22fa8e351","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":160,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"7472eb06-b166-4e15-b483-0120a647c912","block_type":"box","text":"Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are valued by BlackRock in","page_number":160,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"6b3cafea-88da-4bc3-9454-124b3691a519","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":160,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"8dd9a2d7-e5b0-457a-a64e-ab452ca5bff7","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":160,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"e82f0463-5b40-42ac-8617-c5a03f35cb62","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":160,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"cdd7cf1d-190c-44cf-8fea-a78d831a7638","block_type":"box","text":"unreliable if, among other things, a security or other asset or liability does not have a price source due to its","page_number":160,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"6283b5dc-836c-47eb-99dd-e695929ed451","block_type":"box","text":"complete lack of trading, if BlackRock believes a market quotation from a broker-dealer or other source is unreliable","page_number":160,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"931c7bd3-d3bc-4da8-93f7-dbe5360d3596","block_type":"box","text":"(","page_number":160,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"9652216e-b1f4-4392-bcf2-0ded9151dda3","block_type":"box","text":"e.g.","page_number":160,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"d88d70d7-32d9-41ba-9ced-e555cdd86c1d","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":160,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"cfc07737-2970-4704-bd0b-0e1b2f8edf4e","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or liability is only","page_number":160,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"6e34d789-ddf7-4b0c-9bd8-de787bd2f89d","block_type":"box","text":"thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this","page_number":160,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"55166b3e-2acf-4441-b275-090ae8427189","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":160,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"178bf72e-d6b3-4bff-95a5-7182570af633","block_type":"box","text":"an event has occurred after the close of trading for an asset or liability but prior to or at the time of pricing a Fund’s","page_number":160,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"e1ba84e4-61e2-468b-90f9-8e009bf2764b","block_type":"box","text":"assets or liabilities, is likely to cause a material change to the last exchange closing price or closing market price of","page_number":160,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"15f58ce4-5e48-4050-a550-da9280d45296","block_type":"box","text":"one or more assets held by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the","page_number":160,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"102963c0-3236-4833-817b-bcc8b5b42595","block_type":"box","text":"primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using","page_number":160,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"260afdb2-48db-4cf9-b81d-9b715e962ee5","block_type":"box","text":"the prior day’s price, provided that BlackRock is not aware of any significant event or other information that would","page_number":160,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"ab4e9cf3-dfe9-4a66-ad59-b9b80f0fc296","block_type":"box","text":"cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would","page_number":160,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"031424ea-564e-4054-b565-a8e7a6948dfd","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":160,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"c58ec596-ac8f-4166-9396-8df89c6ab6be","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":160,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"4c6a9f82-fe07-4bc1-bdb9-30b6faeb04fd","block_type":"box","text":"II-123","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"66281fde-6e70-4259-84a5-931480d87fd0","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8a5fa35-7ba7-498f-af5d-35be78db2d53","block_type":"box","text":"closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or","page_number":161,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"13eea464-c538-431f-9e94-e9552999b50f","block_type":"box","text":"more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":161,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"a54a9756-f4d7-4d63-b8de-19b991a9ec70","block_type":"box","text":"pricing time.","page_number":161,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"afb46deb-4a81-4c8c-8bd5-2a90e603e6a8","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":161,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"21c97b40-9720-4cd7-91ab-071d825ceada","block_type":"box","text":"and significant inputs used in the fair valuation of Fund assets or liabilities. In addition, the Funds’ accounting agent","page_number":161,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"9df0bd1b-fdd8-41d1-a13e-dcc55207de89","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":161,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"c0e4caf0-b845-441b-aab3-43decfa5e6a0","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":161,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"f52422ef-753e-40a6-b328-f822dcbe8fc7","block_type":"box","text":"assets and liabilities of the Funds.","page_number":161,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"2e0560fc-4dae-404d-8ede-e9ae9aa6d3b8","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a Fund might","page_number":161,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"31896d3e-2aca-42d2-acfa-b19fe240872b","block_type":"box","text":"reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date","page_number":161,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"1f17886a-ea52-42f1-a4bb-8d0d64c3ce3a","block_type":"box","text":"on which the asset or liability is being valued, and does not seek to determine the price a Fund might reasonably","page_number":161,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"322a9984-abfb-4e47-91b4-c5af0fda9d59","block_type":"box","text":"expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value","page_number":161,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"9b5e90e6-cf9f-4a2b-9bb1-d0073e2a5225","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":161,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"3e2c1d1a-1f5b-4852-b924-b228d635b285","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":161,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"27f2e3dd-2c09-4c97-a476-0654685c1ea1","block_type":"box","text":"valuation models.","page_number":161,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"fbaa4f1a-28b8-4ce7-a627-1fc01b92f932","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining the fair","page_number":161,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"c423c256-efb9-4612-9cbc-ce06786f89c4","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":161,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"7767029c-ce3c-41e4-a9f4-f39c08e60042","block_type":"box","text":"the asset type). For example, the investment may be initially priced based on the original cost of the investment or,","page_number":161,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"3a0bd83b-d1f4-4f4d-b777-c0b31f875751","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":161,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"b92e3364-1e54-4e8d-b8c0-d91aea247eeb","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":161,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"f6a7655d-045a-4109-be96-4e370d400d11","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":161,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"cafc90e7-cab8-43b9-b832-79f852738fca","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":161,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"ea325503-e58a-4278-96c2-638db83f2ee9","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or","page_number":161,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"aeb15e6b-dafe-418d-9eb0-ed823373dcb8","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":161,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"1edaed9b-8774-44d9-98dd-aba41612694d","block_type":"box","text":"NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time when a holding or holdings are valued at","page_number":161,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"26427ad6-910b-4808-bdef-27929cbb824b","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":161,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"5acfe2de-0032-4464-a5e3-24ca9b422128","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":161,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"87089d00-6352-4b9b-beb1-1bee4c053aa4","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":161,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"d21bb7c5-20a9-4868-8e54-ee1e1a87df1b","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":161,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"b8de7971-9479-4cf5-8224-a5a55279e734","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":161,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"7ec6be2c-8c78-4871-a1b4-543086eb6553","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":161,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"81933027-ea5b-47db-984e-52827f040b24","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":161,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"59a7e9f5-87ac-4e5f-bcf8-faf46fc67fc2","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":161,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"e04683c1-eb5f-4fa5-a50d-0c289a98182b","block_type":"box","text":"of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to","page_number":161,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"832f13a7-b84d-475a-b3f1-cd4d8930f34d","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":161,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"46ea13c2-5813-4b7d-b0ae-87c404b7504a","block_type":"box","text":"increase the costs associated with selling assets or affect their liquidity due to a Fund’s inability to obtain a third","page_number":161,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"736af30f-86ce-49f0-a779-d49a0c8cffc1","block_type":"box","text":"par ty determination of fair market value.","page_number":161,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"d060e6b5-44de-4507-af1a-369db13d82d0","block_type":"box","text":"Computation of Offering Price Per Share","page_number":161,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"4f6eaef4-2754-4075-96d2-b1c15ff1e8f5","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":161,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"aa1dc98d-43b6-47f3-a808-458e26a1fb61","block_type":"box","text":"the offering price for shares of your Fund.","page_number":161,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"b90cbae2-2f84-44a6-a0d7-3a50c077dcf5","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":161,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"15ac4e68-a288-4d46-b976-7be7b40448ee","block_type":"box","text":"Transactions in Portfolio Securities","page_number":161,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"9ce3146c-6e70-416b-8d1f-e44a1b7045ab","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":161,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"c9c5e3d1-03d4-4f86-b8cc-9ec9e9e1037f","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":161,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"255643d5-d8fa-4b2e-a49d-847a34a33386","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":161,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"12ecb549-dd05-44e2-b783-a6b0e7c6008d","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":161,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"b2f946ca-6536-4ed0-8507-a83da2837591","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":161,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"eb129ce3-ef3d-43c9-a82a-a537bd940abd","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":161,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"51b84433-5bdc-4d50-9108-7f5d097f15f2","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":161,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"7ef633bd-d37e-4390-80f5-36ebc256dc2d","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund to pay a higher","page_number":161,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"c423eff2-80e0-4c1b-afb4-011883d6c0d2","block_type":"box","text":"II-124","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a7479d68-f749-403d-8f86-18edaa434bc1","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b8b2e622-83ef-4406-98f3-3ae6e3f5a902","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":162,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"67b15222-2f2a-4322-8999-9eec54e6576f","block_type":"box","text":"reasonable in relation to the services provided.","page_number":162,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"821b2613-80ae-470e-8a46-39af1b2494e9","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":162,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"764d6678-1c1b-491a-8091-15a13ef16021","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":162,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"105c1015-e9ef-4a90-9b90-f2315e13929b","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":162,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"9e64a466-f207-4cee-8559-2173001ce2e3","block_type":"box","text":"the best price and most favorable execution for a Fund, taking into account a variety of factors including: (i) the size,","page_number":162,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"eecf8d8d-3d51-4ee1-bfc4-d65d2401585a","block_type":"box","text":"nature and character of the security or instrument being traded and the markets in which it is purchased or sold;","page_number":162,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"32b39abd-c8e5-42ed-a0c3-456d4533372d","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":162,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"bdad2d30-cbcf-4141-a1bc-f28ad3cb045b","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":162,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"ae7c36b6-e270-43dd-83e8-350f26704164","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":162,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"c3426b86-b4be-4a2f-83b8-30d4864070a2","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":162,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"922f0028-a33b-4632-8b1c-7a307b63f34b","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":162,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"900df015-4e68-4f6c-8033-8a65223ae5ba","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":162,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"8026f6b6-aa8f-4b6d-beca-8af4c6469d5f","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":162,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"2d62ddbd-12e6-4891-bf55-958950ca5028","block_type":"box","text":"to cause an account to pay a broker or dealer a commission for effecting a transaction that exceeds the amount","page_number":162,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"294ea571-0294-4558-87e5-992a70d55004","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":162,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"c05d414c-d093-46f9-8e12-5b07e903f837","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":162,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"288a5d5c-86e6-4312-ac31-f14bdfd9c741","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":162,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"c5168ee3-1fb7-46e0-a65e-6837c3b1a583","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":162,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"40b93ce2-6626-4678-bfb1-be0c03e91290","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":162,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"419812bc-b3d7-4089-85c4-ad99fb62291b","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":162,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"bbadb860-85c0-4160-9c35-4a0c9140663a","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":162,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"3a0af03e-694c-4d72-ae10-350362471833","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":162,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"208a4abd-a58e-4d13-91b1-f9e038a7c283","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":162,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"bf6bec8d-9f3e-4a1b-9fc4-25e227b6a4da","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":162,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"d1ceda64-37da-4156-813c-f6d2a285cd56","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":162,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"b44b277d-4ef1-48f6-9474-07488df94a15","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":162,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"dbfc7c98-7e0c-4550-8bca-736207e3147b","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":162,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"c4f2032d-fc09-4d53-b113-7fd79013b538","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":162,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"ccc44ae9-fb2c-45ea-899c-6b43a522c173","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":162,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"f9336857-db1a-470e-b5bd-5d06c9443a64","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":162,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"1cda7bb7-7698-4e85-8c87-bee034fcbf23","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":162,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"4127e245-b6bd-46ac-b8ce-2e2ee0022230","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":162,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"780e6edb-96ee-49dd-b57f-26954f6dca6e","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":162,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"ebcbfe1e-2065-4072-9992-61e0cae0bcea","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":162,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"f547c1cc-b70f-406d-8f6b-4deb615a4d0e","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":162,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"a748066a-525a-4c53-b5b6-5043f7ff924c","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":162,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"00b32509-0921-4451-b3b8-63f8cb282ffa","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":162,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"ad703c67-f9ef-4673-acbf-d4c4764d80dd","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":162,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"749e20c4-8ebc-4cee-962c-0fef1ffa815f","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":162,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"543fc8df-ea05-4714-98dd-b13b871be721","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":162,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"f4d076e6-7828-4ddb-9c97-41f6d398841f","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":162,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"5b3d7c80-28c4-4c40-8049-5d174a373b38","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":162,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"dbb351aa-6804-4051-9277-5076c36be7a8","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":162,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"cbf6ec06-6e5e-49eb-8c3d-5cb2545e44bd","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":162,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"5adb4d7a-c7c4-4d1b-9c39-cda8a839115d","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":162,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"c276fcef-363a-485a-8b71-fbeca6ea33b3","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":162,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"9c57c105-4a90-4aae-ae8d-aa47ec8d1f3f","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":162,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"4c716507-6605-417b-9802-367070e5337f","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":162,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"d7ab2d7c-abb5-4bd7-9616-f83d9283c5b9","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":162,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"8038d729-121e-4988-b5c6-1045e32fc954","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":162,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"4253dc64-7bf5-4265-bd43-449052e7b28d","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":162,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"83d5f32a-e2ea-4005-b156-351bb58e8044","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":162,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"dde4056f-9550-4d3a-b08c-19ca51731792","block_type":"box","text":"used in servicing some or all client accounts and not all services may be used in connection with the Fund or account","page_number":162,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"1e78b873-85ac-4a08-bacd-e7adcf167453","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":162,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"5322b30a-19d7-40c8-9630-db2fcb9b3dfc","block_type":"box","text":"II-125","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ad55460b-84ad-41d3-8e38-1ffa827d31f5","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca53e396-c3ba-4634-9793-e10a3de6312e","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":163,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"58879f88-3f8c-4fa4-9be3-5f14b6d528a9","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":163,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"8c1b04b0-f181-4452-b4e8-33f6e2fd27c4","block_type":"box","text":"paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt of research services. In some cases,","page_number":163,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"c074bfdb-1a9b-47bf-a6c4-723b555fa724","block_type":"box","text":"BlackRock may receive a service from a broker that has both a “research” and a “non-research” use. When this","page_number":163,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"bc33cbdd-1d89-46ae-a562-8c6b88569f85","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":163,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"0b9501ce-cfa7-4d93-9314-14368b0eb4ec","block_type":"box","text":"research uses of the service. The percentage of the service that is used for research purposes may be paid for with","page_number":163,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"0fe6e454-ee66-4afe-9118-1c196bd47d17","block_type":"box","text":"client commissions, while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":163,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"a35028ee-c954-4f45-8236-d1d684fa22cd","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":163,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"40675aa1-84c1-45aa-bfeb-ac556bd7e869","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":163,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"d3b0d78e-354b-4e6e-8b01-24dec9b24143","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":163,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"3eb04849-7f58-4357-a2d3-21a6de0e1b81","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay for research","page_number":163,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"52dd9310-14d3-4347-946e-163cb71b3e7e","block_type":"box","text":"from brokers. Investment managers in the EU are required to either pay for research out of their own profit and loss","page_number":163,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"eb3a525e-a421-4e28-b91c-dc871b891d1c","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":163,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"16ac1868-1732-44a5-9e51-18658a56ea37","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":163,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"b932e289-ade7-4914-ad29-9a1793b4a5f4","block_type":"box","text":"payments for research are unbundled from the payments for execution. BIL will pay for any research out of its own","page_number":163,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"8c91be79-51f1-470f-b6ab-57c4d5ca6f7f","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":163,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"6b9ee06c-d8df-4223-9ebd-0ad9f5ceec83","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":163,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"04792b93-2fb9-43a3-aaf7-de42d7a22b9c","block_type":"box","text":"to the Feeder Fund (or affiliated persons of such persons), will be made in accordance with Rule 17e-1 under the","page_number":163,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"ea135242-e2c7-4e14-a429-ce03f0da76f8","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":163,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"c452e750-4017-45de-91c2-f817960cc134","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":163,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"d38cc6ed-8814-482f-8c16-b9ca3813ce40","block_type":"box","text":"brokerage.","page_number":163,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"4ea6590a-8937-4ead-b5d2-20aa505cefee","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these situations,","page_number":163,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"998a8575-20ab-4fc6-8c58-f495ad7da883","block_type":"box","text":"the broker may be a member of the selling group that will, in addition to selling securities, provide BlackRock with","page_number":163,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"1580e061-a503-43b3-85e2-a2d589fa228a","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":163,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"7ea35b84-5d41-4dfb-b38c-dff007c9a4cc","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":163,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"715c431e-9569-4b1d-918c-fc62e05cdb52","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":163,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"c4325aef-cc0e-4973-872b-d6a7a13f329e","block_type":"box","text":"Section 28(e).","page_number":163,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"f1aca812-f724-4ac3-a9ce-410e3526df8e","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection of","page_number":163,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"374ca494-1357-45c5-96a9-f851aecf6e32","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":163,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"bb7517d0-e500-494e-8248-00f4227da105","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":163,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"13fa65ed-f1fc-4283-979a-99c77a241f72","block_type":"box","text":"execute transactions for those mutual funds.","page_number":163,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"80ea8d17-4558-48b7-b321-1c993ce7bfcb","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":163,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"62ce489e-c4ee-43db-a2b6-1c3bab12925d","block_type":"box","text":"primarily on the principal stock exchanges of the applicable country. Foreign equity securities may be held by a Fund","page_number":163,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"86dc285e-af9f-4bcc-8f1f-290da304c04c","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":163,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"ba41cbc7-a979-4197-8b8d-7988cb9b6881","block_type":"box","text":"may be listed on stock exchanges, or traded in OTC markets in the United States or Europe, as the case may be.","page_number":163,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"adb46e04-575b-44b7-bf70-42d3958be8d2","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":163,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"e9cd89ae-d12c-412e-8452-894b8f0a8547","block_type":"box","text":"commission rates. Because the shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund","page_number":163,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"d8de113d-9b66-43cd-a19c-7e36ce4f07b3","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":163,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"0bc77ae4-bc21-4f73-91d5-506f25939521","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":163,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"80ca74e1-238e-48c2-91e1-4e0fe80774ae","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":163,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"4f77f5b4-89ca-46bc-93d8-db8f2a992622","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":163,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"ee8c71f6-4e39-4847-81ac-312f620ab49f","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":163,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"c49d2ed4-17ea-44d7-a1ee-6f6e94750847","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":163,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"7463806e-7080-478b-90a3-f7e22ce26d41","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":163,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"c43e3e34-89e6-475f-9948-5c5df3c285e9","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":163,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"85ba5050-278c-4111-9eb1-fb2cd2973d22","block_type":"box","text":"affiliated with such affiliated persons are prohibited from dealing with the Fund as principal in the purchase and sale","page_number":163,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"68ed8422-a1e7-4461-ac53-749020d6d444","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":163,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"e5bb3898-6cd9-4174-9347-607b0821dae5","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":163,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"1c76f7b9-c7bc-4ae4-912e-f99de5017af3","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":163,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"a65ce58b-5d3e-4fa9-83d3-3395be6a65aa","block_type":"box","text":"person of a Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":163,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"d62f7cbd-c9c9-489c-b66d-ef24bc8e2981","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared to the fee or","page_number":163,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"a74ec606-cd2d-4547-884d-d2ebee682748","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":163,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"209ddb0c-a9ea-4944-9b9e-e77943f4b50f","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":163,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"56766f18-8aab-4d81-82fe-78254563f80f","block_type":"box","text":"normally traded on a “net” basis without a stated commission, through dealers acting for their own account and not","page_number":163,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"f0cc5208-e8a5-4ff4-a264-82f463122fc8","block_type":"box","text":"II-126","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9ddedf9e-3c6c-42cc-86bb-8f5c9a40ea8d","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e97f30e7-7e87-40d1-b73a-e3ebd23dabd3","block_type":"box","text":"as brokers. The Funds will primarily engage in transactions with these dealers or deal directly with the issuer unless a","page_number":164,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"bea544b6-e802-4e17-9d5c-80a7cd91c39d","block_type":"box","text":"better price or execution could be obtained by using a broker. Prices paid to a dealer with respect to both foreign and","page_number":164,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"24d79990-1dc5-4bb1-abe1-bb216147e937","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":164,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"cc44cae5-135f-46b3-b90a-2b52e98d17f0","block_type":"box","text":"is willing to purchase and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":164,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"db1de58b-bcf3-4f6c-8f0e-488563f46931","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":164,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"8d6fb6be-a75c-4685-adc8-18cf926f3825","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":164,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"f52b2526-c1fa-460c-8bad-331a622a1e6a","block_type":"box","text":"instruments are generally traded on a “net” basis with dealers acting as principal for their own accounts without a","page_number":164,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"a6cb6573-61c0-464e-95d0-d0cbb1ad8e02","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":164,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"c50e7fba-c0d8-489a-affb-982b1f35e146","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":164,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"76e40527-59db-4064-ac69-5c864cee1264","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":164,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"5153cc84-f675-434e-bf55-512882cba97f","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":164,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"8ebc864d-1678-4b94-b0c5-4d0dde670aff","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":164,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"a7c167ed-3d74-46ce-8553-4b17af4fecee","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":164,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"e5cef97c-16e7-4c48-a048-1162d44e49c4","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":164,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"d897be3a-7e80-49d5-97cf-ad5fdb5b47d4","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":164,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"a2e8ab83-b958-4513-b818-4a6a746c8cad","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":164,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"c5960d12-c9a4-454b-b9ba-535f9f780227","block_type":"box","text":"selling commercial paper to consider the repurchase of such securities from a Fund prior to maturity at their original","page_number":164,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"f80291c3-a4e1-4694-9406-d9ffa050cb88","block_type":"box","text":"cost plus interest (sometimes adjusted to reflect the actual maturity of the securities), if it believes that a Fund’s","page_number":164,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"eb34764c-607a-44d8-974e-cbda8d2c2755","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":164,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"6e031a0e-0c44-48a6-86d9-585c6176c9f1","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":164,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"61db8bf3-c473-4d15-81d0-424c3a24d925","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":164,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"412bc51a-02ff-413c-b52c-c056846c1ceb","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":164,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"a7c76c32-393a-4d08-940f-d1895cfff3c9","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":164,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"b2d73781-8e97-42b8-801d-01bcb492605b","block_type":"box","text":"accounts in a fair and equitable manner over time. A variety of factors will be considered in making such allocations.","page_number":164,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"b5a4c01d-7cfd-4284-a1e8-e5533050bf16","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":164,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"ef816bdc-1f41-4de6-8132-c816151e1b7e","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":164,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"f76fcc2c-2f5c-4d18-866b-26364b37be13","block_type":"box","text":"concentration parameters for an account, (iv) supply or demand for a security at a given price level, (v) size of","page_number":164,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"f9fba1c2-ac6a-49c9-89fd-6cee8f6b520b","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":164,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"78485ad8-c1d1-4e9a-83f8-c813e620d48c","block_type":"box","text":"(viii) minimum investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":164,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"191f28fa-8d26-46d5-a852-f0b65749d1fb","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":164,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"daf0ba72-1a14-439a-8da5-1e18d821ba6e","block_type":"box","text":"another based on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to","page_number":164,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"b6127ea5-3f68-4a37-b86d-7e090fc4ac76","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":164,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"95a5fbcc-5012-4d14-8e6d-89a45d460207","block_type":"box","text":"BlackRock, (iii) to develop or enhance a relationship with a client or prospective client, (iv) to compensate a client for","page_number":164,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"ac467c26-e67a-4d1e-89d0-d6fe3835cc8d","block_type":"box","text":"past services or benefits rendered to BlackRock or to induce future services or benefits to be rendered to BlackRock,","page_number":164,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"2506d92c-bb62-4985-abc7-4eb626efeeb9","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":164,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"37607724-4c6a-4d0d-91f2-1e535a1eb6be","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":164,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"f4527f4b-46c3-4269-965d-7b7dff1e0721","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":164,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"9302d7a1-9cc7-4051-a4b6-332d2ae29cbf","block_type":"box","text":"accounts and compliance constraints.","page_number":164,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"5c09b1b8-8111-450d-974b-a9d289f7de4a","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":164,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"37b94e28-f181-4d35-b841-f7dd62a8e907","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":164,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"1c9a9c46-a393-4363-a458-75e638f15f0b","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":164,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"ceebe0cc-8524-4e3a-baa5-c673996aaa8f","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":164,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"4bb184e5-803e-466c-ad77-4cec99f7a114","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":164,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"e3d1fa34-93c3-421f-aa90-3ade4facdf0f","block_type":"box","text":"accounts for which that team is responsible. Initial public offerings of U.S. equity securities will be identified as","page_number":164,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"5f8e330e-5f2a-4af4-a598-fe7c0b5a5247","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":164,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"13b94524-c3c4-4501-8014-b2cc87fdb3bc","block_type":"box","text":"based on market capitalization of the issuer of the security and the investment mandate of the client account and in","page_number":164,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"cb93815b-673a-4488-a4a6-5e9e99926da5","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":164,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"66dd0412-ce97-434b-932b-021ba38cdb30","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":164,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"400d5b2c-f396-4189-8085-df0ba9a7549e","block_type":"box","text":"client accounts within each investment mandate on a pro rata basis. In situations where supply is too limited to be","page_number":164,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"4b3ce579-e500-4f6e-9134-cdd7a0a45f27","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":164,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"6457bf24-1227-4665-9d38-3db7339200cb","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":164,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"61ff262e-7d83-4e58-aaf0-f61ceaa33ee3","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":164,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"09c46dbe-8ac9-4fa7-8b1e-c2e614f3eadb","block_type":"box","text":"clients may be used as well.","page_number":164,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"fd805e20-ae51-4b2d-9cf8-3023f880b689","block_type":"box","text":"II-127","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7001f32e-4e97-4c36-a601-a163dbece291","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"255bdf9e-c075-4e7f-9a1d-6d90b6556363","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":165,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"a6f2321e-6ec5-4edd-a5f8-5bfafc80780c","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":165,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"93b4fb91-5abc-4e2a-87de-5354588c4292","block_type":"box","text":"and strategies of those accounts. For example, BlackRock may decide that it may be entirely appropriate for a growth","page_number":165,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"c02459e1-0950-49ef-9ea5-6337fd011356","block_type":"box","text":"fund to sell a security at the same time a value fund is buying that security. To the extent that transactions on behalf","page_number":165,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"ad80773b-7951-4205-86a7-8271fda25cec","block_type":"box","text":"of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities","page_number":165,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"78b141c1-1fbc-45ab-ba9f-d14675504617","block_type":"box","text":"being purchased or the supply of securities being sold, there may be an adverse effect on price. For example, sales","page_number":165,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"957c18a1-232d-4a29-894e-fb958d659fe5","block_type":"box","text":"of a security by BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":165,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"41e6b72c-f9fc-4b4b-a618-24c4b4b3f8ca","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":165,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"ad5078d1-4e2f-441d-aadc-f8443b53ccd3","block_type":"box","text":"consideration at or about the same time that would involve a Fund or other clients or funds for which BlackRock or an","page_number":165,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"1b6919b5-dabb-4661-ac45-7cc6562b204c","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":165,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"3c39eaa2-4fbf-46e3-8a02-79a3a9e6e0b6","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":165,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"26f98bcf-4f22-47c1-b587-ea5fa5d81a9a","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":165,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"9a6c4fbc-b1f1-4fe3-9093-f462374d442c","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":165,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"33e450ce-7bda-46a4-bd26-3b211cb959de","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":165,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"662d2215-5029-4978-874f-76ed0e34d282","block_type":"box","text":"will be aggregated in a single order if the trader believes the aggregated trade would provide each client with an","page_number":165,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"fe6f06e1-a2ba-46fd-880d-bd692f004fab","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":165,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"a9a89de2-aebe-40dc-a625-a77758722b3c","block_type":"box","text":"aggregated order will be shared pro rata among the clients in the aggregated order. Generally, if an order for a","page_number":165,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"7634ecbf-2e8a-4c93-952f-a0e58d58014a","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":165,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"5c7fd64a-aa20-4c55-a0f9-51b6f5c9fe9c","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":165,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"0d32d3ae-19ea-4f4d-b945-c934f3ece624","block_type":"box","text":"where average pricing is not permitted. While in some cases this practice could have a detrimental effect upon the","page_number":165,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"3c30a23d-a3c4-4e28-ae00-05da15451bbd","block_type":"box","text":"price or value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":165,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"35a186df-2257-4abf-93b2-d71fca906e53","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period may increase","page_number":165,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"76fd6425-7143-4316-b886-59afe3d5da2f","block_type":"box","text":"the demand for securities being purchased or the supply of securities being sold, causing an adverse effect on price.","page_number":165,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"553f0369-5368-4ca1-b356-10b2220be0f3","block_type":"box","text":"The trader will give the aggregated order to the broker-dealer that the trader has identified as being able to provide","page_number":165,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"969aa17e-a0e9-4f1a-9ef1-ec29a241b7f8","block_type":"box","text":"the best execution of the order. Orders for purchase or sale of securities will be placed within a reasonable amount","page_number":165,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"1f5b0a2f-1502-489d-9c83-4a1a8477d3dd","block_type":"box","text":"of time of the order receipt and aggregated orders will be kept aggregated only long enough to execute the order.","page_number":165,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"7741d6b3-1915-4e87-a416-375d5c435b5c","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":165,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"b52f99ed-920b-4c67-b72b-34b62ac44100","block_type":"box","text":"securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment Company Act) thereof is a","page_number":165,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"d16dfa74-75d7-456f-80b5-a69ed7cd6d70","block_type":"box","text":"member except pursuant to procedures adopted by the Board of Directors in accordance with Rule 10f-3 under the","page_number":165,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"0a81e745-0ee4-4882-b7bd-13b869d4d012","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":165,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"db65cfc3-2bc2-4826-ba1a-b4a1eb9c468f","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":165,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"c2afff4b-b80c-412c-85ea-9a869d50dae6","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":165,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"a1494c09-64c9-422d-a6c9-6e00a8df5efd","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":165,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"55672151-7c7a-4b30-acfb-72ecdc5bdd5c","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":165,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"78da94a5-b262-4e9b-a2ab-a3e03990f29d","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":165,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"8365406d-0849-4ade-8c0b-abf6a71428eb","block_type":"box","text":"to all by BlackRock. In some cases, this procedure could have a detrimental effect on the price or volume of the","page_number":165,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"340715fe-1a0e-4387-a838-6913492aa2b8","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":165,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"b7ccd71b-dc0c-4046-9a06-1d43d9b4ef4c","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":165,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"ec9d31d3-19ba-4d62-b6ec-6d5195dfcd60","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from time to time,","page_number":165,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"dac2b0a8-210f-45f3-bdca-be82e0842438","block_type":"box","text":"effect trades on behalf of and for the account of a Fund with brokers or dealers that are affiliated with BFA, in","page_number":165,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"295b0a19-f56b-4d14-82fc-b08e8f989e25","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":165,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"ed8df7bf-3049-44a8-b1b7-780555c14951","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":165,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"6c7db454-f8e7-492a-9765-4f6d72af0627","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":165,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"9a1c1fc2-30b2-49b8-a00a-4b0b5a69e615","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":165,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"880b53a8-7b72-4aa1-8375-49776e76982f","block_type":"box","text":"Portfolio Turnover","page_number":165,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"e91ca4b8-b529-424e-9ad4-5f2299dfeb5a","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":165,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"b0d880fb-6535-4af1-bb22-56a04ad5e866","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":165,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"ce3013f7-d245-4859-b304-aed5b25c87eb","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":165,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"a1b363f3-e804-48cd-99eb-0e8c4d12ea4f","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":165,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"c0eb29b0-56d4-4c35-8574-5b3a70ad4a72","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":165,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"ade9ae29-0952-49c8-b09c-719aab41ca15","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":165,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"79307ce3-e130-4a26-b132-40e07a7efeae","block_type":"box","text":"II-128","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d68ae638-0f09-4f98-a929-9a9adcffabbe","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4c5d246c-bcb9-4a19-87dd-825ad10bfe62","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":166,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"4b64215b-033b-41be-92af-0c78d749b9f4","block_type":"box","text":"Dividends","page_number":166,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"ef8b55ca-cb30-4404-acb8-515a87a8d43e","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":166,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"2645ed0c-7dc8-47df-8a4f-848a3ff8a62f","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":166,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"6d7a089d-b8a6-4aa1-9229-9fe861e5759c","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":166,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"6c496673-5b5d-4ed6-a20b-855c4ac3a604","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":166,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"e5356761-402a-4ba7-8dd7-f3b34b7233c1","block_type":"box","text":"percentages of its ordinary income and capital gains be distributed during the year. If, in any fiscal year, a Fund has","page_number":166,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"9c1e5d65-0e51-48da-bbf9-246c2b338838","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":166,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"bbeaff65-14ef-43b8-bc98-d0f31a539716","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":166,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"015bfc10-be92-46ae-98de-637f6a96da01","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":166,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"b5bde0df-aea5-45fb-8032-6ffa5350e0e5","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":166,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"a62cb039-282e-4a9b-b62d-bd30010d8697","block_type":"box","text":"whether they are reinvested in shares of the Fund or received in cash. The per share dividends on front-end load","page_number":166,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"5b215f52-e0da-47ad-ab39-cb52c83ef5c2","block_type":"box","text":"shares, CDSC shares and Service Shares will be lower than the per share dividends on Institutional Shares as a","page_number":166,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"9d78f03b-5185-44d8-8e8d-39a184df68d7","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":166,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"d6f4df97-78e8-42b0-862d-85bc6d6b21f6","block_type":"box","text":"applicable to front-end load shares and Service Shares, and the service and distribution fees applicable to Class R","page_number":166,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"d2f06e7d-b29f-4f39-bb12-e7a0aa1dfb46","block_type":"box","text":"Shares. Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per share","page_number":166,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"40d6358f-dd10-4bbf-a9e2-3847903ff26e","block_type":"box","text":"dividends on front-end load shares and Service Shares as a result of the distribution fees and higher transfer agency","page_number":166,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"e8c74418-f683-4f6c-8a4c-bf436eea4db8","block_type":"box","text":"fees applicable to CDSC shares and the distribution fees applicable to Class R Shares, and the per share dividends","page_number":166,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"1903cfac-b55c-46d6-aedf-0f872c2f6c00","block_type":"box","text":"on CDSC shares will be lower than the per share dividends on Class R Shares as a result of the higher distribution","page_number":166,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"7cfa252e-02e4-472b-8f00-24597708f074","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":166,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"72ed0def-3596-4b2d-b2e7-42ae965c47d6","block_type":"box","text":"Taxes","page_number":166,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"6e2e6cf5-2cdd-492b-b4bd-4bd25376415e","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":166,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"6d1a3c5d-302e-4b01-9142-23a1c5b50285","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":166,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"f199ed6a-eb25-4a63-a433-11370e51b5ac","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":166,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"1c4eec67-65a7-4099-b1df-ac0179176a77","block_type":"box","text":"distributes to its shareholders in years in which it distributes at least 90% of its investment company taxable income","page_number":166,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"2277f551-6d42-487c-83ad-1f4dd432a36d","block_type":"box","text":"and at least 90% of its net tax-exempt interest income, if any, for the year. To qualify as a regulated investment","page_number":166,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"66bff4c4-f495-4d8a-b193-82709cf8cca8","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":166,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"351b7459-7651-4967-be74-b31fce5a0e04","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":166,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"6aa79dca-7587-44b0-b951-98ca9c2c83be","block_type":"box","text":"for a discussion of the asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the","page_number":166,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"3e792473-b8f4-4c38-b85e-e3ac26889191","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":166,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"a8ae4be7-db17-406e-9b9f-fb08bf2d6dbe","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":166,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"4da17ef9-640c-4450-9ffd-e97b1189297b","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified above or a","page_number":166,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"dc55e079-fba9-4bcd-853a-3e0b664f4853","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":166,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"b1173648-42af-42c8-bd13-e214c42c93cf","block_type":"box","text":"paying a tax and disposing of assets. If, in any taxable year, a Fund fails one of these tests and does not timely cure","page_number":166,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"cc8dcd32-f7da-4b3f-9ec7-6ab4b71144dc","block_type":"box","text":"the failure, the Fund will be taxed in the same manner as an ordinary corporation and distributions to its","page_number":166,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"46a50ad7-506b-4576-aadc-2fd6a7e094a6","block_type":"box","text":"shareholders will not be deductible by the Fund in computing its taxable income. Although in general the passive loss","page_number":166,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"9e0d4644-f121-4081-be9e-5ecb6f64ce01","block_type":"box","text":"rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment","page_number":166,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"b32744e8-10f3-4ae2-ab5a-75447817f9ee","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":166,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"c5640082-7687-4c8c-bba2-b0323a35ebaf","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":166,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"e98d2f30-5115-405c-9f81-ec01319ab2ee","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":166,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"b02fead6-aeb9-4f39-8940-0bc111bccc5e","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a Fund fails to","page_number":166,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"48c48cc3-9434-4381-97cd-2fb21e3c4fcb","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":166,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"1091169e-4eda-4ec8-81e0-fc1e18ac72d8","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":166,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"d8f24aa8-cf5e-4ff5-91bf-69f463276d54","block_type":"box","text":"earnings and profits (as determined under U.S. federal income tax principles) to its shareholders would be taxable as","page_number":166,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"bd5dabab-8575-4f50-a6fd-1568c054bd19","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":166,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"fe0e7ba7-0021-4ec9-b90e-c2df0d364da9","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":166,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"c0cb987d-2c90-4648-87de-00278cb812ba","block_type":"box","text":"exempt obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that is a","page_number":166,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"0c861ce3-df99-4e90-a355-c9e01aa18e86","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":166,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"041e2908-6926-4d40-ab83-436ad8077dc0","block_type":"box","text":"U.S. federal income tax purposes, and therefore is considered to be a separate entity in determining its treatment","page_number":166,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"8eca331c-0aec-4b25-a6b0-7c285adc237b","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":166,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"15712743-069e-46c6-9d65-0a9cf3b1b32a","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":166,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"ffc946bc-b3f0-4787-b7af-06d2d487a5d9","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":166,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"7c543485-3714-4247-9700-a8993dde32b1","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":166,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"4ed5ed8e-8b60-438f-81ac-d475727d59ac","block_type":"box","text":"II-129","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9a662557-f2e9-451f-b6cf-9485b6c93713","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"22c03073-8345-422d-b59f-e7d7c19d0d9b","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":167,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"f3dacc1f-92eb-4a59-a065-7362ac9dd1a4","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":167,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"b7c12cd5-aa29-4768-a762-03c619181000","block_type":"box","text":"determined on a calendar year basis, and at least 98.2% of its capital gain net income, determined, in general, as if","page_number":167,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"75abcca3-57b3-4e44-b226-bc23291e82b5","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":167,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"5bfd22b4-9ca4-4b67-ae52-206a46e982fa","block_type":"box","text":"previous years. While each Fund intends to distribute its income and capital gains in the manner necessary to avoid","page_number":167,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"ecd8b723-43b2-484a-b558-2cccdb9642e1","block_type":"box","text":"imposition of the 4% excise tax, there can be no assurance that a sufficient amount of the Fund’s taxable income","page_number":167,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"589a0790-6d7c-46e3-a6a4-b4c24e99e1bf","block_type":"box","text":"and capital gains will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for","page_number":167,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"db768188-23b7-48df-a483-d3deeefb2bda","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":167,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"ece518db-6673-4dbd-bcd9-71e78bf28013","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":167,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"8f7da54f-f105-4621-90eb-80c91b156df9","block_type":"box","text":"have been reduced to zero. In the event that the Fund were to experience an ownership change as defined under the","page_number":167,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"c432ff3a-affd-4f4b-94a7-9481681954c8","block_type":"box","text":"Code, the Fund’s loss carryforwards and other favorable tax attributes of the Fund, if any, may be subject to","page_number":167,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"25cedaa6-111c-480b-9843-fd2d83b88fa0","block_type":"box","text":"limitation.","page_number":167,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"2c6d269d-d988-4653-9d59-424a09d6a32d","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":167,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"782448f2-1796-4709-9296-3b0dd2763ff3","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":167,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"63d129fa-0164-4a72-b8a3-83ac45608245","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":167,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"d4458b5c-13d1-4058-9aae-6e14dfbc3137","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":167,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"6a712012-38c8-4536-9783-191709322b8f","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":167,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"b40785c6-1cd2-409a-94e3-85e540d2722b","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":167,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"49683f0e-375e-4042-a770-3e58329a80a6","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":167,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"7118b86c-9117-45b9-a563-acedf3c4440b","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":167,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"061c24a2-c6ab-4a0e-ad9f-d039c8e002c1","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":167,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"8743850d-5ebf-4bb3-9f27-e487d63672f4","block_type":"box","text":"taxable to such shareholder at long-term capital gain rates provided the shareholder has held the shares on which","page_number":167,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"7b1f5088-9265-424a-8aa8-46e947836a9b","block_type":"box","text":"the dividend was paid for at least 61 days during the 121-day period that begins on the date that is 60 days before","page_number":167,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"bd585e5a-d055-439c-8118-8366963de749","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":167,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"d5635074-53ff-43f1-a6ad-823bac93c2ef","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":167,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"e63bb063-74c6-4c4b-9a1f-375bebd78ac4","block_type":"box","text":"was paid for at least 91 days during the 181-day period that begins on the date that is 90 days before the date on","page_number":167,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"b67a279f-4f86-4829-bb06-b49ff0166919","block_type":"box","text":"which the shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s distributions","page_number":167,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"d2f8ede1-79a7-4065-9c76-02f8ce66accf","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":167,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"9a881515-724d-4c98-8839-75d01fc78062","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":167,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"5f0a9a05-6625-4796-b31e-39ca9a6f5330","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":167,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"352b065b-4db0-46ca-8de7-9fdc726b7269","block_type":"box","text":"constitute “qualified dividend income.”","page_number":167,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"a7fb796e-0852-4b9d-9baf-3c19b2c24e5a","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":167,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"477b1596-d1ba-4074-b344-d94c7a79d3bf","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":167,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"61a28b6d-5cdf-40f0-863d-ecd37f474d3a","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":167,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"2ec14f42-6bb1-4d69-ba54-04506be03731","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":167,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"7356d3ad-6ba4-4c0b-b161-066107a65c64","block_type":"box","text":"Fund retains net capital gain, it is subject to tax on that gain, and may designate the retained amount as","page_number":167,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"84b59c0e-34ef-47a9-97e4-0c151dcdd6c2","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":167,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"5ad6b5b2-6794-452e-ad38-9c0806c3a9f0","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":167,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"b997152f-7f9b-468a-8c95-92c10f018d24","block_type":"box","text":"have paid and may claim as a credit against their U.S. federal income tax liability (and as a refund to the extent it","page_number":167,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"1cc705a0-2837-4bf7-a293-52f9f0f0f962","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":167,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"cabd0899-00e3-48ac-bce2-260fba44708d","block_type":"box","text":"basis of their shares in the Fund by the excess of the amount included in income over the amount allowed as a credit","page_number":167,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"39107f29-ad87-49db-9e52-fb284cd10464","block_type":"box","text":"against their taxes.","page_number":167,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"96330a76-7436-4da1-99e5-042e2924ea45","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":167,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"2e7856a7-d517-4847-9695-ee1f407ed130","block_type":"box","text":"tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":167,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"f8633dee-8ff9-4fba-a068-16de32e60e38","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Distributions in excess of a Fund’s minimum","page_number":167,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"856a98e8-bbe2-4266-af92-f340f34fe746","block_type":"box","text":"distribution requirements (or taxable income) but not in excess of a Fund’s earnings and profits will be taxable to","page_number":167,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"ad60e8c1-d9cb-4194-a315-11a4ab9f12e3","block_type":"box","text":"shareholders and will not constitute nontaxable returns of capital. In the case of a Fund with a non-calendar taxable","page_number":167,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"775ca176-16a0-4ae9-bf07-e578a43e6e04","block_type":"box","text":"year, a Fund’s earnings and profits are allocated first to distributions made on or before December 31 of the taxable","page_number":167,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"592f5763-add9-47f4-a305-f6a13d8debf1","block_type":"box","text":"year, and then to distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of","page_number":167,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"ea0bff90-ccc8-4d6b-bec7-5034463195df","block_type":"box","text":"Fund shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain","page_number":167,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"da473d45-6d7f-402a-b340-8daccb2cbc49","block_type":"box","text":"dividends received by the shareholder.","page_number":167,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"0bb3bde7-da60-4b3a-9f10-df2f09ad4f84","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":167,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"d4364b4b-f512-427c-bb24-dadd9621e296","block_type":"box","text":"shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible","page_number":167,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"a4cfa8a4-e7d8-4be9-80ab-eb433fe71993","block_type":"box","text":"for the dividends received deduction allowed to corporations under the Code. If a Fund pays a dividend in January","page_number":167,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"66ee8b34-1801-4fa8-8247-7816688be57d","block_type":"box","text":"that was declared in the previous October, November or December to shareholders of record on a specified date in","page_number":167,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"d4a71d8b-4d50-403f-85cc-0840bfa4294b","block_type":"box","text":"II-130","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"745abfb1-fc1f-4cb0-80ab-d13200c37d73","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64ec9302-5190-493f-a92c-6231ea26b062","block_type":"box","text":"one of such months, then such dividend will be treated for tax purposes as being paid by the Fund and received by its","page_number":168,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"b0236f9b-be8c-460a-b4b0-d94b97b6b092","block_type":"box","text":"shareholders on December 31 of the year in which the dividend was declared. In the case of a Fund with a non","page_number":168,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"70a953a4-1536-4368-bb3d-e67f793d1ec2","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":168,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"9a59ce16-28ad-4063-b56e-edf8e9d21cfe","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":168,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"04e950b0-1238-44db-a209-9aeb92049a4f","block_type":"box","text":"dividends made after December 31 of such taxable year. A Fund may elect to defer recognizing, until the following","page_number":168,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"cb04d38f-1d94-4324-9b92-b6501b171f1e","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":168,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"5cb6710f-3f78-40da-9c7e-049e6031788c","block_type":"box","text":"losses arising after October 31 and/or December 31 of the current taxable year. This may have the effect of","page_number":168,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"9c54778d-de1d-4177-86ae-6e73a7448324","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":168,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"fadfc019-52ae-4e54-a77a-022d729b9281","block_type":"box","text":"taxable year.","page_number":168,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"0d06b416-22c8-4cb8-995e-7f076505ea38","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A","page_number":168,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"a2a967e3-05fb-4efd-9735-0021ed4bf6d9","block_type":"box","text":"shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax","page_number":168,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"c0408d55-f7f6-407e-9c0f-d74d02179fae","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":168,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"8bfeccf0-02cc-4f8e-9693-7b463ca94511","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":168,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"3babab22-591b-429f-8ac6-08186de4cd6b","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a Fund, but","page_number":168,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"d68496f2-b6df-41b3-b497-8f32bba0edcf","block_type":"box","text":"on or before January 31 of the following year, then the loss that the shareholder recognizes on the exchange will be","page_number":168,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"bd4ee5be-7ca3-42da-9c7d-928cae5e13a0","block_type":"box","text":"reduced (or the gain increased) to the extent any sales charge paid on the exchanged shares reduces any sales","page_number":168,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"1a13384a-f142-496b-be3b-cdd49910c6e8","block_type":"box","text":"charge the shareholder would have owed upon the purchase of the new shares in the absence of the exchange","page_number":168,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"7a85ac68-4f74-46e5-84a9-d49816271fc0","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":168,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"dc78be94-5397-49f1-87af-62e1ef525dc7","block_type":"box","text":"A sale, redemption, or exchange of Fund shares may give rise to a gain or loss. In general, any gain or loss","page_number":168,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"9bf9ddfd-bcf7-49aa-84e7-b139e455da28","block_type":"box","text":"realized upon a taxable disposition of shares of a Fund will be treated as long-term capital gain or loss if such shares","page_number":168,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"169533fe-a278-4b6b-a7d4-f495685d7fda","block_type":"box","text":"have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will","page_number":168,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"8c83757c-e20b-4d30-94bb-a494565ee00c","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":168,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"a9dc205b-3333-4ad0-bc0c-48dbc55e7059","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":168,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"d2cf1e61-8230-4e8f-baa1-2cb5ac0bc873","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":168,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"fc1771c8-71aa-4076-b8c8-05e8cea0771e","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":168,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"090f6386-b643-4484-88ae-b55c78b23eb9","block_type":"box","text":"plan described in section 401(a) of the Internal Revenue Code should see the Fund’s Prospectus for a discussion of","page_number":168,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"026afb77-1b70-4bf7-8ba6-b50f1bb45561","block_type":"box","text":"special tax rules that apply to their investments.","page_number":168,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"ff453f52-83e7-42d5-94df-c367bea900a3","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially identical shares","page_number":168,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"8a9fa929-1799-4800-98c2-e67ccaf1d40d","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":168,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"0034b7eb-ed48-4066-a742-9a60d3e2ae32","block_type":"box","text":"30 days before and ending 30 days after the date on which the shares are sold or exchanged. In such case, the","page_number":168,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"a96d96f2-8314-4bad-9edb-1de3a01abff9","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":168,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"96ebeaf5-6a00-4559-a252-50ffaba86a93","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":168,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"0627795a-cf41-4fad-baad-ede5c21c0d53","block_type":"box","text":"shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. This information","page_number":168,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"8818c09c-fce4-4aa9-b6fb-5c4a7168b558","block_type":"box","text":"includes the adjusted cost basis of the shares, the gross proceeds from disposition, and whether the gain or loss is","page_number":168,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"6c528920-4856-4645-af42-acd5e98a4e0c","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":168,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"123bef91-84ec-4c16-878c-3c208169cf3e","block_type":"box","text":"selected by the Fund, unless a shareholder, before the sale or redemption, informs the Fund that it has selected a","page_number":168,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"ca5e35b0-0679-4ec2-a415-573def3019a7","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":168,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"40cfb6ac-fb9b-4b7c-adc3-cddee13cb31b","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":168,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"6de55f5d-d42a-4664-baca-4462fd222371","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":168,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"4e3d607b-b86c-473f-bb77-2f7c3d6427d3","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":168,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"f25dfdcc-f097-43af-9364-f010e911b92f","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":168,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"55a485fa-1241-4aae-b5f8-18e8a786ff23","block_type":"box","text":"redemption of such shares.","page_number":168,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"7bfe66eb-cfc5-4a4f-9807-5087155f56cc","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":168,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"753b46f7-864d-416a-a374-5fc3f850dd26","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":168,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"d2fa5723-33ef-4654-91fb-487df43abffc","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":168,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"8ca07752-be77-4187-86df-e19c0033ea0d","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":168,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"3fcf07b5-9091-4c79-a32e-678ce8b68dbf","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":168,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"23a30d3d-1957-47b0-a27b-ef4cffb465b3","block_type":"box","text":"capital gains as described above, the Funds do not employ a systematic approach to tax management. There is no","page_number":168,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"35389e59-f03b-413a-b326-64c2d9fa8ca8","block_type":"box","text":"assurance that a Fund can or will be successful in effecting any redemptions in kind and shareholders should expect","page_number":168,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"65a0f1e1-0e60-44e6-b1d9-010fadbad9cd","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":168,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"79ad0b7d-c80e-4482-9061-86a0854dd53b","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":168,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"e1cd1daf-08a1-4ff6-9fb5-aca08375d71c","block_type":"box","text":"agreements. The U.S. federal income tax treatment of a derivative contract may not be as favorable as a direct","page_number":168,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"fe2e77c5-e585-41a2-a06e-63a3499c9f02","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":168,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"77f66e28-caaf-4e61-8418-64f9f403cb14","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":168,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"bc46a88b-7e87-49e9-996a-700be4d2502e","block_type":"box","text":"II-131","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f19ae320-9d84-415f-bd14-3acdbc46dc9f","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0c5bcbe1-e0b1-491a-9710-3d8beb0aa2f4","block_type":"box","text":"income rather than capital gains. In addition, section 1256 contracts held by a Fund at the end of each taxable year","page_number":169,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"7f8c1110-dbc2-4eab-ae7f-0c347bcd585a","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":169,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"0ce28d77-b6a8-472b-89f9-1f09067a504b","block_type":"box","text":"market,” such that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":169,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"5073fba5-e97d-4988-9f78-bdbb57f68ed3","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":169,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"84cc068f-1f92-4ce6-8991-9b20053bc540","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":169,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"30b39965-8542-4e8b-b534-989ce969accb","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":169,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"7a13717a-3282-427e-a0ad-a1dc62d41a59","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":169,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"e02529d4-ac7e-4f7c-b725-7a767b3de7c9","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":169,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"d64a4a9a-e305-47fc-82dc-0f5a52ab6e3b","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":169,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"5d89979d-0096-489a-b495-b0e300434a00","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":169,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"d1d3e222-970e-4fb5-bf71-f1bcc671e282","block_type":"box","text":"agreements since all the income on a notional principal contract may be ordinary income, whereas 40% of the gain","page_number":169,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"311a408f-8dd7-4fa2-bb64-f142914b6e2b","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":169,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"d5515e55-fe7a-41d5-9e0c-2d9b1d11a569","block_type":"box","text":"term capital gain taxed at more favorable rates when distributed to shareholders. The rest is long-term capital gain,","page_number":169,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"e5010987-6b07-40c4-b494-ea00d533a622","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":169,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"edec339c-d368-45dd-b0bb-a542227284d3","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":169,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"ad75c0a3-d17e-4da7-8fb2-f1476a38e1e7","block_type":"box","text":"finalized, these regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":169,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"5708abcc-6a92-415f-a9e1-f4e606c8caa7","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":169,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"e0299156-e703-455f-8a94-54048d763cdc","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":169,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"e1c61977-53eb-4dc1-b236-e807709e43d8","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":169,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"01a31a0d-141e-40ef-abfe-41e7a71eaa3b","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":169,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"efa4aeec-ef0e-4f79-b370-5dc5295ec715","block_type":"box","text":"price of the securities over their issue price (“original issue discount”) each year that the securities are held. Since","page_number":169,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"c0cb0d09-a819-4ac3-879c-4dac539c666b","block_type":"box","text":"the original issue discount income earned by a Fund in a taxable year may not be represented by cash income, the","page_number":169,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"72d898bb-55ed-455a-af87-e66d4733e2f8","block_type":"box","text":"Fund may have to dispose of securities, which it might otherwise have continued to hold, or borrow to generate cash","page_number":169,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"c08d9c26-b0bf-4fe1-9dc5-d471b374a78e","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":169,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"a391cba9-1326-4b87-8468-ca55e8cc11f8","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":169,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"9e639aa1-a34d-485f-8828-ddd17e1e6775","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":169,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"e5ae1b26-d493-4b5a-9ceb-9f5951b51f65","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":169,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"d395ae2f-e2ba-4bab-b7bd-bed43711d348","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":169,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"2ead0f6f-a495-4785-92c5-13eac137b50e","block_type":"box","text":"contracts or forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such","page_number":169,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"8a51e4ce-80b8-4002-aace-db463327847d","block_type":"box","text":"income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could","page_number":169,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"1cc45ead-356c-4e49-814a-deec6d2c3c36","block_type":"box","text":"require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and","page_number":169,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"fb104ab3-8a28-43d4-b60b-156849e481ba","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":169,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"5fad0d5e-9fa6-45a1-9f0b-95f41a7753a8","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":169,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"ed8e9223-7229-4505-99df-d844a09b0162","block_type":"box","text":"income. Any net ordinary losses so created cannot be carried forward by the Fund to offset income or gains earned","page_number":169,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"23a1b2b0-f774-41a0-bb31-8ce8cec97c4d","block_type":"box","text":"in subsequent taxable years.","page_number":169,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"789d383b-3c7b-4661-b324-e5571e8b28c2","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":169,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"1f868965-c7da-4a20-9307-59ae82359991","block_type":"box","text":"through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S. withholding tax under","page_number":169,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"e794cda9-3186-4558-8e47-09324694dced","block_type":"box","text":"existing provisions of the Code applicable to foreign individuals and entities unless a reduced rate of withholding or a","page_number":169,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"bd84f623-469d-4d59-945c-1f6253ea7283","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":169,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"ebe1745d-8840-40a8-8df4-95ad9ef7b37d","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":169,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"07239cb8-8531-4574-8058-15825464aa85","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":169,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"172d823d-a1f1-4bc5-b946-fa4f985e8f9a","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":169,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"3a9748ab-a50a-4ddd-8465-49f47b618532","block_type":"box","text":"discount and market discount) and paid to shareholders who are nonresident aliens or foreign entities, if and to the","page_number":169,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"973e53e1-2094-4ddd-87dc-9000c3d78a55","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":169,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"58e720b9-83ba-428d-b654-87e5935b1a0b","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":169,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"743360c8-b77a-422b-bc69-a9d8bd84c69c","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":169,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"ec889483-8e86-492d-85aa-c73c1c9b9f09","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":169,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"66522f81-81f3-444d-acb0-e1501d89494a","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":169,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"26275475-2ae9-4edf-af75-5f89e98971ef","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":169,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"0d477b4f-8d2d-4ac6-a162-2d6c2807715f","block_type":"box","text":"relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS Form W-8BEN-E or substitute","page_number":169,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"698b70fd-22e3-404a-ab89-2c5ad2ac1d79","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":169,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"d70d45bb-ba14-4ff4-80d1-dc59b296994d","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":169,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"baa81f47-317b-4f54-b765-60fc057860d0","block_type":"box","text":"intermediaries with respect to the application of these rules to their accounts. It is not possible to predict what","page_number":169,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"f8d1bc7d-733f-496c-87c0-4a77378b71ec","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":169,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"f7f95514-070a-47cd-b77c-015776e13d1a","block_type":"box","text":"dividends under these rules.","page_number":169,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"1180e7e0-366d-402b-b2b3-b350375df565","block_type":"box","text":"II-132","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d0ffc9de-273e-475c-a531-5c68ff0b2f3a","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"99d13762-8361-410a-ab93-c599caddde5c","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":170,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"ba6993dd-186c-4b50-87bb-fbdaf02c2986","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":170,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"2a3adcf1-9dac-49c1-97d4-a3b3062c6f9d","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":170,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"4152c312-59a4-4218-a59c-9899b2ce560f","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":170,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"d5c241a3-8e60-4cb6-9f85-ee83a97c3fee","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":170,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"0538b1eb-8ab1-4200-952c-a12d37e90c7d","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":170,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"6df2df19-c5b7-4557-8f92-3725ec406989","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":170,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"620d51af-c345-4e8e-afde-271244c40af0","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":170,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"baedb917-63b4-44cb-92c2-a9e0b87d5819","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":170,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"2499b4e2-9766-436b-8d11-86e7fb156590","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":170,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"c0ebbf32-eecc-4c0e-8685-0f71702ce8b5","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":170,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"3166d9ab-dee2-4720-9840-5ae95745ab3e","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":170,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"34448363-0f29-4bb6-9683-39f5d0fa7486","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":170,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"a07b9155-ec66-4f10-b63d-dcdacb32c8b5","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":170,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"54e1bc48-7475-4d00-8cd0-1d162a841e8e","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":170,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"e073ebc7-7384-4351-8d97-f18fa3c7eb4f","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":170,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"a965c6fb-99f5-4dfb-aded-e3a27185708b","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":170,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"cefc7424-349c-4621-b7c0-c721334c2a50","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":170,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"4da67954-ac3c-4491-ae2d-271cdffef344","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":170,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"f01fa9c9-f1c2-4e0e-9db1-05e9dc2b5e27","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":170,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"77e0d48c-fe01-407b-94ea-898572560b50","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":170,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"cf4c09d8-b657-420d-aea0-cfd0eb7890dc","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":170,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"fa511d8b-e6bf-416e-91d2-9a8af4138e74","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":170,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"25132e97-5116-4ec4-91f2-1313647f0c30","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":170,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"9d5ec95b-f2fa-4033-9119-b85e3dbbee15","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":170,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"62697770-29f7-4740-8c52-ff9db0fcd9e6","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":170,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"d4007c14-f45d-4688-8dcc-59fdd3c65f3f","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":170,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"6fbcff61-4233-459d-9b83-adfc19774902","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":170,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"665e59e3-6838-4a93-b9f2-bff09862844d","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":170,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"cdb6fa2b-3196-41ec-930c-c0619c9966ce","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":170,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"92339a73-c6f5-40fc-8322-4400d9dd9ee0","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":170,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"a230ed3e-7d2d-418a-adcd-40c7788e1603","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":170,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"9b78274c-c2f3-4d2f-b829-c21aa6e499cc","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":170,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"cf74699a-751f-4f97-b366-d7e5971d9dce","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":170,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"213a082c-59f5-464c-b064-2134fd7a3214","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":170,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"dd1aab77-f7e4-4a82-bdc1-7a2f3d4ade02","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":170,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"8886fca8-eca9-4d81-a05f-8fd23fa032d4","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":170,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"b5fb38b3-afff-4f9a-bf1f-cb2ed4bb47ba","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":170,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"fcd96f3c-2ca7-48d1-b1be-ac5fae6fde14","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":170,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"e4359f25-74cd-4322-a3e2-7f7f0b2251b3","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":170,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"8a0b3c7c-1e25-4956-991b-0741a5fb6972","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":170,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"d4e7b842-d551-4390-aab2-ded30fcebb50","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":170,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"46dec099-a450-48c3-80e0-2d42097b0fdb","block_type":"box","text":"is on file with the Fund or who, to the Fund’s knowledge, have furnished an incorrect number. When establishing an","page_number":170,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"de1f0f80-26f0-488c-a66a-43f9c5c6010d","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":170,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"371abc9f-6ae9-41a4-b07f-d46218300b81","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"4ef8f18c-065d-4801-8e7e-43a176f51b46","block_type":"box","text":"may be allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that the","page_number":170,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"9a50e977-4bb4-43eb-9cc6-380aa7957561","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":170,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"172ce385-a201-4c67-9a5a-91c7ebc02e5f","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single taxable","page_number":170,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"dd033338-30da-4e03-bb26-2bec2731cbfc","block_type":"box","text":"year or $4 million in any combination of taxable years for an individual shareholder or $10 million in any single","page_number":170,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"13371d9c-7bbd-42f2-a1b0-1d841284e661","block_type":"box","text":"taxable year or $20 million in any combination of taxable years for a corporate shareholder in any single taxable year,","page_number":170,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"9636b51b-5f78-45a1-92df-0cd3f69c5b5b","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":170,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"21c93fff-eb45-4ff5-b739-818f6bc7000f","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":170,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"83838a28-2a76-4323-89bc-6cd7d78ee9b9","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":170,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"e86de334-0234-455f-9b2b-c7e5c60c2603","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":170,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"f0b5aa51-7270-42c6-a753-c262b23c189f","block_type":"box","text":"II-133","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"882ee6d5-6478-47c2-b8b8-56dcc9773099","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"053b0e65-4233-4657-8d1f-299ffae8d72a","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":171,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"87983a8f-7a42-4fa6-a025-b8396162d32b","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":171,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"ae961158-e5b1-4a8e-8a5c-f3d2fc6e2add","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":171,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"c58d0bac-db27-478c-9a22-3997311dff97","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":171,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"452ffc84-3813-4213-b392-2dde6473d2ea","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":171,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"d201b5d6-409d-4433-af70-c72aba398a01","block_type":"box","text":"be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non","page_number":171,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"eae96355-58c9-4f08-b4d2-6fa881e62ad3","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":171,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"47f7a269-91f5-4fc4-9b26-71b309e4caaa","block_type":"box","text":"organizations,” as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":171,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"4494d2db-a773-49c2-a04f-270b3421a45e","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":171,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"05085ea3-9508-4199-a76d-7f32041b4bee","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":171,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"a1d0db5e-8095-4a7c-94e1-b1479ee54d8b","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":171,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"65030fcd-4209-46e6-9a5e-e59b95a30f65","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":171,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"cec66fc9-4173-4531-8832-c15a15c59ef5","block_type":"box","text":"investment oppor tunities.","page_number":171,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"7baa15de-ac2e-4892-971f-68a9602f2a89","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and other taxes","page_number":171,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"44ee3e20-2f2d-4ae7-84ed-d9dc844e2911","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":171,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"38b556a5-0fcd-4c2d-9fdf-778683d8acc8","block_type":"box","text":"eliminate such taxes. Shareholders of a Fund more than 50% by value of the assets of which at the close of a taxable","page_number":171,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"c4563c0a-158a-460c-97a3-a708eddf6d38","block_type":"box","text":"year are foreign securities may be able to claim U.S. foreign tax credits with respect to such foreign taxes paid by the","page_number":171,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"31d7f967-70b9-48db-aca6-1860192405ca","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":171,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"a7f7df82-61b7-481f-bc70-1e53aa8e4ad4","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":171,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"1d501d01-ac4f-496a-ac11-2015b15ad9dc","block_type":"box","text":"held in a Fund. In addition, a foreign tax credit may be claimed with respect to withholding tax on payments with","page_number":171,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"844a423c-df9b-4a1d-beb9-b4110f4d0aed","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":171,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"a07965c0-62a8-496c-b734-9e4402ca3ea8","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it will not be","page_number":171,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"3a03cf06-d7be-4c51-9297-5a31134dd854","block_type":"box","text":"able to “pass through” to shareholders the ability to claim a credit or a deduction for the related foreign taxes paid by","page_number":171,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"b04bbd1e-730b-4bb6-a0c2-7ffb25844446","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":171,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"b8ba55ba-13e5-4cd2-9619-ac8824f56e49","block_type":"box","text":"subject to foreign taxes, it may not be able to pass through to its shareholders the ability to take a foreign tax credit","page_number":171,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"d3d2adf9-95e8-4fc7-926f-bc1244f40e29","block_type":"box","text":"for those taxes. If a Fund satisfies the applicable requirements, such Fund will be eligible to file an election with the","page_number":171,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"20109218-c6aa-467a-8a80-2847baa31aca","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":171,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"33a1178f-eea7-4b0f-94eb-74ecd8e19b16","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":171,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"a000b91a-aa4a-4691-9491-02e73fcb88ef","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":171,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"6de0175a-4bd4-41b2-af2d-b65f20b3c5e5","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":171,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"b0e5245b-0fbb-4d16-8857-43ac10d2eca9","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":171,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"d69b57a8-4c2e-4f0b-b26c-6117597b1c94","block_type":"box","text":"corporation may be subject to U.S. withholding tax on the income resulting from a Fund’s election described in this","page_number":171,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"893e34a9-bb47-45b5-8bf8-7bef8b31616b","block_type":"box","text":"paragraph but may not be able to claim a credit or deduction against such U.S. tax for the foreign taxes treated as","page_number":171,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"135b006a-ecf8-4730-98dc-33e483ca3875","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":171,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"317551c1-5014-467f-89b1-3bd9936cad05","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":171,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"5d9976c8-3a14-4db3-9270-e04ee2fabd3c","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":171,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"c5ce626a-ea2c-4e58-95fe-6e6e3559bf0e","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":171,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"f64dd948-b57a-4dcc-abda-90fa72c07526","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":171,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"78c21465-3870-4b2b-ba3b-caf1c87ccd91","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":171,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"09a3860b-4683-4792-a5f0-4ef4b4527a62","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":171,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"11613bb9-dd80-4901-9ed2-ed33f3ace018","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":171,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"d4228179-434a-4944-8101-5a8ec523c4e0","block_type":"box","text":"positions in its por tfolio (","page_number":171,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"829f162d-9589-4cad-8bea-e75fd7cdc316","block_type":"box","text":"i.e.","page_number":171,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"36ac3409-73e0-461a-81f5-41c1d379b98f","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":171,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"1d83d015-a89c-4d09-95f2-ad5d83721564","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":171,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"c30d5e6c-5250-4021-b263-53eef1b1dbbe","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":171,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"074ed6f2-bad4-4df5-8d92-aaef4f8971be","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":171,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"b46d333d-0749-43d2-afa2-6461e2b4c189","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":171,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"c8fe6db0-cad0-4c46-a3bf-decb9e8a7b39","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":171,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"a087a2d0-c8ea-43da-a24c-56ba9100828c","block_type":"box","text":"any of the Fund’s transactions in foreign currencies and hedging activities, are likely to produce a difference between","page_number":171,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"73c96b85-ab7e-49ee-ae9e-23d57de87ff8","block_type":"box","text":"its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises,","page_number":171,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"92174848-7e54-4cc6-a60a-d55d75315b7a","block_type":"box","text":"and the Fund’s book income is less than the sum of its taxable income and net tax-exempt income, the Fund could","page_number":171,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"71207762-61e1-463d-9f6a-d0c6b1936120","block_type":"box","text":"be required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment","page_number":171,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"1a32cd7a-9f2d-4632-9a52-9999d203d9bd","block_type":"box","text":"and to avoid an entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":171,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"b395edf7-3fc1-4507-8596-8b8145514676","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income, the","page_number":171,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"6c5ab84b-42a7-4e41-ac04-9718327f4f3f","block_type":"box","text":"distribution (if any) of such excess generally will be treated as (i) a dividend to the extent of the Fund’s remaining","page_number":171,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"b9ff12cd-def0-4132-a047-d70366fdb6ff","block_type":"box","text":"II-134","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"071f8d61-f942-43b1-a1c2-cc28370bae6e","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b36b3c2c-fdc9-40e9-b9c0-e20d30ace52e","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":172,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"8067f38c-f835-4bfc-9860-20d8459cf8aa","block_type":"box","text":"capital to the extent of the recipient’s basis in its shares, and (iii) thereafter as gain from the sale or exchange of a","page_number":172,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"dd89ea4a-60db-4c27-814b-598819aa994d","block_type":"box","text":"capital asset.","page_number":172,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"b38ab3f0-79e5-4dcb-a0f7-a6eccca5adaa","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s realized losses on sales of shares of underlying funds may be","page_number":172,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"bf473554-2528-4a38-9915-e1376c5ed0fb","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":172,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"b005fc96-8520-4b5c-91f5-f2e6a3d1e3fb","block_type":"box","text":"be recognized as ordinary income by the Fund and would not be offset by the Fund’s capital loss carryforwards, if","page_number":172,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"d82f32c9-fa7c-4af3-976f-5eee67c89fb3","block_type":"box","text":"any. Capital loss carryforwards of underlying funds, if any, would not offset net capital gains of the Fund. Each of","page_number":172,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"68118cc3-f3f9-4416-9712-f940895db3d5","block_type":"box","text":"these effects is caused by the Fund’s expected investment in the underlying funds and may result in distributions to","page_number":172,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"fe0b0a2c-36e4-4899-8f5c-3986abe06aa6","block_type":"box","text":"Fund shareholders being of higher magnitudes and less likely to qualify for lower capital gain tax rates than if the","page_number":172,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"a9c382d2-f1c1-41bd-8d11-793fa2ad5c29","block_type":"box","text":"Fund were to invest otherwise.","page_number":172,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"5ec11aec-7c5f-4ac4-a982-d73936316be3","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":172,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"35a814c7-02a4-48a2-91d4-682ed2b259d6","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of its net","page_number":172,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"8c012549-c1bb-45fc-aee3-e3390d3396a8","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":172,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"5c501b77-f20b-4c28-8241-c9d017c07487","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":172,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"8dbe35df-6e41-42ff-a319-d2f3c3cd2a98","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":172,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"8173c37c-a906-42d9-ba41-3f7fcec74776","block_type":"box","text":"to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a net loss is realized by","page_number":172,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"ca5ba4f3-1763-4097-bf03-fe067c55e977","block_type":"box","text":"the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s other income. It is not","page_number":172,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"698e6fa4-64b0-4834-918d-1e27a763b5cd","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":172,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"8f9b3581-17f1-4fce-8445-32a94c0661a6","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":172,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"eb9a625e-1e26-4626-b1f1-4e8791191d9b","block_type":"box","text":"the Fund will generally be treated as owning shares in a passive foreign investment company (“PFIC”) for U.S. federal","page_number":172,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"2442bd19-ed76-49b7-befd-3923a5b192c6","block_type":"box","text":"income tax purposes. A Fund may be subject to U.S. federal income tax, and interest charges (at the rate applicable","page_number":172,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"8d86cb1c-653d-4e12-8303-a6c62c978cf5","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":172,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"f42cc85d-a9cc-4dd5-ad7c-ee36db340ab5","block_type":"box","text":"a company and on gain from the disposition of the shares of such a company (collectively referred to as “excess","page_number":172,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"4583220e-07e3-41c0-abed-be97011e8688","block_type":"box","text":"distributions”), even if such excess distributions are paid by the Fund as a dividend to its shareholders. However, a","page_number":172,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"a051bfb9-b762-452e-b0c2-e58638ee4457","block_type":"box","text":"Fund may elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":172,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"ce83c304-90b2-494b-a26a-d068b103ff73","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":172,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"3aad410e-52c6-45e2-89ef-9f8398783e4b","block_type":"box","text":"revoked with consent from the IRS. Under this election, a Fund would recognize as ordinary income any increase in","page_number":172,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"0b96942a-1eb1-47f4-a8b4-15040c762b73","block_type":"box","text":"the value of its shares as of the close of the taxable year over their adjusted tax basis and as ordinary loss any","page_number":172,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"d892d14b-6dcc-48c5-96c5-b9e4c85097a2","block_type":"box","text":"decrease in such value, but only to the extent of previously recognized “mark-to-market” gains. By making the mark","page_number":172,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"d29ae0d6-ed99-4ef7-9fd6-49452b92fa67","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":172,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"d5bceb62-42e7-4905-b077-580193e14ae9","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":172,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"5546a452-3ae7-48f1-8a14-3af5393666e8","block_type":"box","text":"PFICs.","page_number":172,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"50a7f9bb-e025-40ff-a3fb-15d45586b4c0","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, in lieu","page_number":172,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"8188372c-a684-4de0-b767-202072818dc1","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":172,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"36a409e9-4eb8-4494-872f-b9377f40a46a","block_type":"box","text":"earnings and net capital gains of the qualified electing fund, even if not distributed to the Fund, and such amounts","page_number":172,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"a063a2c5-5df6-4cce-9e4e-4f4df59d2c44","block_type":"box","text":"would be subject to the 90% and excise tax distribution requirements described above. In order to make this election,","page_number":172,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"4f4bc1ec-bdf8-4efa-871f-9ed48b2b1cb9","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":172,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"a85e77cb-4239-48cb-8d72-ea1df53816ec","block_type":"box","text":"difficult or impossible to obtain.","page_number":172,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"f4fcc78d-ba87-43f4-9768-62ce10093180","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":172,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"65e57a33-27b2-47fe-9126-ef311f029544","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":172,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"5e3a7830-fa8e-41be-9788-48c102509e82","block_type":"box","text":"(defined as the sum of the excess of post-October foreign currency and PFIC losses over post-October foreign","page_number":172,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"d5e3e247-0464-4ba2-ad7a-9f7b597c04e9","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":172,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"c13939b7-a170-4246-b9dd-ee9369689aae","block_type":"box","text":"the next taxable year in computing its investment company taxable income and net capital gain, which will defer the","page_number":172,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"e09cc2f0-7170-42a0-af7f-baf519707b5c","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":172,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"423c6fc9-b807-4fff-a11f-7dce084acef4","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":172,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"566eabd4-89d1-4c0d-b7fd-95b8b4c717b2","block_type":"box","text":"Municipal Funds","page_number":172,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"6a664adb-ee65-41f5-8c31-4843a3cd293e","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in Section 852(b)(5) of the","page_number":172,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"c2dfffba-339e-40a2-bbbf-fb45d5dad016","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":172,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"df4ff2a9-e674-4461-8630-faa6b1007cc9","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":172,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"38843a6e-1ff3-459f-aea1-ecdcafa5e33a","block_type":"box","text":"Section 103(a) of the Code (relating generally to obligations of a state or local governmental unit), the Fund shall be","page_number":172,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"96e87733-464a-4b8d-b09c-0b1ba40220a8","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":172,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"b4a8bbb3-37ad-4259-8882-4aaa363541c2","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":172,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"4800ec2a-8bef-4342-81a3-818c026c6e0e","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":172,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"204bd61d-c9ea-4481-93ef-d6a73c6bdfba","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":172,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"0c11fd03-37ac-425e-a940-4b620260ecc6","block_type":"box","text":"II-135","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"55fc2387-815e-4d61-8599-64b64b95a1e2","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"941a0c0c-2298-4246-8a96-ebf26dd8f96b","block_type":"box","text":"below) among the Fund’s shareholders according to a method (that it believes is consistent with the Commission rule","page_number":173,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"c9480548-ed4a-4d5b-bf8d-5d6f7c2cf4f3","block_type":"box","text":"permitting the issuance and sale of multiple classes of shares) that is based upon the gross income that is allocable","page_number":173,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"ee669015-b88a-497c-9116-c90305e0f376","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":173,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"e9571a74-f7fe-4541-93d0-d84049ff06ec","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":173,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"99b1db44-48b0-4eeb-87bb-7fbe32b57a46","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":173,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"84b11b58-51dc-4c31-a843-07fc4f13a35f","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":173,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"0600fdea-3b57-470b-a4e5-3f9e3be58bce","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":173,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"5f97f133-4b78-4ae5-9d9d-bea172ae2d04","block_type":"box","text":"the Fund, will not be deductible by the investor for U.S. federal income tax purposes to the extent attributable to","page_number":173,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"0e09386e-d28c-45f4-8b93-ca4e89744818","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":173,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"3c1f7c89-1ee3-4b73-833d-439384351754","block_type":"box","text":"interest dividends retain the exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial","page_number":173,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"7b4f2caa-c5f8-4a50-85a1-50991536635f","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":173,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"1328c02c-2521-4c60-b932-f6c037b81f86","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":173,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"faace4f4-dc5c-4a36-a4cf-bd9a38ff9264","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":173,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"f96cce86-00b5-495c-960b-4fb897c15118","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":173,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"787107eb-0c3a-4361-97bf-9e5edd2bcc06","block_type":"box","text":"constitute exempt-interest dividends.","page_number":173,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"1acd9a1a-87a4-4412-8525-b1d42ed98bc8","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s","page_number":173,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"8fd893cc-e567-4100-8ce8-f92409e142c9","block_type":"box","text":"shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to such holder (assuming","page_number":173,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"2682d524-180d-4f30-9283-2ac3abeffa0c","block_type":"box","text":"the shares are held as a capital asset). Any loss upon the sale or exchange of Fund shares held for six months or","page_number":173,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"92dd38c9-0fce-4bf3-ba7c-e8b846a29e87","block_type":"box","text":"less will be disallowed to the extent of any exempt-interest dividends received by the shareholder. In addition, any","page_number":173,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"5dd20f5c-7a6c-48b3-8f49-7b3735eea30f","block_type":"box","text":"such loss that is not disallowed under the rule stated above will be treated as long-term capital loss to the extent of","page_number":173,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"037566c2-9030-4543-a962-a6373d12b751","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":173,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"caee36fc-b7f1-4a81-9834-64f7655745a9","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":173,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"fb48cb09-61fa-444d-9d5e-cbb98f8178ff","block_type":"box","text":"discount will be treated as ordinary income rather than capital gain. This rule may increase the amount of ordinary","page_number":173,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"ab3b2e2d-0fca-4007-9561-b7b8c73ecae7","block_type":"box","text":"income dividends received by shareholders.","page_number":173,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"fb5e9134-0777-4cf3-b387-56bd017dfd74","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a bond","page_number":173,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"60d2e6c3-dbe9-4e08-b730-b3d3d3efd8e9","block_type":"box","text":"acquired in the secondary market at a price below redemption value or adjusted issue price if issued with original","page_number":173,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"1c30aa92-89d7-4ac1-9f71-80e6139af41e","block_type":"box","text":"issue discount. Absent an election by the Fund to include the market discount in income as it accrues, gain on the","page_number":173,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"8367d767-2199-4513-a350-9caf8fdeba0f","block_type":"box","text":"Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of","page_number":173,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"016a8f74-ccf8-4645-93c6-b56d7cba2439","block_type":"box","text":"the accrued market discount.","page_number":173,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"3d6400bd-e0ea-4982-a938-f77dc032d646","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":173,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"886d66b5-e848-47fa-9986-dfe71cd34fd5","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":173,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"828be382-0272-46e6-aeef-3beca6106d70","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":173,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"0cad2e67-b544-460f-ae5e-afea47002520","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":173,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"c588edfa-7221-458c-b028-914330be3d0c","block_type":"box","text":"e.g.","page_number":173,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"1c66f38d-c7d9-4222-b706-c00a7214018a","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":173,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"dc93ee2f-3ff2-4df7-bdc6-cfa1e8f9ac47","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":173,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"6b239e6e-7087-482d-a9bc-7bd3e94995be","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":173,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"93e7943e-a440-4659-9b2a-eabd0bb6cc40","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":173,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"7dc4ca7a-48d3-457c-aec4-ebe6f8fd7ae8","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":173,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"46d626e2-ad41-4a68-a667-f91e9807ed65","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":173,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"027a8f46-e30f-4f9f-9340-aa0bd451b4d9","block_type":"box","text":"the taxation of interest rate swaps are not entirely clear and may require a Fund to treat payments received under","page_number":173,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"d3d0f2c0-a86d-4ad7-84df-713d0839f143","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":173,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"c1b65777-0ed6-4cb0-913b-a696b5d6dab5","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":173,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"4cf0c13a-5895-4cee-959e-1d62be11e482","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":173,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"b5dafeb0-11a1-4cf5-9ba7-ee027af95e00","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":173,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"5a3a0e24-1f85-4348-920b-9ff535aa55f6","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":173,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"0ee03124-cce3-4096-b558-c5b18188886c","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":173,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"c5a5586b-23bf-4c14-ae93-701f18ef996e","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":173,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"4b25012e-074b-4f0d-bda0-41b5cd7befc0","block_type":"box","text":"within each applicable state.","page_number":173,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"69e620fe-a113-4fba-9691-f73f985adda5","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":173,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"aed3e2c6-e5b9-4fb4-87f2-25328f0403a3","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":173,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"0cfada33-438d-49e1-9af5-58e8cfdab952","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":173,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"919de6f0-095c-407e-836e-31c61386c390","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":173,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"421d9126-4306-4381-92f5-bcd893d6aae7","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":173,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"f2ae69fb-bb5e-430d-a8b4-57d0ef9efe0e","block_type":"box","text":"its discretion, the appropriate course of action for the Feeder Fund. One possible course of action would be to","page_number":173,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"ac866ba1-b29b-46d0-91f9-1a5cc456c3e6","block_type":"box","text":"II-136","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2b58af0e-5063-4116-b8cb-151a5be54bf1","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"028706e6-903e-4ab4-9ce7-ef34cedd23f0","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":174,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"620cc0c6-d429-47dc-8b7b-dad909c3dddc","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":174,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"cc884e50-b88b-4abb-b65c-ed78bf72e61d","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":174,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"5be2d57b-c0db-4890-81ca-1167519f219f","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":174,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"ab615bbe-f0e4-429c-b0b1-1a562d5285c9","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":174,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"250d6cb1-82fb-483d-ad6e-b74d8bcf506c","block_type":"box","text":"exempt from state income tax.","page_number":174,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"2bfe401a-561d-488f-9bac-e9b291e2493a","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":174,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"b3daa5ba-e7e8-4305-831f-e0a7766d4a66","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":174,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"18e211e7-9cb0-4e83-beed-69c193ff06ae","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":174,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"aaaeb7e4-9cee-4daf-a23a-ff0fe4738e68","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":174,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"d4fba68c-919b-46df-b905-a66ddbfadf15","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":174,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"571b41f8-6100-485d-a589-0621efbd6b70","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":174,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"0c740ef1-1260-432d-9a7d-9cae4d683051","block_type":"box","text":"decisions may have a retroactive effect.","page_number":174,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"49ddc6bd-1e6e-4b1f-89b6-f32391eedb6a","block_type":"box","text":"PERFORMANCE DATA","page_number":174,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"e62b0094-8f5a-47fb-8f23-ebfec7b1fac1","block_type":"box","text":"From time to time a Fund may include its average annual total return and other total return data, and, if","page_number":174,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"9c1b0174-6042-40a2-88e6-0142b94534f1","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":174,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"3e901105-ead3-4a9f-8420-f1a9a0cd94fe","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":174,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"95593b90-7294-499e-b692-eee50b7a67b7","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":174,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"c37b5f40-7300-4852-9f03-6538475bd628","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":174,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"143a8f26-7ecc-431a-bb3a-70c3af7027b2","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":174,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"b634c89d-b15e-492d-942f-8664c9395ce0","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":174,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"4199e2c3-2d1f-41f3-9f14-0c43b3d45e37","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":174,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"bd2ccdb0-3fd6-45b5-958a-b3d562ada4b3","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":174,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"7620fc76-f89b-44ae-a9fb-776a92175853","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":174,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"9093c8b4-eb25-47b8-8d3d-e302997795d2","block_type":"box","text":"expenses, including the maximum sales charge, in the case of front-end load shares, and the CDSC that would be","page_number":174,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"ff0076a3-4f0c-4f5d-9174-bfa19d58f332","block_type":"box","text":"applicable to a complete redemption of the investment at the end of the specified period in the case of CDSC shares,","page_number":174,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"4e0ed489-9924-4f6f-baa2-911174e72181","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":174,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"9ed11b9b-d24e-4103-84d1-a8b60df6ebe0","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":174,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"81fb6822-2c49-4f1c-9d6a-27772e2d6682","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":174,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"0443444e-109a-44fa-aa88-b620f5655cd6","block_type":"box","text":"value of such investment at the end of each period assuming payment of taxes on dividends received during such","page_number":174,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"28e5c0d4-0dfa-4c2e-8b2c-690cfd48cf78","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":174,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"748082a6-78e2-4d82-8a42-e6c2d4a1c5d5","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":174,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"fb04438b-fdb0-4e30-a07e-d9c521c4f1f9","block_type":"box","text":"including the maximum sales charge, in the case of front-end load shares and the CDSC that would be applicable to","page_number":174,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"f8aba33e-4dfa-4756-b168-50220251fea2","block_type":"box","text":"a complete redemption of the investment at the end of the specified period in the case of CDSC shares. The taxes","page_number":174,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"59c8a877-35e0-475c-870f-811205943141","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":174,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"3c34b3b7-42a6-4b9e-9c38-4aa3dc4546ba","block_type":"box","text":"income tax rates in effect on the reinvestment date for that dividend. The rates used correspond to the tax character","page_number":174,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"f3c851bb-f2e1-4f9a-803f-1e18fc99f4c0","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":174,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"f9caedfb-5b47-43d0-b178-02ee002a147c","block_type":"box","text":"taxable amount and tax character of each dividend are specified by each Fund on the dividend declaration date, but","page_number":174,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"f055dde4-a3a6-4082-9d3b-1be06f80cfad","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":174,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"22df89e8-8cb2-4ed3-a719-64b778cf619a","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":174,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"15606d18-e624-4ea6-a4de-7b86a81fe8da","block_type":"box","text":"credits, are taken into account according to U.S. federal tax law. The ending value is determined assuming complete","page_number":174,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"a947aba3-5877-463f-b2a2-b1d627242995","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":174,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"097880fb-bacd-473a-a864-d9a9f2b9b528","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":174,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"61489ff2-bf66-4650-b383-acfdc2553a81","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":174,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"2d0d9f69-fccc-4da3-99ad-c564ebc884e3","block_type":"box","text":"invested to the ending value of such investment at the end of each period assuming payment of taxes on dividends","page_number":174,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"388ed75d-d3d9-4814-a9dd-0c27fbf5275d","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":174,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"66690427-ed5a-414a-b22e-1eb33b16bbe6","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":174,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"7252b6db-553c-403b-b79b-b9451b0cd0a3","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":174,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"1c1adde3-a80d-42fd-a7a5-82b8cf42ada4","block_type":"box","text":"charge in the case of front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":174,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"60840a0a-dee3-4711-a5e4-99308e80c4a6","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes of shares,","page_number":174,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"5ca66bf5-768d-44e4-8f83-9d7d48bf84b4","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":174,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"b4bc938a-0b21-4bb8-a2c2-d633b2662db4","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":174,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"482a6acd-d1bf-42e1-8fdd-69f66127b9ae","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":174,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"ed7f4c8d-267d-4731-9466-4f5a9262c79b","block_type":"box","text":"II-137","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"50c14c28-8301-4cab-bf08-5f41a04ed2a9","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ef93939-ba97-4125-b474-5400924aeb2b","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":175,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"42be0295-6d84-479f-a27c-4b66cbd575fb","block_type":"box","text":"individual income tax rates in effect on the reinvestment and/or the redemption date. The rates used correspond to","page_number":175,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"84f144db-e624-4940-8e89-ddc6db306daa","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":175,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"3774ff01-e595-4478-b77c-497e5496022c","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":175,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"2d146000-266d-4a7e-acf4-6ff44cf26009","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":175,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"01e55615-3395-4b67-b693-172665ca68ad","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":175,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"e4aa3e17-7127-4aca-b170-35ef2e2ac955","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":175,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"bc7b60fc-7eb0-4d48-80e7-96371c25c90e","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":175,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"0b9d90c1-d34a-486f-85ef-a0742a810dbd","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":175,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"89f60605-3ec6-4001-9264-2b540eb35f36","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":175,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"36e44991-31c9-44b4-8326-8f87d13696db","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":175,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"fb715190-0cd2-4964-955e-e95dabab1319","block_type":"box","text":"will not be included with respect to annual or annualized rates of return calculations. Aside from the impact on the","page_number":175,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"e8191097-6644-4f8c-b0c6-9a5fe96e37b1","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":175,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"438c574b-1ee9-4917-a19e-ab52d5bcea06","block_type":"box","text":"annualized total return data generally will be lower than average annual total return data since the average rates of","page_number":175,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"6bf1166a-0d6b-41c3-a81e-524d5e4b2b67","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":175,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"78887490-a095-441e-8a4d-d2d6bb9cd4b4","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":175,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"33f4d477-1e7d-41e5-a518-bdbcd1521973","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on the yield of","page_number":175,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"099f7089-0710-445e-9935-23c4f0d37a02","block_type":"box","text":"each security earned during the period by (b) the average daily number of shares outstanding during the period that","page_number":175,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"4c97e0da-ee08-4647-ad31-b4f3b6854d71","block_type":"box","text":"were entitled to receive dividends multiplied by the maximum offering price per share on the last day of the period.","page_number":175,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"b9bdaae2-e1d8-4474-97ce-382719d06fa0","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":175,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"4da1ffd8-f52f-42fd-ac9f-0499ee28c973","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":175,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"a010c237-1a58-4f37-92b3-9534570c46da","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":175,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"33c16667-84ba-4ae7-835b-44828c057f7c","block_type":"box","text":"Fund’s operating expenses and the amount of realized and unrealized net capital gains or losses during the period.","page_number":175,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"cd4539e6-526c-49f2-8938-2a4fa6f80f12","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":175,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"f92d2e0a-524d-499c-96a7-c4468c750a17","block_type":"box","text":"less than their original cost.","page_number":175,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"dbcf7558-5e66-475a-b361-499fbfd38785","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the CDSC in","page_number":175,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"0b5bb739-f0d9-4fa3-8934-304ec899d031","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":175,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"5abcc240-6f42-490e-b315-a5b912371e20","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":175,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"9cfd3ad1-ef51-44ac-928d-587a87a2f49d","block_type":"box","text":"take into account the reduced, and not the maximum, sales charge or may take into account the CDSC waiver and,","page_number":175,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"38f07e82-6757-4e41-8811-20a1c83f8269","block_type":"box","text":"therefore, may reflect greater total return since, due to the reduced sales charges or the waiver of sales charges, a","page_number":175,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"aaf026a4-ab83-45fa-8526-16ce6546ad70","block_type":"box","text":"lower amount of expenses is deducted.","page_number":175,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"46b144f3-0f0e-482b-9356-60d60fa95850","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":175,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"fc5e157b-323a-4793-9cbc-860a8496a8f1","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":175,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"5c776ead-a5ee-44f4-ac0e-a5e4fc22aa93","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":175,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"2d451228-4c53-4aa5-8bf3-c753bc14b689","block_type":"box","text":"Money Magazine, U.S.","page_number":175,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"7b0fa2ea-e457-4d76-90a3-4e0f8abd3bc1","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":175,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"fa7b8345-2ec0-4323-b69d-144c10dcca26","block_type":"box","text":"or other industry publications. When","page_number":175,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"45f44242-28cf-4e4c-a5a2-f1201f693619","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":175,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"af3891af-8455-4776-aacd-7731b02a1440","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":175,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"15112633-75bc-4871-9e36-5b41c0f0c685","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":175,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"925da273-e296-4e15-9c0e-d4d610cc0656","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":175,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"4d2ec5ec-74c3-4d34-9092-1c52f2c3e1ee","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":175,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"6a0ac2ef-65f0-4e83-97f9-825d3e435ca8","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":175,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"ea7583fd-843f-4a51-acdc-4aed75ef7d3b","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":175,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"6c88f03e-2354-4e87-9692-472a671b7c03","block_type":"box","text":"developed by Fund management.","page_number":175,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"2646bac1-953a-4274-9269-19efc608ac9a","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":175,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"4a9a1d5f-594e-4c5e-b7f7-6a63bebcdabc","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":175,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"6afd7b66-6d28-4db8-a6b7-d9ace69913bd","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":175,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"b92c360f-26bb-443f-b828-7a31b91f4bdf","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":175,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"68bb3717-2470-43b5-b271-e92777b16749","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":175,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"28fcc885-5a88-42c3-b1ff-9712561f47a6","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":175,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"11377b44-b728-4012-9f0d-2d4c0c8af4b7","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":175,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"c9f5ab88-1f24-4ddd-b319-d6c8adee769e","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":175,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"6f9e9cdb-5381-4204-a9a5-199049e59907","block_type":"box","text":"II-138","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"776ae28d-18c9-425d-a7fc-a080c29f2419","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e96ebc8-7399-4b67-8c60-c3b08831f9cd","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":176,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"53e3a39a-5cca-4e42-804a-bb9beff1780c","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the Manager","page_number":176,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"d801b1c1-728f-4143-a430-96eabb0a4c65","block_type":"box","text":"pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the “Active Fund Proxy Voting","page_number":176,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"bc3014f8-4ebc-485b-9cfc-4330989ff4a2","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":176,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"bb55854b-4c22-4cd7-abb1-8314db8e2c8d","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":176,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"577726b2-957d-4d72-ae1b-41e63d2d1037","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":176,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"9b22c71d-f0fb-4d77-8b88-6adc80f09ef7","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":176,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"21c7b9a6-ecaa-4827-923a-e2b8f2f3c812","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":176,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"fd2357cb-bd32-4459-b6e7-cc5a78a4ccf1","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":176,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"853b32a4-6a98-4a63-9e76-4430677c8f9c","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":176,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"a63c37c1-7b2f-4b46-8d7e-f801da6c4d1c","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":176,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"8184c562-5db5-43cd-b55c-1aadd85fdd4a","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":176,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"fcf924f4-0920-48a2-b080-7a0f743a4949","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":176,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"97fb515e-e17e-4bd0-a54c-3aa55671a01c","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":176,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"90cff92b-07ae-4d63-bc1c-9158c2870767","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":176,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"595edeb1-d76b-42c1-9ab4-b5c7d484af39","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":176,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"f458f6e2-a003-4fd1-ae91-bb9fd17fe177","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy when","page_number":176,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"cf166bb9-0891-4498-85da-1d4c2bb2367e","block_type":"box","text":"voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy when voting proxies","page_number":176,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"5ca427c1-0a5d-4074-ac9e-bfff0745248a","block_type":"box","text":"on investments the underlying fund holds. Therefore, the Fund may use the Active Fund Proxy Voting Policy while an","page_number":176,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"32e0dfd6-8ef8-469e-8470-26893293e663","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":176,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"76f22ff5-76f3-4a5c-b42d-3f47573109f6","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":176,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"e0c01fb3-1031-4d83-a780-2e605c194c17","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":176,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"237f46bf-9b24-4a4a-9f03-fe1503bf58f7","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":176,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"1a40eb09-9ddf-41aa-8215-7ce94fc44fd0","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":176,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"ecf7825e-37ba-469a-aece-04f87716671a","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":176,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"bead64ac-aec3-4c56-9e13-3db3127273a4","block_type":"box","text":"month period ended June 30 is available without charge, (i) at www.blackrock.com/proxyrecords and (ii) on the","page_number":176,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"f3c0bfbf-6e19-4c86-9a47-e8fec0f65609","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":176,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"40116d4b-7d41-4c49-9cfa-de5fa0c4504c","block_type":"box","text":"GENERAL INFORMATION","page_number":176,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"34dac5e2-cfae-4a35-95f8-fd0ed37475f2","block_type":"box","text":"Description of Shares","page_number":176,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"3be85198-e120-4233-9e9a-ddf02db89747","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for fractional shares","page_number":176,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"38570502-bd0d-4fdb-8f5f-2ed8328c039b","block_type":"box","text":"held in the election of Directors and generally on other matters submitted to the vote of shareholders of the Fund.","page_number":176,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"4b2e7623-f5b2-4e14-87eb-55f27ef77881","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":176,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"d8882fb3-941d-40a7-8bda-8dd8238204b1","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":176,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"4cb4cdba-2f14-4dfb-8cf0-1ced4a88bee3","block_type":"box","text":"more than 50% of the shares voting in the election of Directors can, if they choose to do so, elect all the Directors of","page_number":176,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"560e7618-361e-431c-9451-f089a7a7a0c4","block_type":"box","text":"a Fund, in which event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":176,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"2393d2ac-5770-4be7-8176-d34e96d62896","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does","page_number":176,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"2d9768a0-8490-4d87-97f5-c9dc48da47f1","block_type":"box","text":"not require shareholders to act upon any of the following matters: (i) election of Directors; (ii) approval of a","page_number":176,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"a8244745-7ab3-4376-9d05-9f1ea8dec51f","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":176,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"fb4b9231-7a5a-4a59-a526-8016d910e40f","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":176,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"38744900-0566-41e7-98df-05f50bca4372","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":176,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"b1b28879-dc37-472a-8fc2-e451bc0776c6","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":176,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"a1d319c7-99cd-47aa-9579-d12964f40852","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":176,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"1f92a73b-76b4-4643-955b-2d6ae1cced54","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":176,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"41c4560b-b2b8-46ed-b9fd-8ea1c287a892","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":176,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"0debba73-89bb-4973-9571-dc4abdb97115","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":176,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"ea378860-3906-4425-ab22-ffde3c2bf70d","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":176,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"0b269be5-4706-4a74-a0d1-585e978b6db3","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":176,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"8090bbd5-cfd8-4742-8bf9-96dc1541fa37","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":176,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"71a8bf0b-508e-410f-83ef-857555e0b2ea","block_type":"box","text":"with all amendments thereto (the “Declaration of Trust”), is on file in the office of the Secretary of the","page_number":176,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"7026248b-eadf-448e-b90d-36a30268e708","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":176,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"d125be3d-eab6-4cab-8c7f-0ea76ea69e8c","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":176,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"c2a7c5ee-494c-4012-9c99-7c1fc862971e","block_type":"box","text":"II-139","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"20c2eda8-0e4c-4862-b70a-b06bd617290b","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"60b321a6-5848-42c3-9296-f4535bcd65e3","block_type":"box","text":"shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a trust","page_number":177,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"e1412d08-a1ac-4883-92ed-ca336ece181f","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":177,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"03d6c36a-5f39-45cd-9abe-0738d69be08a","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":177,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"ea2c9d1a-38a5-46e4-80e4-204b281313a6","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":177,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"9e10e42a-8e54-4863-86c1-2be0772cdf5b","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":177,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"32223236-bd2a-4a28-86b9-f660cf59530f","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":177,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"11d73438-e9f8-48b8-a2c0-440e98684ccb","block_type":"box","text":"Additional Information","page_number":177,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"c94cc8f6-217f-4d4b-b632-023560d1b638","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":177,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"9300fa95-7500-4758-a752-67369cc91c1e","block_type":"box","text":"has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain","page_number":177,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"2de117c4-c0fd-4a8a-b667-104aa45d51ec","block_type":"box","text":"BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of","page_number":177,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"dd6fe6d6-89c8-4b7d-add3-d07bcbfb5b8a","block_type":"box","text":"such name to any other company.","page_number":177,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"580c805c-72d9-4456-9f78-d4cf91939b08","block_type":"box","text":"II-140","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"012dd73e-4120-4b98-a9ae-aa717781a7a5","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f91c20ac-af8d-4411-aba4-481cd60420f6","block_type":"box","text":"APPENDIX A","page_number":178,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"29f1e078-d96a-43a5-a4b4-c40811502bda","block_type":"box","text":"Description of Bond Ratings","page_number":178,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"45f22708-505b-408a-9ef4-9067d861742a","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating agency","page_number":178,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"5b035cf2-5b90-4f26-aa92-067dcc570354","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":178,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"8502f000-c03e-41dd-9456-e363d04d8979","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":178,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"f0de5588-9735-444c-8bd2-16b8b3f21a02","block_type":"box","text":"so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these","page_number":178,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"19203ac8-9653-4194-bf70-0c3125c588f7","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":178,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"ea44f8aa-31b7-42f5-804a-da45ec536a0c","block_type":"box","text":"NRSROs may rate specific investments (","page_number":178,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"102b2c72-96a1-47fb-95a4-54f4b709f71b","block_type":"box","text":"e.g.","page_number":178,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"cccc4ff5-e5ce-4bf7-a76b-dc783e0b73b4","block_type":"box","text":", bonds), issuers (","page_number":178,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"2c21c0cb-1e24-4d01-8166-17740de13c99","block_type":"box","text":"e.g.","page_number":178,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"3e0d5d9a-c7ec-449d-9d4d-fd9d1558d6ca","block_type":"box","text":", corporations, governments and financial","page_number":178,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"0f7fe507-fc97-4b47-8a6a-b827c74f47c8","block_type":"box","text":"institutions) and/or programs (","page_number":178,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"ca67e4bc-9151-437e-ba24-6b79d74c2ef8","block_type":"box","text":"e.g.","page_number":178,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"485ca021-b731-44d2-a121-96852357259f","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":178,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"1e20f8b1-5205-4f39-b1cd-1ee68cd5ad5e","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":178,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"bf86afcf-aa97-43f9-adc2-bee0f1359f6c","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":178,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"e25d96bb-8c89-42d9-86af-6b9bc88b2e13","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where an NRSRO has not rated the","page_number":178,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"f46903ce-b97a-4a6d-9ee6-f72ced5058ee","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":178,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"f113c5a3-b179-40f1-b92d-35a7571d6f12","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":178,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"22794412-4970-458d-91ac-666d0b2febb0","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":178,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"efc08a06-9042-4d5e-a161-4f3e880bf190","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":178,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"5be0a177-cdad-4f89-8d0b-70200a9ad725","block_type":"box","text":"security (","page_number":178,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"871e33f6-71a0-4c2c-bad6-24321137c5c6","block_type":"box","text":"e.g.","page_number":178,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"c449c76a-293e-465f-9196-0e1f44fb2aaf","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":178,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"c941879f-fcb2-4cc4-9084-2ec33fb3ae2e","block_type":"box","text":"highest of the multiple ratings.","page_number":178,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"9f383a16-d79e-4fb2-9860-08243911b291","block_type":"box","text":"New issue securities (regardless of type) may not be rated by an NRSRO at the time of their initial offering.","page_number":178,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"c5723e41-341b-4db4-afc8-e2d68ae09a21","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":178,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"b908619d-08e5-4a6e-9329-29eb4e6dd876","block_type":"box","text":"determined by the underwriter and/or issuer) or an NRSRO rating for the issuer of the security. If applicable, when","page_number":178,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"c32bdbd0-9cfa-4cb7-a145-14fc14e5edb9","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by an NRSRO, BlackRock may","page_number":178,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"0594693a-33e4-4a56-8870-1e1d12cc05b6","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":178,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"34bb51e7-2075-4e93-9093-9c97e9d6fd55","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":178,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"e900ffcb-2bb2-4933-bd79-64db0e4d6e79","block_type":"box","text":"the preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of","page_number":178,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"16144b7b-a9af-4619-b60b-fa37b1057bf7","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":178,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"a7a769b1-da0e-4a51-9f13-05cd77798efd","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":178,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"c4b91ed5-532f-4dd3-a8ee-28bc2340d04a","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":178,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"21121fbf-61c5-48bb-919e-90f0dfe0e3b4","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":178,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"3529cc5e-7cc1-484d-b97b-a70eb6f092ff","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":178,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"5e4f4b46-b7fc-436e-9b8f-d6a6401125d4","block_type":"box","text":"invest, directly or indirectly, in securities that are not rated by a rating agency or securities with a credit rating that","page_number":178,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"3c08c78f-4774-4842-880a-c2269b3e628b","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":178,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"d5e903ac-adef-4c4b-b758-76cbf2691139","block_type":"box","text":"downgraded but not yet removed from an index, following the removal of a security from an index prior to its sale by","page_number":178,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"8d64d4a1-93a5-43c9-b712-a3ac5b5ef2f2","block_type":"box","text":"the fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the fund.","page_number":178,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"2a10eddc-ce21-4667-accd-00c5d2178c14","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":178,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"4366752b-96fb-4144-a5ba-aa46864fd92e","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":178,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"e049765d-25e3-4c3b-8d95-f3033420b277","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":178,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"7bcee15a-21a0-4736-8fe6-79955bbbbdfb","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":178,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"4e1604b4-9800-4767-9939-36744aebc440","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the effect of","page_number":178,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"e50e5a57-8a5c-4793-bf4d-39636a67eaf8","block_type":"box","text":"recent developments on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":178,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"9b3c1faa-01fd-4ffd-bc69-e645f64cf1be","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global Ratings and","page_number":178,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"8ca1b73f-09b6-484d-a7ed-f7c89e66f1b1","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":178,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"10053025-f5ec-4523-87d6-4c9651b92add","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":178,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"11f4c8ed-7a9b-4b4f-b9bc-4566cf323aee","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":178,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"b4160218-4077-4105-b556-ca818e2db8e3","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":178,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"1cc65574-060f-42a7-bfd4-cc117c7f39c1","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":178,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"05da1a8d-c6f6-44c3-8b84-0d8df95de2c3","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":178,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"4664396d-6803-48b8-bbfc-82e3e373c289","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":178,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"f276bfc3-1779-4f95-8a3e-5856184b7daa","block_type":"box","text":"risk that an entity may not meet its contractual financial obligations as they come due and any estimated financial","page_number":178,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"380fa2c4-28b9-4096-aea9-5be266cf7fa6","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":178,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"e112241b-a60e-4bed-8044-b743c5ae07f9","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":178,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"f5e0590f-e9c0-48c4-8081-0400c8fea719","block_type":"box","text":"upon standard sources of variation (","page_number":178,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"408650f9-8ba5-43a9-865b-16e43404fd84","block_type":"box","text":"e.g.","page_number":178,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"08c96c95-b0fe-4eed-8696-294d77ab5bea","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":178,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"80c4b735-ad95-43ed-bba8-404f13213d4b","block_type":"box","text":"A-1","page_number":178,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"9dbad835-2eb8-4281-920d-619ca9af46cc","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d21b6b7-144d-4efb-81f6-cea0076216d3","block_type":"box","text":"the issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do","page_number":179,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"b396f0ce-4edf-4413-84c8-71cb6918ae41","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":179,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"735e3e10-3d8a-4f3d-b53e-e0cf272b522a","block_type":"box","text":"e.g.","page_number":179,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"54bc04d0-59a9-4017-a454-198029205d19","block_type":"box","text":", equity indexed), absent","page_number":179,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"84b235d1-a47f-4a0f-a618-56e2bc282a2f","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":179,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"1ca32b7e-3c26-4417-bd88-c964c88342a6","block_type":"box","text":"assigned to issuers or obligations with an original maturity of eleven months or more and reflect both on the","page_number":179,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"8a89b511-6c85-4147-876b-a5837232c649","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":179,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"536a4040-fe85-4811-abf8-a2aec9ecb5a7","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":179,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"c65095b5-3eb2-47b1-9ed8-0f9a460d77cc","block_type":"box","text":"months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and","page_number":179,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"a012cde3-0813-43a8-9e7a-77eadb268aa2","block_type":"box","text":"the expected financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":179,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"b68cefdc-c204-4bb8-897f-69b41bcd5cbf","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":179,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"97ccdebb-9b55-4bbd-86bc-3ca94a3f0a34","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":179,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"844fb406-f4f4-45b8-ab5d-6fabbe486177","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":179,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"2b7ac0d6-ec2c-44fd-8749-0798917ddf07","block_type":"box","text":"i.e.","page_number":179,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"b5bace70-726d-4c9f-89d3-44c4b0bed275","block_type":"box","text":", ratings on nonfinancial","page_number":179,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"31ed3025-1592-4e8d-9334-271d88fa308d","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to all structured","page_number":179,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"6e2600e1-0c7f-4d50-8ea5-776fd28c64fd","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":179,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"b4b063d1-5a21-4a7a-b231-ca37261f59a4","block_type":"box","text":"and fundamental ratings at the same letter grade level will behave the same. The (sf) indicator for structured finance","page_number":179,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"903aa030-cfbd-4482-a18d-52fbc9861c3c","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":179,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"19561619-4d84-49c0-8a1a-69a485ca6355","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":179,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"4af4caa6-43e8-4aa3-a2bb-c40c1e9959bb","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":179,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"0b06a258-2d3f-467e-9538-4f3d235ef8f4","block_type":"box","text":"of time.","page_number":179,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"83c66d6a-2c12-4fde-b857-93f947351d9a","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":179,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"07c3e456-a570-4d4f-a9d6-6878d043586e","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit","page_number":179,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"0c02dcef-be4a-4a2e-841b-dcb6e233a7a6","block_type":"box","text":"risk.","page_number":179,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"3621e856-dca3-4d76-9855-58761f131bc5","block_type":"box","text":"Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.","page_number":179,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"c08be423-9d90-458e-a925-8d5330718921","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":179,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"738016c9-4682-4274-813b-fbbb51c0e604","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":179,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"859bfdab-bbf7-414d-83a4-3b8526c8da75","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":179,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"1862ad30-a212-41c2-ac11-92402a8c57bb","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":179,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"ed93b263-8573-4a22-b44f-bf05afedd188","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":179,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"368e0e9c-ce2e-4ae0-b0c2-9b2b7411d442","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":179,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"a79329a5-4bd5-4e70-ac0c-1f8f4027dfc2","block_type":"box","text":"credit risk.","page_number":179,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"4a564075-cc46-4860-990c-ad80f2135339","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":179,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"9a0a951f-2c50-4c19-8ed9-30d0162cde2b","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":179,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"c6652cff-9605-4ce9-aa95-e146dc9e74dd","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":179,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"bf7981ff-fbc3-4522-b29a-970a4a4b08ee","block_type":"box","text":"of principal or interest.","page_number":179,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"10918de3-323e-46c7-98d6-6eb14efae8d6","block_type":"box","text":"Note:","page_number":179,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"3a973d46-23fe-469e-b4b3-315c9919148b","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":179,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"107764f5-ca2e-4d0a-95d6-284ce6fef234","block_type":"box","text":"Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2","page_number":179,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"978d3f35-1d4e-45d1-ac42-d7e6c008d261","block_type":"box","text":"indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.","page_number":179,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"a6fcbcb1-f719-471e-943a-95942d26ae7d","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":179,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"a2362e87-70b8-41a7-a280-fd0a78eddbec","block_type":"box","text":"companies, and securities firms.","page_number":179,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"c23c4d77-94af-417d-a607-9554daf5f2cc","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":179,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"e133d695-0cd3-44c2-94e5-f0f6d310fae3","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":179,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"c5d3fdae-07c2-4a48-b445-0ce765e3e9d7","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":179,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"229154ef-6942-4758-9785-07973618f628","block_type":"box","text":"long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with","page_number":179,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"c70249b8-857b-440a-8bab-f2e8fbfa17a3","block_type":"box","text":"that security.","page_number":179,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"26ba4c8a-c85c-4f9c-9b1c-c61c2a2e8b02","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":179,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"2da07bd9-e8a2-4bd5-8ab4-4a3976c924d7","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":179,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"049057bf-238c-4683-8ce0-4425ec3f95fa","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":179,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"2a802ed4-f77c-41ba-be03-65d93d1bfdf8","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":179,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"7dee7d79-6d26-4f06-b65e-e17375b32049","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":179,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"ea4a1b86-a249-40a8-a013-d88f54caf958","block_type":"box","text":"categories.","page_number":179,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"967b8510-ce72-4864-ba18-6c84511b1a81","block_type":"box","text":"A-2","page_number":179,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"b0a41b99-0d9f-4d68-a314-7eb004421b83","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"136537e5-bba6-43e0-b973-953dc80a4744","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":180,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"e737b5f4-6b63-4e32-b5b8-0093d6044742","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":180,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"72496b86-b5fb-4d5b-95a4-ac817bbf02ad","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":180,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"6c5aa2ad-8692-4b02-88d2-197b4d28e51e","block_type":"box","text":"an issuer’s self-liquidity.","page_number":180,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"449c2ed0-b5ef-404c-b555-12a68dacf39f","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":180,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"687ceb2a-59d5-43d8-b662-0751a44a9b2f","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":180,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"9608a4fb-f5e6-4b4b-9dde-e4f6e47da8b8","block_type":"box","text":"MIG Ratings","page_number":180,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"fded92c9-fb41-4445-9904-25ee8e92b5e2","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":180,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"8e8c243e-bb2c-46e9-bd00-4bcd009945b4","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":180,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"e5c0b421-c71a-4941-851e-ad2069ebe157","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":180,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"ae6598e7-98c7-4b6c-85fd-544c635ad0c4","block_type":"box","text":"MIG Scale","page_number":180,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"ac2e64f2-e7b4-44aa-911e-88b6ab1e3332","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":180,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"b7e480c6-a4c7-4b94-9151-919cf5818c63","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":180,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"0ac1093a-339f-4e21-a533-6a1bac7b62be","block_type":"box","text":"refinancing.","page_number":180,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"99abfb62-4717-487c-a4b8-44bf93ecf9ea","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":180,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"ef7e097d-e0db-4cfb-aa99-75e88dbde4a0","block_type":"box","text":"large as in the preceding group.","page_number":180,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"8db835aa-1a42-41c1-9eb9-072f1ca781b6","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":180,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"85f9fc4c-3cae-45a1-9c8f-d7e6d8566605","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":180,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"4488115b-ba81-421e-bd03-8a9e719946f7","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":180,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"d43f5ce1-05a1-4c04-ade2-b3fd7b1b8757","block_type":"box","text":"lack sufficient margins of protection.","page_number":180,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"2f9a7081-436e-4c7f-ab4b-fbd87bff8019","block_type":"box","text":"VMIG Ratings","page_number":180,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"f7e63ef3-00e2-46c8-bb30-a94d9dbf51f2","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":180,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"634e6431-ab7d-4168-8485-f646586860cf","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":180,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"76691b42-45ea-4643-a35a-1f7a9928e5b2","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":180,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"0396e483-373c-479f-aa1f-ab30bd9c81f5","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":180,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"37e3ad15-0442-44f3-bdf1-53c5ac946fa0","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":180,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"2fb14ba1-2fa9-4ba4-a6a7-f8bbe71aad3f","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":180,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"bb4295c1-d0ec-49c3-b109-5317a242b9f6","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":180,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"cfd64617-4a4a-4314-bcd0-da4e5db09ed1","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":180,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"2b97e949-5307-43ee-a0fb-a24412a0a526","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":180,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"0eb6f92a-8431-4a96-a280-f6911c2702c4","block_type":"box","text":"grade.","page_number":180,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"cd6df926-8695-462d-956b-508ac94f3710","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":180,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"57b88fa2-700a-49bb-a62f-4b259a9a5dbf","block_type":"box","text":"less than every three years. If the frequency of the demand feature is less than three years but the purchase price is","page_number":180,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"5d51e733-89e2-4c17-a496-29cd1ecf77d4","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":180,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"434d0a2a-ebf6-46c2-8420-9dee514c913c","block_type":"box","text":"Industrial development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects","page_number":180,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"2f636e3a-268c-4709-b1c2-1720d251f632","block_type":"box","text":"Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the","page_number":180,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"36c90c86-0352-4f21-a037-b1a163c93f0b","block_type":"box","text":"liquidity of the corporate obligor.","page_number":180,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"6ca7fa8c-6fa4-4f42-861a-dd2b36c31bed","block_type":"box","text":"VMIG Scale","page_number":180,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"c5bea6aa-90c7-42e5-a691-e4b5a7f53778","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":180,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"511f34b9-107f-44ca-9a17-267ac491480e","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"b96a58b4-db4e-44b0-a99d-323315360c50","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":180,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"5675dc86-93f8-4fb1-b98a-88f692f3ac3d","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"785cb931-9392-40a5-868e-e4dc97207bf1","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":180,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"4f2a171e-7ff2-4560-a8b5-49073ad58b72","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":180,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"aef48101-3130-4cdf-afaa-e4d51e43babc","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":180,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"2fecba07-c27d-4200-add5-4b2caaa582c5","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":180,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"16e7f196-e842-4d4d-9c7d-c409977e25e4","block_type":"box","text":"may lack the structural or legal protections.","page_number":180,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"40c8643b-7fbb-45a7-b6b5-18365ca449ce","block_type":"box","text":"A-3","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"0f7e0664-a521-4a6e-ad99-85da0ec5a9f9","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ebb475e-3149-4c80-830b-dc95f2a767d0","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":181,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"5592c5ca-6072-42bc-9762-0a8fddcfc784","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":181,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"1c73bc5f-f476-4ab5-827e-0c8379d219c9","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":181,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"405b64cc-58d6-481c-a2f6-91afae353da4","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":181,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"a61b482f-cd8c-45f6-9258-8ff24a01b540","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":181,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"0975c1a6-9c5b-49cb-b1f2-dc91bd06dad1","block_type":"box","text":"which the obligation is denominated. The opinion reflects S&P’s view of the obligor’s capacity and willingness to meet","page_number":181,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"dc1479bd-4613-46d3-838b-3c0fc2074027","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":181,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"47bc8292-0d09-4e39-b1e0-308bec0b1c09","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":181,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"2dfeab8f-518f-4ab0-a167-693afba53fe7","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":181,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"94b70f17-9711-4d25-8bf2-20e9c0cf3147","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":181,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"2baf81eb-e676-481a-8aae-8fbbb8eba9d0","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":181,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"f3780a38-c635-4ffa-8125-21dd8c23f02c","block_type":"box","text":"put features on long-term obligations. S&P would typically assign a long-term issue credit rating to an obligation with","page_number":181,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"42cb67f2-f8a6-49e4-b859-7d4129fb816b","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":181,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"7139f425-c270-4418-8ab4-3f2c3b199011","block_type":"box","text":"from these guidelines based on market practices.","page_number":181,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"b3ada6ac-23fb-445b-8b31-cb4c234413da","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":181,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"6623e372-a037-408b-9a0e-0d5ff3baa973","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"73a4be6f-bbe9-441b-9f88-706f17f173e2","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":181,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"026c5e7c-57af-42d8-a24b-506a5403b0f6","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":181,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"c31d6222-d3d7-4e57-a4c7-775bc3968fff","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"25183ee9-2809-476e-b9fb-fea3a946a657","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":181,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"5c82980c-da99-46ad-bb98-bb58d7bb045d","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"1207c1fc-8057-4782-854b-c2d990a8f5af","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":181,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"8820dad8-8fcc-4acd-80e3-fb3590903d7e","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":181,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"3831a34b-ace9-4e86-9779-d80c4e206b81","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":181,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"7d4317e9-85bd-45f6-9c5b-00ba091386e5","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":181,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"56d0866e-5c75-45d3-88a7-2e97a5dae037","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":181,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"22cd7167-4aec-4eca-8253-aa71a785d96b","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":181,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"d750e2d1-c3fd-4741-86a5-1a4b4dd0ef7d","block_type":"box","text":"obligations.)","page_number":181,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"705753d2-bc54-4891-8056-89100ac24a9c","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":181,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"f65b6f4b-15ec-4487-9daf-9f0e76f5d874","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to meet its","page_number":181,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"6b0931d3-68ad-469b-b464-a328f3694489","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":181,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"655eacf5-4205-4ab0-bd8e-d617ee3b72ee","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":181,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"1572d15d-3aac-425b-8d61-028436fb138f","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":181,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"b093dd76-3c0d-48a1-b2c9-7689f858911e","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":181,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"bf93e4bb-3a9e-4f9a-9202-daf47d3a734e","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":181,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"0a89bfa1-c7b8-4841-9d59-8e97cf301f10","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":181,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"a3d12efc-60f1-4d2e-9ab0-d071bc20233f","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":181,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"79c62062-355a-4206-96ce-29f0a8c08c5b","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":181,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"b380fa23-ab69-4dff-961e-0897fd705362","block_type":"box","text":"financial commitments on the obligation.","page_number":181,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"a4cdcdd3-b10f-46df-8a91-1da2525bf81a","block_type":"box","text":"BB,","page_number":181,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"2f5d5e73-8770-4676-acab-77fc5c169282","block_type":"box","text":"B,","page_number":181,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"1b8af4c8-1c1c-40aa-8b93-0e8f7c41f4da","block_type":"box","text":"CCC,","page_number":181,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"f549dce2-4503-4643-97a0-8a809337ab89","block_type":"box","text":"CC,","page_number":181,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"cfaca826-6f0a-4703-8352-cc26188ebbad","block_type":"box","text":"and C","page_number":181,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"67c5fa26-0843-42e3-acf1-24007dc6ce49","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":181,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"bfba6b15-51be-446c-9714-9a477903e57f","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":181,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"c2e1b25c-987f-4a74-ab97-bc0fa30e1a88","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":181,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"562b6d16-58a8-4a54-8918-2da919ab8041","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":181,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"b07bdcc2-71b1-4ffb-88e7-3024d6ccd0bb","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":181,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"2aacfa71-5013-478f-bcae-ba53d56e626c","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":181,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"4a7abbc5-3dfc-422b-b8c3-ba71596df463","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":181,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"23f7d2be-9b59-4e4d-9022-349b93107f7b","block_type":"box","text":"on the obligation.","page_number":181,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"36a4878d-2507-4fa4-b232-b103ddbe27d4","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":181,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"83d77c30-74b4-4899-9479-c5e1b438ca25","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":181,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"4fc11e8b-d01b-43c7-b543-58935e1b9a4e","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":181,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"2bebb04d-7b08-4d8f-841f-987e49cc003d","block_type":"box","text":"financial commitments on the obligation.","page_number":181,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"58dac2c9-bfbe-4a52-be27-e4f46b8637f8","block_type":"box","text":"A-4","page_number":181,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"9d85fb03-2422-4e3c-bd2c-35a4ee6a098e","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"97eb8da9-e75b-4979-bf1d-51f3ad687a8b","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":182,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"30cde514-bc62-411d-8bc3-6a95d89a5d07","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":182,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"e14488ff-67e6-4ef9-8b39-95872187fae3","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":182,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"8544361e-d3da-4f47-9b05-46a1d908421d","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":182,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"774292ff-4931-4520-91c9-94ae697b6018","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":182,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"173d65bb-ea85-4795-848c-3bf5b2efa4eb","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":182,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"6f919a16-f878-4e5f-bd46-0b6d39551fd8","block_type":"box","text":"anticipated time to default.","page_number":182,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"2d00057f-cda3-4a04-83d2-ecee65e060ad","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":182,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"013f8ca2-445f-4e5e-9f10-0b4d9e6fae6d","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":182,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"f720b50f-f0a6-4fa1-92bf-5ac1b7cd5d90","block_type":"box","text":"higher.","page_number":182,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"04f2d290-c239-4723-b33a-f13875339594","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital","page_number":182,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"63aa0299-59a3-4e59-8354-1844b79cd4c0","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":182,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"52a296ca-9da1-43c8-b685-e2b4e9c73523","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":182,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"c62f69b7-62e8-4abb-ad03-6a812fddbb1a","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":182,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"f16790fb-31b7-4454-bc96-102f334225a7","block_type":"box","text":"days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar","page_number":182,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"fd522f3e-5913-4207-a33f-a4f349053975","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":182,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"66f28e52-4692-40fd-b608-d36122f3ee57","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":182,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"8fb3abb8-839a-42d1-9aa1-6c2ed20861b5","block_type":"box","text":"restructuring.","page_number":182,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"aed18e4a-c805-40d2-b682-f075bd405a76","block_type":"box","text":"*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative","page_number":182,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"3e670306-831e-4f64-8278-605cf29c152c","block_type":"box","text":"standing within the rating categories.","page_number":182,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"4ed3cc72-6f64-4f09-8edc-2c9cf17369a9","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":182,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"c624ca35-28c8-46f4-853c-e8fe7ef60010","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":182,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"4c300c66-eb4c-4d58-b9bb-a4e79d1eda17","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":182,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"c0795a07-be5f-499e-953b-7f8e379736f4","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":182,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"c5b34713-7089-4357-b999-4cc11bf524e4","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":182,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"4fadfede-da37-440d-b6b9-3663dd594e0c","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":182,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"6729e7fd-0719-4fc8-b360-81bcc98d82d7","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":182,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"2783af2a-dfaf-4fe7-8d93-561ac14b4a93","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":182,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"174f5e16-ab57-4592-b52b-798972f4c6e5","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":182,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"ad056886-b7d7-4697-a68a-2d76f9b34bf0","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":182,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"44d5ab14-f646-483d-bb36-44f4a8fdd9ab","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":182,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"727e0b6c-448e-4389-8522-4990803c64b6","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":182,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"9764bc81-d13e-4002-8223-167fa462ed61","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":182,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"1ac8fb37-d1c1-450b-a7de-528983311023","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":182,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"06467034-d4ff-4456-b654-3f512ea0dc5e","block_type":"box","text":"financial commitments.","page_number":182,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"be8ad9fd-06c1-4bee-b1b4-8cf33a63c2b2","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":182,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"ca2e0080-ba19-4b28-b509-5251ab4a6308","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":182,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"7e59bce6-c422-412a-9a70-4741814d520b","block_type":"box","text":"commitments on the obligation.","page_number":182,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"e20dae16-a80d-461f-a142-6120585c73e7","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":182,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"c2fb3daa-32a9-4a8e-9c44-b848bd0f4afb","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":182,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"070fe5f6-52ce-4695-93ec-366d55f9f2a8","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":182,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"433846e0-fb88-44e2-a94d-665d9b8f9e38","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":182,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"2aed1ff7-9890-452a-8337-679e0ce7958b","block_type":"box","text":"business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking","page_number":182,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"28e4e3ee-7c02-4e04-90bb-740ac0d017ad","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":182,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"7cba8c90-9d16-49fe-a87c-0ea0924416a5","block_type":"box","text":"automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed","page_number":182,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"28f5b1a1-528d-41cc-8ea4-4a6b23acd13f","block_type":"box","text":"debt restructuring.","page_number":182,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"e63f2286-0a17-4d80-80d4-a3bbd486a2d1","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":182,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"f5400282-2324-426c-9033-bab639794344","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access risks","page_number":182,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"92564bb0-e03f-4f6b-aa78-9351162da5cf","block_type":"box","text":"unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original maturity","page_number":182,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"9e65709e-771e-4a5d-affd-2581b26e25ef","block_type":"box","text":"of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to","page_number":182,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"f1206704-0e28-4470-a206-6eeadb2e8ee9","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":182,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"14296f4e-4abe-4a4b-b95f-a7c86a28f143","block_type":"box","text":"A-5","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"79eecdf4-fd66-4fe7-aa83-612e3fd0348c","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7cf1f09a-932e-445e-b8e2-a65d8391c229","block_type":"box","text":"•","page_number":183,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"1c64fff8-1206-47ab-8e9b-02e44680fac3","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":183,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"d8bf7198-00a0-4508-874a-a07bce758d4f","block_type":"box","text":"as a note; and","page_number":183,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"61c56fda-3633-4a5d-916b-0eac3f5ff8aa","block_type":"box","text":"•","page_number":183,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"079fd179-5ae5-426a-bb6d-5ff09e921587","block_type":"box","text":"Source of payment—the more dependent the issue is on the market for its refinancing, the more likely it will be","page_number":183,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"7af490f1-e6ff-425e-8a41-9ca3c6779521","block_type":"box","text":"treated as a note.","page_number":183,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"4e7ab7ca-1f5e-43b0-a180-25c9aee192c2","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":183,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"50c2acb8-ccd8-4c9d-851a-6be17603d5b9","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":183,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"b839e568-0135-436c-93c7-ccbb3acdf0a6","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":183,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"6524d150-bfc1-4269-897f-2250973b9cba","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":183,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"75b3b02e-1708-49ad-a09a-5bfb4b77c7aa","block_type":"box","text":"economic changes over the term of the notes.","page_number":183,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"edcc48c1-e2f2-44f4-8770-ade66993c9bc","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":183,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"546e95fb-3a0d-4ba3-ba58-47d871a2f093","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":183,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"f304403a-e7b4-4296-9f62-ba8fea8ecd0b","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":183,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"70a6bbcc-3d8b-4d09-8a75-2c7a13b58b12","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":183,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"dd699f0f-09cd-4254-8c9c-0f4d0f11b2f1","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":183,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"36945e22-2071-4e9d-8af6-ec08b7f68d8c","block_type":"box","text":"Fitch publishes credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to","page_number":183,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"dd67fc40-6808-47b3-85bd-6c212761c938","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":183,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"fc636854-070c-4370-9557-94449daeee39","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":183,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"79e7b236-2081-4675-b812-b4fe38137ea9","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":183,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"a67a7227-a049-4fe3-bbe2-93a581da5ce8","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":183,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"399c62be-0036-43cd-a2b0-eb9be291d0ad","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":183,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"74e289cc-7c11-4405-9676-76f270d1f605","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":183,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"87a6fab2-344b-4387-9d43-547832f7d692","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial","page_number":183,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"0eb8bd8b-02b6-45ed-ae77-9d49c9827781","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":183,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"8b7d82e6-962c-43bd-bd65-63d16820805c","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":183,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"9a066de0-c4d4-403e-a64d-c52ef32b4844","block_type":"box","text":"Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in","page_number":183,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"c227d1f6-6298-4fc0-8bb1-004089fa95b4","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":183,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"32c8582e-207c-4e2f-832d-232b44534dd1","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":183,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"b62f6006-c623-41c0-bf92-7e905039aaab","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":183,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"58e9c834-fbb1-4b4a-9bf3-2a8aed6fa5fc","block_type":"box","text":"receivables or other financial assets.","page_number":183,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"1b13c827-ac8f-4c0f-aced-845d0ed472e0","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":183,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"a417fd6e-5129-4bd0-8c53-29d2982f638c","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":183,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"f2ab8cfa-6d5c-4ff6-b37b-7b7ec440eb2b","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":183,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"c8786d64-6b30-4685-ab17-b08dcf031926","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":183,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"8ae4d4ec-b228-4653-b6c7-825f7c23477e","block_type":"box","text":"while ratings in the speculative categories either signal a higher level of credit risk or that a default has already","page_number":183,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"6924b085-2ab6-4a40-8467-ec6cf5ec7383","block_type":"box","text":"occurred.","page_number":183,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"78b438a3-db8b-4556-aee8-80248bc49836","block_type":"box","text":"Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page.","page_number":183,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"2627e4f8-a6b9-46c6-b26c-bfb3b3cbb2b0","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":183,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"12e07ca9-7166-4764-a0e9-2881b68a163c","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are","page_number":183,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"92261fbe-8840-42df-bf63-d0ed2f836f9a","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":183,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"677bd84a-f078-405a-863c-78321b8b9ed5","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":183,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"296ac184-825b-4803-95fc-ebb512a1d776","block_type":"box","text":"the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market","page_number":183,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"542fd248-e80d-420c-83d8-0cd3c1cf65a4","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":183,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"3659e757-3dce-4c50-9fa6-f3da451c0315","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":183,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"c3be8d1a-0dfe-447f-ad8e-d195f11c3368","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of","page_number":183,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"14d4bf65-0550-4e05-ac55-662b0a494aef","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":183,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"f22de3b5-d23a-4be3-bf71-e809a18fbb9c","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":183,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"502c64da-8623-422a-b705-9d39681d97cd","block_type":"box","text":"to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In","page_number":183,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"7ac3fa35-bfce-44da-bc7d-dac3c4e565be","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":183,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"471954f2-8130-4692-8d4c-a4a396b0c505","block_type":"box","text":"i.e.","page_number":183,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"1d38b15c-b11d-425d-9cb7-0047d15a8313","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":183,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"80eca0a4-b200-4970-ae48-5f811acbe48c","block_type":"box","text":"the obligation’s documentation).","page_number":183,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"d8001d86-2596-4879-89dd-e5f031d2a238","block_type":"box","text":"A-6","page_number":183,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"27ef45d4-c3ce-44b2-a83f-8018d4148976","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4ea82f1d-f5e0-45d3-8d0d-59cfd5696073","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":184,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"98c0e836-3449-4868-b75f-77f782ebb75f","block_type":"box","text":"issuance programs or for private ratings. In this case the rating is not published, but only provided to the issuer or its","page_number":184,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"8aa93c30-9c43-430c-9111-16643ff79ea0","block_type":"box","text":"agents in the form of a rating letter.","page_number":184,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"ac8a9bab-64cc-4c4b-bc9b-a6ad8940fdd1","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest","page_number":184,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"51c4f694-5f15-436e-8d60-fa02af5644af","block_type":"box","text":"strips and return of principal or in other forms of opinions such as credit opinions or rating assessment services.","page_number":184,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"25d3ad94-4bc7-418f-b970-70ea9c0501d8","block_type":"box","text":"Credit opinions are either a notch- or category-specific view using the primary rating scale and omit one or more","page_number":184,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"9db967b4-ab51-4cd7-90da-03b115f98655","block_type":"box","text":"characteristics of a full rating or meet them to a different standard. Credit opinions will be indicated using a lower","page_number":184,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"fe724422-6b2c-4774-b33d-c82e09a3d7b3","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":184,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"c705b125-bd26-4d3e-bd9e-423fb075323c","block_type":"box","text":"e.g.","page_number":184,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"b2984cc2-0bff-4004-ab07-eeea3a801d6f","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":184,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"bb8b2710-bac5-4466-b3a7-0e15250c89ed","block_type":"box","text":"opinions will be point-in-time typically but may be monitored if the analytical group believes information will be","page_number":184,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"63075dfd-b6e0-4e8a-86c4-110f845b7e8c","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":184,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"20879aab-d703-4b46-bcc2-d2a5d42bac35","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":184,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"c6a81c12-814a-4481-b7dd-e51364f98ab4","block_type":"box","text":"rating assessment services are point-in-time and are not monitored, they may have a directional watch or outlook","page_number":184,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"f0b56133-d868-431c-bdff-beaaa3296a23","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":184,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"3e598981-3721-44ff-bd07-6f8002199853","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":184,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"7e810cae-9797-495e-9ee6-d85e95fa8443","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":184,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"62d6b186-5f47-40ee-99df-75b4879caa4d","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":184,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"6e65f3e4-db74-40bc-a598-5c33952b0159","block_type":"box","text":"default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which","page_number":184,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"d15d5ef2-2e0e-4cc8-8d68-0e051214aa1f","block_type":"box","text":"incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.","page_number":184,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"c6c7bef9-9f51-4143-b1cb-c0abd436f345","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":184,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"e8acbb7e-6b51-45bb-bfb0-87ba76cde23d","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":184,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"00ea06e2-d5c9-4d4c-83d6-a6c182d86dab","block_type":"box","text":"Individual obligations can be assigned ratings higher, lower, or the same as that entity’s issuer rating or issuer","page_number":184,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"bf5d4e2f-9da5-4617-9bd8-a136cf377ee7","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":184,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"94b5e3ae-707b-46cc-8e5e-32552f40d086","block_type":"box","text":"Ratings.","page_number":184,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"46919fa5-30dd-47be-aa0a-99985425f88c","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":184,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"4879c88b-8f72-48ea-aa36-f141fd836c12","block_type":"box","text":"same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an IDR. At the lower","page_number":184,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"21abcdda-daeb-48a4-9fdb-8d6418a1921c","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":184,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"03aaca25-a40b-4684-9e39-ac0ca99601c1","block_type":"box","text":"obligation ratings.","page_number":184,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"7847e9b0-0dd4-4c81-8446-ad319ec87a72","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":184,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"2d4e47c5-bf72-4ca8-a9a9-70b79fa38b0a","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":184,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"5e170564-544e-419e-95db-65d9c15ff2f1","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":184,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"f5803046-08c6-4f43-8e6d-b64095992f37","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":184,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"73d416cb-4a24-4175-bc1a-bf827cfb2557","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":184,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"2eaad85b-79c1-474e-8ffb-de770541987f","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":184,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"9274fc27-eee6-45ca-9615-e351dc8154e0","block_type":"box","text":"to foreseeable events.","page_number":184,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"89cd787c-b9e9-44dc-ad07-562907774f76","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":184,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"f959852f-084c-40be-af60-931a21e5fa74","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":184,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"dd010b8d-5d44-4469-bba8-2c0010ed3634","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":184,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"810a45d7-f17d-4d54-afa6-7487374045c9","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":184,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"010134cb-b339-43c5-b8f9-3ba1e203e503","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":184,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"e2baf339-9367-428f-89b4-bbe3125ebd62","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":184,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"644b0382-d37a-4cf4-b1a6-af6b506dd159","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":184,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"4744074d-4eb3-4e53-9f98-a4b4195f07bc","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":184,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"9ba7f410-2611-4984-9167-83c3cea1102d","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":184,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"47f82372-9e72-4f75-aaec-f42e934db9bb","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":184,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"4fd13764-5b52-4d49-9969-29b3226fba59","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":184,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"be6ebf24-5b5c-440e-ba72-2b95fc4f978a","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":184,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"d4d20a2b-79c5-4f8b-95d9-f2b35415c804","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. 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The modifiers “+” or “-” may be appended to a rating to denote","page_number":185,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"e364975a-b43d-46bc-b69a-d6c54b97a11e","block_type":"box","text":"relative status within major rating categories.","page_number":185,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"ab1a064c-43c1-4c0d-868b-59da80695a22","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":185,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"cd4d9036-dba1-4538-9625-b27126ec0c23","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":185,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"f246cfc0-e672-4f9f-aa5f-0b6c2a0a5386","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":185,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"47764fac-b5d2-4989-92f5-9bfb2ef47392","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":185,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"0cea77d2-1d1b-4e96-9a5b-bdf3a9e55d0b","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":185,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"ca483c97-fd8d-4eed-869b-f3e1ddc2b1bd","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":185,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"8cf38d19-73b5-461d-aee8-72f674dcfaad","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":185,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"5618dc48-db14-49b5-aed7-a39750fd794d","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":185,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"895005fe-4b04-450c-9c69-f8294411c609","block_type":"box","text":"13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public","page_number":185,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"69d3b6a2-162f-465c-98ac-61d56fe650a3","block_type":"box","text":"finance markets.","page_number":185,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"baafc29d-0012-4a5f-99be-eb5ccec56d1f","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":185,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"4e82f561-edf9-4bfd-a60b-e5e322e78ba0","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":185,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"d5d311db-046e-43f9-b1a6-8f759ae36fba","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":185,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"cdafd28e-0d3f-4edf-af71-7a5fa7522d18","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":185,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"3e8e212e-57dd-44eb-84e8-7b332f7c8a75","block_type":"box","text":"commitments.","page_number":185,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"dfb33a17-f072-4095-bcf4-a2c873b0dd9a","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":185,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"73321478-24d1-44ef-b6a7-a55def9e46d7","block_type":"box","text":"adequate.","page_number":185,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"964a6643-0607-4ae4-86d8-f5e124789869","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":185,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"b0a6e97b-5608-46c7-bf33-5c9893b3e82b","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":185,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"22515d5b-775c-4398-ac98-f31ffaef4b66","block_type":"box","text":"economic conditions.","page_number":185,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"b3508dbb-57a6-4453-b2c3-8cb2e9a43c95","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":185,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"9a9be130-3a04-41f3-9881-6aefd79d5d95","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":185,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"57198a25-3b68-483b-ba1f-8ce4d4fe405c","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":185,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"4855b1af-ecff-49bf-aa42-ead08bf4d3ad","block_type":"box","text":"ratings only.","page_number":185,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"0e53fd97-5f4c-48f5-a32b-c90f1dc229ad","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a shor t-term","page_number":185,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"ab8ed93f-6b18-4083-b07f-98fb3bfa7283","block_type":"box","text":"obligation.","page_number":185,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"60dcf005-6839-415e-86c8-936882cb96f8","block_type":"box","text":"A-8","page_number":185,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"65ce2200-84c7-450a-bc02-276cd6ab5853","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"539215e7-ea13-495d-a233-af47b8673fec","block_type":"box","text":"APPENDIX B","page_number":186,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"91d4cd74-9fbb-479f-9a52-7cd1cdf2bed4","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":186,"box":{"x":247,"y":106,"width":484,"height":11}},{"id":"c41295d8-0411-47fb-8f4c-3608cea2c06c","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":186,"box":{"x":247,"y":121,"width":486,"height":11}},{"id":"4f2172b7-d40f-4232-8ec7-6916b28b3504","block_type":"box","text":"Effective Date: January 1, 2025","page_number":186,"box":{"x":376,"y":136,"width":227,"height":11}},{"id":"075a2d27-d8dd-448c-936d-ba49fc34d83f","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":186,"box":{"x":231,"y":159,"width":515,"height":11}},{"id":"ce421efc-f7f4-4ff8-b96d-af29be6954da","block_type":"box","text":"□","page_number":186,"box":{"x":284,"y":181,"width":15,"height":12}},{"id":"9e4ecfe4-594e-4eb7-8c42-a6606bf4eb32","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":186,"box":{"x":306,"y":182,"width":388,"height":11}},{"id":"d4c28628-9d8c-45e0-b667-e727b07478ff","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":186,"box":{"x":205,"y":204,"width":589,"height":11}},{"id":"d5020ddf-8dd6-4717-9bba-69b7317686d1","block_type":"box","text":"□","page_number":186,"box":{"x":405,"y":227,"width":14,"height":11}},{"id":"3d58fd99-2987-4dd4-a415-7d09bf5db9af","block_type":"box","text":"Money Market Funds","page_number":186,"box":{"x":426,"y":227,"width":147,"height":11}},{"id":"76b39e59-c995-4688-a2c6-13711a30395e","block_type":"box","text":"□","page_number":186,"box":{"x":416,"y":249,"width":14,"height":12}},{"id":"2435cc42-9b62-4529-8e85-ccf472c7a138","block_type":"box","text":"Closed-End Funds","page_number":186,"box":{"x":437,"y":249,"width":125,"height":9}},{"id":"2187c960-5f41-4f1e-a427-0f85c40cd886","block_type":"box","text":"□","page_number":186,"box":{"x":460,"y":272,"width":14,"height":11}},{"id":"1bf0a126-511f-42ee-81da-7633831a5c84","block_type":"box","text":"Other","page_number":186,"box":{"x":481,"y":272,"width":38,"height":9}},{"id":"da8f61ed-7ce3-4431-8396-e32c71bcb677","block_type":"box","text":"Objective and Scope","page_number":186,"box":{"x":101,"y":295,"width":149,"height":11}},{"id":"44142723-0e51-4eb7-ac1d-87725575fb6d","block_type":"box","text":"Set for th below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":186,"box":{"x":134,"y":317,"width":622,"height":12}},{"id":"b250b24d-a889-43b3-97e3-a56f2281dc12","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":186,"box":{"x":102,"y":340,"width":354,"height":11}},{"id":"4b5ad3d7-b9ba-44ad-acdd-85170d53605a","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":186,"box":{"x":134,"y":363,"width":702,"height":11}},{"id":"c1e3c0b0-c466-458e-94f8-a3a85a82b8be","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":186,"box":{"x":102,"y":378,"width":789,"height":11}},{"id":"6ad922ea-a307-494c-8a2f-8fc2addd4070","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":186,"box":{"x":101,"y":393,"width":801,"height":11}},{"id":"3e6f807f-dace-475b-bba5-be2c2a66ebea","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":186,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"fedfcbb1-9536-450d-9218-e11fcedb47c7","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":186,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"756f0095-f9dc-4e8d-93e6-2252542fb4a1","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":186,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"42a26a82-b762-4315-ae23-403d81f17277","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":186,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"e8f9fa46-de19-425d-9006-ab3507d3708d","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":186,"box":{"x":102,"y":476,"width":788,"height":11}},{"id":"66d7fc0a-8e62-4fc8-b293-dfad75095570","block_type":"box","text":"index Funds managed by BlackRock. The Guidelines include “climate and decarbonization” guidelines which","page_number":186,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"b93fd949-e55c-4406-82a5-91cd9c2334e4","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":186,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"4e35122b-6974-4927-9b88-49e80fa13f33","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":186,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"451e29a8-3b37-4f8b-8a5d-d597901e7dad","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":186,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"9783d374-ab90-4818-8a06-99d7cce9b8e8","block_type":"box","text":"Conflicts Management","page_number":186,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"a21e6ba4-31ce-4305-9b32-f929db935a7e","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":186,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"6d9f8c2f-e4d0-4d33-bd30-1650bae42fb3","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":186,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"1adcbe9f-3c74-4426-a980-18f7d2945f98","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":186,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"f69e2559-32aa-4942-a9b1-b566ded55f3c","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":186,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"ca222f20-6671-4265-9b0b-ae887b187cd6","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":186,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"79c3e871-4ba8-4e17-8daf-e8d08de7ca6c","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":186,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"5150d62f-2de8-4cd1-bf26-72f2c029c132","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":186,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"848d349b-b95c-44d4-8097-4029979f9c1f","block_type":"box","text":"In cer tain instances, BAIS will engage an independent third-par ty voting service provider to make proxy","page_number":186,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"0048e3c2-b622-4cb6-a234-4d6a575d618f","block_type":"box","text":"voting recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":186,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"b750169c-b4cf-4e80-a155-d80c102f19f6","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":186,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"b79964cc-559d-405b-a515-12e8a838defc","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":186,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"ae581f8c-9395-415b-b6c9-436bf9e3c29e","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":186,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"31394ad7-f746-44d0-9804-c70265e191f6","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":186,"box":{"x":102,"y":786,"width":778,"height":11}},{"id":"c956615e-30a4-4b9b-9f4c-eafc148599e9","block_type":"box","text":"connection with proxy voting.","page_number":186,"box":{"x":101,"y":801,"width":203,"height":11}},{"id":"aae4bd7b-5c50-44e9-a7f5-dae0f6be5e37","block_type":"box","text":"Reports to the Board","page_number":186,"box":{"x":102,"y":824,"width":153,"height":11}},{"id":"fafeb9d1-efaf-4d6f-8484-0d9446a342e6","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":186,"box":{"x":135,"y":846,"width":755,"height":12}},{"id":"7aafb0b2-cfff-4e4b-87ce-769451a6b2ea","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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The money BlackRock manages is not its own — it","page_number":191,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"a1390fb9-aafb-405b-9c6a-abb1a1980ab0","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":191,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"2d616570-df68-4a18-ae9a-cc7728c81bd9","block_type":"box","text":"As a fiduciary, BlackRock invests on clients’ behalf to help them meet their investment objectives. The firm does this","page_number":191,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"4e2f14d6-b068-4cf3-b9ac-3c763a962027","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":191,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"c516d395-b209-4d17-8ab3-449b4b6c46ba","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":191,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"56f60473-efc3-4207-83f9-2fe931f3c66b","block_type":"box","text":"this work with research, data and analytics.","page_number":191,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"628e8038-4e86-41dc-961e-fc36b489d097","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our clients. As","page_number":191,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"14f7ca1b-1062-4053-bae0-4bcef373e8e1","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":191,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"9e73b7b5-82aa-49fc-b228-18239a7432e4","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":191,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"fc23c046-5237-4678-838f-37b0b5bb50e5","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":191,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"99ffaf6a-7019-44bd-9d73-0e8dd668947c","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":191,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"1b1533f1-4fc4-4dd9-b12e-e81b03896fe1","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":191,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"a0d306ac-cb19-4cd9-a87a-6b99030c2a54","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":191,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"41a67e0d-b533-4307-8c76-e9768d951d82","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":191,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"855d8259-e161-4a75-835b-46961c518d4e","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":191,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"4c2d5557-73fd-4eb9-ae4c-45ea298a6cc8","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":191,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"eebcfe6e-9eab-42c8-8b4e-3680c15af2a2","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":191,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"a5ba11d0-dc77-47c1-b843-ca08633a2639","block_type":"box","text":"shareholder meetings.","page_number":191,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"93391483-9b17-406f-8680-c329e02807bb","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":191,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"2a76a1e6-e65f-49df-9bfa-b9db96316165","block_type":"box","text":"investing.","page_number":191,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"9765da01-c0d8-4a71-889b-002df5986052","block_type":"box","text":"3","page_number":191,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"c7a2f63a-38b5-429e-b226-ced558215fe1","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":191,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"e9fdd682-33bf-42d4-bd8e-42d9eb63df38","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":191,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"de72157f-b240-44db-84d6-f021098e1e4a","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":191,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"21725e9b-13c2-488e-b2b1-7ac067d9c950","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":191,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"1f9ce1dc-757d-4461-8d1a-243d5f756257","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":191,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"9b4ff587-e1d6-47af-8504-c84e7119fdb0","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":191,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"6663244e-8b69-4896-8abe-ce2774e6210c","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":191,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"cc92835f-a1a4-45d8-90db-3b2a00349127","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":191,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"77b94960-2188-4993-bafe-053f8f20d834","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":191,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"30370328-6222-4cf8-8f39-26a8c6bb9afe","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":191,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"a15199e8-0b6e-415d-a5ac-30fc00f1e42f","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":191,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"abc96bc0-54a6-4983-aaf5-e3dd5565bf12","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":191,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"61d1fe4a-7e46-4de6-b112-f0df6415623a","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":191,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"3bf233f0-e19a-49ea-b683-2010c8812750","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":191,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"4fcb7d80-cdb9-4e50-ac82-f1e2d1571056","block_type":"box","text":"management teams and board directors","page_number":191,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"1e0f08f9-e433-4ec0-bf72-de7e44880eb0","block_type":"box","text":"4","page_number":191,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"f42e2d73-bb61-4215-8906-55c6e1d4ba5c","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":191,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"af03afcc-e531-4eea-9ca7-9f29683606be","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":191,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"e340d042-23cb-4169-9b4e-c79519f0daf0","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":191,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"d637eb82-8819-4eab-8f42-bc04adfef5ba","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":191,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"0f36c3ae-af0b-4283-b647-b29a9a8b43d4","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":191,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"02701db8-29cd-4eca-aba9-09625bbe8a1e","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":191,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"3642e70e-4c60-4ec2-a379-f60df57aac8a","block_type":"box","text":"to – direct a company’s strategy or its implementation. We look to companies to provide disclosures that explain how","page_number":191,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"c9df5131-ecbf-4228-8962-e130a49a1eb1","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":191,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"1e5430c5-e327-44b0-b22d-1ca03b34e5d8","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":191,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"5628274e-c052-4be4-8d4a-19bf58ab31bb","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":191,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"38d7ff48-f1a6-4597-b935-5161542b3fb7","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":191,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"574aa497-334a-46c8-810d-c820c439b4b6","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":191,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"65172634-4232-4711-9d40-f7dcd0afe75f","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":191,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"63a28e68-3899-49c2-b392-f7d1b9e4467a","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":191,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"cea0bcbc-9679-4537-9f31-2ba122b6564e","block_type":"box","text":"3","page_number":191,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"0838e773-2e57-439f-87db-4518b23664ae","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":191,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"985bcaa3-4285-4802-96bc-bac71c270de8","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":191,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"9be1e1d7-76c6-4c96-b803-cc6f5f723047","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":191,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"ae487b30-bc10-4f49-8fa7-dc8631a93901","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":191,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"7f3fd50c-95fa-4d21-bd7a-33a24a8bbb78","block_type":"box","text":"4","page_number":191,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"43a090b4-9871-49d7-a655-df316ce59548","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":191,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"377836ee-45e4-4dcb-837c-3a490c53de82","block_type":"box","text":"boards and their members, where relevant.","page_number":191,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"6c247952-7bb4-47f6-a91f-a56d070688dd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"12ba34dd-e032-47a5-965e-85c941b20eea","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"1362c040-c882-4482-869c-90969e9b0b7f","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dbbc1e48-3286-4fb3-8157-3ef7b4430d88","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":192,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"e8c11a6a-47da-4d25-ba79-98951122866b","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":192,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"5a047ef6-eb3f-4336-a96d-c79c18e8389a","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":192,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"21cd332b-7fe1-476b-a1b8-5ea6f2ba2d6d","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":192,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"8ffa7105-3c4f-4066-8f76-1b61817985bc","block_type":"box","text":"on a case-by-case basis, in the context of a company’s situation and the investment mandate we have from clients.","page_number":192,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"a978ef03-2389-47b2-8b7c-77b2fb0bb836","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":192,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"18c3e4e5-47dc-4b7b-b045-d1b10395facf","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":192,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"1584723f-ddf2-488e-afe1-74b1cc86f21e","block_type":"box","text":"5","page_number":192,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"6980bfd0-ea95-4853-b0f4-2eeb25fe15f7","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":192,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"6ba2a01b-9c9e-4c65-a209-6cb648d64752","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":192,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"72f7c348-c1f1-4467-bf1d-17c2ae86bb1a","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":192,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"aa871d6d-523c-47d5-b242-caab350ec7c4","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":192,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"d1104c14-9ad0-472d-919e-317cfe313b10","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":192,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"6a47d289-8d68-438e-b10e-77f03bd9c6a8","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":192,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"fe506c66-eaad-4222-ad86-8df850874fb2","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":192,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"d19b2770-40ab-49f8-b784-208946d973c7","block_type":"box","text":"5","page_number":192,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"52115af2-6d72-433d-8ed7-ec59c6e6862b","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":192,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"a6b48fe4-7f21-4e6c-bce1-27a0aa6a71de","block_type":"box","text":"multi-asset solutions strategies, as well as holdings in BlackRock’s index and active fixed income strategies, to the","page_number":192,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"466c54d8-8311-4c46-b54d-6bd7d894849a","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":192,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"c41a818b-47d6-4467-84db-b347d9a997cf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"cc8a4be3-380e-47df-a5ca-91de1bc87713","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"3d35ff48-6116-46df-86c6-10585f443ffb","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a1b69e84-3481-404b-a206-2d5ddb80d7c4","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":193,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"935a2d6a-6d7f-4e94-acca-0d54ce7377c8","block_type":"box","text":"Roles and responsibilities","page_number":193,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"9360d729-d0cb-4cf7-b0aa-875b9e58f7ca","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":193,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"bafee37a-e841-43d7-9fdf-acabeac56864","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":193,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"f39f8a82-c2f6-4b1d-a50e-9c08e7441bd1","block_type":"box","text":"6","page_number":193,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"f45ceac4-351d-49cf-ac8e-bc8e1f4af523","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment and","page_number":193,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"6d6143c9-c30a-415d-a339-afe4ecb668ad","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":193,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"6d4dc5f3-ba04-4277-aa4c-26db6058f376","block_type":"box","text":"can better position a company to be resilient in the face of a changing business environment, help reduce the risks","page_number":193,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"14c2bab8-8d43-4f8b-99be-bf4ddc0d1b1e","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":193,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"f31e3b4d-29ef-486c-87ad-df9e60a95464","block_type":"box","text":"per formance over time.","page_number":193,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"47ea8464-d5a4-4411-a481-6c4a0df1ef47","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":193,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"57af427c-5736-4a79-87be-865a00d9a5e3","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":193,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"a3a18875-882d-42c1-b567-57badc3daa44","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":193,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"8287f1cc-1042-4d2e-8f02-d597b3ed7634","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":193,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"788b5486-60b5-402c-af48-1342fc800792","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":193,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"0c984d71-b5b1-44cf-bb0e-6eaea17f42b5","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":193,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"a196519f-a619-42bf-a021-0d98cc535d92","block_type":"box","text":"Composition and effectiveness","page_number":193,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"6a6e86f0-e7eb-4b69-8a01-b0b323759ed0","block_type":"box","text":"Appointment process","page_number":193,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"554c210e-ee42-4fa6-91cb-59e3c42c7b0d","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":193,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"756b6e6c-2a55-47ec-8f04-f95fdf17d2e5","block_type":"box","text":"board is composed of directors with the appropriate mix of skills and experience. Generally, the board or a sub","page_number":193,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"7e8b9b82-560d-45d8-a3c6-91a8f9a013e7","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":193,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"88b0cc87-fbcb-499b-ac36-2cf15df856df","block_type":"box","text":"e.g.","page_number":193,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"be33f968-1b01-45e5-a6ec-430772ad369c","block_type":"box","text":", sector, maturity, geographic","page_number":193,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"80e47571-69b6-4a4b-9bf9-c3d022f2f074","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":193,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"356f7ce6-06b9-4268-9a86-7c9d643dfa1f","block_type":"box","text":"e.g.","page_number":193,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"f70028da-f5b0-47b5-9816-f22da9d5272d","block_type":"box","text":", financial exper tise, industry track record). To","page_number":193,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"99854535-ddfd-4b25-a83e-ef0d2b7b2c62","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":193,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"55f8ce21-4038-4662-b2af-fd8ab3ce69e7","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":193,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"6c59fc72-807c-449d-a085-cfc57e897c7f","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":193,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"b47a45ca-fd25-4dc2-a352-a0bf03a1406b","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":193,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"5c649093-bb21-4ab3-adf1-5bf14f836fec","block_type":"box","text":"and local market requirements.","page_number":193,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"407c5b7e-57e7-40db-8627-50dd2fe8fe98","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":193,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"8dfa8ad7-3157-41c0-b9d2-1066c3ecb7a8","block_type":"box","text":"composition in our engagements or voting but seek to understand how well placed a board is to act in investors’","page_number":193,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"d0079d80-7bb6-497e-b36c-2ef1896a50cf","block_type":"box","text":"interests. We may vote against the election of the most senior independent director, or the chair of the relevant","page_number":193,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"8f6af1fd-39b6-4fe4-bedd-a4d78f452aa0","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":193,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"c25ce47e-bf06-48c5-aab5-3e2e560992cf","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":193,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"e61adbe3-67f2-453d-8e0d-4ebb205c5800","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":193,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"2894ead9-3cd6-44d0-900e-eef8aa0ec655","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":193,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"a647439f-f74f-490e-86db-6aa6bc21c00e","block_type":"box","text":"Independence","page_number":193,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"f31527b3-c68d-471d-be5b-6b5cc33f6d8e","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":193,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"6afe8685-e931-405c-89db-5637b34260b4","block_type":"box","text":"e.g.","page_number":193,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"323132fa-9bb0-4f8f-b430-b147c798e64e","block_type":"box","text":", government or","page_number":193,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"e1457e2b-1e2f-4d73-af39-5debb80ea87a","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":193,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"e32b59f1-2108-4404-8d1d-221bb5d87dc3","block_type":"box","text":"BlackRock’s clients. We consider it good practice for at least half the directors to be independent and free from","page_number":193,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"2744f1d3-7eca-4596-bf4b-01ab692ac6e9","block_type":"box","text":"conflicts of interest or undue influence.","page_number":193,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"bc10c17b-74de-42dc-8daf-98e22770f228","block_type":"box","text":"7","page_number":193,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"7918eee3-0d69-4c47-9b60-eb3f746ac9c0","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":193,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"85adbd64-fdfa-4231-91fd-74c9be28ae5d","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":193,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"33aaea9c-7fbd-4e2b-9647-0805a21f3932","block_type":"box","text":"independence should meet those local requirements.","page_number":193,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"c245444d-c2a2-4010-b464-8a94135d2d11","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient balance of","page_number":193,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"34423802-45ea-4d58-9bca-2003135b36a7","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":193,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"37127676-f5ee-4496-b086-5a3f23856546","block_type":"box","text":"composition if this is a perennial issue.","page_number":193,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"50b456c6-9c73-46ad-82be-b85afa1de1ba","block_type":"box","text":"6","page_number":193,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"e67df9da-c20e-42fb-ba8a-a873b63dfd30","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":193,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"d13c4fb7-e505-41ad-a106-cdb8eec074a5","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":193,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"ec74330f-d918-4980-9455-9e161d7aa43a","block_type":"box","text":"7","page_number":193,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"d517ee3a-b9b0-48f5-b7ed-16b1f1f19c5a","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":193,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"7f25530a-03eb-47de-b2c3-e96a65916696","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":193,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"b42fd14c-c299-447c-a1e1-07fa61686f8c","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":193,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"3f47c91a-4515-4964-bd67-85ac1b01fe28","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":193,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"798db58d-ec2b-4b9a-a8ff-248a1ad241b2","block_type":"box","text":"of the company and shareholders.","page_number":193,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"488acd41-cc65-40f6-99a8-972afb23604e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f0a11407-e866-4351-8b29-3110d1b652e7","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"3939f7f8-d829-4896-808c-469cfd9f40c1","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"affe0711-3998-4abc-8581-d019b5c190c6","block_type":"box","text":"Independent board leadership","page_number":194,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"f99ec111-b733-4d01-9a35-3392239c0338","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":194,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"2d8af055-3a71-4bfe-9f83-1c1749020b79","block_type":"box","text":"board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in","page_number":194,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"59b6f72d-2abd-4c81-b303-48dd62f538d6","block_type":"box","text":"the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for","page_number":194,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"f3c21ed4-09ca-4fe7-813e-470a111d2e88","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":194,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"ad709338-8fab-40ad-b5f1-8ebebc92c528","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":194,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"e1dbce86-47c9-4c21-a4dd-ae2a1d9e3bcf","block_type":"box","text":"ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or","page_number":194,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"5c86fcc2-c21d-460c-a802-1599571fb2ba","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":194,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"2f807bef-b322-4e4a-8c9e-ff5752146e48","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":194,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"3e9bb68e-77bc-44bd-8b30-0742fa0e9b17","block_type":"box","text":"how it serves the interests of shareholders.","page_number":194,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"63213462-a0c1-491b-a3f9-97a8f36d3809","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if there is not","page_number":194,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"92fe8852-aae8-471e-a5c9-c75e92fe40ef","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":194,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"09146ee7-62d8-4214-99fa-14af40b4f635","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":194,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"65c08475-6d3b-4856-9610-914c3e1f74a2","block_type":"box","text":"Tenure and succession","page_number":194,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"d2cafd38-9743-42ae-babf-0c752816ae6f","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be expected to","page_number":194,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"82755d5f-8aae-40f6-9286-233fb5f62228","block_type":"box","text":"serve, in line with market norms where those exist. We find it helpful when companies disclose their approach to","page_number":194,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"38e2ba46-edbd-4e9a-afad-96078c88d108","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":194,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"979ab475-8e60-40df-a3f9-c29a7b1539b8","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":194,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"8faf732a-d94e-448c-99ac-141de5606b73","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":194,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"c9090587-364d-4ada-96c0-e647984ab903","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":194,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"9eb91acb-1bc5-49c0-8ef0-84a79ae0134d","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":194,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"2e100d01-2988-40f0-bd43-47e90bcd91fe","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":194,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"6d2c62bf-1795-4555-9b6c-d77999d08e1c","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":194,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"85a10ead-0cae-42fb-b1c0-d677679f28a0","block_type":"box","text":"practices, we may vote against the election of the chair of the committee responsible for board composition if a","page_number":194,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"49c4926b-a46e-4c82-9983-da7ce5907f5a","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":194,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"db0c3a9b-061b-46e3-adeb-81e5cf4cc66a","block_type":"box","text":"election of directors who have served for more years than is typical in markets with specific guidance, where the case","page_number":194,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"7b84e833-72cd-4f08-b982-001913332a75","block_type":"box","text":"for their continued service is not evident.","page_number":194,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"04249e5d-c7b6-4ed5-9c1a-9bcf84d3c6cc","block_type":"box","text":"Capacity","page_number":194,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"7cc1b1ce-495e-4df6-a59d-b917061e46ed","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our view, an","page_number":194,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"1a4996f2-d201-456d-bab5-2e71f36982d1","block_type":"box","text":"effective board will assess the ability of its members to maintain an appropriate focus on board matters and the","page_number":194,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"9f1d88d1-968d-4b2c-935b-61a05e1f187b","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":194,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"280c4109-d3f0-4896-909d-fd566712327b","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":194,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"d23c3d06-8b4e-4aad-975f-48211030c85c","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":194,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"ff3d6283-d02e-453c-97ac-0533ad519580","block_type":"box","text":"determinations across markets.","page_number":194,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"12b704cf-1c8a-4f39-923a-59ea34c7cbc4","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfill","page_number":194,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"8237025f-257d-4202-9d5e-2797bd9de757","block_type":"box","text":"their duties to the board and company.","page_number":194,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"7cc080ae-276e-47df-9fec-d6d1eb34f5c1","block_type":"box","text":"Director elections","page_number":194,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"f5156d46-6865-4465-bc65-8c8536c32bc6","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":194,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"9ae47712-0dbe-4c8e-bb0e-3044fcf82c46","block_type":"box","text":"structure","page_number":194,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"5a5f9907-f912-4fbe-9c5e-6d4042e54399","block_type":"box","text":"8","page_number":194,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"9a5bbe41-6cb6-4f70-835e-2f4231cbd507","block_type":"box","text":"may be justified by a company when it needs consistency and stability during a time of transition, or on the","page_number":194,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"617614eb-1082-4db5-9849-25a3e57cb543","block_type":"box","text":"basis of its business model (","page_number":194,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"63c0aff4-ad7d-48ce-bf6a-783776de9e78","block_type":"box","text":"e.g.","page_number":194,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"6251363a-5a62-4c17-9e48-19acd7e39968","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":194,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"33f3954c-c920-49bf-81f2-7443547a5734","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":194,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"56c04c90-c03c-48a6-9854-74e1adab3fa5","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":194,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"aea611a7-a03c-42da-b8ac-8726708da54f","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":194,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"ed012a61-1695-4004-a3a2-06bc9cea720d","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":194,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"76ceeecf-5d54-4ceb-8eff-56714626b62a","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":194,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"ac8eb9f5-ebff-45f0-a0f6-5a59fc57647a","block_type":"box","text":"shareholder meeting. Where a company’s practices differ, we look to the board to provide a detailed explanation as","page_number":194,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"d0ce0b29-0c12-4c71-9861-a8fabf6e47a2","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":194,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"4ac1a673-fad2-4039-8dd4-d1ff92e23318","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":194,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"e65076be-798d-4435-b285-65aed4ab53dd","block_type":"box","text":"a simple majority vote standard for director elections. We may vote against all the directors standing for election as","page_number":194,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"50c0517e-b4d2-4068-a676-b263b2662a68","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":194,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"f1e01c92-1bbf-4b6a-b424-d77e2852dc50","block_type":"box","text":"8","page_number":194,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"9a11bc57-6b75-4321-95cf-17eace06b097","block_type":"box","text":"A classified board divides the directors into classes with different overlapping terms. As a result, only one class of","page_number":194,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"94c6b0f0-6b76-4056-839d-7ac6a3965d6d","block_type":"box","text":"directors stands for election in any one year.","page_number":194,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"94680394-852e-45aa-ab79-e16a04d35cb4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"81f2f98f-1af9-46b3-8e2b-4c4884069a53","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2284a388-8088-4d28-b438-da0fcf567c18","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"306095fc-e05c-4c19-8971-37ba97a30a8c","block_type":"box","text":"Committees","page_number":195,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"80bc1240-68df-4a47-bbce-b9182086543b","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":195,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"e4c375cc-cb3a-4bcf-8bd5-c212d59aed3c","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":195,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"d614fb73-ef59-43a5-a5c8-5d7735380508","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":195,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"ad342701-df3b-4e73-91a1-f2dc8927ee53","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":195,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"1904fb19-7c7e-4c83-ac64-b70b1fbe5b81","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":195,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"c940ce1e-6e5e-4f89-a456-350f776dcd24","block_type":"box","text":"matters are assigned either to the full board or to one of the committees. It is helpful to investor understanding when","page_number":195,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"8426955b-2d4e-4df1-8134-5864583b1909","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":195,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"7150b64d-7558-4284-bb62-53c5b279db85","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":195,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"9ec4290b-fb01-48e6-a438-f08c74021018","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"20dbdb76-d919-440f-b8ed-75ef8f817308","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":195,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"62d0620e-e799-4f5f-97a2-4ca1abb8e1ed","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":195,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"834f685d-d17c-4d2b-99df-782e09946a38","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":195,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"0f6bb006-77c4-43ad-8bf8-ec777b423bb2","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"0a9b656f-703b-4344-85a6-c7c5994a3984","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":195,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"0d044a92-f236-4e95-b86c-7be308c74774","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":195,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"f5b90238-276b-4b38-b8a8-c42a409ea25f","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":195,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"425318fe-b002-4bad-a900-7fd499eedcc2","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":195,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"64f144e8-25b4-4c09-a85e-bdc18f8f2598","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"3b2336d6-2e2d-4489-b7c2-aa19e07f4ae4","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":195,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"d68c13b6-fe32-4836-ae5c-c5c7d934cbec","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":195,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"8a1b4e45-2426-43c9-be90-658c678b732f","block_type":"box","text":"firm-wide compensation policies.","page_number":195,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"f14e608c-51eb-48d5-b9ed-b26208161785","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee members","page_number":195,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"6a02524e-59db-46be-ad73-36ceac31b619","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":195,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"c35b0215-8bdb-42db-b154-eb736df88733","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":195,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"25aaab8f-605d-4c29-8978-08cc543a8632","block_type":"box","text":"Board and director evaluation","page_number":195,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"24b6435d-1233-4afa-8965-ae018dcc8a23","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":195,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"6100ef37-b594-4036-b4cf-26b3d23f9563","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":195,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"f2933b43-cf71-431d-85b6-c403107fc0a0","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":195,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"5c65730c-5b4e-48ce-a7f3-1d6485451456","block_type":"box","text":"disclose their approach to and the objectives of evaluations, including any changes made to the board’s approach as","page_number":195,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"16f86682-5101-4968-8706-ee4e44e738f2","block_type":"box","text":"a result.","page_number":195,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"921b26b4-3dd1-45f3-b204-3e8f1da013ac","block_type":"box","text":"Access to independent advice","page_number":195,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"13066112-aaaf-49fd-9ced-33b14d38d7d3","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":195,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"e36e50f6-feed-45b8-8b65-ba09d0981928","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":195,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"422f5c15-b157-4b04-8f31-149b6c20c0d8","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":195,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"d431c5ef-460b-44e7-bffb-abd690d97f13","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":195,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"580be34f-85cc-47c4-b8f1-650caf66904c","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":195,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"4a056155-16e3-41ae-83be-7c6f34192804","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":195,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"051c53d1-9ee7-4785-8361-1f5863c7e647","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":195,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"756a22d9-f432-40c3-9d10-0459888fdfb9","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":195,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"70e04997-1230-48d3-ba73-14723f941b77","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":195,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"b6cfb59f-eafa-46e5-861d-71988f8c5c01","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":195,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"e5b1c068-61ff-4a2b-9927-ca3774eeafd1","block_type":"box","text":"per formance.","page_number":195,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"95a4c7a2-6a0e-4038-861c-3c32539bb86d","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":195,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"248356ba-9032-431f-9676-db87d0652de2","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":195,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"18f3de19-b28b-4ce3-800c-ad62c0c734d1","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":195,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"7fb9ac99-7ac6-48f3-8607-e184efe9c171","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":195,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"730f7bbf-2ef8-47ea-aa1f-799144cc1d8a","block_type":"box","text":"to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to","page_number":195,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"e7ac4d7f-00db-45db-a0d4-11670b5cd9f1","block_type":"box","text":"recruit and motivate.","page_number":195,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"7eff4371-e216-4b5e-aec2-b5275fb919d2","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":195,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"c6412810-b4f3-4069-825b-2e415d70a1c3","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":195,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"6b67bbba-7851-4a06-8274-861f8cd8502a","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":195,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"5b98960d-3fd5-4a26-b27e-5d7f1277857a","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":195,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"45ffd972-11f4-4fbe-a145-9b4a5e23e64b","block_type":"box","text":"arrangements include:","page_number":195,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"d7213278-d57a-4da3-926a-766702e5e434","block_type":"box","text":"•","page_number":195,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"67b22dca-7c4a-4059-95ad-bc0a1a4205f8","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":195,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"b1b08a4f-411c-4cde-94aa-5f6db9986af6","block_type":"box","text":"the company’s size, sector and market.","page_number":195,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"0d2f1f9a-d86a-4770-82e6-4e600a51ecf9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8b07d344-a950-41c2-aa6e-af8576817f87","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"adc6a3df-67bf-4853-aa05-b7e108289d9c","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cea653c2-21b0-428c-a40c-464c5567a8ed","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"546ea8c5-2704-4d0a-8fc4-8e6e772414d3","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":196,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"f5f9150f-b92f-456b-8472-68a7d259ddd1","block_type":"box","text":"strategic objectives.","page_number":196,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"061afc2a-dd89-405e-867a-b01695c8f90a","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"33a07882-5b7b-49a4-ba79-9a5fe07b901e","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":196,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"292bdd48-c760-4a6b-8fe1-c9ccf3bae038","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"474b6723-25ab-40aa-bf1c-b6e86c4632c7","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":196,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"46d67bdf-45be-4667-b164-fa792baa6c7e","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":196,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"4c73e069-f7b0-47a3-8316-bd5589379f42","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"644653eb-8d36-4599-9c64-b62f72d78c1d","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":196,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"a31128c9-e471-42c8-b187-36c9b53ba219","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"a641fcfe-f3a5-4850-9cf9-34eca2d9eb1f","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":196,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"bc946336-43fa-4c3b-a1d3-ba4df615f2fb","block_type":"box","text":"transparently.","page_number":196,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"297155a3-0e7b-4298-b248-639d1e8f58ba","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"97eb19c7-561b-4bf9-b914-a7a2b73f69f5","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":196,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"1f1669f0-409e-46c0-ad65-f0ae76296d6f","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":196,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"5b97a97d-5875-4fbf-8913-2c84f1a1141f","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"d250ce34-cea9-4c1f-9bdb-bbce7eca4fd8","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":196,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"ace8eeba-ddb4-491d-9c80-f561013cae4d","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"b006311b-5f95-4510-95ec-8aec723c38f0","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":196,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"471d2ce7-997f-484d-ab6b-bd26e99e2919","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":196,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"b56bd1ae-b3fa-49ae-96f5-96a838cd4dae","block_type":"box","text":"misconduct.","page_number":196,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"339a18d0-cba8-48fb-b329-e9c931b04104","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"4f83ee08-cfa2-4e7a-acf0-0daa1a5a16e6","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":196,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"678d4972-cb0f-4ea2-871a-e12e1bccd4f2","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":196,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"85911ba4-26ec-4982-b110-69d160370880","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":196,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"82eb8553-c621-4cbd-a7fb-6524a8e8f4e4","block_type":"box","text":"and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with","page_number":196,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"eec156d9-f6e4-41e3-8548-05291ff92842","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":196,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"ace9cdd7-b30c-41ca-a5ca-9a9149d11467","block_type":"box","text":"committee, or the most senior independent director.","page_number":196,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"1f552e2e-7a9d-45a0-be75-575489527199","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":196,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"26d7df6d-eb47-4ce5-b4f5-bbc1fd57914a","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":196,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"7ddedab2-f64a-486c-877e-7c0e7bbff1d6","block_type":"box","text":"the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We","page_number":196,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"54eff4d6-c54b-4cce-8f10-7eee05e1e064","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":196,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"f7d47121-7480-4035-b013-8e4d6a7ff761","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":196,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"08258960-c231-483c-a09f-208012a4c24c","block_type":"box","text":"CAPITAL STRUCTURE","page_number":196,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"795289af-d4bb-4fd5-b320-011d70626878","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":196,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"1ee39a80-370e-4b39-9ed2-35c98fa83efe","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":196,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"076f6c04-0ef7-4e9e-b01e-0024409d6d69","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":196,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"4c3da470-1b6c-4b10-a326-3edfebb49e6f","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":196,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"a4994b51-67af-4260-ac27-a9f2991b79f2","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":196,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"fc18a1cd-436a-4e00-b68a-a6d8d4915941","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":196,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"49f0bf6a-4b64-472b-9c72-c7a3a7750624","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":196,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"0b6adee2-adc3-4b63-b25f-d61c91223756","block_type":"box","text":"Share issuance","page_number":196,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"5290830f-b4cf-45f7-805d-375f3618c9b3","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":196,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"7bd9d3aa-227a-4acc-ab3d-996091d1cd78","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":196,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"b39cd939-2fe7-43bd-be34-db1ff33ab583","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":196,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"66b13346-eb44-4523-a4d4-4a0b2d5af71b","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":196,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"d04376fb-b9f2-48a6-bca7-44f7860138da","block_type":"box","text":"market environment.","page_number":196,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"a56128f2-c125-4f2e-939b-909f1dd01ed1","block_type":"box","text":"Share buybacks","page_number":196,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"ac7c1eba-bcde-41fb-9777-85f60499bbea","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":196,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"3a39d52a-ac19-4f3b-ab69-1ec4ba452ec2","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":196,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"d54aa05d-2899-421e-9cbd-0a7fdda4b5d9","block_type":"box","text":"the company and returning cash to investors. We also take into consideration the effect of a buyback program on the","page_number":196,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"6f60b763-3b7a-4ad4-baaf-9edb5f9cb45e","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":196,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"81d69af9-3909-4c00-ae21-0abbc70b062c","block_type":"box","text":"relative to market price. We consider it good practice for companies to seek regular approval of these authorities to","page_number":196,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"228c06b7-cb53-45e6-864d-8d0b4201c89a","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":196,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"fd503c24-fd1d-43c5-a9ae-eb246bd5dacb","block_type":"box","text":"of the company and the market environment.","page_number":196,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"c7bd7f03-30c2-4f6a-b0dc-9df9e595d4b2","block_type":"box","text":"Dividends","page_number":196,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"ed4dfd67-9b94-43d0-979a-c4589d392986","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":196,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"7af405aa-4ad7-4de0-9f39-e4010cd920f8","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":196,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"4c513a29-b377-4a19-8a99-05745242f1ec","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c9da57e5-1f03-4e54-8003-785dc06a5ef4","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"49a9ef21-64f5-4b36-8f55-09e26087585d","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"192ccfb2-164c-48b3-8c19-6d7ed248a569","block_type":"box","text":"Differentiated voting rights","page_number":197,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"ac0ad0cf-2305-486c-bfec-1cb81fd88839","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":197,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"4a8c4a15-cf86-4d3e-8c04-b7d33cfb13eb","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":197,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"7ba3de52-6017-43f5-bbac-3f96e4930cbf","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":197,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"edb6528c-45c7-48cd-8b83-d3be472bbf7a","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":197,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"515e2456-bb61-466b-9fca-0b6677449316","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":197,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"25628c4b-bc7a-4143-88a2-37fa2a93ce38","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":197,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"b8a01359-8020-49a6-8ed2-ecd4e3e528a1","block_type":"box","text":"analyses of proposals.","page_number":197,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"e6f077b2-0a01-40e6-b036-89d791a5a277","block_type":"box","text":"Mergers and acquisitions","page_number":197,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"3c670d22-3873-4376-ab3a-b6eee3dabc55","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":197,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"4e7af1a5-084b-4160-92a7-cd946d4bc0ad","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":197,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"a9954365-c2a3-44a8-9063-38e1a4ec4f05","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":197,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"8abae680-61ea-49d0-9a12-4bde86c0cf1d","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":197,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"bc9b442c-d4c0-4575-b713-c5cec360f262","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":197,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"811c6585-5244-46e7-a1c5-21a4507cc65f","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":197,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"c676be99-7fc3-42dc-a149-c5a06f92b7b9","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":197,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"13b05b99-1375-4561-b959-480cc100e7c7","block_type":"box","text":"Anti-takeover defenses","page_number":197,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"f475be92-1235-454d-9ff2-91cfccf8b9ba","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":197,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"53fe6654-7a09-4db5-94ac-995fb46dabb5","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":197,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"5d73e128-35bf-4548-9704-fb791dd8a8f5","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":197,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"b3cadbc2-6786-442f-94c0-a030992a87c0","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":197,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"e6125ab5-4180-4bdc-b844-3512c44d5914","block_type":"box","text":"case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other","page_number":197,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"6ee06271-07ab-4cab-907d-fbb754b22afe","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":197,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"a686ca6f-d30a-46c6-828c-0cf788346c81","block_type":"box","text":"be closely monitored by the independent members of the board. We consider it good practice for companies to put to","page_number":197,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"71633f9b-eb17-47dc-8c0e-e4d28b7c49e7","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":197,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"0d7feed1-ed77-4c96-9eac-3279eff3be2e","block_type":"box","text":"Shareholder activism","page_number":197,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"0e2540dc-a60f-46ca-9460-00b5f4ddfeb9","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":197,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"0c6dd507-4a66-49c5-a84e-829d88906f77","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":197,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"04d4f4c0-952c-412f-bffe-da54cf0d1500","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":197,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"1a82e481-2524-45f5-a535-52b59f112686","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":197,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"6942dbeb-0942-451e-a835-5178493490a9","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":197,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"97c38f93-3f4c-4920-b041-3ffa78a547af","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":197,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"7fa56016-eb8b-4ddc-a096-4863a2b36d41","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":197,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"206fc839-ddc6-47d8-8807-173ef165d736","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":197,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"b06f57c8-cc0f-4dff-9979-dda495259be3","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":197,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"7d1d62a5-4a77-4ec6-8fa6-78f3a519a948","block_type":"box","text":"protecting shareholders’ interests.","page_number":197,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"8d11efd5-c3e1-408a-9315-c2d256c2f1bb","block_type":"box","text":"Significant shareholders and related party transactions","page_number":197,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"346d37a4-8e9b-4017-83f7-176384887c46","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":197,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"f39f1486-68c1-49f3-9417-e8547890c65b","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":197,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"8552f913-0fa7-4163-81ac-5bb1bbcefd0e","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":197,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"1867fb05-fa5c-4d0b-9212-25fa84ec3640","block_type":"box","text":"affiliated with the public company, to be disclosed in detail and conducted on terms similar to what would objectively","page_number":197,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"99f53817-5b9e-4144-b637-f246b976a927","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":197,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"f7e8f86f-9307-4971-8ce3-eb44f3f34392","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":197,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"38c86334-52df-4de8-b0b1-fea7dc68b1d1","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":197,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"546be8f7-cbb9-4872-9518-e7b614b1585f","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":197,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"cfc18d7c-cb1d-4cff-8a89-912e0bdcb66a","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":197,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"52d6da18-df42-4c38-a82d-bb38e4770cb7","block_type":"box","text":"potential for the company to create shareholder value over time. We consider it good practice for the board to","page_number":197,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"564d6a6a-4e8c-4f03-9b54-aaee6f1df106","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":197,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"fedd115b-842b-4109-94b1-bdc9167019c8","block_type":"box","text":"audit.","page_number":197,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"ffeb46d5-b6ab-4364-8495-3d0cd1df8409","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":197,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"063e18ad-a6e1-4607-bef1-2af5b78761fd","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":197,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"5838bc92-85db-4b6d-af75-28004ebbcb4a","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":197,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"b1468070-a2c8-47ec-8169-a5c05706bdd1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f26e9f16-c870-4efa-b7a4-1ee6acb57b44","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"77f8c944-66b5-4d6d-91ba-2195da26412e","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"51bef6b8-16f3-45e1-a4fe-085a94313c49","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":198,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"9624525c-f4d1-4381-8a9d-b6ed6092a6f2","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":198,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"964b53cf-9bbb-4f43-98ae-4cfa73c2b5eb","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":198,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"472bf8d6-4f9b-439f-a834-e92cff1af960","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":198,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"aa344ed4-037b-48bb-a5ce-ae1158af8f2a","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":198,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"d8f702dd-1e13-4abf-a889-b21495b7e972","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":198,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"7e813b8e-948b-43ce-86d6-934cb8778af2","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":198,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"d0849fb7-b185-426a-a975-395d636463ee","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":198,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"176fdcb1-b2c4-409e-be8b-e03813fc1cfd","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":198,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"fd4e74ee-a5ae-4812-b36c-c50e64838c1d","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":198,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"0bdc2efa-74ae-4f54-8450-f6b3ac634f7a","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":198,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"5e99f44e-9ce1-4211-8999-00c671e649d1","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":198,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"0761d633-f27c-4b89-8338-11578356eda9","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":198,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"5ac1bb6e-434c-4a32-b59c-31ef1c27e52e","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":198,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"c21c8ee1-f02e-4d7e-a644-2f40b912f17a","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":198,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"37b3d782-8b0f-4856-a772-8018f2d8a595","block_type":"box","text":"9","page_number":198,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"5ca3615b-90be-4bdc-9533-2e9b86133655","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":198,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"5acea550-f837-4b47-9bcf-b1c005e616cd","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":198,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"3e588fa5-1c61-4c10-ada5-a69d1f32ec4b","block_type":"box","text":"standards specified by policy makers.","page_number":198,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"674b1028-7bc8-4f4e-8a79-e8f6a0d410bc","block_type":"box","text":"10","page_number":198,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"e010e010-960c-44da-bdad-403e2a176dc1","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":198,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"81aa3cda-5f31-4a51-9082-277ea4e3dbcd","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":198,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"0a8487ad-ac2e-4bf4-907b-dd296358ac1a","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":198,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"762611e1-0991-4fe5-b43b-39129689319a","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":198,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"2a7b15a4-cc66-42e5-b087-0161d963f49f","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":198,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"1e5c5e30-9e3b-440c-850b-83ab7833c158","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":198,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"0b4b20de-cf45-4c8c-b0c6-8034ae9a7a0c","block_type":"box","text":"well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time","page_number":198,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"4412e2ad-9ecc-44ac-9fba-1586e083be5c","block_type":"box","text":"and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit","page_number":198,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"4a5d39d4-74b3-4354-b74a-ce7a86a86de7","block_type":"box","text":"consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the","page_number":198,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"aa79a231-290b-4cf9-a2e7-da7598e25a05","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":198,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"db7baab8-995f-4225-b42f-c1a4ecc08c6b","block_type":"box","text":"remained independent.","page_number":198,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"7bcd1275-b186-4e07-9974-a9c655cf50e5","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":198,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"0fce85d9-8a87-4775-a1ea-eb88db9af606","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":198,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"2d66a95d-35d8-4920-bc0c-27b0be4f1e30","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":198,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"afb95668-5451-4d99-bff9-71528d7c91f8","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":198,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"9ce7200c-a960-4491-9a8e-943e5c659e86","block_type":"box","text":"audit fee if we are concerned about the auditor’s independence, the quality of the audit, or there are material","page_number":198,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"36107513-c2e7-490d-a4e8-7c4c93d80d3d","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":198,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"e3fa74fa-3990-42ce-8751-8f8154ce56db","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":198,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"3e9fbb7e-46e1-4cea-8eff-2d95a8b2a679","block_type":"box","text":"General shareholder meetings","page_number":198,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"0ac86895-c89f-4d17-bbd8-d31a3a2748b4","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":198,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"630ec81a-5fad-44d4-844b-2e61e69a10b2","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":198,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"55a9f44e-5577-4519-832c-59b953f891fd","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":198,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"a701d6f1-f2ad-420e-a339-e7f588af4959","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":198,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"5c54801f-2e2a-485c-8fc7-a59f0c7b2072","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":198,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"ad6fa546-4049-4dff-b5bd-8af253efadff","block_type":"box","text":"an in-person meeting.","page_number":198,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"746389e9-f7e7-4f69-bb72-f2caf209f1b0","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":198,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"e303a65f-ad88-479c-8cac-c38d24d28f7e","block_type":"box","text":"provided in a timely manner or do not provide sufficient information for us to make an informed voting decision. We","page_number":198,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"8e805a11-ba68-4e76-9703-b16658f48796","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":198,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"a5923b35-a95f-4299-9e68-ee657a1198a5","block_type":"box","text":"par ticipation.","page_number":198,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"7bb1e439-dde7-47e1-bc20-e690360e0cb1","block_type":"box","text":"9","page_number":198,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"c62904ac-21fb-4e1e-b28e-f5d320be681c","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":198,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"42bfa1dc-2e4b-4264-b624-dd7524458e69","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":198,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"53ed3457-a6f5-46f1-b830-0eaa694ac622","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":198,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"751c3089-79bd-4b61-8ce9-2b4fc9879e9a","block_type":"box","text":"Disclosures.”","page_number":198,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"6fcef7c9-22ff-411b-9e8d-ea7a3ae4db97","block_type":"box","text":"10","page_number":198,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"88550be9-0a04-4e5a-8981-3b30059e87ce","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional- profiles\r\nissbstandards/ and https//financeeceropae/capitalmarketsnionandfinancialmarkets/compan","page_number":198,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"806b4e5d-31a9-423c-9622-552c5f7b6b94","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":198,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"84740bf7-cd44-4c99-aa95-46a6fb37501b","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":198,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"028efc33-9ed5-4454-a23f-9e1b810eb12d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ca81737d-2394-47eb-83a1-3bfc8d698a00","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"d45fff87-827c-478f-9b0b-4e97ee80df22","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"54795caf-b953-4cba-9ae3-bda89edaa8b3","block_type":"box","text":"Bylaw amendments","page_number":199,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"839e7c89-b716-47f3-bce4-62c0e61252f8","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":199,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"b052877e-ffe4-488f-af3e-6b1decaf3d5b","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":199,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"a3047e03-dbdb-49c5-9c89-e942556bbab2","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":199,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"55c7feb1-21c1-4bf7-ad73-d81684eeb209","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":199,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"3faa5bdc-3941-4eb0-83a0-fa72806f255f","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":199,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"3d348da3-2f48-4908-9746-5b35404061e0","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":199,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"9a864326-c521-4e86-9aef-50af9355f467","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":199,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"d0c77e2e-b1b1-4119-8fe0-1960109bd45f","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":199,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"a16e9108-94bb-4dbe-923d-a9e6102da916","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":199,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"74286f28-5fa0-4c0e-bf08-eb1f87a3d0cd","block_type":"box","text":"group, with a meaningful shareholding, the right to nominate directors to the company’s board. The threshold for this","page_number":199,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"9aedcee9-3736-485d-8610-66478e929bf1","block_type":"box","text":"right should be set so that shareholders can exercise it without being unduly disruptive to the board’s own","page_number":199,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"fa6f8df8-eaae-401f-9ae2-20eadf65055d","block_type":"box","text":"nomination process.","page_number":199,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"bfbc4ece-8d35-4532-a528-2ebd9be6f59b","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":199,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"76475707-b45f-43f8-9454-8a6d40951085","block_type":"box","text":"We may vote for a shareholder proposal seeking the addition of either of these provisions to a company’s bylaws.","page_number":199,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"bf3d74ea-ccbe-4d00-a0d9-426ba410d5f9","block_type":"box","text":"Change of domicile","page_number":199,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"06c7dadf-8093-41c0-a9c8-4bc17a06313b","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the rationale for","page_number":199,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"9872cadd-1230-401a-9d06-70dc6d661cf2","block_type":"box","text":"doing so is consistent with the company’s long-term strategy and business model and the related costs are","page_number":199,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"8470eed5-e5f3-424c-ae82-fc68c80be628","block_type":"box","text":"immaterial.","page_number":199,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"5ceb7ce6-0380-4419-aabe-789326d5ecd2","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem aligned","page_number":199,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"e52e7fa9-93a3-4f62-8127-57128b527a71","block_type":"box","text":"with our clients’ financial interests.","page_number":199,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"56d1e6d8-7850-4b48-8a9b-1b969aba5fb1","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":199,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"88a05f79-5894-4a92-a56e-b6b5ac746d2b","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and explained","page_number":199,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"3a24196f-a3e7-4443-b028-cf5a459584e9","block_type":"box","text":"in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor’s views","page_number":199,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"18f432c8-7957-4fa5-afd3-c4e31bdab5f9","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":199,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"2e4a1e40-7a94-4f59-9013-f5ce7bc4442a","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its business if","page_number":199,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"53b97881-445b-4f8e-9c4c-b0cd54cbda9a","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":199,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"0183f3dd-2913-4b18-9f25-fb52b8b3ea95","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":199,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"28437600-697b-4188-8347-80c671521ea0","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":199,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"b98cf2a2-9901-474d-8490-60cb3422a49a","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":199,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"770ec130-52c1-4ce0-83a4-b6b2be6c0c58","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":199,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"d7843d80-ec76-4ffc-9d95-b7adf9d84743","block_type":"box","text":"relevant to a company’s business.","page_number":199,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"a7824967-ebce-44fd-8a35-250dc30716ae","block_type":"box","text":"We vote on these proposals on a case-by-case basis. We assess the relevance of the topic raised to a","page_number":199,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"e4b3a8d1-ddb7-4c5f-9771-0cefa3960abe","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":199,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"4683eb37-5af6-4956-a516-be62c834b747","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":199,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"dac6da13-f87f-46af-a168-81346b2b5699","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":199,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"77d3e126-47a2-4da4-b44e-3ea2090f90f9","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":199,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"4a961728-fc12-446a-8048-7e4322f3d56d","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":199,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"0f503a40-3e14-4f1d-b705-7f22ca4c0d81","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":199,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"904d60cc-4f10-4ccf-a64a-269589781dc2","block_type":"box","text":"shareholder proposals that are legally binding on the company, seek to alter a company’s strategy or direct its","page_number":199,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"e9539a7c-6cf8-440e-976a-84553d2b600f","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":199,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"04e5378f-84e4-4b8f-83e8-6799012b4efe","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":199,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"84c82d03-469d-4506-b752-9bcc3e1ff75d","block_type":"box","text":"and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our","page_number":199,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"a37f31fc-0861-4dc5-80d3-0c4b5bb6952a","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":199,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"86127a87-66d5-4aaf-884b-b70d59bcbc89","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":199,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"3729618b-5021-4220-a8a6-bd832bde576c","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":199,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"34263ade-4581-4129-96d4-879a840bf353","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the jurisdictions","page_number":199,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"b39b4228-3d74-4e87-a68c-7e1b369ce348","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":199,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"dfbc5f97-c760-4255-842d-f0047387fbbf","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":199,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"e7438f81-29b7-4530-a1d6-7588bc6ccff0","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":199,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"44b14367-5c20-46c5-834a-c543997ec878","block_type":"box","text":"statements on policy matters material to the company’s long-term strategy. The board should be aware of the","page_number":199,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"9b926f66-e188-4426-bf61-3a18f35f7be3","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":199,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"b602d860-76a2-4d1f-9473-b392789ad9b9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"cad1593f-f93d-4e62-b9ea-fbc69da1da12","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"ed8fd418-3894-492c-a468-c29c70da967a","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"181a61bb-9451-4a44-8730-10e6128b8104","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":200,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"e9c9e5b5-9083-44c0-bd23-381d8aee07c3","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":200,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"5dd2294d-ae96-4e27-986b-c7aeb1f94948","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":200,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"aa62c197-d913-4351-98f3-0aec31e3fbd0","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":200,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"db124e01-0bc0-40de-9c29-10e0aa5f73fd","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":200,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"985120be-828c-4ed6-9d83-4afe9cbdbc8c","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":200,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"1ea65107-587b-4d29-947c-717038d43e32","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":200,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"bde273db-6125-443b-8329-e52f5db3fc01","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":200,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"a723ac61-604f-417b-9c77-c65261df15a3","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"29d01e4e-fa28-479c-8bae-91482cc67678","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"106212db-9af9-484d-aa0c-3cc7caab472d","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b290b13d-8460-4d0f-8fce-6488062b3701","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":201,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"bcba279d-8e0f-4319-94b7-c8d1d6c84689","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":201,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"1cf54b0b-6a78-4da8-88c6-844f8fcb1b17","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":201,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"563d451e-a825-4529-ad7e-976728d3b56c","block_type":"box","text":"11","page_number":201,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"a9aec336-c844-446f-bc18-0418f27c9a4d","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":201,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"5ac9f6c5-7e6c-4b4d-9054-8c7fa7a332ff","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":201,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"55706a91-e7be-4c83-a355-fa36abb24276","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":201,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"787dc7f4-10f6-4d09-9be1-eba0d95f70b3","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":201,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"0809ffd9-d986-41ec-b2e6-24fb352a21cc","block_type":"box","text":"regulatory requirements.","page_number":201,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"709bae24-f7d1-4857-a653-0f5bb69f3af8","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":201,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"85d11634-6580-4ac9-ad81-674b4e4b405d","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":201,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"5c5aef88-da92-496b-bef0-9e3b96a3995d","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":201,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"94081131-7eaa-4885-ad1f-6a90e9e23106","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":201,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"748dce74-e157-4782-a4d5-63cb7c18fb8c","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":201,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"451d77c1-03b2-485f-aec3-21b90ab94658","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":201,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"324e6aea-7e25-46d0-a245-f21c5bab2501","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":201,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"97c93af5-cd14-418c-8f04-ce08cd1670bb","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":201,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"eb72243b-3cc5-4928-bd5a-d6ebdee0fe01","block_type":"box","text":"returns.","page_number":201,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"9a023daa-7532-48be-8907-5167ebcd77cf","block_type":"box","text":"KEY STAKEHOLDERS","page_number":201,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"29a06e2e-7f9d-4010-afb3-8b2a92c3ad1b","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":201,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"a1a23db4-4048-4107-81a4-628b5a84f682","block_type":"box","text":"whom they depend for their success over time. It is for each company to determine their key stakeholders based on","page_number":201,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"0b2c8636-1227-4479-b1be-718e678f4fda","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":201,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"6ae13bc6-e6e3-4fd9-b917-9b94775e4e5a","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":201,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"c41d5d65-b2cd-46c2-8894-40ab52265c82","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":201,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"fd132aa4-11a4-4d91-8246-77a009b4ef66","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":201,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"b1002a4b-1254-4023-9ec8-21b31d7cab74","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":201,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"fc33be07-79e7-4d1a-b3f5-c752bd061b52","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":201,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"080a380c-2ca2-428d-8e55-6c735b36472f","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":201,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"fbc174d6-41dc-496c-9eac-775ef7423b58","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":201,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"62c41d28-b29d-4d12-8a5f-2baa326394df","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":201,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"5f50daf3-7dbe-49df-9ec9-73715ed083fc","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":201,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"dc21c670-f07f-488b-9398-681eaf769dcb","block_type":"box","text":"i.e.","page_number":201,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"764630f6-ddcc-44b6-8a5c-22447799dbe0","block_type":"box","text":", one in which global","page_number":201,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"e5382e68-7229-4788-bba4-16cbd4a2a02c","block_type":"box","text":"temperature rise is limited to 1.5°C above pre-industrial levels. In addition, clients in separately managed accounts","page_number":201,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"50366985-f4c7-4feb-a7b5-e6b4b13dc265","block_type":"box","text":"may instruct BlackRock to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":201,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"0e28e49d-03a4-488c-b91f-cb1a4b2d37ad","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":201,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"9f323021-2795-4745-a0ac-679b71896cdc","block_type":"box","text":"client.","page_number":201,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"b2993d39-a784-4f20-8ace-b4f8694c242a","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":201,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"8e804419-2f56-4ea9-a4c8-21bec8497511","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":201,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"761c23c2-365d-42f1-a39a-34ba69772a7a","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":201,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"eadd18c3-bf9d-413c-ba93-c8be05074510","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":201,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"0799ee47-95d0-41e1-aaee-92d14d8ef2ec","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":201,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"f0b04f9c-46c6-4030-a93d-ee31fa417a58","block_type":"box","text":"include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as","page_number":201,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"7315869a-fbb5-4a8b-83e4-4f374b41efb8","block_type":"box","text":"well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope","page_number":201,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"7223f3cb-b703-48e4-967f-e1495a7a6038","block_type":"box","text":"1 and 2 emissions.","page_number":201,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"3b4b7003-646d-45aa-941f-885e5c1cf46e","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":201,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"49c48f51-f56f-4812-9da6-2bac4293e11c","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":201,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"0def088c-2436-4932-8fc7-59efd6b43f86","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":201,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"3e9232f0-722a-4f45-9bcc-69be4a42ce23","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":201,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"fdf4d5cd-4a75-48bd-869d-86c3747c5bb3","block_type":"box","text":"11","page_number":201,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"0c6b1ce2-937b-49db-b7ef-49818f98c623","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":201,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"1706ce60-57b4-45e8-b9a1-4516ea5fe692","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":201,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"7ea5778a-cd68-414b-b6eb-4333659ab3d6","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":201,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"95905989-4364-42b9-a6c1-9deb8f4679a0","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":201,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"2f4570ee-e721-4dd0-a907-3c7e2639513a","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":201,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"a945675f-6163-417b-ba55-8e45878f268d","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":201,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"a4afe82a-ace3-489f-bba4-6524c89abec4","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":201,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"c28851a6-da4d-4031-857e-adab621c32b6","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":201,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"ec185bfd-1371-4b49-bb23-1ed5d9285212","block_type":"box","text":"sound governance framework.","page_number":201,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"7ffad443-9dbe-46df-8210-b94d3567b58b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0c31ea9c-4bde-4764-bbfd-40af39f9b6ae","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"06321e7e-4fe2-44be-a1b5-71635e7b97c9","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6950ba61-e2da-470e-adf0-77032589bdc1","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":202,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"27ebb7fd-e0d6-4f95-9114-863cc84b5a27","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":202,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"a5769c19-c71d-4577-9185-eca44e2a818f","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":202,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"fd84adc5-4605-4af8-b305-25d7a1bcf7ca","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":202,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"606b985b-9944-4f9e-9dec-348502e3b34f","block_type":"box","text":"their investment mandate and fund objectives. For the funds and accounts in scope, voting on matters not related to","page_number":202,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"f7b72e47-8eeb-4ef2-8d02-8fe6cab97ffa","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":202,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"91c0076c-8a6e-4d98-a060-92b521829408","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a98ce797-b1db-4ecb-834e-62a0e2b9aabb","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"849a2507-424e-4581-8bfc-8588ffca9df6","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"afa0189e-e88c-4ec5-b351-956f50fd6bc5","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":203,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"d1924258-c657-4fbe-a20a-c2632b46cc11","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":203,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"2fdc582d-4f42-42cd-b0a9-cfc66deed920","block_type":"box","text":"Oversight","page_number":203,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"6c5b44de-4fb8-425a-9246-5a55c82efd28","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including voting in","page_number":203,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"50548f32-c712-47d4-9c0c-ee451f278669","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":203,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"5bff928f-6e32-4279-a8cf-f2a4fecadd28","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":203,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"5fee10d1-7358-4ea5-b58c-f7232b1c7946","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":203,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"b6de2e3b-37fb-406d-beb7-8da84f1a38b3","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":203,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"bf6da206-fd7d-4851-ba3e-dda681dad639","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":203,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"ef40a76c-112b-4b0a-a5c8-df8f8b916677","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":203,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"2fd5c786-966c-446f-b0af-1a4b8a64b3c0","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":203,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"e519319a-1f27-4f62-99cd-c58e3613290b","block_type":"box","text":"to BAIS’ policies and practices. It does not determine voting decisions, which are the responsibility of BAIS and the","page_number":203,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"8077899c-4a2c-46a0-9ac5-5594506ba0c3","block_type":"box","text":"relevant active equity investors.","page_number":203,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"309634c4-d0d2-4b2d-84c8-c0727d9b4a49","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":203,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"2190e452-6e32-4973-a7d3-394afd84289a","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":203,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"8c15983b-91c0-4e70-a695-988ca794f6d7","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":203,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"f5a15024-fab1-4396-87af-9e11d7c47077","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":203,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"c855adfa-4387-4b9d-af36-0b65b3f2c6ef","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":203,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"a0ede5f8-1893-456b-80e0-b2f490db3fec","block_type":"box","text":"third-par ty vote services providers” below).","page_number":203,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"0bb19ee8-8b7a-472c-abe6-905978da1337","block_type":"box","text":"Voting guidelines and vote execution","page_number":203,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"5282930c-e816-4976-ba57-62c5b11ec0a5","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items","page_number":203,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"1a544483-313e-4743-b1c6-a061f88c8057","block_type":"box","text":"submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes","page_number":203,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"751cf0f4-773c-42b6-a5fc-c33c27693dd9","block_type":"box","text":"(or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of","page_number":203,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"5ed7eaa2-fa02-494b-9dd9-0ecf6fd6d336","block_type":"box","text":"the voting items with the long-term economic interests of our clients, in the exercise of our independent business","page_number":203,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"94e08a5d-176e-442a-a9b7-d9b4e7ae96f4","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":203,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"7412de97-04b9-4a22-acb7-731f61b8c9f8","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":203,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"ecafe674-e951-4232-874d-89b5bab10321","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":203,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"141d9568-45b0-4100-b924-5ffcb74701bc","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":203,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"0b0001b8-c615-4ffd-b180-8b41abb756de","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":203,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"218dfa2d-5773-41b9-a537-70355192648e","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":203,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"3c8f578e-c902-4971-a343-2ad9bc4cbcb5","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the","page_number":203,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"7e6d7edd-b1e2-4bab-8cf0-101f9f100287","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":203,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"ec082766-8504-4a47-9b64-5ca2c7baf663","block_type":"box","text":"do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues","page_number":203,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"a1fbf084-ccea-4c78-88cd-c1e40d465fde","block_type":"box","text":"generally, and provide insight into how we typically approach issues that are commonly put to a shareholder vote. The","page_number":203,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"6d440cd7-7f57-4128-a4d1-910b0eb47a6b","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":203,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"1fe744d1-a0d6-427a-874a-70ab168d9af7","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":203,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"6296c237-e30b-4788-82fb-d92d7f97b2d4","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":203,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"cd0e0481-f9d8-4fe4-9733-1a286c69f5e4","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":203,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"1001577d-b7c2-4b15-9a90-f47d6d9832e3","block_type":"box","text":"well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of","page_number":203,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"59bb06d2-7c41-44b5-88e4-be48eb0f03e5","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":203,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"bac9b277-cfdf-4c1a-87b9-a5da9151796d","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":203,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"bf51a3c6-e130-4881-8da8-e40d687a5246","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":203,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"389fcb9c-5584-4c22-a118-859bc34f999a","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":203,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"74fc616f-8605-422d-ad39-3b5edc551d91","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to the","page_number":203,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"0dbcc001-8b26-4641-a0fb-e5959e0e9cc9","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":203,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"e9e43f87-ff1a-4eb5-91dc-81599193f79a","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. In addition, BAIS may determine that it is","page_number":203,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"853fbfe2-bce9-466d-9e37-f0864a905343","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs","page_number":203,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"8d8a2f81-795a-4306-85d7-118cc028cce8","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":203,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"01c21cea-2b71-4031-9b93-c9a61f719b28","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":203,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"bc052d70-2191-40cd-9d4a-8f0c53218a59","block_type":"box","text":"Voting Choice","page_number":203,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"4bcec4f7-7dcd-4c62-a14b-fc5b2f34c48f","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":203,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"391b37bb-f657-42fc-baec-08bae77a2d28","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":203,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"bc9a6167-7bf4-405c-a62a-7c8d4a4b6b1d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c5534ae7-109a-49b7-b1c4-b16d9eedd3ca","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"ac144443-741a-4914-be1f-9764bc061f39","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"451e11ab-3a11-402e-9146-42bd4cf2bd9a","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":204,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"3cbe31a4-fb57-4803-a8b9-fdd73d6e51c9","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":204,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"ff06a86f-c27b-4547-b22c-43183515cc08","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":204,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"e43737df-4995-468d-9c75-315270fcee0e","block_type":"box","text":"strategies.","page_number":204,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"888b514e-99df-4905-a29e-b67e1c4d228c","block_type":"box","text":"12","page_number":204,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"68062810-a64b-47dc-9365-a91893240194","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":204,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"aea42e42-f839-4a68-8919-0b77cb54e901","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":204,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"bc0f8995-35b0-4d54-b6e6-c15518f20ca9","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. 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Reliance upon this information is","page_number":206,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"9c2f6e9f-ffcc-481c-94e4-dd9afb5fbc28","block_type":"box","text":"at the sole discretion of the reader.","page_number":206,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"8d96e49c-4bea-49ac-a5d6-556bbf645cf2","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":206,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"b7c172b6-fc85-48e2-9401-4036a22cade7","block_type":"box","text":"©","page_number":206,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"4e6f501f-7af2-4b22-9517-820171d03e12","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":206,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"a709bb8f-7962-4790-9653-07b8759160a3","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":206,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"b9d1ccfa-cbbe-41fd-b97b-1e6378c30443","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4264d5c4-73dc-4d8c-aaae-7be515517404","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"97cf674b-c70a-4b13-8e80-8cf8ba89c1ef","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb787fcf-75b8-4d2d-bb61-7d92049db974","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":207,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"923874c8-e035-42fd-8132-acf789ef5655","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":207,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"b75ef269-7b8d-4f5e-97b8-6b712ab2abd5","block_type":"box","text":"□","page_number":207,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"f8546bee-1e0f-4ad4-917f-a6e0b6eae9f0","block_type":"box","text":"Money Market Funds","page_number":207,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"986bd06c-eafb-45d1-a04b-914d623a9acd","block_type":"box","text":"□","page_number":207,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"71146ee7-af39-4dbd-b95f-a3c8c06f1134","block_type":"box","text":"Closed-End Funds","page_number":207,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"64594bcc-ff05-4115-ac69-f6565206e9e7","block_type":"box","text":"□","page_number":207,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"7ce2abb2-deac-4bfa-aa2f-c96aaa64bebf","block_type":"box","text":"Other","page_number":207,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"7ccb5f21-b695-45b3-83c7-3bdd9dce2288","block_type":"box","text":"Objective and Scope","page_number":207,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"b733c532-30b5-46ab-846f-af2259e24672","block_type":"box","text":"Set for th below is the Index Equity Fund Proxy Voting Policy.","page_number":207,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"94ec9d13-9dec-42e7-9ca8-32fe23538c87","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":207,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"603f79bd-493e-4715-b7a9-b86205155fea","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":207,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"5bb7b699-408b-4113-8d03-25e813e49957","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":207,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"2c5d233a-9fec-45b4-b952-d9f46a452fa4","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":207,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"18c2aabb-91f2-44cf-b5af-3f257c8b7d2a","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":207,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"3167c949-a36f-41ad-bbe9-cd6cc918480f","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":207,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"3f0e259d-0c49-491b-bf30-53879d6b8606","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":207,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"dfefdc1f-ede8-4d4c-aafa-37cd06a8d217","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":207,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"f74c341e-72c1-4441-a0e1-a4eadff9e37a","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":207,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"44b161ad-39c0-423c-813e-967a6ea4992c","block_type":"box","text":"the iShares Core S&P 500 ETF. 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Potential material conflicts, and the resultant potential for undue influence, might","page_number":207,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"590be0b5-5543-47c8-ae91-cf834098ca72","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":207,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"97539987-9a57-4ff1-8a65-9a0c75fb7390","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":207,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"4c979755-abe0-49f2-989b-33941ae67c72","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. 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The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":207,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"323dd129-7da9-4d94-a40b-2bf882e4cc50","block_type":"box","text":"connection with proxy voting.","page_number":207,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"7a338968-4d05-41c4-a6b0-34c2fb8714a2","block_type":"box","text":"Reports to the Board","page_number":207,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"4a15a7e9-f977-44da-959e-137bb74a8444","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":207,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"3a20ffe4-f668-4b75-9fc6-6b484cc04a14","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":211,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"7517e1d4-a1ee-4cb6-a394-2a17670e949a","block_type":"box","text":"about our stewardship effor ts on their behalf through a range of","page_number":211,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"3a7bca18-27ad-4fd4-82a2-853c2e7ed4a6","block_type":"box","text":"publications on our website and direct client communications.","page_number":211,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"2b54cc31-af8e-4eb1-b0c5-da23dbb166ac","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":211,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"122492df-cf4e-45ac-b51a-8e7f64797dcb","block_type":"box","text":"voting on corporate governance matters and other material risks and oppor tunities under BIS’ Benchmark Policies.","page_number":211,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"f26f7226-1dbb-43e0-a15c-714274b41f0c","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":211,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"189b7dbb-4db3-4aa5-91cb-fee5786b1eaf","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":211,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"b2496015-0798-4257-ad54-3d40a30addfd","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":211,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"1289890b-752a-490d-953b-a2059f4bdbc1","block_type":"box","text":"2","page_number":211,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"0a41eaa5-81c6-4d6d-8093-9b7b91e04935","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":211,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"f702271f-c19d-4ffc-91fa-bb2a2b6bcc86","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":211,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"62987661-d77c-46ec-87eb-226c6ebfaa6e","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on oppor tunities to help protect and","page_number":211,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"ccb0ecec-c946-4d9e-be84-fc05d48edbec","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":211,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"805a5b60-fe7b-4e3a-834c-599b7b3ed7ed","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":211,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"1e933f57-7c93-4066-89a4-cc91c993fcf1","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":211,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"54c1ce39-3a68-4fcd-8c1c-7bedc9f5c63e","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":211,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"df4428b5-9aaf-47c8-a449-3354dd12c157","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":211,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"7a338de4-2e20-483b-9873-d005a158cf71","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. 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As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":212,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"87e17a39-b129-4983-b396-9eb9d997d718","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":212,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"8d3b1b16-54f6-4d77-822b-6fae13ef95e6","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":212,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"4094aa51-d327-4642-9b70-02c348c4378e","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. 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Our regional voting guidelines explain how the BIS Global","page_number":212,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"fcea1332-fab7-48d5-92e0-efeed1e7b4f1","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":212,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"66758349-be7b-428b-9667-c3cb9ee4cf79","block_type":"box","text":"4","page_number":212,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"7826cb39-ca96-469e-8d33-f06fce304577","block_type":"box","text":"3","page_number":212,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"55672b51-dcee-4e02-a145-dcb549fb8913","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":212,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"34283c90-f4b7-44a3-8466-b748cf899fb8","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":212,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"4df05107-4ad2-49b8-8169-921e2591ac98","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":212,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"8b40670d-a279-456f-8e92-a5cbc5bdad3c","block_type":"box","text":"4","page_number":212,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"971db7b6-1f20-4c6d-999d-fee5af5b201c","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":212,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"c5f08248-5c8d-4e91-8162-4837d7f8c16e","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":212,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"7de4091c-6c71-417d-aa34-2c1cd53d7596","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":212,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"d3a9ce87-1a47-476f-b2d2-489898526d58","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":212,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"bfaa4c4f-cd4f-44b6-8dc9-c2455805f768","block_type":"box","text":"guidelines.","page_number":212,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"5203efaa-dd3c-40d6-8ed7-a05f3c241af4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"bfc9fc4c-7ed4-4c7c-a566-e5a372b49311","block_type":"box","text":"Global Principles | 4","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"880c2c2d-e3f9-439f-9b10-5fbf6a548301","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"50d98a80-319e-40a7-b1f2-5fac317c7494","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":213,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"42d91eb5-17e9-4076-9e66-feaf3a496969","block_type":"box","text":"Oversight role of the board","page_number":213,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"f29a327d-c38a-42a6-896c-7210ae1906ee","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":213,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"d9112b3f-dd47-4a44-86f6-86d09e09bd1a","block_type":"box","text":"characteristics relevant to a company’s business enhance the board’s ability to add long-term financial value and","page_number":213,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"3be2aaaf-99c9-4999-815d-ab39b5fde995","block_type":"box","text":"serve as the voice of shareholders in board discussions. In our view, a strong board gives a company a competitive","page_number":213,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"e383df36-35ed-47f2-92dd-917ba2421074","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":213,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"3d250e9d-f4f1-4010-86c8-798458c679c1","block_type":"box","text":"long-term financial per formance.","page_number":213,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"1a577f56-b3de-4fe4-88ba-1a0d4720be8f","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":213,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"7eb297d1-96b0-4c14-ac91-17d4cae87cd0","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":213,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"7a70891e-c8b8-46d0-a112-479314bb3cc3","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":213,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"9a224730-e2be-4e81-bf0a-4842f48dc1fc","block_type":"box","text":"the business environment in which a company is operating.","page_number":213,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"77e84c3b-c123-4043-b4d1-e090208af0c9","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":213,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"f6e00aee-c30b-4c2f-9e5d-5ca50ca1ef11","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":213,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"55ccca0f-4b28-46a1-81b8-16c079025459","block_type":"box","text":"long-term financial interests of investors. This includes having clear descriptions of the role of the board and the","page_number":213,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"5ec93a18-1063-4605-b2f8-cb5c919e1b25","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":213,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"f9f437db-857b-473f-a048-b326fcc03b8a","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":213,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"753855e1-835f-47e0-b2e7-464632fcf623","block_type":"box","text":"mitigating such risks.","page_number":213,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"53434488-3f1e-4371-ae46-0e780fa24611","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":213,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"34da0df3-1238-49d5-93b8-dc351b8f699e","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":213,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"94b55acf-e64f-4c0f-86d2-f1a7cefc4da4","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":213,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"d41af460-8e28-4c16-8060-30704000ca62","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":213,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"725f4c0e-e803-4526-a82b-ba50608b473b","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":213,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"d9791a2f-7a07-4bfd-ab5a-f8c6875d31a9","block_type":"box","text":"strategy.","page_number":213,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"c077fea7-af07-4132-897b-301b8004f2d1","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":213,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"2c5ba895-0f86-4ef5-8014-16fb4ce9715d","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":213,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"8668263d-c6c2-41b8-907a-3c7f0d8d2998","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":213,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"39bac5ac-a8cc-4aff-85bb-387988aa468b","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that speak to","page_number":213,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"557f3aa8-c733-426b-aece-4fb23dd5b1f5","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":213,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"a9fa2040-1b3b-4310-b6a3-27c111d4f197","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":213,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"5e5cdadd-0e56-4b14-b701-b35aae4d8182","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":213,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"85becc5d-d604-4b3b-a93f-08f0e7cae83b","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":213,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"e839895e-39e1-454d-a7dc-dc32a507bf41","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":213,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"16388d76-4f03-41de-9223-304dd34c2ded","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":213,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"de4b0ce7-ebbe-47fe-8f6d-6a58a5efd371","block_type":"box","text":"Regular accountability through director elections","page_number":213,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"dbf22666-0a59-47a3-adeb-faa23ec16c6a","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":213,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"36d7f9fa-310d-45e5-93f2-644d94a1e366","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":213,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"ae23ecc9-ad35-4499-a809-033ef7a6030b","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":213,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"8c7e71cd-821f-4dfb-ae96-4ce561e1fbd6","block_type":"box","text":"5","page_number":213,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"2f6ebbc9-927f-412c-9b43-525fb4f61727","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":213,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"eb0a269f-14b6-4154-8cf3-b1e859a02ab4","block_type":"box","text":"decisions in a timely manner. When board members are not elected annually, we consider it good practice for boards","page_number":213,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"077e1372-47e5-4f62-ba54-ed8b21208d1e","block_type":"box","text":"to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed,","page_number":213,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"e62a5945-e849-4fa0-8e89-7acf4a8afb04","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":213,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"5af88725-5457-4ab7-83d1-f5a74df88bfc","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":213,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"aa4eb50d-77c6-431e-af6d-192909334f05","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":213,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"18f651ae-c7a5-4a50-8772-065df7327e04","block_type":"box","text":"developments in the company’s strategy and the market environment. In our view, it is beneficial for new directors to","page_number":213,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"29a1514e-2714-4686-8bfc-40ece21cf4f6","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":213,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"01e4c4c7-60c3-4198-9f94-53abcb24d1cc","block_type":"box","text":"5","page_number":213,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"06e624af-679e-4a75-b118-02bbefd547fd","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law,","page_number":213,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"9f01f4b8-c785-43d6-87ce-5c8c0ee86ef2","block_type":"box","text":"market regulation or voluntary best practice.","page_number":213,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"4b727ea6-c8b2-457f-a390-42e091600f34","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d5a8d73d-fafa-4155-b8fb-ff8e420cd3d7","block_type":"box","text":"Global Principles | 5","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"45b19a8e-7154-4443-9445-ccbe2f606412","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f14783c6-6857-4da9-9360-52638b33af82","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":214,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"bb02ebc3-33fb-43e8-a0c8-2acc6e9dadbc","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":214,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"e2bb4a7d-89d9-4c4f-b49d-3936737bcd24","block_type":"box","text":"recently.","page_number":214,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"ce3a7a47-2570-429c-b606-25a681f84909","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":214,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"2dda6b30-fb1b-4a84-bbe0-db5436bb1e05","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":214,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"051d505e-90f4-4447-89fb-d58af4af4410","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":214,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"4731099b-717f-4620-bae2-fb1f34280b84","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":214,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"a3e067b9-0ed7-4513-bd3e-418f6d61ce4c","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":214,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"c853a9cb-8ad1-4f41-8837-ba398b6b951b","block_type":"box","text":"Director independence","page_number":214,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"983ef8fc-ee3f-4c4e-8298-9401b63f2ffe","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":214,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"42ec6e5c-9f0d-4467-af6c-128a70f61d68","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":214,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"3cba623f-5853-4883-90bc-d4d4cb861d12","block_type":"box","text":"6","page_number":214,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"5f45fd69-989b-44ee-8bb7-372770949e62","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":214,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"6c747d1e-606d-48d9-9f68-2c0cd71d232d","block_type":"box","text":"directors, free from conflicts of interest or undue influence, to ensure objectivity in the decision-making of the board","page_number":214,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"c346e7de-6a94-497f-bfbf-c7f8518b4ff8","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":214,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"f6a7b48c-b8b0-4cce-845f-6412ffea8595","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":214,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"fd4d3ce7-8c8e-48eb-923a-691b8f222f0d","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":214,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"3f900597-c628-4bc1-90e7-266ea9cc9385","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"89293995-dc18-477d-94c6-0088486cde24","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":214,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"5b1c09b2-416e-4c00-ba82-56b7f317f122","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"84261877-5421-4f4d-a1a5-4c9461c581d2","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":214,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"a4cf4d59-b7e3-4fb0-8f06-a25a848a57b0","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"c30a5834-899b-47c3-88ea-1b9d0ccb5e7c","block_type":"box","text":"Interlocking directorates","page_number":214,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"a75b7ffd-6501-4dfe-97ff-f0dd460c6be0","block_type":"box","text":"•","page_number":214,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"56f0828f-381e-4c36-8a72-38d277f3a785","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":214,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"87bf13f7-e609-4d6a-87b7-5b5804065bb9","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":214,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"742768af-b46f-4807-871e-a24e36451282","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":214,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"32c84743-4a74-4740-8735-83466c203812","block_type":"box","text":"independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not","page_number":214,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"50eefaa1-fc47-4d33-a874-5a2f9f08dff1","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":214,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"60cbe2b8-fb9b-4651-84ae-90c02db5f687","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":214,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"be52496f-68eb-49d6-9d76-fdf090659462","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":214,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"06de8b35-15ef-4b18-866f-a246b58bf8a9","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":214,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"fb9afbf1-ade4-4273-b158-ace372b953d3","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":214,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"984edc03-6f9c-45dc-8c72-becebbeea2e8","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":214,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"22653c14-0523-4de3-b16c-90850b3e85a1","block_type":"box","text":"require additional focus. It is our view that objective oversight of such matters is best achieved when the board forms","page_number":214,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"ec1e315b-62f9-4c8c-8195-455eca0d3751","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":214,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"5b07337e-b98e-42a5-a35a-b44976dee288","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":214,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"f1021641-af37-4bda-962a-83df6a7d0834","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":214,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"70e4904f-76b6-4d7d-9b50-7019c1dbd0f6","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":214,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"6d2b6429-fe7b-4390-92b5-2a13cfc617e2","block_type":"box","text":"Sufficient capacity","page_number":214,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"4efecd81-5d31-4da3-8dff-7c3e4e2a8421","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":214,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"e65fc51f-5a7a-4a82-86f7-6a3ba6d213b3","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":214,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"0cfff53b-e1e9-4a60-a439-1881fea63f3a","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":214,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"7b3d9cfe-df80-4364-b771-8bccf3ac0c24","block_type":"box","text":"practice when they don’t take on an excessive number of roles that would impair their ability to fulfill their duties.","page_number":214,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"9df4e9ca-6f92-4437-9d92-e2e56fd4c9ce","block_type":"box","text":"Board composition","page_number":214,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"51773b00-3468-4f45-ba43-276e6942c26f","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":214,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"d2f15156-a9fb-4112-98c6-0955986002f7","block_type":"box","text":"capitalization, and ownership structure, as well as the market in which the company operates. We find it helpful when","page_number":214,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"5045a420-0ce6-489a-b7e8-0a059d071077","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":214,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"98d8ac0b-2b05-4811-89a4-7c51c265f7e5","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":214,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"8a854f14-81fa-4772-8301-3a25f5683205","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":214,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"1d536eb4-fa13-4cee-bd56-e4fce3144f19","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":214,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"a1e66f27-0ab6-4bb8-b4d1-b480bcbec2a7","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":214,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"f2d68c8d-1ff0-45b0-b2f0-e057cb23ed10","block_type":"box","text":"6","page_number":214,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"2da53477-cdba-46e6-b0ea-451bf6eeabba","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":214,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"ee4485ea-2d4f-475f-a1cb-3d7b1dadda2e","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":214,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"d69295d8-018d-423c-86d8-2b398de15e9d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"88a090aa-cd79-4d82-861b-3d9db18c8c03","block_type":"box","text":"Global Principles | 6","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"0fee2dbb-aa57-41f0-aec5-eff4796b130a","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eef888f0-88d9-463e-8221-19abbaea69d4","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":215,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"19c9d198-c137-484b-ac28-d952a720c87a","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":215,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"44c0bead-e324-4706-afc9-f936aa906d82","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the board","page_number":215,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"25c76df8-ef13-4b9b-898d-47bef4f2be84","block_type":"box","text":"room. We see it as a means of avoiding “group think” in the board’s exercise of its responsibilities to advise and","page_number":215,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"fd3b6902-b65e-4ba2-ac6f-8b9dfe75450f","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":215,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"2e4d9926-6d3d-4575-a33d-e5f6fbcbd3fe","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":215,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"e7284610-5fdf-4ed1-99a8-8dea01e45777","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":215,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"ce63fcd2-1503-4b4c-b524-04a0e02d9aff","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":215,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"5caf3830-2451-48d9-8814-ecff399f93be","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":215,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"01049396-18ba-429d-9e53-dd1027e0714c","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":215,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"59ddf432-0032-44ec-8b75-0a5aea29bb93","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":215,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"e06ec60e-0682-4149-bdf7-03c36b8494fb","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":215,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"9acbace1-5567-477a-b939-de889f686bbc","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":215,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"aa0de691-b759-4506-b741-c8b523ad9fdc","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":215,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"bbded49e-8912-4f6e-8971-9446f76675ff","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":215,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"639fb845-9b94-4758-a5d3-d1f55da46ad1","block_type":"box","text":"systems.","page_number":215,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"edb955b3-b7dd-4a81-a439-d3a79101e81c","block_type":"box","text":"7","page_number":215,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"b2b082dd-e60c-47fd-a33a-f9f2ab94b4a0","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":215,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"6da4f048-345b-426b-b7e0-6226e59015cb","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":215,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"7e159c07-7b88-4765-8153-3b1e21ff2768","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":215,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"77eb9043-ad00-4733-a4ea-0ab72ff5ca41","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":215,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"19daaf1e-70b3-42fa-a994-d1d0de636e1f","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":215,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"51c04011-0794-4dc4-be56-d88544511e79","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":215,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"3ad2a49f-6b71-4274-aded-b1edde3b00cb","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":215,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"2b385b66-e956-4694-9a25-cd363b83c542","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":215,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"50679e1c-a868-4de9-a6a5-894792b01a3f","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":215,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"0f3a8812-990a-4a1a-8067-8858133af0d4","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":215,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"1c913ab1-f69e-4ac8-8c00-d6a66a9cbacf","block_type":"box","text":"or internal audit function.","page_number":215,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"b48452e1-ed57-45bb-9c53-084feecd504c","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":215,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"5eac4c79-4524-4228-8691-ecbb33ff7a35","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":215,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"fbe7eec2-44c4-4af7-980c-60d900d1d883","block_type":"box","text":"and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, we","page_number":215,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"3e8e310f-718a-44ac-a88e-0e98898c3aac","block_type":"box","text":"look for the fees earned to be disclosed and explained. We look for audit committees to have in place a procedure for","page_number":215,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"833941df-3956-4dbe-9547-88cc79bece7c","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":215,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"498ba3c7-4145-4af0-9c62-1322b72d4e6c","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":215,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"eb60018f-4c16-4bfc-bdb9-31e4abccc61b","block_type":"box","text":"management practices and, more broadly, the quality of the board’s oversight. We look to the audit or risk committee","page_number":215,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"51cbd49b-fda4-42de-809a-1f4e3e308ee5","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":215,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"16838f59-10f2-4198-b145-67b15eb4a987","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":215,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"3deac3d9-ed68-45af-8d89-a542edf47b80","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":215,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"48d0633e-55fe-4ad7-80bb-52a34632cee6","block_type":"box","text":"risk.","page_number":215,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"a4e1366e-4902-4c77-bec6-4c0e25baa5a8","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":215,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"28c00de7-e18a-4eb0-9215-3ce9f916cdaa","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment and the","page_number":215,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"a205a94e-0fad-47a7-8dc0-93fd9094a5d9","block_type":"box","text":"priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key","page_number":215,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"788bf034-c0f1-476a-ba19-5d925acf59ab","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":215,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"70eea65c-6c01-4e5b-9c88-a831fcef6368","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":215,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"a497c680-f496-47d8-8d1d-b7df46f5460e","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":215,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"cadbfcb0-8ab9-493d-9d62-a6e66c0cc7eb","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":215,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"d5b5bf57-582d-4825-b099-ad9b884dab2e","block_type":"box","text":"7","page_number":215,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"c5795449-516e-4bd5-b529-2b2d8d3942a1","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":215,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"d7d6533e-1f36-4aeb-a41e-434bb66fa66e","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":215,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"9d9081fc-641b-4a7f-aa55-cdfe573d3e2e","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":215,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"67172e5c-dbbd-4e4d-90cf-f59813f8363a","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":215,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"b4317d22-d428-43a6-9007-429f2225f1ba","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":215,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"231a8c48-546d-4c75-9238-9119e11c8ba3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"08b94594-b572-4c8f-8b8f-6fc57e29bb1c","block_type":"box","text":"Global Principles | 7","page_number":215,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"5e296cca-a1e1-4b3a-81af-cd2dfdc5e9e3","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bfec70ae-ea8e-419f-a65c-bbd853e33d30","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":216,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"ed47b5bb-5681-4a59-800a-1e5fcbad1fe2","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":216,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"b1fb0ec3-efb3-41ce-99be-633ac937825a","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":216,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"4bf48d16-2406-4354-9f16-3dd7c8105cde","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":216,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"f3f6fb43-d1c2-4f7e-83ee-190bed027b96","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":216,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"962e4a49-e5c2-4caf-9be8-2a78c5f4aa50","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":216,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"da2ac3ca-0dfc-4be5-bdbd-b07d09350f4b","block_type":"box","text":"minimizing costs to shareholders.","page_number":216,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"7224b78a-76f4-4f54-b1d4-e0955557bb15","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":216,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"190322f0-d779-4bad-abfb-1e10c525fbbb","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":216,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"e312d150-b9b0-4e9d-b1f4-0911f21c00ae","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":216,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"00cb03b8-dd05-41df-afed-9f82a307edc4","block_type":"box","text":"board and has been negotiated at arm’s length, and whether the board or management has clearly explained its","page_number":216,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"7b6a9ba9-e2e9-4a9a-96cf-e81da910ba54","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":216,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"313bec11-505a-46b3-8915-eae5fe428d7f","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":216,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"f66f25ba-6bcd-4c68-9e16-464e1dc8c0a7","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":216,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"fa0d1935-e906-4076-8711-b0d7667a26be","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":216,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"aafb0fa4-0962-4377-8c62-0d613b31ca60","block_type":"box","text":"have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by","page_number":216,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"c79c2bbe-961f-4d83-8a3c-d61a66f04a1e","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":216,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"53b252cc-691a-465c-9608-216beca861aa","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the","page_number":216,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"988c74a1-0647-469b-bab7-2a2b2156cfe1","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":216,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"ee1fba20-53c8-4e2f-b3da-a0722199b9fe","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":216,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"1c9eb70e-078c-44d8-b311-7fa4b84e4c58","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":216,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"ab07656c-c68f-48f1-94ac-def8c3893625","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":216,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"1dff3e80-6b74-4ee7-ae90-54c1229c072e","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":216,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"a275cc87-e250-4087-bbf5-90db8df57464","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":216,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"c5dfd3c7-59c7-4977-ba83-8304e0d7be20","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":216,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"3c7d937d-e742-42f2-85cf-4af4f9c1b6f6","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":216,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"3caffb25-ee3c-418f-a5ca-d97198a54353","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":216,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"bf636b74-e8ed-45c4-b6ee-95ae5e3eb04f","block_type":"box","text":"ownership.","page_number":216,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"ec861b44-ffe0-462f-ab18-1e15b17cf4e4","block_type":"box","text":"8","page_number":216,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"173eaf51-9b94-4010-84ac-c913171baad0","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":216,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"f71fed8a-22a7-4c75-a7cc-c078dc169a23","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":216,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"1a628c64-d7bd-4127-a4f4-d14537d3342a","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":216,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"45ad5cf0-f5b6-4fef-86d9-f4598aaae0c0","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":216,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"4fdfaefa-81b9-44e9-86e1-0359acc3f460","block_type":"box","text":"structures, but, where they are included, we look to companies to be as rigorous as they would be in setting other","page_number":216,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"7460654d-dcb1-4df0-b72f-8493e2f83b72","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":216,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"79213981-2989-4836-8070-7b3101eae831","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":216,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"0a451dc1-1779-451b-9f17-2992008039a2","block_type":"box","text":"results over a period of years.","page_number":216,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"d8d6cd15-a25c-4c18-80af-ac59b86f9697","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":216,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"7af0e23b-9fd2-4253-a01e-951e39ef7d8b","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":216,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"5eb85d41-03ab-40f4-b9cc-e3d2deb3c6aa","block_type":"box","text":"company’s risk profile, the environment it operates in, and the individuals the board is trying to attract and retain. We","page_number":216,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"ec5df75f-f216-4337-9230-a011e57a6b53","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":216,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"14133bce-550a-4f0b-a739-69d35a8cc1ee","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":216,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"809ee046-a082-4745-ae70-a67aa08bea15","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":216,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"870927ed-acd5-4649-912c-f2677b745056","block_type":"box","text":"executive compensation strategies.","page_number":216,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"16f5f9f2-3015-43d9-b073-ec20c49e9824","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":216,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"71f42697-3326-4c6e-a82d-0cc479331de8","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":216,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"7161c604-875f-4546-8142-c7b9e4ea5707","block_type":"box","text":"and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. In","page_number":216,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"fa5a42c3-2d9b-43fe-8def-77026707b745","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":216,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"4db64f79-445e-4051-b404-a67efb7c88ba","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":216,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"6042b55e-bb16-46df-9f80-117f3ed014ce","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":216,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"e92fca62-9b17-48eb-916b-c463b0588cb6","block_type":"box","text":"8","page_number":216,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"701bc84d-1ded-44f6-b5e9-ce6eb06ec0a6","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":216,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"c2f231dc-246a-47ec-bf5e-a525a58b9991","block_type":"box","text":"different markets.","page_number":216,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"fdeb996d-a4a0-4d82-b4db-adf3c321a4e0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"85af4c76-a0fd-4b53-be1e-5e5af482a2eb","block_type":"box","text":"Global Principles | 8","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"194e8c22-a8e4-4c91-ba0b-b530bca27837","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b79a429-72e6-4572-be70-e912cb55ee53","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":217,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"ee3c3d7a-4fcc-4259-aab4-22b4c8040520","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":217,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"d610a696-f2ea-4a28-b688-ac2b0b2b3eb5","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":217,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"07f6e797-43ca-4146-9beb-697813bbb163","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":217,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"64d1fa03-7457-4b8a-a9d5-649762448677","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with the time and","page_number":217,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"43af9d9b-00a6-475e-8b5d-c37d5d046e68","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":217,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"76774261-e76b-498a-838e-4f3e7e5d7f18","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":217,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"600153c4-b89e-408d-8871-de145dd9a670","block_type":"box","text":"whom they are charged with overseeing.","page_number":217,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"b9f2ce20-c92f-43c6-9e85-b5b12b9143c8","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":217,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"2e7750c4-8e98-4359-8b2a-7071579b1e09","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":217,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"19dc13f2-2aa2-4f0f-a125-838439283067","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":217,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"219d8a51-42e0-42c8-b4d5-87782d14165c","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":217,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"a4cb617a-db60-48a9-8f49-49ea38b8a7dc","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":217,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"7ba7d358-a086-4905-ad94-284e45fe871c","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":217,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"b7c506cb-590c-43ab-8a99-2c56853dbb66","block_type":"box","text":"structures.","page_number":217,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"cb765b71-d125-4a2f-b0be-4d2fe62205bd","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":217,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"2b5ba34f-8c4d-4ca9-b6a5-7608a8839695","block_type":"box","text":"Corporate form","page_number":217,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"4e9b54c0-4c60-4bf4-91fa-e748434a2b13","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given","page_number":217,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"fdf2d256-d366-41a0-8fe5-c1f8456ec3db","block_type":"box","text":"the company’s purpose and business model.","page_number":217,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"485d785d-27ec-4120-87fc-13a9f6d7f75c","block_type":"box","text":"9","page_number":217,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"851eb363-8b66-4538-8e02-48dcff644639","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":217,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"9b04fabb-f217-4d1f-b372-95d670d66402","block_type":"box","text":"public benefit corporation, or similar entity, to put it to a shareholder vote if not already required to do so under","page_number":217,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"e69a3807-d8b4-48c5-8364-7ebb0714d544","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":217,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"3cd7081a-f944-4d25-95f4-c66c7ed4c272","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":217,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"d488ee96-f555-416f-ad4e-d64b1c2c5173","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":217,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"7e4d4179-9719-4d3c-8b1b-a3482a635216","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":217,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"1a22e78c-c66d-492b-a887-c920e9536f20","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":217,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"07027c8c-58cf-4adf-a4c3-b3418beda9b7","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":217,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"2ea30276-ba3b-4af2-aa33-7ba0df57d8a4","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":217,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"4376eaf8-1faa-4d57-9069-2a317762ae09","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":217,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"124dbf54-08a0-4f44-b085-d6d495391428","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":217,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"9b49efba-b1ff-4881-8232-b4201a41d5d3","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":217,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"79d5cb73-35ac-4806-812c-0df5413be79f","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus on the","page_number":217,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"fc05f497-9ae1-435e-ad81-5cf4557dd7fc","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":217,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"dfed2980-b115-45ed-bfb7-9ab9463fc61f","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":217,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"cca4f477-cfa6-46cd-833f-fc444539ad16","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":217,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"e5551427-8da2-4fe2-8231-fdd0b5d27439","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":217,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"3237e477-7f33-4cf4-b8b1-3e9ba27a3147","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":217,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"cc0d223a-bed2-4a5b-a042-de27aeb54ef3","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":217,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"ba7ec3f0-be8a-407e-96b4-7cbbb0fb036f","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":217,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"b4af8d7c-d453-4335-8a5d-423f961a917c","block_type":"box","text":"benefits to the company of meeting the request made in the proposal. We take into consideration a company’s","page_number":217,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"0c03ff7e-94d4-4c68-89e9-528cea14381b","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":217,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"74ccf8d1-174c-4888-a91e-5a77100c1e50","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":217,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"e6596a02-47fe-4ee8-a3dc-769dd23b6aea","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":217,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"3992315e-9a5c-42b7-9de2-88bab5800fb5","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":217,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"f7669a07-dc74-4067-b48d-855541eaea51","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":217,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"994ebcef-01d3-4afb-8535-08838c84ed60","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":217,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"980330d1-05d5-4a1b-b710-632eec2f8431","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":217,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"42f7f591-e83d-4c78-a717-df8b7fb8178c","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":217,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"996994d6-a4a5-41c4-a26e-2fecce023312","block_type":"box","text":"request made in the proposal. In voting on behalf of clients, we must vote yes or no on the proposal as phrased by","page_number":217,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"b6f87182-8d8a-402b-9dfc-33573db88ab8","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":217,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"9cc1e47a-505e-4c5d-8088-9aef9d11ac51","block_type":"box","text":"9","page_number":217,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"5d880a37-fc2e-436b-8611-71fa82f06bb5","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":217,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"6e0e2237-2330-4762-8bc9-fff7dd21e47a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e05727bc-9f28-4934-97b2-c5b7f0291e06","block_type":"box","text":"Global Principles | 9","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"54378288-ac36-4f17-9786-d8c753659d43","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76b5dfae-5275-4df9-9508-0e92157f1c04","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":218,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"03b9bd9d-5179-4e71-9d4b-7ddcc93ef576","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":218,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"a5dfd1c0-7848-49d1-8ad2-c2216ef9d510","block_type":"box","text":"long-term financial interests.","page_number":218,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"af10a4dc-c572-48b4-96e9-fdbc60fc380e","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":218,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"d8f781f8-a390-44a9-bf94-579bebe3d186","block_type":"box","text":"restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our","page_number":218,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"a914598c-c0a4-42a8-933b-3a67a834d7c5","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":218,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"0bfa729a-8bdf-46d0-8df6-17cd317550b8","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":218,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"9a64c3c1-334e-45e9-bf08-f8be356ba86d","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":218,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"c8dbbc68-09c3-41d6-83e2-8603e4571d22","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":218,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"94ee0f92-0149-4477-abc8-41c2a5f55b19","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":218,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"b2d98f8b-a783-4dbd-a419-5181c5f74c6a","block_type":"box","text":"term financial value creation.","page_number":218,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"9a53c048-8a54-49ba-bd09-3bb40be94a01","block_type":"box","text":"10","page_number":218,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"608c7fd3-ef3b-464b-adcd-753b6adbf5a6","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":218,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"249be907-965b-4a23-bd9e-d2cbfdbccad7","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":218,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"344e8186-34a4-4f79-9c76-55778ec14f7c","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":218,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"3661d0eb-6fcd-4106-9ff3-0eb9586fa7e9","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":218,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"576a5150-256f-435b-b8a8-5cf79dedfa07","block_type":"box","text":"industry-specific metrics.","page_number":218,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"c6c6d6ab-7365-4c97-bc2b-8780a6b0607d","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":218,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"75da7d4f-7fc5-44c1-876f-6155dac88720","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":218,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"d5fee7b0-411f-4f6d-b68a-74a153253538","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":218,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"37806311-a91b-4bc9-a678-6d5218709eb9","block_type":"box","text":"11","page_number":218,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"0986dbf7-001e-4f1d-a64a-a680917c2749","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":218,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"d0d29ad9-6875-47e9-b25d-ac58206bc985","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":218,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"4539eb8e-e6fe-44dc-a5cd-6219063819a9","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":218,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"8567a445-93d7-4c00-8645-c5e4271a0e84","block_type":"box","text":"specific.","page_number":218,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"e174603c-a67c-4f4e-a2ff-e93feaf1a1ab","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":218,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"b0cc631c-2d21-486d-a07b-29baf3b411fe","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":218,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"41e784ce-a3e3-456b-a6b3-624ad65c8ab4","block_type":"box","text":"them sufficiently in advance of their shareholder meeting, to the best of their abilities, to provide investors with time","page_number":218,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"e7eeed80-fa78-4098-9286-4ad86caa9996","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":218,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"3878ca66-45b2-442d-8aa6-349eb3cdd1da","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":218,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"34a57540-e2ab-4528-b521-2daa8cb5d591","block_type":"box","text":"best practices and disclosures. While not a voting item, we find it helpful to our understanding of investment risk","page_number":218,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"2dad38d8-2de2-44a9-8ba2-42c25706ab9e","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":218,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"ae736b1a-868e-4877-9741-7c902a3facc2","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":218,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"39e34695-6974-456f-9d6b-f283c21d007c","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":218,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"f1a4bf82-9522-463c-8c91-0e5ef240a8c6","block_type":"box","text":"10","page_number":218,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"2ab822e7-b603-42d4-b51b-065eaef5f753","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":218,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"818f3cce-c554-4ef6-9fa6-6b98bc7d2d2e","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":218,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"ea084fcc-cf56-48e5-9654-eb4d28bb6f33","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":218,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"ee4d92b8-1e4a-4f5b-94d2-c34c8cb4dcd8","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":218,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"f812f9c9-a1b7-4acb-a6ee-c256ae4db391","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":218,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"f8421c93-fc79-48dd-82c6-c9308a750908","block_type":"box","text":"11","page_number":218,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"69f44c94-3e7f-44f9-9dbf-fd33f3358b07","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":218,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"f52dd1ce-a91c-4a95-9738-79ebd713da26","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":218,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"a58a753c-d4b4-4e28-b821-10ab74b1462b","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":218,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"dcbc0f82-7b6d-4406-bcfe-3706f9bbd988","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":218,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"100c8bbb-95fb-44b4-8ee9-56bf012fd529","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":218,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"591b57bf-522f-401f-9f12-0324ab525a0c","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":218,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"b73dbe6c-f1dd-4454-95b6-723880572ae8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f61cd0fe-0c51-4a60-8228-9b78dd0129c0","block_type":"box","text":"Global Principles | 10","page_number":218,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"c9624ede-971d-49a7-9bc4-cfbccfbd7046","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c670ff39-8530-4910-937c-efb47e3cf058","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":219,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"3029359a-8d0e-4804-8958-a8cb634d70dd","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":219,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"8f26441a-2246-4e1a-97d5-b8272e4487fb","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":219,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"02251cc5-ca5a-4b99-84b2-3592b7f78e5c","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":219,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"2c8903e6-55f1-489c-96bd-0670e84ccbc1","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":219,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"3c2fed33-787f-44bc-8b39-92812faebdcf","block_type":"box","text":"12, 13","page_number":219,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"b566bc2f-56b6-4a5b-abd9-d812e20a034e","block_type":"box","text":"From company disclosures and","page_number":219,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"eb0f19c0-64c2-411e-9f42-c64bc3f393ed","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":219,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"83e52079-e89e-4220-9ee0-8a45d774b736","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":219,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"cc83802a-9bb9-4dd2-908e-701a452cd29e","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":219,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"efffeb6e-ecad-4c28-b638-1234f6072830","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":219,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"45a4e2e0-e2bb-4f5a-8e66-acecc8fe69a4","block_type":"box","text":"viewed as best practice in the market.","page_number":219,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"0bf18863-3958-40f1-95fc-2ea78792c72d","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":219,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"1494c05e-7a2f-472a-97c8-f9a797d96247","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":219,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"c7d978fd-f4fe-4b4a-9ec3-d88673c509e3","block_type":"box","text":"with insights into how companies are managing the risks associated with a transition to a low-carbon economy by","page_number":219,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"e815bb92-889e-4228-a508-4b22582837d5","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":219,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"f5494944-2ef3-4d26-8386-bef0e98c1b05","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":219,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"74e138a9-f31d-4eb6-913b-64be275b81a9","block_type":"box","text":"long-term targets, ideally science-based where these are available for their sector, for scope 1 and 2 greenhouse gas","page_number":219,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"fd3ded10-143f-4b6f-8fa7-bee745484c1b","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":219,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"e9e3fb7a-f868-45ca-8daa-e795dc28ba22","block_type":"box","text":"interests of their investors.","page_number":219,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"0e6bbd8e-bea2-4a86-a26d-8b596ab1a0d8","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":219,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"215a8294-dd3f-48b4-b0fb-a3d5bd281f13","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":219,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"a2c483e4-2f6c-433a-b9ec-767e36118a81","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":219,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"e76ca17c-ddf9-4c39-ba67-21b962ecd6ca","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":219,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"d564da0a-b28a-477d-b48f-6864bd5deae2","block_type":"box","text":"good-faith basis as methodology develops.","page_number":219,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"7c3579c4-2c5b-4ba9-ae52-0046236bf25a","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":219,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"7a0d9f37-0682-4f96-b347-43aecdfea0d1","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":219,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"83fa08d6-cf86-4a5d-aaee-539f51ed4b1a","block_type":"box","text":"generate long-term financial returns.","page_number":219,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"02365581-f96c-4202-8d4d-814f51149986","block_type":"box","text":"14","page_number":219,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"a6f9a0c5-0663-435d-8551-df1648647dd3","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":219,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"32709f68-00db-4b0b-8dd7-34ccdc1ed3c1","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":219,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"e1b6299d-1356-481a-9745-1287e9c0529b","block_type":"box","text":"15","page_number":219,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"37ae07bd-6d55-48c8-8b25-1ef0a69749ff","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":219,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"2f6c4ad0-ae99-4196-87f5-fa0b3f7a7c5d","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":219,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"ae2a395f-954f-4fd6-8c74-e15cc92e1d1d","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":219,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"164ba1c5-5742-4246-b498-7bb3bb238b32","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":219,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"431393c4-7b7d-4244-ac75-33f41aa8ff2d","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":219,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"9d946521-eea5-4427-80fe-9d28471f1fa2","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":219,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"3ff6c719-76ff-4447-876c-2b4dce057a22","block_type":"box","text":"12","page_number":219,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"27e94597-b9c9-4398-b214-cb17cf1d1588","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":219,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"8268c026-3b9d-41b0-9658-1652fbcc68c5","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":219,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"0c28ce97-5c26-4ccf-93ee-afc9de440816","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":219,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"71d9f346-f2a9-4b87-ae14-eaaf01552722","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":219,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"ded7c595-5a6d-46ba-9843-938a1c5a4c40","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":219,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"2f2f93f7-1398-401b-8004-c6d80de14713","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":219,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"3f4d4450-72ef-4e4e-8c54-294594e06354","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":219,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"b5fe9655-97cb-4d90-b398-d4ad43230244","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":219,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"d086e133-41c5-4f2c-8fdd-44622e6ae089","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":219,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"6b0406ee-6129-426e-ab43-93bf9caf1fba","block_type":"box","text":"13","page_number":219,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"10d616e8-f3ad-42f8-9d76-4e6ebc26a4f1","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":219,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"d1ef8c29-b464-4d7a-8388-c233a8ad9d14","block_type":"box","text":"2025.","page_number":219,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"df8df9f7-4794-4329-ae41-95e96ba59cef","block_type":"box","text":"14","page_number":219,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"b142d556-2f9f-43e3-a7ce-fb99827996ad","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":219,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"3e66f8e3-5863-4098-af7c-70e0aaebc9de","block_type":"box","text":"2025.","page_number":219,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"bdd8e43a-f64f-4833-8be4-52d6a99a9aac","block_type":"box","text":"15","page_number":219,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"50eb83ba-49ac-4c84-84f6-8b7f14ddc1d4","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":219,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"6c229058-de89-46ba-b80b-663c42c2a318","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":219,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"34118466-f401-4313-aeac-9eba9de40e29","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":219,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"e9f85fbe-41c2-4aa1-a345-27f812852729","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":219,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"68a033f6-f671-4d81-ac43-1831e85a192b","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":219,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"aeed8215-3195-4b19-966f-664b4ba12ebe","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1d426fac-a082-4d8c-8cdb-ab7a212f92db","block_type":"box","text":"Global Principles | 11","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"ccf95ced-7dd2-4195-90ee-2374670a1dc4","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0f7b5b0c-5adc-4059-8174-daa85ad45d4e","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":220,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"b8eb7092-64a8-4fb2-a723-2f87bab0db75","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":220,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"f301fa7c-cb9e-4286-a4c8-5f8cbe593f64","block_type":"box","text":"16","page_number":220,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"06848383-0557-4a0d-bba3-26b7ccc5ef23","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have","page_number":220,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"c32de3f9-a447-4b31-b920-34e47b00d17c","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":220,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"26dc1dec-e799-4058-ad52-7791377c38bb","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":220,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"34be4f6c-d77a-4fc0-93b0-ef2ebcb9bf1f","block_type":"box","text":"needs of their workforce today, and the skills required for their future business strategy. We are also interested in","page_number":220,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"0a558f6f-58dc-4a44-903b-e97cf1e255be","block_type":"box","text":"understanding how the board monitors and engages on these matters, given it is well positioned to ensure that the","page_number":220,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"c97b438e-b5c0-439e-b3bb-c519f67056d0","block_type":"box","text":"approach taken by management is informed by and aligns with the company’s strategy. BIS does not direct a","page_number":220,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"536136b8-409b-4a38-b252-05d60ddcbb10","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":220,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"eb0284f2-31bc-492b-99e5-a4f471447919","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":220,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"ff6ca762-7e99-47e7-8bdc-c31928f28fbe","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":220,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"592a4bc8-a13f-47e7-a9ec-48222106df13","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":220,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"1d665269-944b-4c2a-a6f5-230f2ba9db3f","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":220,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"c3d0f715-1c7e-4076-8493-4da661d7a3ad","block_type":"box","text":"impacts.","page_number":220,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"7466d307-e36c-41bb-a043-77b1997b666e","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":220,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"848fa86d-27a1-479c-b429-56cfc4ed2cda","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":220,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"af862e06-80a9-4bd5-9d34-0b9b5c8b39fd","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":220,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"141a8d20-e33a-4a2b-bef8-3fbb99a8fc1a","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":220,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"5763c278-9e8a-4fac-9b72-6aca69c8a961","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":220,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"6a8d30cb-0cf0-4d71-8131-479908d7c0e7","block_type":"box","text":"clients at the global and regional level.","page_number":220,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"92a31976-d7e1-4958-9f3e-c4d0d2517f09","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":220,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"27c23398-f852-48e6-80a0-21a56019c91a","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":220,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"1c2dc13a-2eed-412b-abfa-001eb319d0ea","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":220,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"ec352aba-cd43-4ac0-b996-955cf0d15eec","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":220,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"33961968-eff4-441a-9727-bdf9c4be3cc3","block_type":"box","text":"BIS on behalf of clients, as well as updates on material process issues, procedural changes, and other risk oversight","page_number":220,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"3810ed00-694b-4b28-953e-1e5942395834","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":220,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"72306f2b-b0aa-4480-959a-c7a226def022","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":220,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"e63ed75b-c838-443c-8669-e50ef87b3c34","block_type":"box","text":"are independent from the investment stewardship function.","page_number":220,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"da6c61ec-b440-49bf-b409-5326c6940958","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":220,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"9dc6ff2f-5eac-408c-8955-36506f9943ba","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":220,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"dccaf2f5-d221-4257-8aac-f19574f3df48","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":220,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"d3685c5a-497c-43fa-8518-b730108be9f1","block_type":"box","text":"VOTE EXECUTION","page_number":220,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"ac36425f-4627-4890-87bf-d0dc75f72593","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":220,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"afb6d81e-7cf3-42a6-a1f1-17ed2358ce02","block_type":"box","text":"processes in place to consider all proxies for which we have voting authority, and submit voting decisions, or refrain","page_number":220,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"5ef7780c-cbca-4820-b3ed-5cd88ea03629","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":220,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"b12d9c20-6c0a-4dd7-ab69-0635a90857d6","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":220,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"d6866064-289a-4940-9632-fe71e057e6fd","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":220,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"2b832ab5-ab6b-4761-962c-7452174f4add","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":220,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"0a40a752-1196-4569-812f-9224ad41fe5c","block_type":"box","text":"management policies and procedures,” below).","page_number":220,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"2cf3d8d6-bc44-4516-8209-7116c4db1a06","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":220,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"33135fe8-28cf-413a-9275-06199e00d730","block_type":"box","text":"of voting such proxies on behalf of our clients. These issues include, but are not limited to: 1) untimely notice of","page_number":220,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"09a5b49e-5e2a-4119-b323-c197af84a71b","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":220,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"b7ab5443-1a78-425d-80e8-508269bdc922","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":220,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"8326736b-ee70-462d-ada1-57d47a124adf","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the after the shareholder meeting","page_number":220,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"4f2ba704-a0ca-475c-9f0d-fb22cc93c92a","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":220,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"74cb9927-0fb1-4606-8705-7c8ae6f0290d","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":220,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"b5ab55ae-194c-4c22-83eb-6ce509284dbf","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":220,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"16fa3381-bd00-48fc-9f21-a558d3ef060e","block_type":"box","text":"16","page_number":220,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"c7b9c75d-4488-4ae7-b339-0d5858410586","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":220,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"28c63622-370f-407a-a653-ce9535780eed","block_type":"box","text":"December 2025.","page_number":220,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"af92c25b-694b-4c65-9a1d-30e4fc161f95","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4d956a66-a523-4d87-a586-1a7ed212e487","block_type":"box","text":"Global Principles | 12","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"38447a57-caed-4a7c-aa84-b855d9930b5d","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"54783260-dad4-4271-84c7-dbae2147a387","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":221,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"ea3992e2-89f3-49b5-ab17-256bce576b32","block_type":"box","text":"in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but","page_number":221,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"81fe0439-7d71-43f0-a294-a02347a5e7b8","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":221,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"75378d84-aa7a-4cb3-ba63-f80a01a16887","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":221,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"62f89e19-c197-427f-a61a-eb1b82075332","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":221,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"e1dc7648-fd20-4bff-9b69-d3933f7f6278","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":221,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"d41958e3-d992-49e2-8bbd-66c28df947f3","block_type":"box","text":"enterprise-level vendor management activities.","page_number":221,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"8d35eb8b-a80b-4bdb-a170-f2816d113621","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":221,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"666edfb0-7102-4394-831e-03f51ae4da8a","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":221,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"8200d170-f622-413b-953e-95168686b6e5","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":221,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"f33907bd-e5d0-4c5d-a090-9a8907a11541","block_type":"box","text":"BlackRock employees.","page_number":221,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"6b57d264-781e-40d3-8f77-f00e0fec45e0","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":221,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"9a15da5d-66df-4409-8cbe-8592fb2d2dd2","block_type":"box","text":"SECURITIES LENDING","page_number":221,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"48bedfe5-ba4b-45c6-9b21-94881e7ad399","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":221,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"e3b67ae6-7b8d-4f3e-bd91-a21ce13a9eec","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":221,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"c9ec4a67-c0fd-46d4-a279-a1b60b2b24b2","block_type":"box","text":"recall securities out on loan at any time. BlackRock (or any other lender) does not retain voting rights for securities","page_number":221,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"1b980f96-27a2-4de6-86b2-3d489f3a5073","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":221,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"60427b5f-ad47-4359-b61a-e2afc3ad60cc","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":221,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"4116b4d2-3ade-45e2-919d-9c752d9aef37","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":221,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"263e8d1b-f6e9-4c30-900d-ea9633a21c8a","block_type":"box","text":"loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients","page_number":221,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"507b525a-5638-4589-a75a-c2923209f4c6","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":221,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"38ee1b87-7504-453a-b65b-4b53a274837d","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":221,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"e1846c0c-72c6-43fc-9c05-75909bc342de","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":221,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"ddc7a889-70e1-41f5-9ccc-a58cad739681","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":221,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"ca2c1ff8-d0bb-4536-aa56-83cd1264a431","block_type":"box","text":"of recall consideration).","page_number":221,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"c41ef0f8-d6fd-4759-bfae-9d495d7d3886","block_type":"box","text":"17","page_number":221,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"975ef0fa-fdfb-4fc2-9041-e4130cb48d86","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":221,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"2a18d261-d152-4f8e-85a5-556d9d2f67a8","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":221,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"f8956b2f-9dee-4c4a-8152-d71e32f477b6","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":221,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"1a4fa5d4-5655-452b-8238-e342f4b1cf40","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":221,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"b4b42652-5d88-437f-a8e6-165b48b8bd6f","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":221,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"f24716c6-d59a-4af8-b3aa-0e2eda2dc5c3","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":221,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"a7a0ad5c-dc40-45c3-bebe-0edbf5ec8c6c","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":221,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"343dabe6-5a8a-4989-b81c-d29aeda95857","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":221,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"a853a479-19a2-4e91-99b1-5d5801c79c2c","block_type":"box","text":"and may modify it as necessary.","page_number":221,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"18d08e3f-8c56-49f5-9404-10d73ea465a1","block_type":"box","text":"VOTING CHOICE","page_number":221,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"5615acdd-8418-430d-a095-08046395ddac","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":221,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"401c9258-97dc-49b7-b488-bd64d67ec7e3","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":221,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"c7c19d3b-f841-4d2d-899d-4a629dab2ad8","block_type":"box","text":"18","page_number":221,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"f29d1f8c-32c0-467d-8dac-9a47e4157e5f","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":221,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"21f19667-dfd9-41e3-a61a-a63ea55a2b5c","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":221,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"ba809d43-8d20-4c00-badb-0a6042f2d47a","block_type":"box","text":"17","page_number":221,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"2d8fa11f-0bb8-4d27-b0c3-f2f1363f2ee4","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":221,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"1fb9fd24-75c9-4afe-bbf0-8446d651db66","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":221,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"becc6aed-a900-46e3-ad47-2eb9583b4d6d","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":221,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"5c097ff5-53e2-4239-97ab-07a8d0d59cd1","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":221,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"895a1e0b-61f7-4745-9894-bd263019779d","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":221,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"8a41b277-a87f-4670-9222-77af58c1df1b","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":221,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"d909aca7-aee5-4191-9506-7ba487949c0f","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":221,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"fbd037a1-622a-48cd-aa8a-9786d98f1790","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":221,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"630bf432-d2ec-4d38-8cd4-aae5c607e80f","block_type":"box","text":"18","page_number":221,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"29eb50de-dfc7-43d0-871f-4135dcc6c407","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":221,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"a04880f6-8289-4e01-99ff-9e295035df7f","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":221,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"06efffad-dd19-489c-99ea-68675b9cc477","block_type":"box","text":"including the decision to lend securities.","page_number":221,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"3c4055bc-25b5-449b-a405-bb5543b677e3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1f7c3ce6-5c3b-4e74-b313-0a0737014a83","block_type":"box","text":"Global Principles | 13","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"e65687d2-8ceb-456c-ba76-d25150747ac5","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f12227c3-73ec-4dc1-a0e9-63acb749df69","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":222,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"65eef15c-036c-48fe-8def-9911981e7098","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":222,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"9b1a9ad9-bba3-472f-93ab-603b4e92a4da","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":222,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"d89498c4-12dc-4c3b-894e-a59e36d93eda","block_type":"box","text":"19","page_number":222,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"bc097621-635a-400b-9893-8b0ede49e092","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":222,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"ff8e9a69-c3b7-441d-918a-85d72196cbc3","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":222,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"66b38e92-54bb-4599-b5c9-da2a7a823fca","block_type":"box","text":"20","page_number":222,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"55329a70-b3f3-4d5e-b044-bfae26d002ba","block_type":"box","text":"As a result, the shares attributed to BlackRock por tfolios in company share registers may be voted differently","page_number":222,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"506267f6-79e2-497e-9e34-5ec2386cdb83","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":222,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"b609469b-1d79-4f7b-92f0-3284844d237f","block_type":"box","text":"accordance with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":222,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"229954f6-3529-43d6-b987-fe5bf6249fce","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":222,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"49c45fcd-0eed-40d0-95d5-547d78d09677","block_type":"box","text":"21","page_number":222,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"ffe64017-2d60-43e1-aaf2-7931036ee506","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":222,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"f360401f-d8e4-469c-8929-87145f84eddc","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. We inform clients about","page_number":222,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"94bddadf-e3d1-4e1f-911a-760babddd959","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":222,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"b14a87bc-d2d8-4b91-84f4-9f8f710179fe","block_type":"box","text":"website. We make public our regional voting guidelines for the benefit of clients and the companies in which we","page_number":222,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"de56f3d2-8b7d-4ed8-b3d6-c56ddfc1bb8e","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":222,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"2193f5ce-bfa3-4310-968b-55b0b8849b38","block_type":"box","text":"priorities, as well as quar terly repor ts detailing our proxy voting and engagement activities.","page_number":222,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"8960edef-30b3-425d-b06a-9b34f74246a2","block_type":"box","text":"19","page_number":222,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"f7c3f33d-89c2-4c2b-ab69-e74c0fdaad08","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and","page_number":222,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"33985180-60d2-4a4e-95a0-bd7e85057a40","block_type":"box","text":"preferences from a set of voting policies from third-par ty proxy advisers. BlackRock can then use its proxy voting","page_number":222,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"46375a43-d84c-432e-9207-70a13e72da79","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":222,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"4a89d1d8-277e-4b07-838a-5570351d4226","block_type":"box","text":"20","page_number":222,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"00f79a6f-bad5-4c72-9b72-f4618821e716","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":222,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"4fc4668e-4965-4ec8-a5c1-5d568bd4feae","block_type":"box","text":"21","page_number":222,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"fb784b9d-a458-46d9-acfd-97584a653249","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":222,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"fe4ffb2a-801c-488b-8770-d3ebdd248212","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f56bfc14-8ec0-45e9-96a8-a02fcd92b95e","block_type":"box","text":"Global Principles | 14","page_number":222,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"2ef0281c-3fac-4467-9175-2c6a7ef29bf8","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eef6c32b-ae91-4452-a30d-df29fb3d0d45","block_type":"box","text":"Want to know more?","page_number":223,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"e0a63fa1-09e9-4899-98f5-505b56c4c6ed","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":223,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"fe5d0009-b272-4018-a8d0-452bcabb5071","block_type":"box","text":"This document is provided for information and educational purposes only. 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related to climate","page_number":226,"box":{"x":101,"y":526,"width":784,"height":11}},{"id":"772adc2c-cd2b-41f5-9530-509049d88c11","block_type":"box","text":"risks and the transition to a low-carbon economy at companies that are held by in-scope funds and accounts that","page_number":226,"box":{"x":69,"y":541,"width":806,"height":11}},{"id":"cc06a54f-91a8-4905-b6b6-6b648c5ba3ad","block_type":"box","text":"apply these Guidelines.","page_number":226,"box":{"x":69,"y":556,"width":165,"height":11}},{"id":"203c2c0e-3553-4373-b6bd-2d9debaa0e4d","block_type":"box","text":"The Guidelines differ from the Benchmark Policies in that they consider, in addition to financial objectives,","page_number":226,"box":{"x":101,"y":579,"width":755,"height":11}},{"id":"785525a9-2ce9-4e7b-8856-003563c2f198","block_type":"box","text":"companies’ strategies to align with the transition to a low-carbon economy. They also incorporate the more ambitious","page_number":226,"box":{"x":69,"y":594,"width":834,"height":11}},{"id":"06151a22-25db-4a54-b116-5b0dff93fe01","block_type":"box","text":"goal of the Paris Agreement - namely to limit average global temperature rise to 1.5°C above pre-industrial levels.","page_number":226,"box":{"x":68,"y":609,"width":806,"height":11}},{"id":"cb0b3231-9dbe-4640-8f86-209ae47d669e","block_type":"box","text":"6","page_number":226,"box":{"x":876,"y":609,"width":4,"height":5}},{"id":"aa03c56b-53ec-4cec-9b35-568f010cf63d","block_type":"box","text":"The Guidelines apply primarily to companies in sectors that play an impor tant role in the transition to a low","page_number":226,"box":{"x":101,"y":632,"width":766,"height":11}},{"id":"aefff5a9-15ed-42ce-9e46-934f6af6645b","block_type":"box","text":"carbon economy. 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Fur ther, the Guidelines consider the","page_number":228,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"1d29a3ef-2db3-4a30-a57b-d7e345fbccb9","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":228,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"7ddd8aed-9e96-4814-ac80-c533670f4517","block_type":"box","text":"does not.","page_number":228,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"786e5900-5266-44c0-bcd6-95cc50b72eaa","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"a78307cf-8d72-45b9-9cf9-942606421612","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":228,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"6b8288bb-eb55-44c4-a524-189065d66a96","block_type":"box","text":"limitations:","page_number":228,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"b7f4254f-9e25-43f1-bb12-5573a624442d","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":228,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"7f9481c8-e45e-4298-938c-f57ee42b8231","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":228,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"7df7a9b6-ed16-4e72-b9b3-916d279f5b8e","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":228,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"8470130a-36bc-437c-a27e-3c12eff022a2","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"a1ccc6d1-59e6-4eea-9bbe-de17ba360958","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":228,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"80f390c1-4d69-4732-bdb9-032f35a6351a","block_type":"box","text":"The boards and executive leadership","page_number":228,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"e7de5480-3b4e-4f8e-80f8-aa1fac730b29","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":228,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"e3bf0b14-202d-4f86-baef-582cc15e8244","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":228,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"4a0a9f01-c0a2-4dc1-87b0-20a9d9469be7","block_type":"box","text":"judgment of the priorities and outcomes most aligned with par ticipating clients’ investment objectives.","page_number":228,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"ad246cfa-7e8d-4e17-a91b-67132256db6a","block_type":"box","text":"Voting approach under the Guidelines","page_number":228,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"80b541a8-2ee1-4c10-bbee-f3854129b6b6","block_type":"box","text":"12","page_number":228,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"c44a3973-e783-4b16-9fcb-54bfa2fb13d0","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":228,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"8af1e2bd-05b2-4852-a92e-b56f6a45d964","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":228,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"82545621-2df7-4b66-8f2e-732c66d6b50e","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":228,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"0fcecb3c-40c8-4341-af18-fbb73a076244","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":228,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"b8da1022-7868-4307-a5bc-b1685a1a4b32","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":228,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"8fcd390d-a1bb-4c9e-9135-74a933a1b9da","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":228,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"373d3cd6-ad12-475f-8c08-682d9a606bda","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":228,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"3d262df1-5617-49f2-8448-30411fa1d8f1","block_type":"box","text":"Corporate Disclosures","page_number":228,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"fe2a3e29-3a8c-4fc8-9d9c-84fb83895740","block_type":"box","text":"13","page_number":228,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"e12a522e-ee78-47a0-8e65-d216894bc349","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":228,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"2cbd8c0d-06e7-49df-af64-210411b3a798","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":228,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"c33a7f0f-adff-4105-931d-c1b1c5d33e08","block_type":"box","text":"to companies that are impor tant to the transition to a low-carbon economy to explain the strategy and governance","page_number":228,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"919422b2-f890-41bb-931b-91be9ed5f731","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":228,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"5252652a-e63b-4851-96ba-1baaa6fd4675","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":228,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"7553bca5-c2cf-4399-ae2a-2bab338862de","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":228,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"e47a8edc-8875-446d-bc2d-fdf669d1d9f9","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":228,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"f538a2f3-1a90-470c-b06e-4525d52ffcbd","block_type":"box","text":"(2) low-carbon transition-related repor ting. Standardized disclosure of sustainability-related data suppor ts investors","page_number":228,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"576f89a5-9e8d-495f-be85-7978ce1306c8","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":228,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"b3c988d5-1f62-47ab-b190-446d4b4eb654","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":228,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"b8b7aed8-0c29-4acb-942f-f26ac5ba793c","block_type":"box","text":"14, 15","page_number":228,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"447753a2-1982-45d8-8a5c-a568f454c3c9","block_type":"box","text":"IFRS","page_number":228,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"c8f0ff22-c127-4a34-91ac-9e36f111d6ec","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":228,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"94695aeb-db74-4a4b-87d1-e349d210a506","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":228,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"82c93445-255c-42b0-b588-1e9e04ec35d8","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":228,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"63c5f686-de8d-4340-89e7-aeea93f3ca43","block_type":"box","text":"and assurance standards are developed.","page_number":228,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"2c59d43a-e24c-4ddf-a545-78aa8c98dee5","block_type":"box","text":"12","page_number":228,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"ccd01685-0c57-4a48-a0e3-4c3301cc987d","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":228,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"dfee95b1-d296-452a-ac34-2989dd05503b","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":228,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"e4984f35-3773-436e-89eb-a8a82aec67e8","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":228,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"55be9067-1753-4c02-b642-2ecf16d7e418","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":228,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"25e2378c-2c3a-49f8-a04a-fc24656f33a4","block_type":"box","text":"13","page_number":228,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"049d21af-6c38-42b8-9219-db5edd1b7b92","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":228,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"f7ffa55b-6ea1-4343-88ef-066cba86e0c6","block_type":"box","text":"repor ting methodologies are nascent. In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":228,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"0a10473b-1238-4097-97c7-cb626bf0c29f","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":228,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"4db412d9-cde5-42c0-a78b-e937e4145d17","block_type":"box","text":"14","page_number":228,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"c7a78bab-0f61-43a5-a25d-4415014d225c","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":228,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"2b0c1053-8b30-4e08-a1f5-41ecc6363867","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":228,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"30bf283d-5040-46f2-afef-a6eed874edd2","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":228,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"4ad295c0-aa36-48aa-b259-aef50cf15796","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":228,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"0cbf25e8-b6c2-475f-a8af-ae3befde69df","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":228,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"03805fdf-350c-4653-868b-25c7ec4e2698","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":228,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"ed89b6b5-172f-4d90-9191-91ae6b92d780","block_type":"box","text":"15","page_number":228,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"d002824d-50d6-4e68-bfc2-7c8920d9b483","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":228,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"89172fc1-47cd-43f1-8196-9b5820676a55","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":228,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"c1cafd5b-59ec-4bfa-afb8-3a2f766602d2","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":228,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"ce161c35-e881-4716-9e50-263a66f37333","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":228,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"604bbec5-f1fb-4a5e-a587-2600c6430b67","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":228,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"19db605a-81ae-41a7-9db7-c6244c72ee06","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"54906cb6-ce2d-4bfb-b6ae-fe98823fc2da","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":228,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"6fb562bb-d03a-4b3c-ad04-f12cb6b10d6b","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"35caa43f-16c1-45b5-95f8-342354cc34a0","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":229,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"0b379e3a-24f0-4403-8af8-40c236b67751","block_type":"box","text":"16, 17","page_number":229,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"13887a08-b7a3-44b4-9f2f-7448aa8baefc","block_type":"box","text":"In addition, the dedicated team looks to","page_number":229,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"cc624713-455a-4165-bb33-89797b844615","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":229,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"dce0cd95-1ea1-4371-bed3-efa9990ba0b0","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":229,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"973edbfc-e87c-480c-a13d-2b5824766189","block_type":"box","text":"scope 3 emissions reductions. 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For some companies that play an impor tant role in the low-carbon transition, scope","page_number":229,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"c89cc094-8eb1-4e3a-a36f-c17dbc6f4606","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":229,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"5b4a86d3-37fc-471e-b714-4096ceb003cc","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":229,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"9b2368e4-43a6-4206-a92c-918d72c43a0a","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":229,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"e51ff901-72ed-441e-a9e8-0f939cdf1cb1","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":229,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"84a804a2-e5f3-4dfa-ab92-c842d7f7c77c","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":229,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"f2675a7e-6346-444c-a082-97fad0e1c0d3","block_type":"box","text":"transition risks.","page_number":229,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"d44563ef-1d74-45d8-8a9c-fb18f8c1bc96","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":229,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"1e028515-49c7-4cf5-817a-9b9f8417b9ae","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":229,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"63503f61-7547-4c0d-abef-ea9d83bdff1b","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":229,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"e2f6f1a7-c329-414c-bb61-522ba420d8ab","block_type":"box","text":"Transition plans","page_number":229,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"b62fdf20-4fb2-4171-a59b-e899f651a466","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":229,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"2814138b-80fd-4a16-8677-1851fd60dce8","block_type":"box","text":"transition strategies. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":229,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"6a76f29d-3805-4ecf-adcf-0ca2cebd243a","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":229,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"a1f5e7bb-6372-46a6-8d50-bcab7f00540b","block_type":"box","text":"science-based and net-zero targets in line with the global 1.5°C goal.” Websites accessed in December 2025.","page_number":229,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"9442553b-ca13-46ac-9540-072f45e7624d","block_type":"box","text":"18","page_number":229,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"a08d4087-53d0-436d-bcb5-9491d7d4acdd","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":229,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"ef11b61a-76ff-47e9-b562-4ea2a306f45a","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. 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Where the dedicated team","page_number":230,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"b9f36722-654a-4bfb-ace4-a4c0aed16dc2","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":230,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"82a62c14-888d-4704-a8f2-a0948215a6f9","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":230,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"b6a3f0c6-d41f-4680-b3f6-5f97b29f06c4","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":230,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"686ec778-c20b-4ab6-ae2c-2ab387bb819d","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The research uses a definition of materiality from the GHG Protocol,","page_number":230,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"c4b558c1-be8d-4083-8e04-8398acff6f49","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":230,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"5c3b50b6-aba3-4564-8610-f6ccd1cb31ba","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":230,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"190d8321-f755-49e9-a920-e73cda872668","block_type":"box","text":"Website accessed in December 2025.","page_number":230,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"b5e6d022-0b48-419a-8944-bb3ee6ea29c5","block_type":"box","text":"22","page_number":230,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"61d0b8cd-a08a-4313-b167-b9b72feb3039","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":797,"width":787,"height":11}},{"id":"3b86871a-f132-4d6b-94a4-f2b620cdc75a","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":230,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"d0d11d5a-467a-4cc3-bc46-836cca8a38a9","block_type":"box","text":"23","page_number":230,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"e50a9850-ae6c-420b-849c-3d5d8f0fd4ce","block_type":"box","text":"Board repor t votes are generally advisory and relate to repor ts issued by the board of directors that may contain","page_number":230,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"4270c573-15e6-43db-ab43-9503047f60d7","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":230,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"f9c4f869-f544-4170-805a-8185c7a17e7a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0d0d3f4b-2d57-412a-8311-762e7d225268","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":230,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"db4f45e5-0afb-444c-a03a-ba671607daf4","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":230,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fea013cc-9a83-4639-9f41-89fee840ce7c","block_type":"box","text":"Where the dedicated team has not suppor ted director elections over climate concerns in a prior year, and the","page_number":231,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"51563d7e-98f2-4e7c-9917-8d67ba2e3543","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":231,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"5a6a15e4-7805-44d5-b720-a5aff14430ef","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":231,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"2fa5e643-a794-4ff6-98c0-4dbab9c9fbec","block_type":"box","text":"24","page_number":231,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"d76ac848-98a7-4dd8-8534-acb2bb034620","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":231,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"b887821b-a352-4e64-b2cc-d4f0284cba3a","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":231,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"04fbd8c8-669b-415c-9103-a0fcc5042b7b","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. The Guidelines consider these","page_number":231,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"96400b84-3a00-40c1-a337-3603bc38fcdc","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":231,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"af35f863-9930-4024-9b85-8083848a0b1e","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":231,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"2ae02b9c-093d-4427-9562-09624e8f2d14","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":231,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"16ba02d2-3fb6-4020-8750-a18682944ece","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":231,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"5edad86a-13b0-4652-a2dc-d9cff90ec8ec","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":231,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"4b0ce125-27dd-4149-9a3c-d65e5f80dcc1","block_type":"box","text":"transition plan and targets.","page_number":231,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"576fee68-999d-4d77-82e9-feb4eb956382","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":231,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"fdfb851f-69d4-44c3-ad8f-80c171305737","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":231,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"3e8fced4-767d-41dd-98d9-5471131f55a1","block_type":"box","text":"long as cer tain requirements are met. 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The dedicated team assesses the implications for, and the relevance to, the","page_number":231,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"ca5f0e81-6354-4487-a4a2-1b2ccb09f9e5","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. 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Under these Guidelines, the dedicated team engages,","page_number":231,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"3c2e3e35-e4d3-420f-ba37-ce1b4758e84e","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":231,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"6b558274-b347-4d6c-8d67-5311068c19ab","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":231,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"b644ef8b-b2f7-418b-b99a-3c024ac4185b","block_type":"box","text":"Executive compensation","page_number":231,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"d55a2438-6da9-47f2-aab7-9d72040e43a1","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":231,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"8e67f43d-bfb2-4fef-912c-392653fbf738","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":231,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"d87a8330-ce65-41d2-a660-4d7085bcfffb","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":231,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"5e8c5064-49a5-4e5a-8eda-e6e788e63cfc","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":231,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"347fd7a7-4873-4e1e-92e1-4117a9d2023e","block_type":"box","text":"24","page_number":231,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"0cb1dab2-b2d9-466c-8b9d-18ad6f2a6edf","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":231,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"7c253cfd-921c-4712-b8b3-88fb882aa36b","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":231,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"6f151320-9461-441e-a69e-0ac8aa2f02d6","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. 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The team notes that assurance of corporate disclosures related to climate risk and the","page_number":232,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"26084dea-7d51-4d26-af07-f046fc9b0ba0","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":232,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"edee824a-55a6-41dc-b6d5-7427df2dc609","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":232,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"f4933db4-3a94-464c-bba2-e0017897cdb0","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":232,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"9ba76519-d4ae-40c9-bd60-b717bfa0c1a9","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":232,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"860f5a10-be22-49b0-ba4a-045f1d1734f7","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":232,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"07cdd337-3004-4f46-83dd-a97c8233b841","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":232,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"b1955bac-8f3f-44fb-a2c2-2f40d3363162","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":232,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"119bc1f8-00cb-4f65-ae3d-1dfa556170dd","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":232,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"a6cceee6-84b1-483c-bf37-1e243d9f8213","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":232,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"e7410225-8719-4d92-8547-5f22ba36368f","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":232,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"88b3f30b-2f05-4a07-af5e-18ec86b9b4c9","block_type":"box","text":"stakeholders.","page_number":232,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"57acf604-b719-40eb-97a9-7071d62379f4","block_type":"box","text":"26","page_number":232,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"3487eea4-ff55-49ec-b96a-f4aaf32c7636","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":232,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"287f1104-8b99-4965-9145-ec2c4d8f16e3","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":232,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"7f36c633-6946-44f3-b13b-c55f2c0b58dd","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":232,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"0bd80bb3-2c51-4da6-862f-50422db58b64","block_type":"box","text":"team may engage companies that face risks and oppor tunities related to land use and deforestation, access to fresh","page_number":232,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"dc209df9-6121-4263-aaf8-deb4bad72733","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":232,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"35bdc291-9916-4d40-9e8e-970c81d1f1c1","block_type":"box","text":"26","page_number":232,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"998ace2d-b2f9-4eda-9e07-75e7746ff08a","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":232,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"7871395a-69b6-40c5-a0c1-12d8aa0da848","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":232,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"1598555b-583d-4ca2-811c-8f479e74d8b3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"bc291f99-781c-4679-868f-70df61d9626f","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"8ac39bf2-8d9d-404c-82dc-9355105d6105","block_type":"box","text":"BNM1026U-6032633-19203500","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"22d78a51-e83c-425c-920f-78126e4ed60b","block_type":"box","text":"Appendix 1","page_number":233,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"226dbcda-2237-4272-9312-3c65099d31e9","block_type":"box","text":"Terminology","page_number":233,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"067020fc-e906-4962-b5b9-aff22319168a","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":233,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"80851de9-de13-4728-a034-404d9cffc0dc","block_type":"box","text":"Climate risk:","page_number":233,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"44441de1-d819-4d77-86be-82b4cb6dda66","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":233,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"a7097a71-9674-4849-b401-5c2972e07146","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":233,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"230037ce-b1c9-4a5f-9586-4102c448a3a2","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":233,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"60797d2c-693c-436d-b932-24644ca97936","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":233,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"f805cf89-a9eb-40f0-9b74-9ec0305f3d5e","block_type":"box","text":"The global economic shift toward lower","page_number":233,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"c6088c6c-020a-49fc-a249-5aa979156793","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":233,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"322e7595-a0b8-4544-ad19-65d82d65773c","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":233,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"efa1cfc4-e64f-4a68-814f-9392aead5f57","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":233,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"a8394003-7db6-4a7d-9fe2-63f3f6d4321e","block_type":"box","text":"Decarbonization:","page_number":233,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"1242ead9-6654-4904-86df-1a847e59341c","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":233,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"d4636b17-17b5-4d21-a8e7-efb313dc4f54","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":233,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"d5ccf404-ac07-463a-8be3-e3cf86b625c0","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":233,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"b28670f8-44e9-4119-808b-b1235297eb2f","block_type":"box","text":"e.g., methane.","page_number":233,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"61a477dd-4f93-4bc8-9307-7a4ee541d24f","block_type":"box","text":"Climate-related risks and opportunities:","page_number":233,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"05614307-0e0c-417a-82e5-bb43c7c0fa7b","block_type":"box","text":"The investment oppor tunities and risks associated with the transition","page_number":233,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"2f52e9e8-790c-4ba7-8997-0a636b87da32","block_type":"box","text":"to a low-carbon economy, including transition risks and oppor tunities and physical risks and oppor tunities in adapting","page_number":233,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"6cda2b02-e268-4a1f-94c6-ffa7930973a7","block_type":"box","text":"to physical climate change.","page_number":233,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"d1c81edd-9bd0-4e11-b369-2c459d020434","block_type":"box","text":"Climate-related transition plan:","page_number":233,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"3e4266e3-eaf1-41ea-9aa5-dcce637066c9","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":233,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"cc0509f5-32ee-4eba-872e-39108143c88f","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":233,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"6ab6ac17-b401-4c32-b63c-517b39382a9b","block_type":"box","text":"greenhouse gas emissions.”","page_number":233,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"10e5fa87-5857-4e71-aa2f-d3e31f6f11fd","block_type":"box","text":"27","page_number":233,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"96561b1d-f9ec-4a82-ad22-5b2314873042","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":233,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"3f0763a0-5c9b-437a-bbb8-f3195681558c","block_type":"box","text":"Targets that “","page_number":233,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"87176dab-e93a-417c-95dc-476e0a9d9cc5","block_type":"box","text":"are in line with what the latest climate science","page_number":233,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"c2fdcda0-c721-4e12-8ab5-721fed5292ff","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":233,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"fd94fd3d-07b9-4cc6-b29e-2dc960a75d9c","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":233,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"967fe8b7-94e5-457b-83d6-394eb67d483c","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":233,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"8337dc01-687e-4e0e-b109-5846db7caa93","block_type":"box","text":"with the Paris Agreement goals.”","page_number":233,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"3c1e5fa8-0f0a-4e99-a619-66bc01ea444a","block_type":"box","text":"28","page_number":233,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"9072aa79-fc92-43c3-bcbc-f3921642acf2","block_type":"box","text":"Scope 1:","page_number":233,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"9a865c7a-e332-41bf-a02a-c9e3a8329125","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":233,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"3b7cdd5c-7b6b-4dca-966f-b81cbf11cfee","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":233,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"a3f6b52f-df9f-461f-81cd-20e2450556e7","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":233,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"5883e7fb-1d4f-4b44-a68a-cd1ac6727bad","block_type":"box","text":"29","page_number":233,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"eda4e508-fd3f-4000-9618-78f10873bb78","block_type":"box","text":"Scope 2","page_number":233,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"f5a82215-0ad5-4fb5-945e-21f56b1c8fbd","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":233,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"3c82e7d3-cbec-4255-a4dd-ebca5ffe397e","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":233,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"e2479fa1-2dd5-44ce-a947-a9ff0c12afa1","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":233,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"039345af-d830-43b4-b93a-74fdb5c90be8","block_type":"box","text":"30","page_number":233,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"c5213be5-4d3d-4bf2-be67-bab27335f65d","block_type":"box","text":"Scope 3:","page_number":233,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"76db52f3-3170-48ed-b73d-7036e2537cb8","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional repor ting category that allows for the treatment","page_number":233,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"3585641c-6e52-41b7-a353-28f519f18636","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":233,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"2abc9f95-3ef2-4d35-baac-587b3a8aea07","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":233,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"5e46e5f1-c986-4f1b-8258-cf60ee50e77a","block_type":"box","text":"31","page_number":233,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"9e49a21b-d659-4af1-b9b2-a4cd2182514b","block_type":"box","text":"27","page_number":233,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"92167794-ea03-4473-a9e8-554c5cfac524","block_type":"box","text":"As defined by the International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":233,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"49bdd6bf-1d1c-4975-ae54-7118617ac64b","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":233,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"02e7c940-9646-42a3-93ef-f627ad4b8582","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":233,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"ef17a912-2b61-44d8-a97c-e3c9cb3493f4","block_type":"box","text":"28","page_number":233,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"3a327fdd-d7da-4cf1-9bc3-283bf695d6ce","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":233,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"972bf1ee-03f1-4e1f-a155-6426c0b33343","block_type":"box","text":"enables companies and financial institutions worldwide to play their par t in combating the climate crisis. We develop","page_number":233,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"5fead290-ebd7-4a09-97b6-fedd0fca6fa2","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":233,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"e88ae473-8656-4615-a0c3-d39138a23f39","block_type":"box","text":"line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.”","page_number":233,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"fba58898-9302-4903-b378-6d2020881669","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 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